Beyond the bottom line: What DEI really means

If you’ve been paying attention to the news, you may have noticed that the concept of diversity, equity and inclusion is under increasing scrutiny. Critics argue that DEI undermines meritocracy, casting it as a political distraction from core business goals. As a result, some businesses are pulling back from DEI efforts, believing their moment has passed.

This would be a mistake.

Abandoning DEI is not just shortsighted—it risks undermining cultural health, innovation capacity, and long-term resilience of organizations. The truth is that DEI is more than a corporate trend. It is a foundational strategy for building workplaces that are just, dynamic and future-ready.

Understand what DEI really means

Diversity, equity and inclusion are more than buzzwords. They are strategic imperatives that directly impact a business’s ability to succeed. Diversity refers to the presence of differences within a workplace—differences of race, ethnicity, gender, age, background, ability and thought. Equity ensures that individuals have fair access to opportunities and resources, recognizing that barriers exist and striving to remove them. Meanwhile, inclusion fosters a workplace environment in which all individuals feel valued, respected and empowered to contribute fully.

Unfortunately, DEI often is misunderstood. It is not about enforcing quotas or hiring unqualified individuals. It does not mean rejecting the idea of merit. Rather, true DEI work enhances meritocracy by making sure that every talented person has a genuine opportunity to succeed. It is not political correctness run amok; it is sound business strategy rooted in ensuring that workplaces are fair, dynamic and innovative. At its core, DEI is about leveling the playing field so the best ideas, the best talent, and the best leadership can thrive—no matter where they come from.

The broader value of DEI

The business case for DEI is well documented. Studies by McKinsey[1] and others have shown that diverse organizations often outperform their peers on profitability, innovation and decision-making. But to focus only on financial returns misses the bigger picture.

DEI strengthens workplace culture. A workplace that champions DEI fosters psychological safety—a condition in which employees feel they can speak up, take risks and bring their full selves to work without fear of discrimination or exclusion. This leads to better collaboration, more creative thinking and stronger employee morale.

It attracts and retains top talent. Younger workers—especially millennials and Gen Zers—consistently rate diversity and inclusion as top factors in their employment decisions. Agencies that demonstrate a real commitment to DEI are more likely to recruit and retain high-performing, purpose-driven talent. This is particularly critical in relationship-based industries like insurance, where deep knowledge and continuity are key to long-term success.

It enhances community trust and brand reputation. For agencies serving diverse populations, representation matters. A team that reflects the community is more culturally competent and better positioned to meet client needs. Moreover, businesses that embrace DEI publicly often are seen as more trustworthy and socially responsible—qualities that build loyalty in both clients and partners.

It reduces risk and promotes integrity. Inclusive cultures are more likely to surface concerns early, resolve internal conflicts constructively, and avoid costly legal or reputational pitfalls. DEI also fosters ethical leadership—encouraging empathy, transparency and accountability across the organization.

Make DEI part of your agency’s DNA

Rather than sidelining DEI, employers should be thinking about how to deepen and integrate it into every layer of their operations.

Start at the top. When leadership champions DEI, it sends a powerful message: inclusion is not an initiative—it’s a value.

Principals and executives must model inclusive behavior, challenge bias when it arises, and ensure DEI principles inform decision-making at all levels.

Rethink recruitment and development. Intentional recruitment—including partnerships with colleges, professional organizations and affinity groups—helps widen the talent pipeline. Once talent is in the door, inclusion requires thoughtful development: mentorship programs, inclusive leadership training and transparent pathways for advancement.

Build a culture of belonging. Bringing diverse voices to the table is just the first step. Organizations must foster environments in which those voices are heard and valued. Encourage open dialogue, train employees in inclusive practices and recognize contributions that advance equity and belonging.

Measure progress honestly. Metrics are not about punishment—they’re about progress. Track employee engagement, turnover, promotion rates and representation across roles. Share what you’re learning. Be transparent. Growth comes from honest reflection and ongoing adaptation.

The moral and strategic imperative

Critics claim DEI divides or distracts. In truth, it does the opposite. DEI done right strengthens unity, fuels innovation and prepares organizations to thrive in a complex, interconnected world.

Inclusion is not charity. It’s wisdom. It’s resilience. It’s good business and even better leadership.

Diversity, equity and inclusion are not trends to be discarded when headlines shift. They are enduring principles that make our organizations—and our communities—stronger.

The future belongs to inclusive organizations

In an era and industry in which trust, adaptability and shared purpose are essential, DEI is not optional. It is fundamental. Diversity drives innovation. Inclusion builds strong teams. Equity ensures every person has the opportunity to contribute and grow.

The future belongs to businesses that understand that difference is not a threat to be managed, but a strength to be embraced.

This article originally appeared in the July/August 2025 issue of PIA Magazine.

---

[1] McKinsey & Co., 2023