5 minute read
Courage in a time of change
In a time of rapid change and competing priorities, HR must serve as the compass guiding businesses through AI, DEI and sustainability challenges. Izzy Fenwick explains more.
This is a challenging time to govern a business. AI is advancing at breakneck speed, DEI is being labelled divisive and sustainability is being deprioritised, as if climate change will politely wait for us to catch up. The pressure to focus on shortterm gains is immense, but the cost of ignoring these critical issues will be far greater. So, how do businesses navigate this storm?
If businesses are ships navigating stormy seas, HR must be the compass. HR’s role isn’t just to manage people; it’s to steer the entire organisation through these choppy waters. With its unique position at the intersection of people, culture and strategy, HR is the ultimate guide for Boards navigating these complex challenges.
HR’s unique position bridging people, culture and business strategy makes it the ultimate guide for Boards trying to find their way. HR is also the guardian of what actually powers the business: its people.
If businesses are ships navigating stormy seas, HR must be the compass.
People are a business’s greatest asset. Their creativity, resilience and productivity drive revenue and innovation. Yet, ill-informed governance decisions that fail to consider ethical AI, sustainability or DEI commitments risk eroding employee trust and customer loyalty. The economic pressures are real, but retreating from progress in these areas comes at a cost, one that may feel invisible at first but will inevitably surface in the form of talent loss, reputational damage and regulatory scrutiny.
Boards won’t magically realise they’ve been overlooking HR’s insights. HR must show them, with evidence, clear strategy and examples that resonate where it matters most: risk, talent and long-term profitability.
Take AI. AI is advancing faster than most companies can keep up. From hiring algorithms that reinforce bias to automation that displaces jobs without a plan, businesses are walking into ethical landmines. Yet, in many organisations, AI strategy is relegated to IT, while HR –the function that understands people – is left out of the conversation.
This is a mistake. AI isn’t neutral; it reflects the biases of those who train it. If HR isn’t shaping ethical AI policies, advocating for fairness and informing leadership about workforce impacts, companies are flying blind. The consequences? Lawsuits, employee mistrust and regulatory crackdowns. HR must step up, armed with data and solutions, to ensure AI serves both the business and its people.
AI isn’t neutral; it reflects the biases of those who train it.
DEI has become an easy target for critics who call it divisive or performative. But the data is clear: diverse companies generate 2.5 times higher cash flow per employee. Moreover, one in three employees has rejected a job due to a lack of perceived inclusion.
HR’s job is to make the business case for DEI impossible to ignore. If DEI isn’t tied to performance metrics, it won’t stay on the agenda. Companies that abandon DEI initiatives may think they’re avoiding controversy, but they’re actually making it harder to attract and retain top talent. DEI isn’t just a moral imperative; it’s a risk management strategy and a competitive advantage.
And then there’s sustainability. Sustainability is often the first casualty of economic pressure, but it’s also the ultimate test of whether a company is thinking beyond the next quarter. The truth is, sustainability isn’t just about climate action; it’s about business resilience. Employees at companies genuinely committed to sustainability report a 16 per cent increase in engagement levels.
Sustainability isn’t just about climate action; it’s about business resilience.
If HR isn’t making this case to the Board, who will? Embedding sustainability into talent strategy, ensuring it’s a leadership KPI, and using it as a hiring tool aren’t just nice-to-haves; they’re workforce imperatives. The best candidates aren’t just looking for a pay cheque; they’re looking for values alignment. And if companies can’t offer it, someone else will.
HR professionals, this is your moment. The boardroom needs your data, your leadership and your ability to connect these issues to business outcomes. Here’s how you can step up:
Bring the numbers: Use hard data to prove that AI ethics, DEI and sustainability are business-critical not optional.
Share employee insights: Highlight what matters to your workforce today because it determines who stays and who leaves tomorrow.
Offer solutions: Don’t just present problems; come with actionable strategies that align with business goals.
HR isn’t just a function; it’s the moral and strategic compass of modern business. If leadership won’t recognise that, it’s time to make them. The future of your organisation depends on it.
So, will you rise to the occasion?
Izzy Fenwick is the founder of Futureful, New Zealand’s first values-led and skills-based recruitment platform. Futureful is on a mission to help futureproof organisations and mainstream corporate responsibility through radical transparency. Izzy also serves on the Board of The Aotearoa Circle, an organisation that brings together public and private sector leaders to pursue sustainable prosperity and reverse the decline of New Zealand’s natural resources. Through her unwavering commitment to sustainability, Izzy continues to shape a future where the values of environmental stewardship, intergenerational collaboration and sustainable business practices thrive.
