DEI Is Not A Threat; It’s A Gift

"DEI is not a threat, it’s a gift." Alicia Keys, 2025 Grammy’s

DEI allows a company to become a greater sum than its parts. It’s associated with happier employees, more innovation, and less burnout/turnover. It is an essential consideration when building compassionate and sustainable cultures.

Diversity, Equity, Inclusion, and Belonging (commonly shortened to DEIB, when we add belonging) is a concept to uplift and empower people who are under-represented. Recently, DEIB has seen an increase in scrutiny, and its importance in the workplace has been questioned. Companies that champion DEIB don’t just create better workplaces for everyone involved; they gain a competitive edge. When we work with companies to create compassionate cultures and stronger leaders, we address DEIB as part of our initial audit using this model:

Inclusion and a sense of being connected to the place you work goes far beyond “equal representation”; diversity within a team brings a plethora of perspectives and different ideas about how things should be done. When more groups of people have a voice, the results are indisputable; better ideas, creative solutions to problems, and objectively better business outcomes. Companies that embrace DEIB ultimately create cultures that fuel creativity, push boundaries, and drive long-term success.

• Businesses in the top quartile for racial/ethnic diversity are 36% more likely to outperform their competitors financially (McKinsey)
• Diverse leadership within a given company boasts 19% higher revenue from innovation (BCG).
• Inclusive cultures also increase the likelihood of being an innovation leader by 1.7 times (Deloitte)!

Talent is everywhere, but opportunity is not. This message is echoed throughout Adam Grant’s new book Hidden Potential, which focuses on unlocking untapped capabilities within companies and organizations. Grant’s work offers relevant messaging, research, and real-life stories that lay the groundwork for designing systems that give opportunities to those who might not otherwise have it, thus paving the way for organizational growth by extension of individual growth through new opportunities. Grant creates a framework for raising aspirations of diverse groups, and then exceeding expectations through the same concepts that fall under the DEIB umbrella.

Recently, DEIB initiatives have been under scrutiny. Some of this has been related to recent changes in politics and policy. However, some examinations can be helpful as these programs become more effective. Many notable companies are leaning into these practices, and acknowledge the benefits they have seen:

• Microsoft has integrated DEIB into its business strategy by increasing diversity in leadership roles and investing in more inclusive hiring practices. In response to recent pressure from activists and the anti-DEIB precedents set by the new white house administration, Chief Executive Satya Nadella issued a statement: “[These values] ensure our workforce represents the planet we serve, and that the products we build always meet our customers’ needs”.
• Costco has a long history with DEIB, having hired its first Diversity Officer in 2004, marking multiple decades of company values based on diversity and inclusion. Also facing similar pressures to that of Microsoft, the company remained steadfast in its approach; The company’s board maintains “[DEI Initiatives] enhance our capacity to attract and retain employees who will help our business succeed”.

Where do we go from here? It’s simple, but not easy.

As leaders who aim to lead with compassion, we need to treat DEIB initiatives as the essential cornerstone of successful business that they are. This means providing an accurate representation of the people who inhabit the world we live in. As leaders, we all need to foster equity and inclusion, and we must continue to walk the walk as we move forward toward a better world through better work. DEIB isn’t a buzzword or mere statistic, it’s a commitment to the people we serve that their voice matters and is instrumental in long-term success.

If you’re interested in celebrating compassionate leaders, please join us for our annual CLC Awards on April 24th.