DEI—Not a Social Initiative… an Imperative Growth Strategy
Today, my eleven-year-old daughter reminded me of a lesson I've been drilling into her since she was barely old enough to talk—do what is right, even when it may feel like it comes at a personal cost to yourself. Today, when Madi stood up for one of her friends whom other kids were bullying, she lost another friend who was very important to her. Courage is not easy. Sadly, and while this shouldn't be the case—having Integrity… doing what is right, not what is expedient—is not always easy. As I walked through this experience with her, I felt like I'd been sucker-punched. It hit me hard. At that moment, I realized I'd been watching from the sidelines over the past month as many organizations across the country abandoned their work in Diversity, Equity, and Inclusion (DEI). I've stood by without speaking up and making Crescent Leadership's position crystal clear—DEI is not only the right thing to do, it is an imperative growth strategy.
What THE “DEI” in Diversity, Equity, and Inclusion Really Means
Before we dive into how Diversity, Equity, and Inclusion positively impact the bottom line of every organization, let's debunk the politicized narrative reshaping commitment to it as a growth strategy.
Diversity → Who is in the room?
How it Gets Politicized: Opponents often frame Diversity as a "quota system" or an effort to replace one group with another. In reality, Diversity is about broadening access to talent and perspectives, not about exclusion or replacement.
What it Actually Is: Diversity refers to the presence of differences. The Leader-First Leadership Manifesto says, "Leaders see difference as the essential thread that weaves together the fabric of their extraordinary teams." Elements of Diversity include everything from race, ethnicity, and gender, to age, disability status, and sexual orientation, to socioeconomic background, veteran status, and cultural perspectives. True Diversity ensures that voices, experiences, and viewpoints contribute to an organization's success. It comes down to this—when we all come from the same backgrounds and experiences, we tend to navigate to the same old sleepy solutions to fix organizational problems. We fail to see the dynamism that shapes every aspect of our world and miss opportunities to innovate.
Reality Check: Diversity enhances teams by adding perspectives, not replacing talent.
Equity → Who has access to opportunities and resources?
How it Gets Politicized: Critics misinterpret Equity as "forced equal outcomes" or "social engineering." In truth, equity levels the playing field so that people have fair access to opportunities based on their unique starting points—not predetermined results.
What it Actually Is: Equity ensures fair treatment, opportunities, and advancement for all people while actively working to identify and eliminate barriers that have historically prevented some groups from full participation. Unlike equality (which assumes everyone starts at the same level), Equity recognizes that different people face different challenges and provides support accordingly. I teach a course at eCornell in the Executive Women's Leadership program where I teach leaders strategies to overcome systemized sexism and racism inside workplaces, and build equity into existing systems. When organizations prioritize Equity, they tell their team members, "We are going to level the playing field so you don't have to take a class or get a degree in navigating the obstacle course we've created over the past few centuries" (sarcasm intended).
Reality Check: Equity creates systems that ensures fair chances, not forced results.
Inclusion → Who feels valued, heard, and empowered?
What it Actually Is: In 9 Leader Touchstones, I define Inclusivity as "fostering an environment that values authentic contributions and empowers the full participation and acceptance of all people." Inclusion is the active practice of ensuring that diverse individuals are present, engaged, respected, and empowered to contribute fully. A truly inclusive organization builds cultures of belonging and psychological safety where different perspectives are encouraged and highly valued.
How it Gets Politicized: Detractors often claim that Inclusion means "favoring certain groups over others" or "lowering standards" to accommodate Diversity. In reality, Inclusion is about ensuring that every qualified individual feels safe, valued, and able to succeed in their role, leading to better business performance and innovation.
Reality Check: Inclusion creates space for all voices, not just certain groups.
Diversity, Equity, and Inclusion and the Bottom-Line
In today’s hypercompetitive and rapidly evolving business landscape, leaders can no longer afford to view Diversity, Equity, and Inclusion as merely a social justice initiative. While the moral and ethical imperative of inclusivity is undeniable, the overwhelming financial and strategic advantage it brings to organizations that fully embrace it often gets overlooked.
The numbers speak for themselves:
The Peterson Institute for International Economics found that companies with at least 30% female leaders earn 6% more in profits than those without female leadership (piie.com).
A Boston Consulting Group study revealed that companies with above-average diversity on leadership teams reported 19% higher innovation revenue than those with below-average diversity (bcg.com).
A McKinsey & Company report analyzing 366 organizations found that those in the top quartile for racial and ethnic diversity were 35% more likely to have financial returns above the national industry median (mckinsey.com).
A Gallup study of 800 business units across two companies showed that the most gender-diverse teams had 14% higher revenues than their less-diverse counterparts (gallup.com).
These statistics demonstrate an undeniable trend. Inclusivity isn't just the right thing to do—it's a critical business strategy that directly impacts innovation, financial performance, and long-term sustainability.
DEI as a Competitive Differentiator
When leaders politicize Inclusivity or dismiss it as an Environmental, Social, and Governance (ESG) concern alone, they leave money, innovation, and market opportunities on the table. The most successful organizations recognize that Inclusivity is a strategic imperative for playing the long game. Companies that foster inclusive cultures are better positioned to attract top talent, retain employees, and drive business growth. In a time when workforce expectations are shifting—especially among younger generations—organizations that fail to prioritize inclusivity risk being left behind.
In the face of political pressures and a shifting regulatory landscape, several leading corporations have reinforced their commitment to Diversity, Equity, and Inclusion initiatives, recognizing them as integral to their business success and ethical responsibility. Notably, Delta Air Lines and Costco have both taken definitive stands to uphold and advance their DEI efforts.
Delta Air Lines has consistently demonstrated a steadfast commitment to DEI, viewing it as essential to its operational excellence and global competitiveness. Despite federal directives aimed at curtailing such programs, Delta emphasizes that its DEI initiatives are merit-based and central to its business strategy. As a loyal Delta Diamond, I couldn’t be more proud of the airline that gets me safely to see you at your organizations each time we work together. CEO Ed Bastian stated, "We don't have DEI initiatives. We have people initiatives... That's the way it's always been. It's core to who we are" (ajc.com). Delta's dedication to Inclusivity extends beyond internal policies to customer interactions. The airline has implemented measures to enhance accessibility and representation, including revising gate announcements to use gender-neutral language and launching the "Faces of Travel" initiative. This program offers a free visual library showcasing diverse travelers, aiming to foster authentic and inclusive travel experiences (delta.com)
Costco Wholesale stands out for its unwavering support of DEI initiatives, even as some corporations have retracted under political and legal scrutiny. In January 2025, Costco's shareholders overwhelmingly voted against a proposal to assess the risks associated with its DEI policies, with over 98% opposing the measure. The company's board defended its DEI efforts, asserting that they are vital for attracting and retaining talent, fostering innovation, and ensuring a respectful and inclusive workplace (cbsnews.com). CEO Ron Vachris emphasized that Costco's approach to DEI is rooted in providing equal opportunities and competitive wages for all employees without resorting to hiring quotas. This philosophy reflects Costco's broader commitment to fairness and Inclusion as drivers of business success (wsj.com). Costco's DEI strategy encompasses various initiatives, including a supplier diversity program that prioritizes partnerships with small and diverse businesses. The company also supports organizations like the Thurgood Marshall College Fund, which aids underrepresented communities. These efforts underscore Costco's belief that Diversity enhances creativity and innovation, contributing to a dynamic shopping experience for its customers (sustainabilitymag.com).
The business case for DEI is undeniable:
✔ Diverse teams outperform homogeneous ones in innovation, problem-solving, and revenue generation.
✔ Equity removes systemic barriers, increasing workforce engagement and retention.
✔ Inclusive environments foster psychological safety, leading to greater productivity and lower turnover.
Companies like Delta and Costco are not investing in DEI as a political stance but as a strategic and economic necessity. By focusing on the real meaning of DEI, organizations can move beyond divisive rhetoric and harness its power for long-term success.
The ROI of DEI
The most effective leaders actively seek out diverse perspectives, backgrounds, and experiences, understanding that these elements fuel innovation, problem-solving, and decision-making. Inclusive leaders foster environments where employees feel empowered to bring their authentic selves to work, which strengthens psychological safety and engagement—two factors that directly impact productivity and performance. Organizations that prioritize inclusion report:
✔ Higher employee engagement – Inclusive cultures lead to better retention rates and lower absenteeism, reducing costly turnover expenses.
✔ Stronger innovation pipelines – Diverse teams outperform homogenous ones in creative problem-solving and strategic decision-making.
✔ More profitable market expansion – Employees from different cultures, races, genders, and backgrounds bring valuable insights into previously untapped markets, providing a competitive advantage. A prime example of this is PepsiCo’s commitment to supplier diversity. By integrating small, diverse businesses into its supply chain, the company has generated over $400 million in economic impact, creating jobs and driving inclusive growth.
✔ Better risk management – A variety of perspectives reduces blind spots, improving crisis response and long-term resilience.
Beyond Profits—The Social and Ethical Responsibility of DEI
While the business case for DEI is compelling, the broader impact of inclusive leadership extends beyond revenue. Organizations that actively commit to fairness, Equity, and opportunity contribute to a more just society. When a company takes meaningful action on DEI, it enhances its brand reputation, attracts mission-aligned talent, and builds consumer trust. In today's digital age, customers and employees alike hold brands accountable for their values. Failing to embrace Inclusivity isn't just a missed financial opportunity—it's a reputational risk. Ben & Jerry's has seamlessly integrated social activism with business strategy. By publicly supporting racial equity initiatives and ensuring their leadership reflects diverse backgrounds, the brand has cultivated a deeply loyal customer base. Their approach has proven that companies don't have to choose between profit and purpose—both can thrive together.
A Call to Action—Stay the Course
If a political party told you to stop perfecting your product design, or change your brand strategy, or stop creating new products to meet your customer’s needs, would you stop? No. Of course you wouldn’t. Then why would you abandon an organizational strategy decision like DEI that is both ethical and critical to bottom line growth? The question isn’t "Can we afford to reject political pressure and continue our investment in DEI?" The question is "Can we afford not to?"
For leaders who may be struggling to prioritize DEI amid political pressure, my advice to you is this—stay the course. The clients you may lose are far less than what you will gain. The data and outcomes are clear. DEI fuels business growth, enhances innovation, and strengthens brand loyalty. Organizations that double down on diversity, equity, and inclusion today will be the industry leaders of tomorrow. Leaders who recognize DEI as a non-negotiable business priority will be the ones who thrive in the future economy. Now is not the time to let political pressure make you question your values, Integrity, or business savvy. Now is the time to stand firm, invest in inclusive practices, and future-proof your organization’s success.
The choice is yours—lead with intention and Integrity or be left behind.
