Why SMEs should promote Diversity & Inclusion – Part 1: The Moral Case

Why the Moral Case matters

Diversity & Inclusion (D&I) is both ethically imperative and economically beneficial. The rationale for D&I is often explained through two complementary perspectives: the Moral Case and the Business Case. These perspectives show why diverse and inclusive workplaces are crucial for responsible and successful organizations - large and small.

The Moral Case for D&I is rooted in fundamental ethical principles: fairness, equal opportunity, and respect for all people. These values are reflected in societal norms as well as in many legal frameworks around the world. Companies that follow the Moral Case promote D&I not because of financial outcomes, but because it is the right thing to do. They commit themselves to the fundamental ethical principles. SMEs can implement D&I authentically and quickly due to their shorter decision-making paths.

Promoting Equal Opportunity

Organizations guided by ethical principles seek to remove barriers that prevent individuals from accessing the same opportunities – they stand for equal opportunities for all.
Example: A midsized, family-owned metal-processing company in southern Germany introduced a recruitment initiative targeting refugees with technical backgrounds. The company offered language support during training, mentorship programs, and structured, skills-based onboarding regardless of age or nationality, thereby ensuring that all newcomers had fair access to skilled employment.

→ Achieved Impact: The company filled long-standing vacancies, supported equal access to skilled employment for newcomers and promoted social cohesion within their workforce.

Creating an Inclusive Work Climate

Inclusive workplaces allow every team member to feel valued and respected. SMEs often excel here because they can act quickly and personally in building an inclusive work climate.
Example: A 60-employee IT firm redesigned its workplace policies by introducing flexible work schedules for parents and informal carers, by providing ergonomic equipment tailored to individual health needs, and by training employees in inclusive communication.

→ Achieved Impact: The company increased employee satisfaction and achieved a noticeable improvement in team cohesion, collaboration and employee retention.  

Demonstrating Social Responsibility

Acting responsibly socially and leading ethically enhances credibility – internally and externally.
Example: A small family-owned retail chain adopted and publicized clear anti-discrimination commitments, trained staff to be sensitive to and meet diverse customer needs and incorporated this into its brand identity.

→ Achieved Impact: Especially in communities with diverse demographics the company gained a better community reputation, thereby building stronger customer trust, and a positive social footprint.

Conclusion

The Moral Case emphasizes that organizations—large or small—have a responsibility to create fair, respectful, and inclusive environments. It is about integrity, human dignity, and actively contributing to a just society.