By Nwakaego Altraide

Wealth equity refers to a state wherein all households can accumulate wealth regardless of their demographic identity.

Many organizations and businesses today prioritize diversity in their hiring practices but often need to provide more equitable opportunities for advancement to underrepresented employees.

This imbalance often leads to the over-representation of a particular demographic group in leadership positions within the organization, causing a wealth gap.

In this article, we will look at how companies and individuals can promote equitable wealth distribution by considering the representation of underrepresented groups, such as women, people with disabilities, and veterans, at the helm of business affairs through diversity, equity, and inclusion (D.E.I.) practices [1-4]

Should everyone have a chance to be a boss, no matter who they are?

Underrepresented groups, including women, disabled individuals, veterans, and certain ethnic groups in the U.S., often face significant barriers to climbing the corporate ladder. This disparity in leadership and management representation contributes to the broader issue of wealth inequality, and deliberate efforts to employ and promote individuals from these groups can substantially impact equitable wealth distribution [2-3, 5]

Below are some interesting statistics to note:

Women have shown gradual increases in holding board seats, with more than 30% of Fortune 500 board seats held by women in 2022, up from 26.5% in 2020.

Underrepresented racial and ethnic groups have also made strides in the boardroom, with an increase in board seats in the Fortune 500 from 17.5% in 2020 to 22.2% in 2022. This includes growth among African American/Black, Asian/Pacific Islander, and Hispanic/Latino board members [1, 4].

The McKinsey Women in the Workplace 2023 report revealed that women’s representation in the C-suite increased from 17% in 2015 to 28% in 2023. The number of women at the vice president and senior vice president levels has also improved significantly.

Only 7% of surveyed companies reported having a disability serving on their company’s corporate board.

Nearly 45% of women and underrepresented racial and ethnic groups hold board seats in Fortune 100 companies. Still, women from underrepresented groups only occupy 7.8% of board seats in Fortune 500 companies.

While there may be some progress from more women and minorities holding leadership positions from the statistics above, there’s still a long way to go because;

Women still hold only a tiny share of board seats, and even fewer come from minority backgrounds.

Veterans and People with disabilities are almost nowhere to be seen in the composition of the board and management of businesses.

This underrepresentation directly correlates with the wealth gap between these groups and the majority in leadership and management positions.

Therefore, this highlights that more significant and consistent D.E.I. efforts are needed to achieve equitable representation of these underrepresented groups in board rooms and management to create wealth equity

How can businesses/individuals ensure equitable wealth distribution?

Companies and individuals in business can significantly promote equitable wealth distribution through diversity, equity, and inclusion. This can be achieved through the following;

 Deliberate Incorporation of D.E.I in Business Practices: This can involve a range of actions, from implementing equitable hiring practices to providing training and career advancement opportunities for underrepresented groups.

Individuals seeking to do business with other companies should also consider the D.E.I. of the companies they engage with. This means researching to ensure that your companies are committed to D.E.I. It also means walking away from companies that do not meet your standards.

Partnerships and Hiring Practices: This could involve partnering with businesses led by underrepresented groups or those that have diverse and inclusive workforces. It could also mean prioritising suppliers and contractors who commit to D.E.I. A notable example is Sodexo, a global food services and facilities management company recognised for its diversity and inclusion efforts. The company has implemented a global diversity and inclusion strategy that includes goals for gender balance and inclusion of people with disabilities. According to Sodexo’s 2020 Diversity and Inclusion Report, 54% of the company’s board members and 40% of its senior leaders are women. In addition, the company has implemented several initiatives to promote the inclusion of people with disabilities, including a disability inclusion training program and a global disability inclusion policy. Other examples of companies and businesses with female board members include  Mastercard, Accenture, and Johnson & Johnson [2-4]

In conclusion, equitable wealth distribution refers to the fair and just distribution of wealth among individuals and groups within society regardless of their background or circumstances. While progress towards equitable representation in leadership positions, composition of boards, and management is evident, particularly for women, significant work still needs to be done by companies implementing comprehensive D.E.I. strategies and individuals holding businesses accountable by supporting organizations and initiatives that champion equitable practices.

With a wealth of expertise spanning 22 years, Mrs. NWAKAEGO ALTRAIDE, FCA, ACCA-Chartered Accountant has been a frontrunner in numerous areas of accounting, including budgeting, variance analysis, financial reporting, and management accounting. No matter how hectic the situation gets, NWAKAEGO ALTRAIDE’s technical expertise and excellent communication skills always help get the job done.