DEI as a Success Enabler

Have you ever heard the term “DEI”? DEI stands for Diversity, Equity, and Inclusion. DEI originated from three concepts, which were popularized through anti-discriminatory instructions by the President of the United States in 1965, and became widely known around the world by the late 1980s. Over the years, additional concepts have been added to DEI, such as Belonging, Justice, and Access.

In the business world, DEI concepts are interrelated and essential in creating a healthy and productive work environment. DEI is not just a term but also the four main pillars that support a company's success. Here is an understanding of DEI and how DEI can be the main enabler of a company's success, which will also affect your success:

Diversity refers to the variety among individuals, including race, gender, age, cultural background, religion, and more. Diversity in a company brings various perspectives and ideas among individuals, which can enhance creativity and innovation.

Equity means providing equal opportunities to everyone. Companies that offer equal opportunities and access to all employees are believed to increase job satisfaction and employee loyalty.

Inclusion is about creating an environment where every individual feels valued and accepted. An inclusive environment makes employees feel comfortable, valued, and accepted, which can increase productivity and collaboration.

It is essential for PermataBank to adopt DEI principles, as it will not only enhance performance and productivity but also strengthen our market position and contribute to social and economic sustainability. A study by McKinsey and Company on the implementation of inclusion as part of DEI shows that companies in the top 25% for gender diversity are 15% more likely to generate above-average revenue. This figure rises to 30% when linked to ethnic diversity.

Why is this so? Companies that actively prioritize inclusion have greater employee engagement across all levels. They are also more innovative. Diverse teams are less likely to fall into groupthink and have original ideas. They do not share the same biases and blind spots, enabling them to see each other's mistakes and anticipate future risks for the company.

Reflecting on the implementation of DEI at PermataBank, one can look at the composition of women in the organization and their roles and involvement in managerial functions. Currently, the total composition of women at PermataBank is 54.50%. It is quite an achievement for women that we are led by a female CEO for the first time. However, when looking at the composition of women in managerial ranks, the percentage decreases. In the three levels below the board of directors, the percentages are 51%, 42%, and 35.1%, respectively, and for the Board of Management, it decreases to 33%. At the Board of Commissioners and Committee level, the percentage is even lower, at only 15.4%.

In terms of age, the highest composition is among those under 25 years old at 57.1%, and the lowest is in the 35-40 age range at 51.8%. Given that the female workforce composition is over 50%, the percentage of women across all age ranges is above 50%.

From the above data, there are aspects to be grateful for regarding the composition and role of women at PermataBank. However, there are areas that need continuous efforts to support the creation of stronger DEI values within the company.

Why should we support DEI? Because DEI benefits not only the company but also individual employees, including:

• Self-Development Ability
  By interacting, discussing, and working with people from various backgrounds, you will develop better interpersonal communication skills and understanding. Listening to different perspectives can also enrich knowledge and generate fresh, new ideas.
• Career Advancement
  Open access and opportunities for diverse individuals can support you in gaining higher career development opportunities, along with your productivity and contributions to the company.
• Supporting a Healthy Work Environment
  By supporting equality and mutual respect, you participate in creating a fair working environment for everyone, leading to a healthy and comfortable work climate.

As one of the leading regional banks, PermataBank has implemented various DEIB initiatives, including:

• Inclusive Recruitment Policy
  Implementing recruitment policies that ensure all candidates have equal opportunities, regardless of their background.
• Cultural Events and Activities
  Organizing various events or activities that celebrate diversity among employees, such as Culture Forum, Culture Festival & Awards, and Women’s Talk Forum.

Efforts to implement DEI and strengthen its values must continue to support the company's and all employees' progress and sustainability.

What is the relationship between DEI, ESGs, and SDGs? DEI is linked to ESGs (Environmental, Social, and Governance) because ESG criteria are used to evaluate the ethical impact and sustainability of a company's operations, with a strong focus on social factors, including DEI initiatives.

However, DEI also aligns with the SDGs (Sustainable Development Goals) set by the United Nations, particularly goals related to reducing inequality (SDG 10) and promoting gender equality (SDG 5). These goals emphasize the importance of inclusive and fair societies and workplaces, making DEI relevant to both ESGs and SDGs.

In summary, in relation to ESGs, DEI is a key component of the "Social" aspect, ensuring fair treatment, diversity, and inclusivity within an organization. In relation to SDGs, DEI aligns with goals related to equality and inclusivity, contributing to the broader goal of sustainable development.

By supporting DEI, we ensure that everyone, regardless of background, gender, or ethnicity, feels valued, treated fairly, included, and truly belongs in the workplace. This way, we not only build a better company but also create a fairer and more prosperous society. Together with PermataBank, let us work and serve #DenganHati as #OneFamilyOneTeam in creating a comfortable and equal work environment.