In business, it’s crucial to understand what diversity, equity, and inclusion (DEI) really means. Only with a clear understanding of these concepts can you foster an environment where everyone feels valued and empowered.
Yet, these terms are often misunderstood or used interchangeably, which can hinder meaningful progress.
In the article to follow, we’re going to break down these concepts, explore their distinct meanings, and also illustrate how they’re interconnected. In the process, we’ll attempt to shed light on why 1) diversity, 2) equity and 3) inclusion are all essential for a thriving business.
1. Diversity: The Rich Tapestry of Differences
At its core, diversity refers to the presence of differences within a setting. This could be gender, race, ethnicity, age, disability, socioeconomic status and more.
According to the insights of Aisha DuPointe Joshua, a clinical psychologist, humans experience themselves through three primary lenses:
Shared Humanity: This universal bond reminds us of our fundamental similarities: i.e., we all need food, water, sleep and belonging.
Group Membership: Society-defined identities, such as gender or cultural heritage, shape our experiences and interactions.
Unique Individuality: Even in a group, every person carries unique traits and perspectives.
In workplaces, diversity often centres on Group Membership. Historically excluded groups, such as women, people of colour, and individuals with disabilities are intentionally included to create a richer and more representative environment.
For example, the push for diverse representation in media ensures that we see people who reflect our own experiences and aspirations.
2. Equity: Fairness in Practice
Equity goes beyond diversity to address fairness and justice. It recognises that different groups have different needs and barriers to overcome. Objective fairness — a core principle in this case — means creating systems and structures that account for these differences so that everyone can thrive.
For instance, if an organisation aims to include employees who use wheelchairs, equity demands structural changes such as ramps and accessible workspaces. Similarly, offering flexible work arrangements and maternity leave supports gender equity by acknowledging the unique needs of working mothers.
In short, equity is about providing resources and removing barriers. It’s about ensuring fair pay, unbiased appraisals, and equal opportunities for professional growth. As Maslow’s Hierarchy of Needs illustrates, addressing fundamental necessities like physical safety and financial stability is crucial for every individual in a workplace.
3. Inclusion: The Feeling of Belonging
Inclusion, unlike diversity and equity, is more subjective: it’s about the feeling of being valued, respected, and involved.
It’s the sense that “I matter here.” This cannot be declared; it must be cultivated through actions and behaviours.
Inclusive environments empower employees to participate fully. A culture of inclusion is evident when managers seek diverse opinions, employees’ contributions are recognised, and social activities accommodate everyone’s preferences. For example, a team that ensures non-drinkers feel welcome at social events demonstrates inclusion in action.
Research shows that managers play a pivotal role in fostering inclusion. According to Gallup, 70% of an employee’s workplace experience is shaped by their manager.
Therefore, managers can shape inclusive environments by relying on emotional intelligence and being able to resist burnout.
Burnout amongst managers is common, because they often feel they are required to be personable to customers and accommodating of employees. “I’ve done this, and this, and this - why isn’t person X grateful?” they often say.
This emotional labour leads to a drop in managerial standards. To really be a good leader, managers should prioritise their own self-care and then turn up at work willing - and able - to help others.
The Interconnected Nature of DEI
Diversity, equity, and inclusion are not standalone concepts; they are interdependent.
Imagine a world designed exclusively for short people — from cars to buildings, everything caters to those 5’6” and below.
When our 6” foot friends enter, diversity exists, but without equity. There are no modifications to the way the building is laid out, the rooms are designed, the doors are shaped. There is no acceptance of this unique experience. In short, tall people struggle to belong.
In companies, diversity initiatives often start with hiring a diverse workforce. However, without equity and inclusion, these efforts fall short.
To work, you need a system where diverse employees have the resources and opportunities to succeed (equity); and at the same time, people feel valued and engaged (inclusion). Together with diversity (hiring), these three things create an environment where everyone can thrive.
Common Misconceptions About DEI
Diversity Alone is Enough
We get this a lot. Many companies focus solely on hiring diverse talent, assuming this will naturally lead to equity and inclusion. However, without addressing systemic barriers and cultivating an inclusive culture, diverse employees may feel unsupported and leave.
Equity and Inclusion Are Abstract Concepts
Sure, as we’ve explained, inclusion involves subjective feelings. However, it is anchored in concrete actions, such as equitable resource allocation and inclusive communication practices.
Fairness is Subjective
True equity goes beyond individual perceptions of fairness to objectively assess and address systemic disparities.
Measuring DEI Success
To assess progress in DEI, you can track:
Diversity Metrics: Representation across roles, leadership, and decision-making levels.
Equity Indicators: Pay equity, fair workload distribution, and access to development opportunities.
Inclusive Feedback: Surveys that capture employees’ sense of belonging, safety, and engagement.
Retention and Growth Patterns: Who is staying, who is leaving, and who is advancing within the company?
Use objective metrics to discover whether diverse employees feel supported and whether equity and inclusion initiatives are effective.
Practical Examples of DEI in Action
Let’s give a quick, real-life example from our DEI work. A financial firm we partnered with realised that its new hires from rural areas faced unique challenges. These youngsters often didn’t have transport, or money for accommodation, or basic tools to get their job done.
To address this, the firm decided to advance their salary so they could get to and from the office.
By identifying and addressing a real problem, the company demonstrated real equity and inclusion. And in doing so, gave its new hires the best chance to succeed.
Why DEI is a Continuous Journey
DEI efforts require ongoing commitment and refinement, much like health and fitness. Companies must continuously evaluate their policies, practices, and culture to ensure alignment with DEI goals. Building habits of empathy, honest reflection, and equitable decision-making creates a foundation for sustainable progress.
By embracing diversity, equity, and inclusion — and seeing them as utterly interconnected — firms can unlock their full potential.
In 2025, let’s work together to foster innovation, inclusion and shared success. Let’s get back to basics and ensure these definitions not only guide our understanding but also shape our actions.
We can’t wait to continue the journey.
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