Many CEOs privately admit that their DEI efforts aren’t delivering results. But leaders who retreat from diversity efforts risk alienating talent, reducing innovation and falling behind in the global marketplace.
If you’re a CEO concerned about getting DEI right in an increasingly polarised environment, the good news is that you’re not alone. Here’s how to move the people around you from reactive measures to a long-term, business-driven strategy that delivers results.
1. Stop allowing political noise to dictate strategy
Political rhetoric has created uncertainty, with some leaders fearing backlash for supporting DEI. Yet, major organisations like JP Morgan and Goldman Sachs have doubled their efforts, recognising that inclusive leadership strengthens financial performance. We have not had any CEOs tell us they have too many women in leadership!
Read more: What’s driving DEI pushback, and how can we get it right?
Fix: Get independent help anchoring DEI strategy into business goals. Instead of reacting to political swings, focus on evidence: companies with diverse leadership outperform their peers. DEI should be framed as an economic necessity, not a social obligation particularly around the need to compete through staff retention & innovation.
2. Do not confuse compliance with impact
Many CEOs assume that meeting DEI quotas or publishing pay gap data is enough. But surface-level actions fail to shift workplace cultures, and employees quickly see through ‘checkbox’ diversity efforts.
Read more: DEI backlash: Don't throw the baby out with the bathwater
Fix: Move beyond data collection to measurable outcomes that effect lived experience or comparative advantage. Embed DEI into talent pipelines, leadership development, and performance metrics to create the cultural changes you want.
3. When senior leaders resist DEI, engage in open dialogue
Some executives say DEI creates unfair advantages, leading to internal resistance. Instead of engaging in open dialogue, many leaders either dismiss these concerns or overcorrect by scaling back initiatives.
Fix: Focus on building confidence in your leadership team. Equip them with data on why inclusion drives profitability and innovation. Make DEI part of leadership KPIs, ensuring accountability at the top so your reputation is enhanced
4. Treat DEI as an investment, not a cost
Some CEOs see DEI as an expensive, low-ROI initiative rather than a driver of business success. This mindset often comes from poor advice and rubbish implementation which then enables the justification of slashed budgets when economic conditions tighten.
Read more: HR responds: Does DEI need to be reset?
Fix: Reframe DEI as a source for competitive advantage. Companies with commercially inclusive cultures see higher retention, increased innovation, and stronger market positioning. Ensure DEI investments align with broader business objectives.
5. Do not ignore bias in AI and technology
AI-powered hiring and performance management tools can reinforce bias, putting companies at risk of lawsuits and reputational damage.
Fix: Conduct bias audits on AI and recruitment tools. Partner with experts to ensure that technology-driven decisions promote fairness and do not replicate systemic inequities.
Leading in a divided era
Political debates will continue, but businesses cannot afford to get caught in the crossfire. The most successful CEOs are those who stay the course, using data-driven DEI strategies to future-proof their organisations. Retaining top talent, fostering innovation and maintaining a positive brand reputation depend on it.
CEOs who abandon DEI in response to short-term political pressures will find themselves struggling to attract and retain the best talent. Those who embed diversity into their business strategy will build resilient, high-performing companies that thrive in a global marketplace. These are the CEOs who will win the future.
The question isn’t whether DEI matters, it’s whether you want to lead or be left behind.
By Raj Tulsiani, CEO of Green Park
