Mexico: Beyond Pride – Empowering Companies through Diversity and Inclusion Policies

published on 23 July 2024 | reading time approx. 3 minutes

Thousands join the vibrant celebration of Pride Month, recognized globally as the largest festivity of diversity and inclusion. For companies in Mexico, this presents a vital opportunity to reflect on the implications of these principles within their business and among their employees. The crucial question arises: what role should companies play during this celebration? The answer lies in robust Diversity and Inclusion (D&I) Policies, which are essential for fostering a diverse and inclusive workplace that elevates employee growth, belonging, and engagement.

Before delving into the importance of D&I policies, it's necessary to understand what Diversity and Inclusion entail. According to Article 2 of the Federal Labour Law (Ley Federal del Trabajo), dignified and decent work is a fundamental labour right, achievable only in an environment free from discrimination based on ethnic or national origin, gender, race, disability, social and immigration status, health conditions, religion, sexual preferences, and more.

D&I efforts ensure the integration of all individuals, regardless of these conditions, while addressing any limitations they may face because of them. Essentially, D&I is a tool to foster an equal environment where everyone's rights are monitored, guaranteed, and protected against violations.

D&I efforts can be implemented in various ways within companies. For instance, they can provide accommodations for employees with physical disabilities, ensuring they can navigate the workplace as efficiently as their peers. D&I efforts can also include mechanisms for reporting discrimination, bullying, harassment, and other misconduct.

A critical and commonly used application of D&I is the implementation of a D&I Policy. This policy outlines a company's commitment to create a diverse and inclusive work environment and the processes to ensure its fulfillment. A well-structured D&I Policy typically comprises five main pillars:

Company Statement: A declaration from upper management affirming their commitment to diversity and inclusion. This statement sends a clear message to employees, suppliers, clients, and third parties about the company’s stance on D&I;
Policy Principles: An outline of D&I principles in alignment with the company’s mission, vision, and values. This often includes principles such as respect for human rights, equal treatment, non-discrimination, and confidentiality;
Company Responsibilities: A detailed catalogue of proactive actions the company will take to promote D&I. This can include training, diverse leadership displays, mechanisms to hear employee suggestions, and participation in diversity and inclusion events;
Catalogue of Prohibited Conduct: A list defining actions considered discriminatory or contrary to the D&I Policy, detailing the consequences of such behavior;
Report Mechanism: A system for reporting and addressing possible wrongdoing, ensuring accountability and adherence to the D&I Policy.

When necessary, companies may incorporate these provisions into their Internal Handbook to ensure their obligations are recognized and enforceable before labour authorities.

Implementing a D&I Policy brings numerous benefits. Research shows that D&I Policies significantly contribute to employee retention, talent attraction, and overall enhancement of a sense of belonging within the company. These policies demonstrate that all employees are valued, seen, and heard, fostering a respectful and dignified work environment where individuals can perform at their best.

Additionally, D&I Policies are crucial for showcasing to potential job seekers, business partners, and clients the steps the company is taking to guarantee a secure and inclusive environment for everyone. In the other hand, companies that are yet to implement a D&I Policy face greater risks of being subject to heavy fines, in accordance with Article 994, section VI of the Federal Labour Law (Ley Federal del Trabajo). As it is established in this legal disposition, companies may not only be liable before labour authorities for engaging in such behavior, but for tolerating it or permitting in within their workplace. That is to say that it is not sufficient for the company to avoid such conduct, but to prevent and sanction it when it happens among employees.

Companies aiming to ensure diversity and inclusion within their workplaces will find significant benefits in implementing a D&I Policy. Such policies help prevent discriminatory acts, define proactive measures towards a secure and dignified workplace, and establish clear disciplinary processes for those who violate these provisions. We are here to support you embark on this transformative journey towards a more inclusive and equitable workplace.