Why Companies That Embrace Diversity, Equity, and Inclusion Will Lead the Future
Many companies still treat Diversity, Equity, and Inclusion (DEI) as a Human Resources (HR) or People & Culture initiative—something to check off a compliance list rather than a core business function. This is a fundamental misunderstanding of what DEI is and how it impacts an organization’s success.
DEI should not be buried under HR. Instead, it should operate as a standalone function, just like sales, marketing, operations, and product development. Companies that embrace DEI as a strategic pillar—not an afterthought—position themselves for long-term success.
DEI Is More Than Just Hiring Practices
Some argue that DEI is unnecessary, but this often comes from a lack of understanding. DEI is not just about hiring diverse candidates or holding bias training sessions. It influences every aspect of business, from product design to customer experience to marketing.
Take your smartphone, for example. Many of its accessibility features—voice commands, larger text options, and screen readers—exist because of DEI. These features weren’t just added for the sake of inclusion; they expanded the market by making the product usable for a broader audience.
Similarly, social media platforms have integrated DEI principles to improve user safety. Research shows that women are disproportionately targeted by online harassment. By developing safety features like content moderation and privacy settings, these companies are applying a DEI lens to create a better user experience.
The Business Case for DEI
Some leaders question the need for a dedicated DEI function, claiming that businesses have operated “just fine” without it for decades. This mindset mirrors early resistance to technology.
Thirty years ago, companies questioned the need for the internet. They didn’t see the value in digital transformation, and many failed to adapt. Where are those companies now? The businesses that resisted tech evolution became irrelevant, while those that embraced innovation thrived.
DEI is undergoing the same trajectory. The companies that dismiss it as a passing trend will eventually struggle to compete with those that integrate it into their core strategy.
DEI and Business Growth
Think of DEI as a business accelerator. If a sales team struggles to engage a specific demographic—women, Gen Z consumers, or multicultural audiences—DEI provides insights to help them connect more effectively.
If a company faces high turnover among underrepresented employees, DEI strategies can help improve retention and workplace culture. This is not just about ethics—it’s about dollars and sense. A disengaged workforce leads to higher recruitment costs and lower productivity.
DEI also plays a role in workplace policies. The rise of remote work (work-from-home) is a prime example. How do organizations balance the needs of parents/guardians working from home with junior employees who need in-person mentorship? This is a DEI challenge—one that companies must address to remain competitive.
DEI Is Not a Political Agenda—It’s Smart Business
DEI, like sustainability, is often influenced by external economic and political forces. When pushback arises, it’s not the experts in these fields who panic. Those who understand DEI know that its future is inevitable, just like the shift to digital business was.
Businesses can strip away their DEI initiatives if they choose, but capitalism doesn’t care about personal politics. A significant portion of consumers, employees, and investors prioritize diversity, inclusion, and corporate responsibility. Companies that ignore this reality risk alienating a large segment of the market.
Why DEI Needs to Be a Separate Function—Not Just Another Responsibility
A common objection to creating a dedicated DEI department is:
“Shouldn’t companies already be doing these things within their existing departments?”
On paper, this argument makes sense. In an ideal world, every department would naturally embed DEI principles into their strategies. Sales would recognize the value of diverse customer bases, HR would prioritize equitable hiring and promotion practices, and product teams would design with inclusivity in mind.
But history has repeatedly shown that this doesn’t happen without intentional effort.
The Failure of “Let Every Department Handle It”
When left to individual departments, DEI often gets deprioritized, underfunded, or misunderstood. Here’s why:
Conflicting Priorities
- Every department has its own goals. Sales focuses on revenue, marketing on brand awareness, operations on efficiency. Without a central DEI function overseeing strategy, these teams may neglect DEI in favour of short-term business metrics.
- For example, marketing may default to campaigns that appeal to a general audience rather than investing in research to better engage diverse consumers.
Lack of Accountability
- Without a dedicated DEI team, there’s no one responsible for measuring progress. Who ensures that equitable hiring practices are actually being followed? Who tracks whether workplace culture initiatives are effective?
- Historically, companies have implemented well-intended policies, only to discover—often through lawsuits or employee backlash—that these policies weren’t enough to prevent discrimination, pay gaps, or toxic work environments.
The Illusion of Inclusion
- Many organizations claim to be diverse without recognizing deeper structural issues.
- Example: Tech companies have long touted hiring diverse talent, yet studies repeatedly show that women and people of colour face barriers to advancement. Without a dedicated DEI function, these systemic issues persist despite surface-level progress.
Historical Evidence of DEI Neglect
- Consider the gender pay gap. If companies had always prioritized equity, we wouldn’t still see women earning less than men for the same work.
- Think about accessibility. If businesses naturally prioritized the needs of people with disabilities, there wouldn’t have been a need for legal mandates like the Americans with Disabilities Act (ADA) or Canada’s Accessible Canada Act.
- Companies didn’t voluntarily implement these changes—they were forced to by law, activism, and market pressure.
Why DEI Needs a Seat at the Executive Table
The companies that are ahead of the curve already have Chief Diversity Officers or DEI executives who report directly to the Chief Executive Officer (CEO). Why? Because DEI isn’t just an HR issue—it’s a business issue.
- If a company struggles to attract and retain talent, DEI can identify the underlying causes.
- If a product isn’t resonating with a diverse audience, DEI can help adjust the messaging.
- If a company wants to expand globally, DEI can provide insights on cultural intelligence and market-specific nuances.
By treating DEI as a standalone function, businesses ensure that inclusion isn’t just a talking point—it’s a strategic priority.
Bottom Line
Companies can continue to push DEI under HR or assume that every department will handle it on their own. But history tells us otherwise. Just as businesses once resisted investing in technology—only to be forced to catch up later—companies that delay embedding DEI at the highest levels risk falling behind.
The market is shifting. Employees, customers, and investors increasingly expect organizations to operate with diversity, equity, and inclusion at their core. The question isn’t if companies should prioritize DEI, but how quickly they’re willing to adapt.
The choice is clear: adapt and thrive or resist and fall behind. The future of business will be built on inclusivity, and the companies that recognize this today will be the ones leading tomorrow.
Want to learn how to incorporate DEI strategies into your business? – Reach out to us at Schedule a call or video conference with Kyle Kalloo or call us right now at: 1-844-910-7111
