Diversity, equity, and inclusion (DEI) initiatives have been under fire lately — politically, socially, and even within corporate boardrooms. But some companies aren’t backing down. They’re doubling down. Why? Because when done right, DEI isn’t just a social responsibility — it’s a business advantage.
DEI: More Than a Checkbox
For too long, companies have treated DEI like a side project — a nice-to-have or a feel-good PR move. That’s a mistake. Programs have a start and an end. Strategies, on the other hand, are built to last.
Karen Brown, a veteran DEI leader and author of The Leaders You Need, argues that companies seeing the most success treat DEI as a core business strategy. It’s not an add-on. It’s baked into operations, technology, finance, and leadership decisions. Companies that win with DEI integrate it into their long-term goals, ensuring it’s as essential as any other key performance driver.
Without that mindset, DEI efforts risk becoming performative — well-meaning but ultimately ineffective. And employees, consumers, and investors can see right through that.
The Leadership Factor: Passion Isn’t Enough
Passion is important. But passion without know-how? That’s where companies get it wrong.
One of the biggest missteps Brown highlights is appointing DEI leaders who care deeply about the cause but lack the business acumen to connect DEI to company performance. A successful DEI leader needs to be more than a champion for inclusion — they need to speak the language of the C-suite.
The right DEI leader understands operations, strategy, and performance metrics. They can translate inclusion into measurable outcomes. If they can’t, DEI stays stuck on the sidelines, disconnected from the company’s core business objectives. That’s when credibility — and momentum — fades.
DEI’s Business Impact: The Numbers Don’t Lie
Still think DEI is just a moral play? The data says otherwise.
Companies with diverse leadership teams outperform less diverse competitors. According to a 2023 McKinsey study:
- Companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability.
- Ethnically diverse executive teams outperformed less diverse peers by 36%.
And it’s not just about leadership. A Boston Consulting Group study found companies with more diverse management teams saw 19% higher revenue from innovation. That’s a competitive edge no CEO wants to leave on the table.
The Hidden Costs of Ignoring DEI
Let’s talk risk. Ignoring DEI isn’t just a missed opportunity — it’s a liability.
Reputation matters. In a 2024 Edelman Trust Barometer report, 62% of consumers said they prefer to buy from brands that stand for something bigger than their products. And employees are watching, too. A Glassdoor survey revealed 76% of job seekers say a diverse workforce is an important factor when evaluating companies.
Get DEI wrong, and you’re not just losing talent — you’re losing trust, customers, and market position.
Where Companies Go From Here
So, what now? Brown emphasizes that DEI needs to be treated like any other core business strategy. That means:
- Embedding DEI into the business model: It’s not an HR project — it’s a company-wide imperative.
- Choosing the right leadership: DEI leaders need both passion and business expertise.
- Measuring outcomes: Progress isn’t about good intentions. It’s about results — retention rates, performance metrics, innovation revenue, and more.
Companies willing to push past the noise and make DEI a strategic priority aren’t just creating fairer workplaces — they’re building smarter, stronger, more resilient businesses.
