In today’s complex and competitive business landscape, diversity, equity, and inclusion (DE&I) are no longer optional; they are essential for driving innovation and sustaining high performance. Many companies, however, struggle to move beyond performative DE&I efforts—superficial actions that do little to address deeper structural inequities. This challenge is compounded by what can be termed “nice racism,” a subtler form of exclusion where conversations about race are sanitized, and systemic issues are largely ignored (DiAngelo, 2018).

Despite public commitments to diversity, equity, and inclusion, many organizations still fail to engage in meaningful action. Instead, tokenism persists—where individuals from underrepresented groups are placed in visible positions without the power or influence to effect real change (Kanter, 1977). In these environments, racial equity becomes a talking point rather than a reality.

For organizations genuinely committed to embedding DE&I, the journey must begin with a critical self-assessment of where they stand today. Understanding your organization’s DE&I maturity is essential to making progress and driving sustainable transformation (McKinsey & Company, 2020). Superficial efforts, such as unconscious bias training, are not enough. Instead, genuine transformation requires rethinking how equity and inclusion are embedded in the organizational culture (Franklin Covey, 2021).

Moving Beyond Tokenism and Superficial Diversity

Many organizations focus on increasing diversity in recruitment, believing that simply improving representation will lead to better outcomes. While representation is an important step, it is not the end of the journey. Tokenism, where individuals are included to check a diversity box, creates the illusion of progress but leaves underlying issues unresolved. Companies must focus on creating structural change that goes beyond increasing diversity to embedding equity and inclusion at every level. This includes changing recruitment practices, promotion pathways, pay equity, and leadership development opportunities (Williams et al., 2021).

The DE&I Maturity Curve: From Awareness to Integration

To embed DE&I authentically, organizations must assess their place on the DE&I maturity curve, which tracks an organization’s progress in integrating these principles (McKinsey & Company, 2020). The maturity curve includes three key stages:

1. Awareness: Organizations in this phase recognize the importance of DE&I but lack a comprehensive strategy. Efforts are often reactionary, such as scheduling diversity training or establishing affinity groups. Leadership’s involvement is often minimal, and DE&I is typically seen as an HR issue (Franklin Covey, 2021).

2. Engagement: At this stage, DE&I becomes a strategic priority. Leadership is more involved, and the organization begins to understand how DE&I impacts business outcomes like innovation and employee engagement. Organizations in this phase start aligning systems and culture with DE&I objectives, but more work remains to integrate these efforts fully (McKinsey & Company, 2020).

3. Integration: DE&I becomes embedded into the organization’s DNA. Leadership holds itself accountable for DE&I outcomes, and these principles are reflected across the organization—from hiring practices to leadership development and decision-making processes. Organizations at this level consistently measure DE&I outcomes and adjust strategies as necessary (Williams et al., 2021).

The Sanitization of DE&I Conversations: The Risk of Nice Racism

One of the greatest barriers to authentic DE&I transformation is “nice racism”—a form of politeness or avoidance that diminishes real discussions about race and equity. In sanitized corporate environments, DE&I conversations can often focus on surface-level issues while ignoring systemic racism. This results in token diversity efforts and the persistence of racial inequities beneath a veneer of inclusivity (DiAngelo, 2018).

Organizations committed to embedding DE&I must confront these issues head-on. Leaders need to create spaces where difficult conversations about race and inclusion are encouraged, and employees are empowered to share their experiences openly. Leaders must also be prepared to challenge their own biases and be vulnerable in their DE&I journeys (Williams et al., 2021).

Building a Roadmap for Lasting Change

To drive lasting change, organizations must establish a clear DE&I roadmap that aligns with their long-term business strategies. This roadmap should be built around four key pillars:

1. Leadership Accountability: DE&I must be a top priority for organizational leaders. They need to set clear, measurable goals for DE&I outcomes and hold themselves accountable for driving progress (Franklin Covey, 2021).

2. Structural Equity: Organizations must redesign systems and policies to eliminate barriers to equity. This includes ensuring equitable hiring, promotion, and compensation practices and addressing systemic biases (Williams et al., 2021).

3. Inclusive Culture: DE&I is not a one-time initiative. It must be embedded into every aspect of an organization’s culture. This involves fostering an environment where all employees feel valued and included, and diverse perspectives are encouraged (McKinsey & Company, 2020).

4. Measurable Impact: To ensure that DE&I efforts are effective, organizations must track progress and adjust strategies based on data-driven insights. This includes measuring both representation and the impact of DE&I on employee engagement, innovation, and business performance (Williams et al., 2021).

A Journey of Commitment, Not Compliance

Embedding DE&I into an organization’s culture requires a genuine commitment, not just compliance with regulations or industry trends. True DE&I transformation is a journey that involves continuous reflection, adaptation, and accountability. By addressing systemic inequities and creating inclusive environments, organizations can move beyond superficial efforts to achieve sustainable, impactful change (McKinsey & Company, 2020).

As with any transformative effort, the key is to start where you are, assess your progress regularly, and remain committed to the journey. By embedding DE&I authentically, organizations can drive greater innovation, employee engagement, and long-term success (Williams et al., 2021).

Sources:

• DiAngelo, R. (2018). White Fragility: Why It's So Hard for White People to Talk About Racism. Beacon Press.

• Franklin Covey. (2021). The 4 Essential Roles of Leadership. Franklin Covey Press.

• Kanter, R. M. (1977). Men and Women of the Corporation. Basic Books.

• McKinsey & Company. (2020). Diversity Wins: How Inclusion Matters. McKinsey & Company.

• Williams, M., Medlock, M., & Russell, J. (2021). How Companies Can Advance Racial Equity in the Workplace. Harvard Business Review.