What’s the impact when DEI isn’t a leadership priority?
‘When DEI is not a leadership priority, the organisation may experience negative effects both internally and externally,’ says Kenny Carvalho. ‘Externally, the quality of products and services may decline. Strategies and decisions could be shaped by limited beliefs and perspectives that fail to reflect the reality of the company’s target audience. Consequently, the organisation may lose competitiveness, market relevance, and customer trust.
Internally, the workplace is likely to become less inclusive, less collaborative and less engaging for employees. This can result in difficulties attracting and retaining key and diverse talent, which are essential for innovation and long-term success.
Ultimately, companies that do not prioritise DEI risk falling behind not only in people management but also in business growth and brand reputation.’
‘By not incorporating DEI into your leadership, you are leaving opportunities for others to explore and benefit from. Failing to prioritise DEI damages your employer brand and limits your potential to achieve high performance through diverse teams,’ adds Fabian Ringwald.
Summary
The Kestria Global Leadership Barometer 2025 underscores the pivotal role of Diversity, Equity and Inclusion (DEI) in contemporary leadership. While approximately one-third of global executives consider DEI a core element of their leadership strategy, a significant portion, over 25%, indicates that their DEI initiatives are either non-existent or predominantly compliance-driven rather than strategically integrated. This disparity highlights the necessity for organisations to transition from viewing DEI as a mere obligation to embracing it as a strategic asset that drives innovation, enhances talent retention and fosters organisational resilience. As global leaders continue to navigate an increasingly complex and competitive business landscape, embedding DEI at the heart of leadership strategies is not just beneficial; it is imperative for sustainable success.