Beyond the Headlines: How DEI Drives (or Squashes) Real Business Success

The Boardroom View from Helle Bank Jorgensen

DEI—Diversity, Equity, and Inclusion—has become a political hot potato. Beyond politicos, major corporations, non-profits, and even schools are ejecting anything that hints at it.

From a boardroom perspective, there is one good reason to drop DEI programs, according to Helle Bank J?rgensen, GCB.D, NACD.DC , the CEO of Competent Boards and our podcast guest. Yet, compelling reasons remain to retain—even enhance—DEI initiatives.

Let’s start with the case for dropping them: your C-suite never really believed in DEI to begin with. Call it the most poorly kept secret of corporate America; many corporations simply deployed surface-level inclusivity as a public relations exercise. They used it for marketing, a halo effect, and an appeasement to stakeholders. On the PR front, other companies faced backlash in lawsuits, or shareholders concerned equity matters were politically driven, not business-driven.

Any of those factors result in a weaker, unsupported DEI program. More critically, it’s not embedded in the business strategy. Like any PR venture with no return, a board can justify dropping diversity as a resource drain.

The key here is business strategy. Years of hard evidence from McKinsey & Company, the World Economic Forum, and others, reveal that when diversity and inclusion policies are taken seriously and incorporated as integral components of that strategy, the business case remains powerful. Without DEI, here’s what you’re missing out on:

• Profitability
• Innovation and
• Risk mitigation.

Well-implemented, these business-central markers all boost with DEI. This makes sense, even on the surface: the plethora of diverse perspectives alone increases both problem-solving and innovation because multiple viewpoints hold solutions which group-think blinds. Those solutions, efficiencies, and new product potential, in turn, increase profitability. On the less tangible side, diverse teams feel more respected and valued, resulting in higher engagement and productivity.

How do you embed a practical DEI program into your business strategy? Three core paths have proven effective:

1. Hiring and Talent Development. Inclusive hiring pipelines mean you’re less likely to miss top talent, particularly those that emerge from untraditional sources.
2. Innovation and Market Expansion. Insist on utilizing diverse perspectives to connect with broader markets – and on driving creativity in overcoming obstacles and new product development.
3. Operational Impact: Use your DEI lens to view the external tendrils of your organization, too. Supplier diversity, for example, helps you weather the next supply chain shortage because you’re not reliant on a single source; community engagement provides goodwill and develops talent and support for the future. The halo effect here moves intangible short-term benefits into long-term tangible advantages.

Simply put, DEI for society is clearly about ethics…but for business, it’s about a pillar that brings long-term resilience and greater potential for growth. Dropping it may hold short-term political relief; developing it gives you a genuine long-term strategic advantage.

Logical and ethical? That’s surely a win-win.

Maureen Metcalf on The Rise of Humanness in the Age of AI Podcast

Maureen was a recent guest on The Rise of Humanness in the Age of AI podcast hosted by Chris Nolan and Mike Schindler , where she discussed the future of leadership in the context of an AI-driven world. Maureen shared insights on balancing automation with human-centric leadership, fostering antifragile resilience, and why the most successful leaders of tomorrow will master adaptability, intuition, and innovation. Watch the full interview here.

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This article was adapted by Dan Mushalko from our podcast episode How to Keep the Boardroom Stable in Turbulent Times: Tips from the CEO of Competent Boards.

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