Inclusive Behaviours and Better Business Outcomes: Why Financial Firms Should Endorse the CFA Institute Inclusion Code
By Dr. Stella Mourouzidou Damtsa, CFA
Board Member and Inclusion (DEI) Committee Chair
The strongest organisations are built on technical expertise, sound processes, ambitious goals, and a culture that allows people to contribute fully. A healthy organisational culture strengthens the quality of dialogue in meetings, encourages openness to different perspectives, supports constructive challenge, and enables people to do their best work. Inclusive behaviour plays an important role in shaping that kind of environment. In professions such as finance, which are built on trust and long-term responsibility, inclusive behaviour is closely connected to organisational quality and business performance.
CFA Institute has given that connection a practical and professional framework. In its European Inclusion Code material, CFA Institute describes diversity, equity and inclusion work as mission-aligned with its broader purpose of promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. Such language is important because it places inclusion within the professional standards of the investment industry rather than outside them. The CFA Institute approach presents inclusion as part of how firms lead well, build credibility, and serve clients and society responsibly.
The value of the CFA Institute framework also lies in its practicality. At the heart of the European Inclusion Code are three clear objectives: to meet the industry where it is, to define practical principles that firms can implement from a realistic foundation, and to provide a metrics-based reporting framework designed to produce meaningful, aggregated and benchmarked data. The Code also focuses on concrete areas that shape institutional life, including pipeline, talent acquisition, promotion and retention, leadership, influence, and measurement. In the European context, the framework is being developed with local CFA societies so that shared principles are supported by implementation guidance and country-specific context.
Investment management, banking, and financial services depend heavily on the quality and agility of their teams. Good decisions are strengthened when professionals feel able to raise concerns, offer alternative views, and challenge consensus before action is taken. A culture that invites contribution from people with different experiences and perspectives is more likely to support rigorous discussion, sharper judgement, and stronger collective intelligence. Inclusive behaviour therefore supports not only fairness and belonging, but also the quality of analysis and decision-making in an environment shaped by constant change and disruption.
Beyond the principles themselves, the Inclusion Code speaks about promoting adoption across the investment industry, sharing tested practices, collaborating with peers, and making the economic, business, and moral case for Inclusion. The material also states that integrating Inclusion can improve investment outcomes and enhance business success. Inclusion builds better functioning teams, stronger institutions, and more resilient business outcomes.
The senior leadership of an organisation is central to that effort. Inclusive cultures are built not only through formal policies, but through the tone from the top, repeated decisions and visible behaviours: who is invited into important conversations, whose potential is recognised, who receives stretch opportunities, how disagreement is handled, and whether leaders create space for honest challenge. Measurement is equally important. The CFA Institute framework places measurement alongside leadership and influence, signalling that progress should be observable, intentional, and supported by accountability. The combination of behaviour and measurement gives firms a realistic path from principle to practice.
Industry momentum suggests that many organisations already recognise the importance of that path. CFA Institute’s material notes that investment leaders are taking ownership of Inclusion, supported by internal experts and advocates, while recognised standards, industry data, accountability, and client expectations are helping sustain progress. The European adaptation of the Code, developed with local CFA members and societies, reflects the same ambition: a shared framework with room for local legal, regulatory, and cultural context. That combination of common principles and practical adaptation gives the work both credibility and relevance.
Wider business research points in a similar direction. A recent Grant Thornton report, although focused specifically on gender, found links between diversity initiatives and stronger innovation, better decision-making, improved financial performance, and stronger talent attraction. The broader lesson extends beyond any single category of diversity: organisations that make inclusion visible, credible, and measurable are often better placed to attract talent, strengthen culture, and support performance.
CFA Society Cyprus is already supporting this agenda through the work of its Inclusion Committee. The Committee’s objectives include raising awareness, promoting inclusion, and influencing policy, while its recent initiatives have included signing a Memorandum of Understanding with Diversity Charter Cyprus, engaging with Regulators on KPI development and data gathering, contributing comments on equal pay regulation, publishing inclusion-focused articles, recording public-awareness podcasts, and promoting the CFA Inclusion Code through strategic collaborations and events. This gives the conversation a practical local dimension and shows that inclusion is being advanced both in principle and through concrete action.
This commitment will be reinforced through CFA Society Cyprus’s upcoming webinar with Sarah Maynard, which offers a timely opportunity for financial professionals, business leaders, and firms in Cyprus to engage directly with the business case for inclusion. The discussion will highlight how inclusive behaviours contribute to stronger teams, better decisions, and more sustainable business outcomes, while also encouraging firms to consider endorsing the CFA Institute Inclusion Code. For organisations seeking practical ways to strengthen culture, leadership, and performance, the webinar is a timely and action-oriented forum for engagement.
For financial firms, the next step is clear. Firms should review their practices against the principles of the CFA Institute Inclusion Code and move toward endorsement with seriousness and intent. Endorsement is more than a public statement. It is a commitment to leadership, accountability, measurement, and progress. At a time when financial institutions are being asked to demonstrate resilience, credibility, and long-term value, endorsing the Inclusion Code is an opportunity to strengthen culture, decision-making, and trust. Firms that want stronger teams and better business outcomes should not stand at the edge of this conversation. They should lead it.