Jingqiang Huang, BSc Economic Management student at School of Management Fudan University, explores the challenge of how to move beyond the label while maintaining the momentum and intentionality that Diversity & Inclusion programs have sparked

Beyond DEI: How can companies embed inclusion without the label? by Jingqiang Huang.

“Diversity is being invited to the party. Inclusion is being asked to dance.” This often-cited quote by Verna Myers highlights the distinction between diversity and inclusion, but it also raises an overarching question: How could we design the party itself in a way that makes everyone feel like they belong, without needing a formal invitation?

In recent years, Diversity, Equity, and Inclusion (DEI) initiatives have become a cornerstone of corporate strategy, yet many organizations are now asking whether the DEI label has become a limiting framework. Do corps increase the number of female restrooms while recruiting more women? Are they setting the praying rooms for religious minority while including them in the workplace? These phenomena are leading to this ultimate question – can companies move beyond the confines of DEI programs to embed inclusion so deeply into their culture that it becomes invisible, yet omnipresent?

The Dilemma of the DEI Label: Progress and pitfalls

While DEI initiatives have undeniably driven progress, they are not without their challenges. One major issue is the risk of performative actions – companies focusing on visible metrics, such as hiring quotas or diversity training, without addressing the systemic barriers that hinder true inclusion.

Promoting diversity does not ensure a culture of inclusion: research by Mckinsey showed overall sentiment on diversity is positive (52% over 31%), while sentiment on inclusion is the opposite in the UK and the USA (61% over 29%).This checkbox mentality can lead to superficial changes that fail to create lasting impact.

Moreover, the DEI label can unintentionally create silos, isolating inclusion efforts from broader business strategies. Progress on executive team diversity continues to be slow (only 1.1% average annual change in terms of gender diversity on executive teams). When inclusion is treated as a separate initiative rather than a core value, it risks becoming an afterthought rather than a driving force.

In this case, when government drops diversity targets for corporate boards, companies certainly roll back the DEI measures (according to a recent report by Forbes on March 1,2025). The dilemma, then, is how to move beyond the label while maintaining the momentum and intentionality that DEI label programs have sparked.

The Ripple Effects of Superficial Inclusion

When inclusion efforts are surface-level, the effects can be far-reaching. Employees from underrepresented groups may feel tokenized, leading to disengagement and higher turnover. Teams may struggle to collaborate effectively if underlying biases and cultural misunderstandings are not addressed.

On a broader scale, companies risk losing out on the innovation and creativity that diverse perspectives bring. For example, 37% of African-Americans and Hispanics and 45% of Asians say they “need to compromise their authenticity” to conform to their company’s standards of demeanor or style. These issues highlight the need for a more holistic approach to inclusion) – one that goes beyond metrics and training to address the root causes of exclusion.

Furthermore, while many organizations espouse lofty ideals, their actions often fail to align with their stated commitments. The presentation of favorable metrics frequently masks underlying threats to genuine inclusivity, undermining employees’ sense of belonging and perpetuating more entrenched forms of discrimination. A significant number of corporations have yet to adopt the comprehensive, strategically driven inclusion frameworks needed to translate declarative commitments into meaningful organizational change.

This implementation gap is often exacerbated by internal resistance from employees, driven by concerns over resource allocation, the integration of new value systems, and the perceived challenges of maintaining team cohesion and reputation. As Aarti Lyer highlights, these barriers – categorized as resource threat, symbolic threat, and ingroup morality threat – collectively heighten perceptions of inequity within organizations and increase the likelihood of employee turnover.

Embedding Inclusion: From initiative to intrinsic value

To truly embed inclusion, companies must integrate it into every aspect of their operations. This begins with leadership commitment. Leaders must model inclusive behaviors, actively listen to diverse voices, and hold themselves accountable for fostering a culture of belonging and these behaviors must be visibly and consistently demonstrated. In this context, the analysis conducted by Juliet Bourke’s research team highlights that stakeholders place significant importance on leaders’ awareness of both personal and institutional biases.

When decision-making is guided by an empirically grounded approach that acknowledges and addresses pre-existing biases, the resulting decisions tend to be more equitable, well-considered, and broadly accepted. In summary, the successful integration of inclusion within an organization hinges on the active and consistent demonstration of inclusive leadership behaviors, combined with a data-driven approach to mitigate biases, thereby fostering a culture of equity and belonging that resonates throughout the organization.

Employee Resource Groups (ERGs) can also drive change from within, provided they receive adequate resources and executive sponsorship. Sponsorship is particularly impactful for women and underrepresented groups, helping them chart clearer career paths. However, it must be delivered thoughtfully – sponsors who share similar backgrounds can create a more relatable and supportive environment. This approach breaks down DEI targets into interpersonal interactions, addressing the issue humanely.

These measures yield tangible results. Studies by Laura Sherbin and Ripa Rashid show that employees with inclusive managers are 1.3 times more likely to unlock their innovative potential, and those with sponsors are 62% more likely to secure promotions.

Amplifying diverse narratives is equally crucial. As Chimamanda Ngozi Adichie warns, the danger of a single story lies in its power to strip people of dignity and obscure shared humanity. In business, limited narratives can alienate minorities, whether they are employees or customers. Leaders must pay attention to what I call “the majority of the minority” – perspectives that may seem marginal overall but are shared within specific groups. This nuanced understanding is often overlooked but is vital for true inclusion.

Artificial Intelligence (AI) also plays a pivotal role. In today’s volatile business environment, AI’s data-driven decisions can reduce biases inherent in human judgment. While some argue that AI may harbor hidden biases, its programmatic nature allows for easier monitoring and adjustment compared to human behavior. Without such technological intervention, organizations would face higher costs in training to achieve unbiased decision-making.

The Future of Inclusion: A call to action

The question is not whether companies should abandon DEI, but how they can evolve beyond it. Inclusion must become as intrinsic to organizational culture as financial accountability or customer focus. This requires a mindset shift – from viewing inclusion as a program to embracing it as a value that shapes every decision. Companies that succeed in this transformation will create workplaces where everyone belongs and unlock their teams’ full potential.

The Tang Dynasty offers a historical parallel. Though unaware of DEI, its people celebrated cultural diversity through poetry, art, and trade. The ideal form of inclusion is not a rigid framework but an ambient ethos. The journey beyond the DEI label is about building on progress to create something even more powerful. Imagine a workplace where inclusion is not a goal but a lived reality – a space where everyone feels the music, not just those invited to dance.

Useful links:

• Read a related article: Navigating the Maze: The inherent paradoxes of workplace justice in DEI 
• Download this an d other articles in the Global Voice magazine special issue #32.
• Discover School of Management Fudan University
• Apply for the Fudan-MIT International MBA.

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