In recent days, there has been a lot of speculation and debate around Diversity, Equity, and Inclusion (DEI). Some organizations are rebranding their DEI initiatives, laying off personnel from DEI teams, changing their roles or even questioning the relevance of DEI altogether. But is DEI really in danger? Or is it more critical now than ever before?
Let’s break it down and separate fact from fiction.
Why Do Organizations Exist in the First Place?
At their core, organizations exist to make profits. They sell goods or services to consumers, whether directly, or through distributors, or via social media platforms. But here’s the undeniable truth: consumers are diverse. They come from different genders, generations, races, economic backgrounds, abilities, and social contexts. If organizations want to succeed and remain sustainable, they must understand and reflect the diversity of their consumers. This isn’t just a moral obligation—it’s a business imperative.
Think about it: Can a company truly understand the needs of a diverse customer base if its workforce is homogeneous? The answer is a resounding no. Diversity isn’t just a “nice-to-have”; it’s a “must-have” for any organization that wants to thrive in today’s globalized world.
The Evolution of DEI: From Compliance to Culture
DEI has evolved significantly over the years. Initially, it was seen as a compliance issue—something organizations had to do to avoid legal repercussions. However, as the business landscape has become more complex and interconnected, DEI has transformed into a cultural imperative. It’s no longer just about meeting quotas or avoiding lawsuits; it’s about fostering an environment where everyone feels valued, respected, and empowered to contribute their best.
Understanding this shift from compliance to culture is crucial. Organizations that view DEI as a checkbox exercise are missing the point. DEI is about creating a workplace where every unique individual is empowered and enabled to contribute to their fullest. It’s about building a culture that attracts the best talent, and nurtures them so that the company can drive innovation to meet the needs of an evolving consumer and customer base. It is as simple as that.
Is Diversity an Agenda?
One of the biggest misconceptions about DEI is that it’s an “agenda” pushed by certain groups. But let’s ask ourselves: Is diversity about favouring one group over another? Or is it about creating a level playing field where everyone has an equal opportunity to succeed?
Let’s take the example of People with Disabilities (PWD). Many assume that disabilities are something people are born with, but the reality is far more complex. Disabilities can occur at any stage of life—due to illness, ageing, or accidents. What happens if an employee becomes disabled while working? Should organizations simply say, “There’s no place for you here”? Of course not. Having an inclusive workplace ensures that employees are supported through all phases of life.
Similarly, consider sexual orientation and gender identity. Many people discover their true selves later in life. We have seen a 40-year-old man come out to his wife, undergo gender affirmation surgery, and transition. Is this an “agenda”? No—it’s about humanity, acceptance, and ensuring that everyone feels valued and included.
Let’s imagine a race track. Some runners start on the inner edge, while others are forced to run on the outer edge. If everyone is forced to start at the same starting point, Is this a fair race? Of course not. People on the outside edge will have to run extra distance and hence will have a lesser chance to succeed. This is common sense. So, Equity is about ensuring that everyone has a level playing field, equal opportunities to succeed. It’s not about guaranteeing equal outcomes but about removing systemic barriers that prevent people from reaching their full potential.
The data speaks for itself. According to a McKinsey report, companies in the top quartile for gender diversity are 25% more likely to outperform their peers financially. Similarly, ethnically diverse companies are 36% more likely to achieve above-average profitability. These numbers aren’t coincidental—they reflect the power of diverse perspectives in driving innovation and decision-making.
Moreover, a study by Deloitte found that inclusive teams outperform their peers by 80% in team-based assessments. When people feel included, they’re more engaged, productive, and loyal to their organizations. DEI isn’t just about fairness; it’s about creating a competitive advantage.
The Future of DEI:
The future of DEI is both challenging and full of opportunities. On one hand, there is growing recognition of the importance of DEI, driven by social movements, changing demographics, and evolving business needs. On the other hand, there is resistance and backlash from those who view DEI as a threat to the status quo.
To navigate these challenges, organizations must be proactive and resilient. They must continue to do the right thing, even in the face of scepticism or opposition. They must also be willing to adapt and evolve, learning from their experiences and staying attuned to the changing needs of their workforce and customers.
Diversity is a fact. Inclusion is a choice. Equity is action. Belonging is the outcome.
So, is DEI in danger? Only in the minds of few. The real danger lies in ignoring the realities of our diverse world and failing to adapt. Organizations that embrace DEI aren’t just doing the right thing—they’re future-proofing their businesses.
DEI isn’t a trend or a passing phase. It’s a reflection of the world we live in—a world that is beautifully diverse and constantly evolving. The question isn’t whether DEI is in danger; it’s whether we’re willing to embrace it fully and make it a cornerstone of our workplaces and societies.
Leadership plays a critical role in driving inclusive cultures. Leaders set the tone for the culture and values. They have the power to influence policies, practices, and behaviours that are acceptable and that are not acceptable.
Their role goes beyond performative gestures. It requires genuine action and accountability. Leaders must be willing to challenge the status quo, address unconscious biases, and create opportunities for people irrespective of the differences. They need to change the narrative from DEI being seen as one set of people vs another to ‘Humanity’ vs ‘discrimination’.
Many leaders and companies are sitting on the fence, waiting and watching the way the wind blows. I wonder, will it be too late for them by the time they realise that it was never about men vs women, abled vs disabled, Cisgender heterosexual people vs LGBTQIA++ community or any cultural divide; it was always about building enabling empowered workplaces everyone felt heard, valued and respected.
About the Author
Sonica Aron, Founder & CEO of Marching Sheep, is widely recognized as the leading authority in Diversity, Equity, and Inclusion (DEI) & Progressive HR processes, having spearheaded interventions for Marching Sheep across 80 countries and over 380 organizations. An alumnus of XLRI, Jamshedpur, and a certified Coach, she has over 20 years of experience at leadership roles in companies like Philips, AkzoNobel, Roche Diagnostics, Vodafone and Pepsi. Her esteemed position is underscored by her membership on the board of Gender@work India Trust and she is a sought-after speaker at multiple conferences and forums, including Business World, FICCI, IIMs.
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