Sustainability Report 2021

IMD’s five core focus areas 38

analysis tool assessing gender equal pay. The analysis showed a 3.3% gender pay gap, placing IMD in the “green” category of organizations considered to have no salary differentiation based on gender. The gender pay gap in both public and private sectors in Switzerland is above 10% on average. Maternity and Paternity Leave IMD’s maternity and paternity leave policies are consistent with Swiss law. As per new legislation, from January 2021, new fathers have ten days of full paid leave. IMD provides fourteen weeks of paid leave for new mothers. While on leave, new mothers receive full pay, with IMD covering the costs not covered by the social security system. For faculty members with new children, the workload expectations, including the number of expected teaching days, are reduced, and contract reviews are postponed to the following year, per the Faculty Policies. Equity, Inclusion and Diversity employee outreach As an institution that aims to develop caring and inclusive leaders, change starts at home. For example, IMD visibly acknowledged for the first time the June “Pride” month of LGBTQ+, and flew the LGBTQ+ flag on its campus, clearly positioning itself as an ally and advocate IMD’s Pride activities included a social media campaign, theme-specific I by IMD content, and a specially-designed IMD rainbow logo for staff email signatures and virtual backgrounds. “I have been part of enabling diversity and allyship to be a more visible and integrated part of IMD’s culture, communication and programs. As equality, inclusion and diversity are an integrated part of successful leadership, I am proud to see IMD taking the field seriously.”

Coupled with external events, International Women’s Day was celebrated on campus through an awareness campaign and quiz for employees and distribution of IWD cookies, raising funds for an organization supporting women entrepreneurs in the region. For the International Day of People with Visible and Non- visible Disabilities, IMD employees had the opportunity to try a wheelchair, as well as discuss and agree on the most impactful manner to be an ally to people with visible and invisible disability. IMD also held two management development sessions outlining the EI&D strategy, exploring the biases and stereotypes that each individual carries, with a special focus on what managers and leaders can do to demonstrate inclusive leadership. It is widely acknowledged that an engaged workforce leads to a more productive environment as well as higher financial returns. IMD’s Executive Committee is highly engaged with the entire workforce through frequent communication, interaction, and co-creation of products and solutions. IMD leadership elicits employee opinions on strategy, business goals, working conditions, policies and advancement via anonymous employee feedback surveys, including benchmarking comparisons. Since 2019, IMD has been conducting one internal “Pulse” survey a year to measure employee opinion and a broader “Employee Engagement” survey every two years with an external partner. IMD carried out a “Pulse” survey in June 2021, with a participation rate of 80.2%. After the 2021 pulse survey, the Executive Committee nominated eight young employees to be part of a group named the YMD Team to contribute to IMD’s caring, inclusive and high-performing culture. The YMD Team makes recommendations on key areas of improvement including work intensity, workplace wellbeing, flexible workplace, digital proficiency, and career development. IMD also introduced a new intranet system in 2021 to build transparency and internal communication and facilitate connections among employees. All employees can ask the IMD president anonymous questions during Community Meetings held either monthly or twice monthly or via the intranet. To foster open dialogue, employees learn about how IMD strategy affects their daily work in regular online Q&A sessions with senior leaders. Faculty are also consulted on all decisions related to IMD regulations and elect a representative to serve on IMD’s Foundation Board. Employee Engagement

TANJA ERONEN EI&D COUNCIL EMBA REPRESENTATIVE AND CEO OF NORDEA FUNDS LTD