Equity means fairness and justice in how people are treated. It's different from equality, which means giving everyone the same thing. Equity recognizes that people don't all start from the same place, so it involves making adjustments to address existing imbalances to achieve a fair outcome.
Understanding Equity: Key Differences from Equality
Imagine three people of different heights trying to watch a baseball game over a fence.
- Equality: Giving everyone the same size box to stand on. This might work for some, but not for those who need more help to see over the fence.
- Equity: Providing different sized boxes based on individual needs, so everyone can see the game comfortably. This addresses the pre-existing height differences.
This illustrates the core difference: equality provides the same resources to everyone, while equity provides resources based on individual needs to achieve a fair result.
Equity in Different Contexts
The concept of equity applies in various areas:
1. Social Justice and Inclusion
In this context, equity focuses on creating a just society where everyone has opportunities to thrive, regardless of their background. This often involves addressing systemic inequalities based on factors like race, gender, socioeconomic status, and disability. Examples include:
- Affirmative action: Policies designed to increase representation of historically marginalized groups.
- Accessible infrastructure: Building ramps and elevators to ensure buildings are usable for people with disabilities.
- Targeted funding: Allocating resources to communities that have been historically underserved.
As stated in multiple sources, “The term “equity” refers to fairness and justice and is distinguished from equality: Whereas equality means providing the same to all, equity means recognizing that we do not all start from the same place and must acknowledge and make adjustments to imbalances." (NACEweb, Marin HHS, United Way NCA)
2. Finance (e.g., Home Equity)
In finance, equity represents ownership. For example, home equity is the difference between the market value of your house and the amount you still owe on your mortgage. This is your share of ownership in the property. (Investopedia, Reddit)
3. Business (e.g., Equity Compensation)
In a business setting, equity refers to ownership in a company. Equity compensation (like stock options) gives employees a stake in the company's success. (UseOrigin, Buffer)
Achieving Equity: A Just Outcome
Ultimately, equity aims for a just outcome where everyone has the opportunity to succeed. As one source states, "Equity: A just outcome that allows everyone to thrive and share in a prosperous, inclusive society." (Propel ATL) This requires acknowledging and addressing existing inequalities to create a more fair and just system.
