#231 – Keep the ESG/DEI Baby (and Your Nose)

Over the last several days, a prominent news story has been about the company Tractor Supply abruptly dismantling its DEI (Diversity, Equity, Inclusion) programs.  They are not alone in paring back (or disguising with watered down language) DEI initiatives.   ESG (Environmental, Social, Governance) has also fallen out of favor, in large part because it has been used opportunistically to capture investor money without any real accountability as to whether the funds or companies flying the ESG flag were really having much of a positive ESG impact.

We believe these retreats are an opportunity for faithful leaders to reclaim the words and show the world Biblical visions of ESG and DEI, rather than jumping on the bandwagon of abandonment.

“Keep the ESG/DEI Baby (and Your Nose)” is about faithful leaders implementing a Biblical vision of “environmental, social and governance” and “diversity, equity and inclusion” as they seek to align their organization with Biblical beliefs, principles and priorities toward Biblical flourishing–not “throwing the baby out with the bath water” or “cutting off your nose to spite your face

It recognizes the importance to leading with faithful integrity through business a better way toward Biblical flourishing of doing the right thing, in the right way, for the right reasons, the toxic effect on organizational culture of trying to do a “right thing” for the wrong reasons and in a way that does not align with Biblical beliefs, principles and priorities, and the importance of proclaiming those beliefs, principles and priorities.

In a broken world dominated by business as usual that can be motivated by political and ideological pressures and prejudices, “Keep the ESG/DEI Baby (and Your Nose)” is an opportunity to demonstrate how the concepts embedded in the phrases “environmental, social and governance” and “diversity, equity and inclusion” have aligned with Biblical beliefs, principles and priorities long before the terms “ESG” and “DEI” were coined.

Babies and Noses

You know the idioms:

Don’t throw out the baby with the bath water.

Don’t cut off your nose to spite your face.

We do not believe the worldly concepts of ESG and DEI that have become politicized in recent years are aligned with Biblical beliefs, principles and priorities.  As a consequence, those worldly concepts are often resisted by leaders with a strong Biblical faith, many of whom also identify as politically or ideologically “conservative”.

That can unfairly be twisted into an accusation that people of Biblical faith are opposed to the concepts of diversity, equity and inclusion (which is like opposing baseball and apple pie) and caring for the environment, caring for people and implementing good governance, when, in reality, they are merely resisting the current cultural definitions given to those terms by the kingdom of the world–definitions devoid of God or any transcendent anchor.

Labelling those of Biblical faith as being “against” is a tactic.  But it is a tactic that works, and many people of Biblical faith have provided more than sufficient ammunition to those intent on tarnishing “faith”, particularly Biblical faith.  Rather than reclaiming a Biblical vision of those redemptive concepts (the “baby”), they have either unwittingly “thrown out the baby” with the proverbial “bath water” (the world’s versions of DEI and ESG), or intentionally distanced themselves from the concepts entirely in an act of “nose-cutting” rebellion.

In some cases (such as Tractor Supply), DEI and ESG concepts are seemingly jettisoned not because of a Biblical conviction but because of political and ideological pressure from conservative activists.  Embracing DEI and ESG has become a liberal political and ideological imperative, and completely rejecting DEI and ESG is becoming a conservative political and ideological reaction.

Faithful integrity calls for doing the right thing, in the right way, for the right reasons.  We believe throwing the “baby” of Biblical DEI and Biblical ESG out is not a “right thing”, and rebelling against all concepts of DEI and ESG is not the “right way” to resist the world’s concepts of DEI and ESG.  From the standpoint of faithful integrity, doing anything for political or ideological reasons (or because of political or ideological pressure) is never the “right reason”, even if what you are doing might be the “right thing”.  WHY matters.

The time is always right to do the right thing. (Dr. Martin Luther King, Jr.)

Biblical DEI

What we call “Biblical DEI” is implementing in an organizational culture a Biblical understanding of the words “diversity, equity and inclusion”.

For a faithful leader seeking to lead with faithful integrity, Biblical DEI reflects Imago Dei, recognizes that God endows people with unique gifts and they deserve to be treated with dignity, prioritizes justice and treating people equitably, proclaims the inclusiveness of the Gospel of Jesus, and embodies the Golden Rule and the command to love your neighbor as God loves you.

Biblical DEI embodies the Golden Rule found in Leviticus 19:18, Matthew 7:12 and Luke 6:31.  The Bible calls us to treat others as we would wish to be treated and love them as ourselves.  It goes without saying that people generally wish to have their uniqueness valued, to be treated fairly, and to be included rather than excluded.

Arthur Satterwhite III, Vice President of Diversity Belonging and Strategy at Young Life, wrote:

Diversity, equity, and inclusion should matter to us because they are the outworking of a critical truth embedded deeply within the Christian faith. The truth is that despite our differences, we were all made equally in God’s image and ultimately belong to God and to each other.

Biblical Diversity. Biblical diversity acknowledges the beauty of God’s creation and the unique contributions each person brings to the world.

God created all the incredible diversity that exists among humans–each with a unique DNA–and He declared our creation “very good”.  With all that diversity, every person is created in the image of God–Imago Dei–which says something remarkable about the God of the Bible.  Recognizing Imago Dei also requires treating others with dignity as fellow creations in the image of God–every job applicant and every employee deserves to be treated with the same dignity, whether or not they are the best person for a job and whether they are in the C-Suite or the mailroom.

But in a work context, treating people with the same dignity does not mean treating them the same.  As we have explained in post #055 (Nature of Work), the God-created diversity of humans includes diversity in the gifts we have been given.  By our nature as creations in the image of God, we are given gifts of creativity and productivity through specific skills and physical and mental abilities.

Some are given a gift of physical strength, some an artistic ability, some a logical mind, some a mathematical mind, some a poetic mind, some a business mind, some a gift of nurture and care, some a gift of ideating, some a gift of craftsmanship, some a gift of executing, some a gift of elocution, and some athletic ability.  Work is the platform God created for putting these gifts to creative and productive use for His glory.

Organizations such as businesses have intrinsic Kingdom value because they are a creation of God’s image-bearers that provides the platform and the opportunity for humans to come together in relationship to express and fulfill their humanity through work by producing and promoting flourishing and “building for the Kingdom” in ways that could not be accomplished by people working alone.

We believe Biblical diversity in a work context means treating all people with dignity, recognizing that each has been given unique gifts of creativity and productivity, and prayerfully assembling the group of people who can best pursue the purpose of the organization with an excellence and in a collaborative way that will glorify God.

Biblical Equity. Biblical equity in an organization means treating people equitably and fairly in all aspects of the work relationship–from hiring to compensation to firing.

We believe Biblical equity is exhibiting equity in the treatment of people because that is how God sees them, rather than trying to achieve equity among people.  As such, it does not involve giving preferential treatment to people in order to equalize their circumstances by disadvantaging others (whether you see the answer as equality of outcome or equality of opportunity).

The Bible is clear about the importance of righteousness and justice and also clear that showing partiality is contrary to justice.

But seek first the kingdom of God and his righteousness and all these things will be added to you.  (Matthew 6:33)

What does the Lord require of you but to do justice, and to love kindness, and to walk humbly with your God?  (Micah 6:8)

It is well with the man who . . . conducts his affairs with justice. (Psalms 112:5)

You shall not pervert justice. You shall not show partiality . . . . (Deuteronomy 16:19-20)

My brothers, show no partiality as you hold the faith in our Lord Jesus Christ, the Lord of glory. (James 2:1)

We are also told in Psalm 98:9 that God will judge with righteousness and equity (and we are to reflect His image):

He will judge the world with righteousness, and the peoples with equity.

Even in “love”, partiality is condemned:

“You shall love your neighbor as yourself” . . . . But if you show partiality, you are committing sin . . . . (James 2:8-9)

Biblical Inclusion.  The Gospel of Jesus is radically inclusive–all are welcome.  Recognizing Imago Dei means recognizing that all people–regardless of characteristics such as race or gender–deserve to be treated with equal dignity and respect.  The great commandment to love your neighbor demands that all neighbors be loved–not just ones who are like you or just ones you like.  Biblical inclusion can’t condone exclusion, even if done with good intentions.

It is illegal to discriminate, but we think Biblical inclusion goes beyond complying with the law.  It is being willing to go the extra mile to hire those who it would be simpler to overlook.

As we discussed in post #142 (Hire the Unhirable),  Faithful leaders seeking to lead with faithful integrity through business a better way toward Biblical flourishing should go out of their way to be inclusive by being willing to hire the “unhirable”–those who have a difficult time getting hired because of an employment challenge, such as the formerly incarcerated, recovering addicts, the homeless, the under-educated, and the developmentally disabled.

Expanding Biblical inclusion in the workplace to include considering the “unhirable” recognizes that every person needs a chance, or a second chance, to become more fully human by using their God-given creativity and productivity to love others through service.  It embodies the great commandment to love your neighbor by offering the dignity of work to those normally overlooked or rejected in the hiring process.  It is not giving them an advantage because of their circumstances–it is not disadvantaging them because of those circumstances

It also reflects the nature of the God of the Bible as a God of forgiveness, grace and second chances.  It is the God who famously gave second chances to Moses the murderer, Jonah the deserter, David the adulterer, Rahab the prostitute, Peter the denier and many others.  It reflects the sentiment of Ephesians 4:28:

Let the thief no longer steal, but rather let him labor, doing honest work with his own hands, so that he may have something to share with anyone in need.

Biblical ESG

What we call “Biblical ESG” is about implementing in an organizational culture a Biblical understanding of “environmental, social and governance matters”.

It recognizes the importance to business a better way of pursuing the flourishing of creation, particularly people (rather than Profit as Purpose), as the “end” to which the organization is managed, which means embedding Biblical concepts of respect and sustainability into the organization’s culture.

For a faithful leader seeking to lead with faithful integrity, Biblical ESG requires an understanding of the leader’s role as a steward of an organization owned by God, including its purpose, values, culture, people, products, policies, practices, and use of all forms of capital.

Biblical ESG” embodies the Creation Mandate found in Genesis 1:28.

And God blessed them. And God said to them, “Be fruitful and multiply and fill the earth and subdue it, and have dominion over the fish of the sea and over the birds of the heavens and over every living thing that moves on the earth.

Worldly ESG is not tied to a transcendent truth–a transcendent WHY.  Without a transcendent WHY driving an approach, its WHAT and HOW can be misdirected or become unsustainable.  Its goals and parameters are whatever people with power or influence say they are at any moment in time.

By comparison, Biblical ESG aligns with the transcendent purpose of business a better way–maximizing the flourishing of creation, particular people, by Humanizing People, Beautifying the World and, in the process, Glorifying God.  It is anchored to a rock.

Biblical Environmental and Social.   Without a proper understanding of context, words like “subdue” and “dominion” in the Creation Mandate regarding the earth and every living thing are ominous and, on their face, could be misunderstood to justify unfettered use and even abuse of natural resources and even people.  But theologians (which we do not claim to be) seem to be pretty confident that the terms means “stewardship“.  We are to care for all God’s creation, particularly people, as its STEWARDS.

We believe “caring for all God’s creation” translates practically into two things–Respect and Sustainability:

• RESPECT:  Respect for all humans God created, which means treating all stakeholders of an organization with dignity (owners, employees, vendors, customers, communities).

• SUSTAINABILITY:  Sustainability across all aspects of a business, including its utilization of all forms of capital (natural, human, social and financial) that drive the business and its relationships with the stakeholders related to those forms of capital.

It is important to understand the WHY behind Biblical ESG.   The “right reason” to implement Biblical ESG is obedience to the Creation Mandate–recognizing that God owns it all, has given it to us to steward and is ultimately in control. Unlike worldly ESG, Biblical ESG is NOT:

• Motivated by fear of “existential” climate or environmental threats.

• Motivated by political agendas or narratives.

• Motivated by cultural pressures or movements.

• Motivated by regulatory requirements.

Biblical ESG flows from the “first thing” of Love.  As explained in earlier posts, it is the generosity and service aspects of Love that lead us to the purpose of work and business (maximize flourishing by Humanizing, Beautifying, Glorifying).  Biblical ESG flows from the respect and sustainability aspects of LoveLove through recognizing God’s limitations inherent in the Creation Mandate.

Biblical Governance.  Stewardship of an organization requires decisions, and decisions are driven by the governance vision, model and practices of the organization that are embedded in its culture.  Because culture flows from purpose and values, and governance is part of the culture, ultimately governance flows from the organization’s bigger WHY.

The governance structure of an organization can facilitate, impede or completely block business a better way toward Biblical flourishing.  Leading an organization with faithful integrity requires understanding the dynamics of the existing structure and then re-imagining a governance structure that is in alignment with, and supportive of, the re-imagined purpose and values of the organization.

We described in greater detail in post #083 (Culture and Governance) some of the elements of governance to be considered in re-imagining culture, including how they can impact leading with faithful integrity:  God’s Role; Temporal Ownership; Leadership; and Internal Structures, Policies and Communications.

The “G” in Biblical ESG means seeking internal governance Integrity–re-imagining and re-aligning those governance elements in a way that supports and is integrous with the organization’s re-imagined WHY.

Embracing Biblical DEI and Biblical ESG

As the culture appears to be retreating from worldly DEI and ESG, there is an opportunity for faithful leaders to shine a light on Biblical DEI and Biblical ESG.  In the words of Dr, Martin Luther King, Jr., “The time is always right to do the right thing.”

A challenge for a faithful leader in embracing Biblical DEI and Biblical ESG will be explaining to owners, employees, vendors, suppliers, customers and the world that the organization believes in the DEI and ESG of God’s Kingdom rather than the DEI and ESG of the world.

John 16:33 says “In the world you will have tribulation.” Embracing Biblical DEI and Biblical ESG is seeking God’s Kingdom but doing it in a broken world.  It is likely to be met with resistance, both from those pushing for worldly DEI and ESG and those pushing back (who believe faithful leaders should throw out the baby as well as the bath water and cut off their nose if necessary to stand up against political and ideological forces with which they disagree).

Turning once again to one of our favorite James Hunter observations:

To enact a vision of human flourishing based in the qualities of life that Jesus modeled will invariably challenge the given structures of the social order. In this light, there is no true leadership without putting at risk one’s time, wealth, reputation, and position.

Embracing Biblical ESG and Biblical DEI is a decision that must be taken prayerfully, remembering the faithful leader’s duty to steward well the organization God has given them to lead.  Although prayer can take many different forms, depending on the discernment of the leader and the existing culture of the leadership team and the organization, the same God who calls leaders to lead with faithful integrity through business a better way toward Biblical flourishing will be present to guide, equip and protect those who are called.

Embracing Biblical DEI and Biblical ESG must come from a spirit of faithful obedience rather than a spirit of pride or ideological opposition.  The Bible should never be used to cloak a prideful gesture or political or ideological motivation.

John 16:33 assures us that we can have “peace” and that Jesus has “overcome the world“.  Leading an organization with faithful integrity through business a better way toward Biblical flourishing in the face of resistance requires faith, and faith requires trust in God.  Trust in God is trust in His sovereignty and promises and trust in His commands.  He is faithful.

PERSONAL NOTE (from PM):  I have written in many posts about the power of words.  It is frustrating to see people of a Biblical faith “lose” meaningful and powerful words because those words get co-opted by the culture of the world.  Not only do they get lost, in some cases the words get twisted into meanings that are opposed by those of Biblical faith and their opposition is then twisted into opposition to the original meanings.

People of Biblical faith against the diversity God created?  They should be leading the charge.  Against treating people equitably?  They should be leading the charge?  Against inclusion of all people created in God’s image?  They should be leading the charge.  Against caring for the environment?  They should be leading the charge.  Against the social element of an organization–caring for people?  They should be leading the charge.  Against good governance?  They should be leading the charge.

The cultural retreat from ESG and DEI is an opportunity to proclaim how those concepts have always aligned with God’s design for His creation.

ESSENCE: ESG (Environmental, Social, Governance) and DEI (Diversity, Equity, Inclusion) initiatives remain in the news, but most recently it has been because organizations are dismantling (or at least disguising) their ESG and DEI programs.  “Keep the ESG/DEI Baby (and Your Nose)” is about faithful leaders retaining a Biblical vision of “environmental, social and governance” and “diversity, equity and inclusion” matters as they seek to align their organization with Biblical beliefs, principles and priorities toward Biblical flourishing–not “throwing the baby out with the bath water” or “cutting off your nose to spite your face“.  It recognizes the importance to business a better way of doing the right thing, in the right way, for the right reasons, the toxic effect on organizational culture of trying to do a “right thing” for the wrong reasons and in a way that does not align with Biblical beliefs, principles and priorities, and the importance of proclaiming those beliefs, principles and priorities.  “Keep the ESG/DEI Baby (and Your Nose)” requires an understanding of the leader’s role as a steward of an organization owned by God, including its purpose, values, culture, people, products, policies, practices, and use of all forms of capital.  In a broken world dominated by business as usual that can be motivated by political and ideological pressures and prejudices, “Keep the ESG/DEI Baby (and Your Nose)” is an opportunity to demonstrate how the concepts embedded in the phrases “environmental, social and governance” and “diversity, equity and inclusion” have aligned with Biblical beliefs, principles and priorities long before the terms “ESG” and “DEI” were coined.

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