Beyond the Buzzwords: Why Diversity and Equity Have Always Been Good for Business
The American ideal of meritocracy—the belief that hard work and talent should determine success—has long shaped the nation’s vision of the American Dream: If you’re driven and capable, success will follow, regardless of your background. However, history tells a different story. Deep-seated inequities in race, class, and privilege have long obstructed the realization of true meritocracy. Talent alone is insufficient when barriers to opportunity are unequally distributed. To honor the principle of merit, we must ensure that every individual has a fair chance to prove their worth.
This is where Diversity, Equity, and Inclusion (DEI) come into play. Contrary to misconceptions, DEI isn’t about lowering standards or favoring one group over another. It’s about eliminating the obstacles that unfairly limit access to opportunity. When implemented effectively, DEI practices don’t weaken meritocracy; they strengthen it by ensuring success is based on ability, not privilege.
These aren’t new concepts. Well-run businesses have relied on these principles for generations, even if they didn’t always use the DEI label. Diverse perspectives and backgrounds bring fresh ideas, foster creativity, and create an environment of openness—key ingredients for organizational success.
Research consistently shows that diverse teams outperform their homogenous counterparts. A 2018 Harvard Business Review article titled “Why Diverse Teams Are Smarter” found that diverse teams excel at problem-solving, decision-making, and innovation. These teams generate better ideas and adapt more quickly to changes, resulting in higher productivity and business success. It’s no coincidence that companies with diverse workforces tend to be more resilient in navigating challenges and market shifts.
Similarly, a 2018 Boston Consulting Group study revealed that companies with more diverse management teams generate 19% higher revenue from innovation. Diverse teams are not just more creative; they are more capable of driving revenue growth and business expansion, all because they approach problems from multiple perspectives.
Deloitte’s report, “The Diversity and Inclusion Revolution: Eight Powerful Truths,” further supports this connection, highlighting that inclusive organizations report higher employee engagement, lower turnover, and stronger financial performance. When employees feel valued and included, they are more likely to be engaged, productive, and loyal to their employer, contributing to long-term success and profitability.
The onus is on CEOs and organizational leaders to continue implementing DEI principles, whether or not they are mandated by federal policies. While the language and protocols may evolve, the core values of diversity, equity, and inclusion must remain integral to business practices.
As Stephen Covey wisely stated, “To change ourselves effectively, we first had to change our perceptions.” Effective leadership in today’s world requires shifting organizational perceptions to understand that diversity enhances creativity, drives innovation, and strengthens business outcomes. DEI isn’t about political correctness; it’s about shaping a more dynamic, adaptable, and productive workforce.
Practical Steps for Business Leaders: Promoting DEI Beyond Mandates
Whether or not DEI initiatives are federally mandated, business leaders can continue to promote these principles in practical, impactful ways. Here are a few actionable steps leaders can take to ensure that DEI remains a cornerstone of their organization:
Re-examine Hiring and Promotion Practices: Regularly audit hiring and promotion processes to ensure they don’t inadvertently favor one group over another. Actively seek diverse talent pools and create pathways for underrepresented individuals to advance within the organization.
Support Employee Resource Groups (ERGs): Cultivate Employee Resource Groups (ERGs) that give employees a platform for collaboration across different backgrounds. These groups can foster a sense of community, drive greater understanding, and improve innovation by leveraging diverse perspectives.
Incorporate Diversity into Leadership Development: Develop programs designed to help underrepresented employees ascend into leadership roles. This not only ensures that diverse talent is being recruited, but it also ensures they are prepared to lead and contribute to the company’s success.
Commit to Transparency in DEI Goals: Clearly communicate DEI goals and progress within the company. Transparency builds trust and morale, showing employees that the company is not only setting targets but actively working toward achieving them.
Foster a Culture of Inclusion and Belonging: Create an environment where all employees feel respected, valued, and heard. Continuously assess for bias and exclusionary practices and take immediate steps to address them when they arise.
The idea that diversity, equity, and inclusion are simply “nice to have” or “politically correct” is a myth. Well-run organizations have long relied on these principles to thrive, even if they didn’t always call it DEI. As Margaret Mead put it, “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.” When CEOs and leaders champion DEI, they foster an environment where creative thinking and innovation can flourish. This isn’t just about doing the right thing; it’s about ensuring business sustainability and profitability.
In today’s increasingly diverse world, the future belongs to those who embrace these principles—not as mandates to be met, but as business strategies that unlock untapped potential. DEI is not a passing trend; it is the foundation of a successful and sustainable business model, capable of weathering challenges and driving success in ways that few other strategies can.
By continuing to prioritize DEI, business leaders can ensure that their companies remain not only competitive but also just, equitable, and ready for the future.
George Cassidy Payne has over 20 years of experience in the nonprofit sector, working across various capacities to empower communities and drive social change. He holds a Master’s degree in the Humanities from Emory University, where he developed a strong foundation in critical thinking, ethics, and human behavior. George’s career has focused on advocacy, organizational leadership, and building inclusive environments that champion diversity, equity, and social justice. Passionate about creating systems that promote fair opportunities for all, he continues to work on initiatives that align with his belief in the power of diversity to drive both organizational success and positive societal impact.
References
Harvard Business Review. (2018). "Why Diverse Teams Are Smarter." Harvard Business Review. Retrieved from https://hbr.org/2018/11/why-diverse-teams-are-smarter
Boston Consulting Group. (2018). "How Diverse Leadership Teams Boost Innovation." Boston Consulting Group. Retrieved from https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation
Deloitte. (2020). "The Diversity and Inclusion Revolution: Eight Powerful Truths." Deloitte Insights. Retrieved from https://www2.deloitte.com/us/en/insights/topics/talent/the-diversity-and-inclusion-revolution-eight-powerful-truths.html
Covey, S. R. (1989). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. Free Press.
Myers, I. B., & Briggs, P. B. (1998). MBTI Manual: A Guide to the Development and Use of the Myers-Briggs Type Indicator. Consulting Psychologists Press.
Comments