Making the most of human capital: diversity and inclusion strategies in selected APO member economies

This report was commissioned by the Asian Productivity Organization (APO) to highlight the importance of inclusive human capital strategies as key differentiators in organizational growth and sustainability. At the heart of this approach is the concept of diversity and inclusion (D&I). This report therefore provides a contextual overview of D&I broadly and more specifically across the Asia-Pacific region. In light of globalization, migration trends, and an aging workforce in many jurisdictions, to name a few drivers, companies are being forced to focus on how they manage their workforce. Although D&I are often linked, it is important to note that they are not the same thing. Generally, diversity as a 'strategy' refers to an organization's focus on implementing policies and practices that attract a demographic range of employees, including members of society who have traditionally been underrepresented within the particular organizational culture or sector. Inclusion focuses on creating an environment that encourages people to bring their differences, perspectives, and ideas forward and on utilizing all aspects of an individual's diversity in the workplace.

General findings include: (1) the focus on D&I is relatively new within the Asia-Pacific region; (2) diversity is contextual to organizations and the environments in which they operate, and therefore diversity strategies vary; (3) some organizations focus their diversity strategies on compliance with external government targets, while others seek to go beyond those targets by implementing a broader focus, based on a strong business case for changing organizational culture (policies and practices); (4) companies that have a strong business case for D&I seem to achieve better results in meeting and surpassing organizational goals; (5) gender appears to be the primary common focus of most companies that are implementing inclusive strategies within the Asia-Pacific; (6) measurement and accountability are important in driving change and achieving results; and (7) all organizations invest in some form of training and development; however, it is unclear, with few exceptions, to what degree training is geared to developing the ability to operate in an environment of diversity and plurality. The current best practices identified in this report emerged from common practices across organizations and/or the degree to which each company links its practices to positive organizational impacts or results. Given the small sample size of participating countries, this report should not be viewed as the gold standard for D&I in the Asia-Pacific but as a framework to stimulate thinking about how D&I can increase performance, profits, and overall organizational success of companies in the region.

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