Diversity, Equity, and Inclusion (DEI) have emerged as critical components in both for-profit and non-profit organizations, driving ethical imperatives and enhancing organizational performance and stakeholder engagement. DEI initiatives can foster innovation, improve employee satisfaction, and enhance customer loyalty, ultimately contributing to the bottom line of organizations. More than just buzzwords, DEI represent a fundamental shift in how organizations operate, marketing operations, fostering a culture where every individual feels valued, respected, and empowered to contribute their unique perspectives. This article explores the importance of DEI, supported by academic research, and examines the potential consequences of its removal, particularly within the United States.
Diversity encompasses the multitude of differences that make each individual unique, including race, gender, ethnicity, sexual orientation, religion, age, and disability.
Equity ensures that everyone has fair access to opportunities, taking into account historical and systemic disadvantages, and providing tailored supports based on any barriers that group experiences historically or presently to even out the playing field.
Inclusion fosters a sense of belonging, where individuals, from all backgrounds, genuinely feel welcomed and valued.
Innovation
Research indicates that diverse teams are more innovative and effective, as they bring varied perspectives that can lead to better problem-solving and decision-making processes (“Examining The Facets Of Diversity, Equity and Inclusion In Relation To Human Resource Management”, 2024; Newburry et al., 2022).Gender diversity, for example, was found by a Deloitte (2020) analysis in 2019 that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile—up from 21 percent in 2017.
The role innovation plays in organizations includes being able to meet community demands, needs and trends – a well as genuinely and accurately reflecting the socio-political needs of the time, for e.g. being conscious and loyal consumers, as Deloitte found, results show 57% of consumers are more loyal to brands that commit to addressing social inequities in their actions (2021, Authentically Inclusive Marketing, Deloitte Insights).
In the non-profit sector, the urgency of promoting DEI has been amplified by equality movements, to tackle sexism, racism and among many others, which highlight systemic inequities and the need for organizations to reflect the communities they serve. A study by Rolf et al. (2022) emphasizes the correlation between local community demographics and the ethno-racial diversity of non-profit organizations, suggesting that organizations that prioritize DEI are better positioned to address the needs of diverse populations. Furthermore, Price et al. (2023) found that employees who perceive their organizations as supportive of DEI are more likely to advocate for these initiatives, indicating a positive feedback loop that can enhance organizational culture and effectiveness (Price et al., 2023). Internalized motivators can be said to reflect a desire for inclusive and diverse environments, which continues to generate more positive outcomes.
To DEI or Not to DEI?
We are witnessing that the dismissal and removal of DEI programs in the current climate in the United States has resulted in boycotts and brand disloyalty. This affects the bottom line – people power can dictate whether an organization will thrive or survive – with dollars and actions.
This current climate in the United States has seen a backlash against DEI initiatives, with organizations opting to dismantle or scale back their programs. This trend raises concerns about the negative impacts on clients and customers, particularly those from marginalized communities. The removal of DEI programs can lead to a decline in representation and inclusivity, which may alienate clients who rely on these organizations for support and services.
For instance, the healthcare sector has seen significant discussions around the importance of DEI in improving patient outcomes and experiences (Morrison et al., 2021; Maina et al., 2024). A case study from the Provincial Health Services Authority in British Columbia illustrates how self-identification surveys can help organizations assess their DEI efforts and their impact on marginalized communities (Maina et al., 2024). The dismantling of such initiatives could reverse progress made in understanding and addressing the unique needs of these populations.
Tailoring solutions to meet the unique needs of populations is more often cost-effective it takes into account the specific characteristics, challenges, and preferences of different groups, leading to more relevant and impactful outcomes. This can, for example, improve plan adherence, better resource allocation, increased effectiveness, or simply using behavioral science, to tailored messaging based on behavioral insights (e.g., using social norms or framing effects) has been shown to increase desired behaviors, such as encouraging energy conservation or healthy eating
Moreover, the hospitality industry has faced challenges in implementing effective DEI strategies, often focusing primarily on diversity training without a comprehensive approach that includes equity and inclusion (Russen & Dawson, 2023). This lack of a holistic strategy can result in superficial compliance rather than genuine cultural change, which is essential for fostering an inclusive environment. The implications of this can be profound, as organizations that fail to prioritize DEI may struggle to attract and retain talent, ultimately affecting their service delivery and client satisfaction.
Before you Make a Hasty Decision
The removal of DEI initiatives can also have broader societal implications. Organizations that embrace DEI not only enhance their internal culture, but also contribute to social justice and equity in their communities. As noted by Romdhane and Babineau (2023), DEI initiatives are increasingly viewed as essential for aligning organizational practices with consumer values, particularly in sectors such as policing and healthcare, where public trust is paramount.
For employers and competitive hiring, Glassdoor (2021) found that more than 3 out of 4 job seekers and employees (76%) report that a diverse workforce is an important factor when evaluating companies and job offers. This means that, whether or not your company is interested in increasing its diversity, most candidates are nevertheless evaluating diversity when they research your company and during the interview process.
The absence of DEI can lead to a disconnect between organizations and the communities they serve, undermining efforts to build trust, brand loyalty, and foster collaboration or partnerships. This is more than just the myth of meritocracy, but it is the fabric of our shared multiculturalism – to include, to equalize and to make equitable the exclusion and discrimination that human rights protected groups face. To take steps back on these advancements is face an ethical dilemma that becomes harder to learn empathy and humility.
The importance of DEI cannot be overstated. While the current trend of removing DEI programs poses significant risks, organizations must recognize the value of these initiatives in promoting innovation, improving stakeholder relationships, and enhancing overall performance. A commitment to DEI is not merely a moral obligation but a strategic imperative that can drive long-term success and social impact.
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References
Brodzik, C., Young, N., Cuthill, S., & Drake, N. (2021, October 19). Authentically inclusive marketing. Deloitte Insights. https://www2.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/global-marketing-trends/2022/diversity-and-inclusion-in-marketing.html
Dixon-Fyle, S., Dolan, K., Hunt, D. V., & Prince, S. (2020, May 19). Diversity wins: How inclusion matters. McKinsey & Company. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
Glassdoor. (2021, July 12). Recruiting a diverse workforce | glassdoor for employers. What Job
Seekers Really Think About Your Diversity and Inclusion Stats.
https://www.glassdoor.com/blog/diversity
Kaur, J., & Singh, R. Examining The Facets Of Diversity, Equity and Inclusion In Relation To Human Resource Management. International Journal of Progressive Research in Engineering Management and Science, 04(11), pp : 339-343
Price, C. A., Young, L., Broussard, R., Ralston, N. C., & Kares, F. R. (2023). The equity lens map: factor analysis & validation.. https://doi.org/10.35542/osf.io/m2z4c
Maina, N. M., Miled, N., & Crump, M. (2024). Self-identification and workplace experience surveys for equity and inclusion in healthcare. Healthcare Management Forum, 38(1), 41-45. https://doi.org/10.1177/08404704241266139
Morrison, V., Hauch, R., Perez, E. A., Bates, M. L., Sepe, P., & Dans, M. (2021). Diversity, equity, and inclusion in nursing. Nursing Administration Quarterly, 45(4), 311-323. https://doi.org/10.1097/naq.0000000000000494
Newburry, W., Rašković, M., Çolakoğlu, S., González-Pérez, M. A., & Minbaeva, D. (2022). Diversity, equity and inclusion in international business: dimensions and challenges. AIB Insights, 22(3). https://doi.org/10.46697/001c.36582
Romdhane, S. B. and Babineau, A. (2023). Beyond reputation management: an auto-ethnographic examination of diversity, equity, and inclusion in canadian policing. Societies, 13(10), 216. https://doi.org/10.3390/soc13100216
Rolf, S., Tuggle, C., Schlachter, S., & Bernstein, R. S. (2022). Predictors of nonprofit ethno-racial diversity: examining local community demographics and political ideology. Nonprofit and Voluntary Sector Quarterly, 52(4), 1029-1057. https://doi.org/10.1177/08997640221114108
Russen, M. and Dawson, M. (2023). Which should come first? examining diversity, equity and inclusion. International Journal of Contemporary Hospitality Management, 36(1), 25-40. https://doi.org/10.1108/ijchm-09-2022-1184