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discrimination practices, their manifestations in Internal Audit’s Role
the workplace, and how responsible committees
address complaints. DEI issues can pose material Driving an Inclusive Culture
risks to businesses, potentially leading to reputational
damage and continuity challenges. As business Numerous studies indicate that diverse
strategies evolve, Boards and executive teams must organisations outperform homogeneous ones
transition from merely acknowledging DEI concerns in innovation and productivity. High-growth
to proactively addressing them to ensure a more brands, defined as those with 10% or more annual
inclusive and resilient organisation. revenue growth, are more likely to implement
specific performance metrics for DEI compared
Discrimination risks are intertwined and lead to to lower-growth competitors. As workforce
chain reactions withinan organisation. These risks dynamics evolve, the demand for a diverse
include: and inclusive workplace is becoming essential,
especially among highly educated young
• People Risk: Employee Resentment professionals. Internal audits can be pivotal in
• Operational Risk: Inefficiency and Less Productivity promoting DEI in recruitment, retention, and
• Strategy Risk: Unstable Management development across the organisation.
• Reputational Risk Assembling the Power of Mindset and Metrics
• Compliance Risk
Organisations must actively combat bigotry
These risks are interconnected and ultimately lead and systemic oppression by advocating for and
to organisational fall out in the industry and easily hiring from underrepresented communities.
surrendering to the competitors. However, simply having a diverse workforce is
insufficient; businesses must enhance inclusive
Benefits of DEI Audits and equitable practices throughout the
organisation. This requires establishing systems
Internal audits can effectively help organisations to monitor DEI initiatives and providing leaders
mitigate risks related to discrimination and harassment. with actionable metrics for decision-making.
Positioned to evaluate DEI programmes objectively, Internal auditors possess the essential skills
internal auditors possess the methodologies and skills to assess the effectiveness of DEI initiatives,
necessary to assess DEI programme risks, develop ensuring a disciplined approach to fostering a
effective remediation plans, and ensure programme fair work culture.
effectiveness. Companies that excel in diversity
are more likely to achieve higher profits than their Getting in the Driver’s Seat and Accelerating
competitors. DEI Efforts
• Uncover biases, disparities, or barriers that might Internal audits can apply audit techniques within
hinder equal opportunities and representation. their functions, at the enterprise level, and
• Create focus groups for a more inclusive and among stakeholders to support management
equitable workplace. in achieving its DEI objectives. This can be
• Develop targeted strategies and initiatives. accomplished by providing insights into cultural
• Increase creativity and spur innovation. risks and assessing DEI initiatives. However,
• Attract and retain highly qualified people. catalysing DEI progress throughout the broader
organisation should begin by taking action
within its four walls.
Solving for DEI requires looking at systems,
procedures, policies, and culture. Companies
should leverage assessments, audits, and
ongoing strategic DEI learning and development
experiences.
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