DEI and business success—why inclusion is key to innovation and growth

In an era where noise often drowns out truth, DEI has become a casualty in a game of political ping-pong. Fear, deception and partisan agendas skillfully marketed by a vocal, well-funded minority have painted DEI as dying, divisive, irrelevant—even illegal. But while diversity, equity and inclusion are under attack, DEI is not dead. It’s evolving—and it’s time to bury the false narrative that it’s ill-intended, counterproductive or canceled. Throughout American history, progress has faced fierce resistance before becoming convention. The abolition of slavery, the enfranchisement of women and Black Americans, voting rights, equal pay, fair housing, marriage equality and more all faced profound opposition before advancing toward the long-unmet aspiration of liberty and justice for all. Today is no different. DEI belongs to a lineage of transformative efforts that have challenged a flawed status quo to uphold the highest values of democracy and humanity. A-List & Creativity Awards Enter for a chance to be recognized as the best in advertising Submit your entry here Despite efforts to distort it, DEI is simple: Diversity means valuing differences in identities, backgrounds and experiences. Equity means ensuring fair treatment, access and opportunities for everyone. Inclusion means creating environments where all can feel welcomed, respected and empowered to contribute fully. These goals must remain at the forefront of our collective conversation, free from diversionary and divisive debates about co-opted definitions. Language can always be misappropriated to serve an agenda, bending meaning to fit a purpose. Yesterday, the target was woke. Today, it’s DEI. Tomorrow, it may be the word du jour: belonging. This is why changing the words or rearranging the acronym is unlikely to be an effective solution. Rebranding without substance is performative at best, and true belonging cannot be realized while dismantling efforts aimed at achieving equity and inclusion. It’s like building a house but leaving out the foundation. Corporate America must focus on these established truths: DEI doesn’t lower standards or dismiss merit. It amplifies fairness, creating opportunities for all. It doesn’t make success easy; it makes it equitable. At its core, DEI is a strategic, human-centered approach to building stronger institutions and businesses. Yet, the road ahead will likely be fraught with challenges fueled by politically charged disinformation campaigns that misrepresent these efforts as part of a cultural war. But the potential rewards—a more innovative, equitable and thriving workforce—are worth every battle. Multiple studies indicate that diverse and inclusive companies perform better, with Gartner research showing highly inclusive organizations generate 2.3 times more cash flow per employee, 1.4 times more revenue and are 120% more capable of meeting financial targets. Similarly, companies with above-average diversity on their management teams report innovation revenue 19% higher than companies with below-average leadership diversity. While increasingly well-crafted narratives falsely proclaim DEI’s demise, the facts tell a different story. A Washington Post/Ipsos poll found 61% of Americans view DEI as a “good thing for companies to adopt.” The Edelman Trust Institute reports employee demand in 2024 for DEI has returned to 2020 levels (60%, up 9 points from 2022) with sentiments improving over the past 3-5 years. Employee loyalty also increases across political lines (Republicans 82%, Democrats 83%, Independents 84%) when companies invest in DEI. Moreover, U.S. consumers are 4.5 times more likely to buy brands that commit to ending inequality. DEI isn’t a fleeting trend; it’s a business imperative with proven ROI. The facts, however, have not stopped media from playing a role in skewing public perception. Thoughtful coverage of the evolution and impact of DEI has been an ember, while incomplete information and sensational headlines declaring its imminent death have spread like wildfire. Choosing to amplify a few isolated controversies and back-pedaling companies neglects the broader reality: Most Americans and business leaders still recognize DEI as a crucial path to strengthen businesses and communities and build equitable and thriving workplaces. Media outlets have a responsibility to provide balanced, fact-based reporting, ensuring that statistically isolated incidents are not framed as a broader systemic collapse. DEI rollbacks aren’t new. Companies with tepid DEI commitments often cut these initiatives and teams first during economic uncertainty. Since 2021, scaling back on the performative promises made after George Floyd’s murder has become common. These retreats highlight the danger of treating DEI as a symbolic gesture rather than a strategic priority. While fear of political backlash and publicity-centered litigation threats may explain the most recent retrenchments, abandoning DEI risks alienating customers and employees who expect accountability and inclusion, with 76% of millennials saying they’d leave an employer if DEI initiatives weren’t offered. Ad Age Tech Power List 2025 We’re looking for top digital innovators from agencies, brands, platforms, ad tech companies and tech startups Enter here Rather than retreating, companies have an opportunity to rally around a call to action to innovate and evolve their DEI strategies, embedding them into operations, culture and values across functions. DEI must shift from HR-centric to business-led, with measurable outcomes tied to performance goals—just like any other strategic business priority. Leaders should also communicate DEI’s business value clearly and consistently. It’s not about politics; it’s about smart, strategic action to improve business and people outcomes. DEI in corporate America was developed and has continued to evolve to address, among other needs, disparities in hiring, pay, advancement and treatment—inequalities that persist today. Achieving gender parity for all women will take nearly 50 years, and for women of color, the timeline more than doubles compared to white women. C-suite/executive leadership teams in advertising agencies are 80.7% white, 7.64% Asian, 5.41% Hispanic/Latina/Latinx and 2.97% Black/African American. These figures highlight just a small part of the work still to be done. Businesses also have additional compelling reasons to double down on DEI. The Summer 2024 Fortune/Deloitte CEO Survey revealed that 40% of CEOs are focusing on diversity, equity and inclusion through strategic priorities over the next 12 months, demonstrating an awareness of its vital role in long-term success and the need to embed DEI throughout an organization. No CEO said that DEI is too big of a problem to tackle. The Edelman survey also found that when asked about the institutions trusted to address racism and injustice in America, 71% of respondents said, “my employer” and 51% said “business,” with “media” and “government” ranking lowest at 37% and 35%, respectively. Businesses committed to DEI are not simply checking boxes—they’re preparing for the future. An increasingly diverse workforce and consumer demographics demand it. Companies that embrace DEI understand that it’s about better positioning themselves to attract top talent, foster creativity and drive growth. History shows that corporate commitments to equity and fairness have often transcended political agendas. Even under pressure, companies have shown resilience, adapting their approaches to meet new and complex challenges while maintaining values of inclusion, courage and integrity. The continuance of these efforts will not depend on which party sits in power. It will depend on how resolutely companies will stand to uphold their values, embrace and leverage the diversity of the American population for long-term business growth and underscore the need for a strategic, accountable, and sustained approach to achieving inclusive progress. It’s time for business to reaffirm its commitment—and make history again. NextGen Marketing Summit Join us for a crash course on Gen Z, DTC marketing and the creator economy Register today

DEI and business success—why inclusion is key to innovation and growth

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