Case study: How employee resource groups can be a catalyst for change 

4th February, 2025

By Richard DeNetto, Chief Executive Officer at Change the Race Ratio

Change the Race Ratio is a leading membership body supporting British businesses to increase racial and ethnic minority representation in business leadership. Established in 2020 with the support of leading businesses, including Aviva and the CBI (also Good Business Charter accredited), they recognised the need for collective action and greater sharing of good practice to drive change and reduce barriers to progression.  

The campaign’s four commitments anchor its mission: 

Board Representation:  

Setting clear and measurable diversity targets for boards. 

Leadership Diversity:  

Expanding representation at executive committee (ExCo) and ExCo-minus-one levels. 

Transparency:  

Promoting accountability through the publication of ethnicity pay gap data and action plans. 

Inclusive Cultures:  

Building workplaces where everyone can thrive, regardless of background. 

The campaign’s approach is rooted in action and evidence. Leading businesses from across sectors have joined, spanning industries from professional services to technology and manufacturing. These organisations recognise that fostering diversity is essential not only for equity but also for driving innovation, improving decision-making, and enhancing organisational performance. 

Change the Race Ratio leverages data-driven strategies to identify gaps and measure progress. It emphasises collaboration, enabling businesses to learn from one another, share best practices, and collectively address systemic challenges. As a united coalition, its members work to turn principles into measurable outcomes that transform the UK’s leadership landscape. 

Diversity can only thrive within inclusive environments where individuals feel valued and respected. Employee Resource Groups (ERGs) play a crucial role in fostering inclusion and driving organisational change. They provide platforms for underrepresented voices, shaping policies, influencing decisions, and building community. 

Organisation that maximise the impact of ERGs have implemented the following good practice:

  • Integrate ERGs into ED&I Governance: Embedding ERGs into governance structures ensures they have a formal role in shaping strategy and influencing outcomes. 
  • Secure Senior Leadership Advocacy: Senior leaders act as sponsors and advocates, legitimising ERG contributions and ensuring their recommendations are actioned. 
  • Amplify Employee Voices: Actively listening to ERGs enhances inclusivity by addressing barriers and informing policies. 
  • Support ERG Sustainability: Providing resources such as funding, dedicated time, and access to decision-makers sustains their impact. 

Additionally, high performing ERGs ensure their relevance and connection to senior leadership structures, particularly ExCo and ExCo-minus-one levels. By aligning their focus and outputs with organisational goals, ERGs can provide valuable insights and directly influence key leadership decisions. 

By elevating ERGs as strategic partners, organisations empower employees and drive systemic change. 

Inclusive leadership enhances innovation, decision-making, and resilience while fostering workplaces where everyone feels valued and empowered. 

In summary to lead this transformation, successful businesses:

  • Set the tone: Commit to diversity through visible actions, transparent reporting, and unwavering advocacy. 
  • Build inclusive pipelines: Invest in strategies that cultivate diverse talent at every stage of the leadership pipeline. 
  • Leverage networks: Integrate ERGs with ED&I governance and ensure active senior leadership sponsorship and advocacy. 

Inclusive business leadership is the ultimate outcome; a sustained approach where diversity, equity, and inclusion are woven into the organisation’s culture, strategy, and operations. By embracing this challenge, leaders can create workplaces that drive greater business success and lasting societal change. 

At Change the Race Ratio, we believe in the transformative power of collective action. Together, we can create a future where leadership truly reflects society’s diversity and inclusion defines what it means to lead.