What business leaders are saying about diversity in Davos

Hello from Davos, Switzerland, where thousands of business executives, dignitaries, journalists, philanthropists, and a host of other luminaries have descended on the snowy Swiss Alps for the annual event.

I’ve spent the past two days meeting with CEOs to discuss a range of issues, from AI to geopolitics to ESG. 

It’s always interesting to get the corner office perspective on some of the most pressing issues worldwide, particularly those perceived as contentious in the U.S.—specifically, DEI.

Diversity is a key issue at Davos this year, encapsulated by the broader theme of “rebuilding trust,” with topics like digital inclusion, leveraging DEI to promote economic opportunity, and advancing racial and ethnic equity, particularly in an era of exponential and disruptive technological development and its ensuing job and wealth creation. Such matters are all the more crucial when growing a company that spans many geographies, requiring DEI initiatives that are scalable, sustainable, quantifiable, and significant.

“When you’re a global company, it’s very important that you have a DEI initiative, not just for our employees, but for our employee resource groups, customers, and suppliers,” says Lorenzo Simonelli, CEO of the oil field services company Baker Huges. 

Supplier diversity, he says, has been a top priority in recent years, noting that the company began its supplier diversity program in earnest in 2022 and spent some $200 million with new and diverse suppliers that same year. “You can find a lot of innovation from new suppliers,” Simonelli says. Among the tangible benefits Baker Hughes has witnessed include reduced lead times and increased efficiency, fulfillment, and customer satisfaction. “All of that leads to growth,” Simonelli says.

At the board level, Michael Ensser, chairman at the global management consulting and executive search firm Egon Zehnder, says the art of good leadership is finding new avenues to bring different perspectives to life and permanently learning. He points to his lack of knowledge on the full breadth of diversity earlier in his career, which he understood at the time to focus on gender primarily. His ascension up the corporate ladder and shift to more international roles forced him to expand his understanding of people of color. “There comes a responsibility to earn or re-earn the license to operate [and] execute your business and to profit at the same time from the positive factors of diversity.”

Another recurring theme among executives is the need for employee resource groups. While leadership buy-in and funding of DEI efforts are critical, it’s the employees themselves who drive engagement and nurture participation in promoting equity, says Simonelli. “The amount of benefit we get from attracting people because they know that we sponsor and support DEI initiatives is huge.”

Ruth Umoh
@ruthumohnews
ruth.umoh@fortune.com

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Portfolio progress. Black Americans are the fastest-growing group of stock buyers, driven by young investors who have embraced retail investing apps, 401(k) participation, crypto, and meme stocks. WSJ

Sports biz. The New England Patriots selected Jerod Mayo as Bill Belichick's successor, making him the team’s first Black head coach and the youngest in the NFL. Front Office Sports

Great leveler. One of the biggest areas of concern for Black workers is AI’s impact on high-mobility "gateway" jobs that don’t require a four-year degree. Fortune

The award goes to…People of color received a record number of statues at this year’s Emmys, which also marked the first time two Asian performers won lead acting awards on the same night. Variety

Uncivil rights. Opponents of workplace diversity programs are challenging them by using an 1866 Civil Rights law meant to protect Black Americans from economic exclusion. AP

The Big Think

From redlining to the destruction of Black Wall Street, America has profited from Black labor while denying Black prosperity, resulting in staggering financial inequality, writes Roy Swan, head of mission investments at the Ford Foundation. Despite this, he says, a vocal faction is decrying "reverse discrimination"—a willful ignorance that is geopolitically destructive.

"Today’s world order is determined by the productive and innovative power of a nation’s human capital, which drives national wealth," Swan says. "Keeping players off the field for ideological and racist reasons will only hold America back while other countries steamroll ahead by tapping the full potential of all the talent at their disposal."