Harnessing the Power of Diversity: Pioneering Ethical Marketing for Next-Gen MSPs

July 10, 2023
B2B, Ethical Marketing, Marketing, MSP

My journey as an autistic, ADHD, bisexual, female leader has shown me the transformative power of diversity and ethical marketing in the business landscape. As a part of a team that contributed to a $500m new pipeline over the past decade, I am here to share insights into how these principles can shape the future of Managed Service Providers (MSPs).

The Ethical Marketing Revolution

In an age where consumers are often overwhelmed by an avalanche of information and dubious marketing tactics, the advent of ethical marketing is akin to a refreshing breeze. But what exactly is ethical marketing?

Defining Ethical Marketing

At its core, ethical marketing is an approach that emphasizes honesty, fairness, and responsibility in all advertising efforts. It goes beyond the mere goal of selling products or services and embraces a commitment to making a positive societal impact. This methodology seeks to promote transparency in messaging, respect for consumer privacy, and the application of good taste in all forms of communication.

Benefits of Ethical Marketing

Ethical marketing not only fosters a deeper relationship with customers but also drives sustainable business growth. Here are some key benefits:

Building Trust: Consumers respect companies that show honesty and transparency. Ethical marketing can help businesses build long-term trust and loyalty with their audience.

Promoting Company Values: By marketing ethically, a company can effectively communicate its core values to its audience. This often leads to an emotional connection with the brand.

Creating a Positive Brand Image: Businesses practicing ethical marketing are likely to enjoy a positive reputation. This not only makes them more appealing to customers, but also to potential investors and employees.

Contributing to Societal Well-Being: Ethical marketing can lead to societal benefits like improved consumer awareness and knowledge, and promotion of certain causes or issues.

In essence, ethical marketing creates a synergy between societal well-being and organizational success, driving positive change while simultaneously promoting business growth.

Diversity: The Unseen Powerhouse

Imagine a scenario where every member of your marketing team brings a unique perspective to the table. They all have different backgrounds, experiences, and viewpoints, yet they’re united by a common goal: to create something extraordinary. That’s the power of diversity in action. But why is diversity so important, especially now, and how does it intersect with ethics and appeal to the emerging cohort of millennial business owners?

Millennials and Business Ownership

According to a report from BNP Paribas Global in 2016, millennials are starting businesses at an earlier age compared to their predecessors: baby boomers. On average, millennials launched their first businesses when they were around 27 years old, as opposed to baby boomers who were typically 35 years old at the time of their first business launch. As more millennials enter the realm of business ownership, it is important to understand their values and how they impact business practices.

Diversity and Millennial Business Owners

Millennials have grown up in an increasingly diverse society and it is reflected in their values. Research indicates that they are more likely to value diverse and inclusive workplaces compared to older generations. For millennial business owners, having a diverse team is not just an ethical or moral stance but also a smart business move. They understand that diversity fuels innovation, broadens consumer appeal, and helps create a brand that resonates with our multifaceted society.

The Intersection of Diversity and Ethics

This is where diversity ties back to ethics. In the absence of diversity, an organization risks developing a blind spot to a range of ethical questions and concerns. Diverse teams can provide a multitude of perspectives, helping to highlight and address ethical issues from various angles. This is especially crucial in marketing, where the messaging has far-reaching impacts on diverse audience groups.

In essence, embracing diversity isn’t just about creating an inclusive workspace. It’s about recognizing and harnessing the strength of different perspectives to drive innovation, connect with a broad spectrum of customers, and uphold the highest standards of ethics in all business dealings.

Our Journey at MKC

At MKC, our diversity is our strength. Our team comprises individuals of varied gender, culture, neurology, and LGBTQIA representation. We’re proud to have a 100% female full-time staff and a 100% neurodivergent team. But diversity at MKC isn’t just about representation; it’s about creating an inclusive environment where everyone feels valued.

We champion remote work, recognizing that a comfortable space can lead to incredible creativity.
Time off isn’t just allowed – it’s encouraged. We understand that rest is as essential as work for maintaining a healthy work-life balance.
Each member’s boundaries are respected, fostering a culture of mutual trust and understanding.
Preventing burnout isn’t an afterthought – it’s a priority. We strive to maintain a positive, engaging, and healthy work environment.

The Ripple Effect of Diversity and Ethics

The profound impact of embracing diversity and ethical marketing is not just limited to an organization’s internal workings; it also leaves a significant imprint on its external relationships.

Internal Impact: Productivity, Happiness, and Retention

Let’s take a look at some real-world examples. Global professional services company, Accenture, has reported a clear link between diversity and an improved workplace environment. In their research, they found that employees who felt a sense of belonging at work were more likely to advance their career at their company, suggesting higher employee retention rates in diverse and inclusive workplaces.

Similarly, a study by Boston Consulting Group (BCG) found that diverse management teams led to more innovation and higher revenue from new products and services. In the world of marketing, this increased innovation could manifest in out-of-the-box campaigns that effectively capture the attention and hearts of the audience.

External Impact: Trust, Engagement, and Client Acquisition

On the external front, ethical marketing fosters a deeper relationship with customers. A great example is the outdoor clothing brand, Patagonia. Known for its ethical marketing practices, Patagonia openly shares its efforts to reduce environmental impact and enhance fair trade practices. This has not only helped Patagonia to gain the trust of its customers but has also attracted prospects who share the same values.

Further evidence comes from a Cone Communications study, which found that 87% of consumers would purchase a product because a company advocated for an issue they cared about. This again demonstrates the power of ethical marketing in attracting and engaging customers.

Ultimately, the adoption of diversity and ethical marketing creates a positive ripple effect, extending from the heart of the company to its interactions with the world at large. It’s not just about doing what’s right; it’s about doing what’s best for sustainable business growth.

Empirical Evidence: Diversity Drives Success

Our journey at MKC isn’t a singular story. Many studies and real-world examples stand testament to the positive influence of diversity. A diverse workforce fuels creativity, cultivates innovation, and builds resilience. Let’s delve into some compelling data:

Higher Cash Flows: A study conducted by the Boston Consulting Group (BCG) found that diverse companies generate 19% more revenue due to innovation. It’s clear that fresh perspectives lead to fresh ideas – which, in turn, lead to financial growth1.
Outperforming Industry Peers: Companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians, according to McKinsey & Company2. In fact, organizations with above-average diversity reported 19% higher innovation revenues and 9% higher EBIT margins3.
Effective Business Decisions: According to a report by Cloverpop, inclusive teams make better business decisions up to 87% of the time. The decision-making process also happens twice as fast with half the meetings4.

These figures illustrate the tangible benefits of fostering a diverse workforce – advantages that go beyond the ethical and societal reasons and contribute directly to a company’s bottom line.

The Cognitive Spin to Diversity

When we talk about diversity, it isn’t merely about physical attributes, ethnicity, or gender – although these aspects are undoubtedly important. A significant, albeit less obvious aspect of diversity is cognitive diversity – diversity of thought. This kind of diversity is all about cherishing and leveraging the unique ways in which each team member thinks, analyzes, and approaches situations.

Exploring Different Thought Processes

An illuminating example of cognitive diversity at work can be seen in the field of computer programming. Take Apple’s creation of the iPhone, which revolutionized the mobile phone industry. The design team was not composed solely of computer scientists. Instead, Apple included members from a range of backgrounds – designers, linguists, and even psychologists. This diverse team viewed the challenge of creating a new type of phone from different angles, which led to the innovative user-friendly design that we see today.

Promoting Dynamic Problem-Solving

In the world of emergency services, cognitive diversity is vital. A diverse team of first responders brings together individuals trained in different fields – EMTs, firefighters, police officers, and more. They must work together under extreme pressure to make life-saving decisions. Each person’s unique skill set and problem-solving approach contribute to the team’s overall effectiveness.

Sparking Unique, Out-of-the-Box Ideas

Pixar Animation Studios is another prime example. Ed Catmull, co-founder of Pixar, places a high emphasis on cognitive diversity. Teams at Pixar often include artists, mathematicians, and engineers. Their distinct perspectives help produce some of the most innovative and beloved films in the animation industry.

In essence, fostering cognitive diversity leads to a more vibrant and productive brainstorming environment, which, in turn, leads to innovative solutions that might not have been discovered in a more homogeneous group.

Looking Forward: The Crucial Role of Diversity in Next-Generation MSPs

The world of Managed Service Providers (MSPs) is evolving rapidly. Technology is becoming more sophisticated and commoditized, and the industry is increasingly competitive. In this environment, the ability to reroute a network or provide top-tier tech support is no longer the unique selling proposition it once was.

Instead, what differentiates one MSP from another in today’s market isn’t solely their technical prowess, but their people and their culture. The workforce is changing, and businesses are being taken over by a new wave of leadership from Millennials and Generation Z.

According to a report from BNP Paribas, by 2025, millennials are expected to make up 75% of the global workforce. Furthermore, a 2020 Guidant Financial survey found that millennials are starting businesses at a younger age and running more profitable businesses compared to baby boomers. These millennial business owners are seeking partnerships with companies that not only provide quality services but also share their values. As digital natives, they have high expectations for technology and are eager to work with diverse teams that bring creative solutions to their complex needs.

Inclusion, diversity, and ethical practices resonate strongly with these generations. They value authenticity, social responsibility, and businesses that stand for more than just profit. A 2020 study by Deloitte showed that millennials and Gen Z are loyal to businesses that prioritize diversity and inclusion, and they prefer to buy from those that mirror their values.

Therefore, for MSPs to be competitive and stay relevant, it’s critical to commit to a culture that celebrates diversity and prioritizes ethical marketing. It’s not just about ticking a box or following a trend; it’s about building a sustainable, successful business that’s prepared for the future.

Our proposition is simple: join us on this journey. Let’s foster a business world that prizes diversity and inclusivity, where ethical marketing is the norm, and businesses flourish due to their authenticity and shared values. This isn’t just the path to survival—it’s the path to a rewarding and enriching future for MSPs.

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