The Business Case for Responsible Design

But where is “here” exactly? Here is a tense political environment amidst a divisive battle over “woke” values. It’s a challenging business climate with companies deprioritizing DEIB budgets and sometimes removing entire teams. It’s a design community questioning when and where to push on inclusive practices, in service of moving all of us forward.

Even amidst these hurdles, many of us are still seeking a world where our commercial systems reinforce the world we want to live in. That’s our “there.” To those who believe, the path to more inclusive design practices is not some cherry-on-top afterthought; it’s an imperative facet of our evolving global culture. And for some designers, it’s why we wake up and go to work every day.

Responsible design (or inclusive design, ethical design, or even respectful design, as design leader Dr. Dori Tunstall has dubbed it) has been an emerging focus of design for decades, most often helmed by BIPOC and marginalized folks at design-led organizations. At IDEO, it’s been a movement most recently organized by the Inclusive Design Collective (IDC), a fast-growing crew that meets regularly to discuss design, interrogate our processes, and consider the potential consequences of our work, socially and environmentally.

The IDC has been experimenting with design tools and resources to use throughout the design thinking process (many of these interventions build on tools and best practices from across the worlds of design, engineering, and business). Most of the tools we’ve developed and adopted make space in the project journey to question privilege, power dynamics, biases, and access—all to unlock better outcomes for people and the planet.

Meanwhile, we can feel business shifting. Not all decisions are being driven by profit and shareholder value anymore. We see in our research and in our client work that commerce is becoming more values- and responsibility-driven choice-making. (And in many cases, it’s already there.) Here are five reasons we believe centering inclusive practices in design is the way things are going:

1. Inclusive design is at the heart of global scaling

Capitalism is built on a premise of continual growth. Increasingly, businesses are looking globally to find that growth—but doing so requires that we design thoughtfully and inclusively for consumers and producers in those new markets. For decades now, emerging markets have produced goods for the world, leading to a wave of consumerism. The internet accelerated this change in consumption and exacerbated a trade imbalance that does not serve the needs of people in emerging markets.

But now, we're seeing a shift, especially as historically marginalized countries are experiencing population and economic gains that far outpace the rate of change in other markets. Companies have begun trying to sell products and services to people in emerging markets, delivering to an entirely new set of customers with different values, systems, cultures, needs, and motivations. The businesses that will win—as always—are the ones that deeply understand their customers and how the products they deliver meet those customers’ needs. That means the businesses that will win will be the ones who design alongside them.

We’ve seen this firsthand. Our Last Mile Money program, funded by the Gates Foundation, was a great use case for responsible design. Our work focused on helping companies launch more inclusive products and greater financial access in emerging markets at what is called “the last mile”—underserved women, people in rural areas, and others facing barriers like literacy and internet access. Even companies that were committed to designing for underrepresented users were facing a challenge: Products were often designed with urban, tech-savvy, mostly-male users in mind. Despite pouring money into marketing, promotions, and rebrands, new users weren't adopting their wares. To unlock real growth, these companies needed to expand far beyond their existing users.

In response to these challenges, IDEO developed tools like Designing for Digital Confidence, the Gender Evaluation Framework, and the Financial Confidence Playbook. We centered underserved users throughout the design process, constantly going back to them for feedback to help product teams understand a range of barriers that have kept many people from using and benefiting from digital products. We listened and then took action, redesigning and improving products for needs that have often been ignored.

In India, major e-commerce platform FlipKart (owned by Walmart) redesigned its app to be more intuitive for first-time internet users, helping them serve hundreds of millions of customers. In Kenya, a startup called Leja streamlined its product’s onboarding experience for female small-business owners, leading to 30 percent more sign-ups, and more than quintupling transaction growth. We're seeing many more companies integrate responsible design into how they operate, not just because it’s the right thing to do—but because their own future growth depends on it.

2.  Gen Z won’t mess with anything that’s not inclusive—no cap

‍The number of Gen Z workers—those born between 1997 and 2012—is projected to grow to 51 million by 2030 (overtaking Boomers, who had long reigned as the largest generation of full-time workers, from the late 1970s-2011). Gen Zers are digital natives who grew up in the era of rapid technology development, possess a unique set of skills and perspectives, and are the most diverse generation of our time. Gen Z's strong sense of social awareness and values-driven choice-making guides everything they do. It now has begun to guide business. Companies are shifting their calculus—lack of inclusivity means fewer customers. And businesses who don’t heed this may go the way of Crystal Pepsi.

Meanwhile, external signals reflect a similar sentiment, like the rise in demand for environmental, social, and corporate governance-related investment (82 percent of Gen Z have exposure to ESG investments, and 40 percent say their investment decisions are driven by companies with purpose), or the way Gen Z has redefined consumption from ownership to access, show that they're demanding more from the companies, products, and technologies they adopt. Gen Zers hate labels, love “slow fashion,” and more than half of them identify as “not straight.” For them, DEIB needs to be built in, and authentic, and their loyalty will follow.

As many companies are scrambling to build AI products as quickly as possible, we took a different approach: working directly with Gen Zers to learn more about what they really want from AI. As we tested and prototyped product concepts, they sent us a clear message: They only want products that align with their values. Too many of us assumed that as digital natives, they would take to all-new tech like ducks to water; instead their preferences have many folks really considering the ethical and climate consequences of emerging technology.

3. In many sectors, responsible design won’t be a choice—it will be an obligation

‍‍We all know that businesses today are not nearly as motivated as they need to be to make the changes our planet will need. When we worked with H&M’s CEO at the time, the company had made aggressive sustainability goals, driven by their own aspirations for the business. However, they were also aligned with global regulations, calling for less plastic and less waste in manufacturing processes, and placed them ahead of the market in this transition by streamlining their supply chain, and cutting excess inventory, and producing less waste.

It’s too early for this latest AI growth spurt to have spurred much regulation—but it is coming. IDEO’s Emerging Tech Lab is putting ethics first and sees AI and climate at an intersection, ripe with opportunity for designing more responsibly—for the good of the world, but also because one day, companies simply won’t have a choice.

4. Consumer preferences are changing, and businesses that only care about shareholder growth may be penalized

‍Values-based consumption is not just having a moment—it has redefined consumption. More people are choosing to support companies that align with their values. In fact, in a McKinsey survey, 70 percent of Gen Z respondents said they try to purchase products from companies they consider ethical. Nielsen tells us that 75 percent of Millennials are so eco-conscious, they’ll change their buying habits to favor environmentally-friendly products.

Consider Patagonia. With an estimated value of about $3 billion dollars, and $100 million in annual revenue, the outdoor company announced in 2022 that Mother Earth would be its only shareholder, and “every dollar that is not reinvested … will be distributed as dividends to protect the planet.” Patagonia has made a name for itself with aggressive environmental goals, like completely eliminating virgin petroleum material in its products by 2025, and becoming net zero by 2040. Patagonia products aren’t cheap, yet sales have quadrupled over the past decade, and it has also expanded offerings into food. The company is a great example of how a brand can be very clear about what it stands for, and still find that people will pay for quality—even at a time when consumers are feeling the pain of inflation. Meanwhile, fast fashion, which offers customers lower quality goods at a much cheaper price point, has seen a steady decline in sales. If businesses continue to only value cost savings, they may learn: Cheap isn’t cheap when it loses you a customer.

‍5. Responsible design creates better products

‍We're big admirers of the healthtech startup Kasha, which has leaned into responsible design to unlock pent-up demand with healthtech. Founder Joanna Bichsel saw that millions of women lacked access to health products in Rwanda. So, Kasha listened to customers’ needs and pain points, and it designed a service that delivered tampons, contraceptives, and other women’s products in accessible and responsible ways. Kasha tapped into massive demand by offering unprecedented product choice, high quality, and perhaps most importantly, confidentiality to its customers, who are 65 percent low-income women. Kasha has seen 10 times revenue growth, and has now expanded to multiple markets across Africa. The woman-led startup isn’t stopping there: It’s adding pharmaceuticals, telehealth, and credit services—all to help women better access quality health care. Kasha learned that centering the unmet needs of the voices that are so often unheard was not just the path to more inclusivity, but also to create products specifically tailored for their customers, and succeed as a company.

The opportunities ahead

Whether it’s the values-based consumption habits of the next generation, new opportunities in growth markets, a coming wave of regulations in climate and Gen AI—Bob Dylan said it best—“the times, they are a-changin.”

Companies that plan for this future, this “there,” with value-loving consumers, more diverse needs, more access, more expansive geographies—will not only get “there,” they will reap the benefits, too. If you’re trying to make it through this tough, ever-changing market—inclusive design might be the best way to survive, and we’d love to help.

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