Equity, diversity and inclusion (EDI) matters: why allies need to find their voice

At a time when the principles of equity, diversity, and inclusion (EDI) are being openly challenged, silence is not an option.

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In recent years, the debate about the value of diversity and inclusion within business has become increasingly prominent, influenced by broader political movements such as Trumpism in the United States and the Reform movement in the United Kingdom. Figures like Donald Trump, who declared that “our country will wake nolonger,” and Nigel Farage, who warned that “if you are a DEI officer… look for another job,” illustrate a growing narrative that portrays inclusion as a distraction from ‘real business.’ In this environment, inclusion risks being seen less as a driver of innovation and growth and more as a political stance.

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When political rhetoric downplays the importance of EDI, it’s easy for companies to lose sight of why EDI matters, which is why the role of leadership must be clear. As allies, our voices matter; we must stay focused on the data and research that consistently show the commercial and cultural benefits of diversity and inclusion – and resist being drawn into divisive narratives amplified by social media.

The message is clear: inclusion isn’t a distraction from real business - it is real business.

Productivity and profitability

Evidence from McKinsey & Company report DiversityWins: How Inclusion Matters (2020) shows that ‘the business case for inclusion and diversity is stronger than ever’. Their analysis of over 1000large companies across 15 countries found ‘for diverse companies, the likelihood of outperforming industry peers on profitability has increased over time’.

Research from McKinsey clearly shows the impact, highlighting:

·     Companies in the top quartile for gender diversity on executive teams are 25% more likely to achieve above-average profitability.

·     For ethnic and cultural diversity, the advantage rises to 36%.

·     Companies in the bottom quartile for both are 19% more likely to underperform financially.

“Understanding the significance of diversity and inclusion is essential to modern thinking about the economy.”- Trevor Phillips, Chair, CMI Everyone Economy Advisory Committee

These figures demonstrate that diversity and inclusion are key drivers of growth and financial performance. When inclusion becomes part of the business strategy, organisations place themselves in a position to unlock their full potential, fuelling the very growth and progress that define successful modern businesses.

Innovation

The Boston Consulting Group’s (BCG) How Diverse Teams Boost Innovation research found clear evidence from more than 1,700 companies that “in both developing and developed economies, companies with above-average diversity on their leadership teams report a greater payoff  research found clear evidence from more than1,700 companies that “in both developing and developed economies, companieswith above-average diversity on their leadership teams report a greater payofffrom innovation and higher earnings before interest and taxes (EBIT).”

As BCG notes, “People with different backgrounds and experiences often see the same problem in different ways - and that’s where innovation begins.” When organisations bring together people with varied experiences and ideas, they open the door to new ways of thinking. Diversity fuels creativity, and inclusion turns that creativity into action.

When every voice is valued, teams collaborate more effectively, and better solutions emerge. Diversity is the key that unlocks innovation and performance within organisations. Inclusive teams are also more agile - they adapt faster to change, anticipate challenges sooner, and respond more effectively to customer and market needs.

In today’s fast-moving business environment, this ability to innovate and adapt is what defines competitive advantage. Inclusion isn’t just about fairness; it’s about building the conditions where innovation thrives and where companies - and their people - can grow together.

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Talent attraction – future workforce

The world of work has changed.

As the Chartered Management Institute’s The Everyone Economy report makes clear, “Recruiting, retaining, and developing diverse talent is no longer just about ‘doing good’; it is critical to business success.” Employees today are no longer choosing employers based solely on salary, benefits, or job titles, they are selecting workplaces that reflect their values and where they feel like they belong.

A 2023 LinkedIn study found that the importance of an inclusive workplace has risen by more than 20% among job seekers since the pandemic, and this trend will only accelerate. By 2030, Generation Z will make up nearly one-third of the workforce - a generation that looks for employers who act with integrity, create psychologically safe environments, and demonstrate genuine progress on inclusion and diversity through action and lasting change.

For businesses, the message is clear: inclusion is not a“nice to have”, it’s a strategic necessity.

In a world where trust and transparency define reputation, inclusion now determines how effectively a business can attract talent, inspire innovation, and compete for growth. Companies that fail to act risk being left behind by the very people who will shape the future of work.

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Retention, engagement and belonging‍

The benefits of inclusion go far beyond statistics - their real impact is felt in the everyday culture of work. Teams that feel they can bring their full selves to work, without fear of bias or exclusion, are more engaged, innovative, and loyal to their employer.

Belonging is now one of the most powerful drivers of attraction and retention. Deloitte’s research shows that companies with strong inclusive cultures are:
• Twice as likely to meet or exceed financial targets, and
• Six times more likely to be innovative and agile.

Creating that culture of belonging takes consistent, intentional effort. It demands leaders who listen, act with empathy, and make inclusion something that is experienced, not just expressed. When people feel heard and valued, inclusion stops being a corporate initiative - it becomes the way the organisation succeeds.

With data from Gallup suggesting that the cost of replacing departing employees can equal 50% to 200% of their annual salary, it’s clear that retention should be a core business objective. The cost of losing that connection extends beyond finances - it disrupts productivity, weakens client relationships, and erodes team morale.

As the Chartered Management Institute’s Walking the Walk report reminds us, “What really matters … is how  report reminds us, “What really matters … is howpeople feel and are treated in your organisation.”
When people feel respected, supported, and empowered to contribute freely, they deliver more — and they stay to help build the high-performing, innovative cultures every organisation aspires to.

Raising our voices for inclusion

At a time when the principles of equity, diversity, and inclusion are being questioned and politicised, silence is not an option.

Embedding EDI is not a one-off initiative - it is a continuous journey of listening, learning, and improving. Authentic leadership means modelling inclusion every day and ensuring representation at every level, from entry roles to the boardroom.

The evidence has never been more unmistakable:
• Diverse organisations outperform.
• Inclusive cultures innovate.
• Belonging builds loyalty and lasting success.

In today’s rapidly changing world of work, inclusion has become a defining measure of competitiveness, creativity, and reputation. The data from McKinsey, CMI, Deloitte, and others show that when inclusion is embedded, businesses don’t just do better - they become more resilient, more agile, and more trusted.

As leaders and allies, we must raise our voices above the noise and the politics. We must remind the world that inclusion is not a distraction from business - it is business. It fuels innovation, strengthens performance, and builds the cultures where people and organisations thrive.