Let’s face it: DEI has a lot of bad press. The topic is often emotional, initiatives have sometimes been ineffective, and there is no universally accepted way to measure success.  As a result, many CEOs approach DEI very cautiously.

Jack Conte, co-founder and CEO of Patreon, very eloquently shared on his Medium page that “as a CEO, I’ve felt a little scared to talk about diversity and inclusion — not because I don’t want a more diverse team, but because I’ve been afraid to use the wrong language or say the wrong thing. My guess is that this is a common sentiment among many CEOs in tech. That fear will CRUSH YOU. Don’t give in to it. Talk about D&I. You might say something funky every once in a while and people will correct you, and then everyone will move on.”

Exactly. For meaningful change to happen, leadership must set a clear example, push for better inclusivity practices with team support, and remain accountable throughout the process.

Through GENDEX’s work, it’s clear – as supported by data – that DEI is a business strength both in terms of company growth and company culture, so why are so many CEOs still afraid of prioritising the topic?

DEI is impossibly subjective

Apple’s new VP of Diversity and Inclusion, Denise Young Smith, once gave a speech at One Young World, and stated that she doesn’t believe that being a minority or a woman are the only criteria for diversity.

Young Smith, a black woman, stated “There can be 12 white, blue-eyed, blonde men in a room and they’re going to be diverse too because they’re going to bring a different life experience and life perspective to the conversation.” She went on, adding “Diversity is the human experience, I get a little bit frustrated when diversity or the term diversity is tagged to the people of colour, or the women, or the LGBT.” She was let go from her role shortly after this speech, but not before her words went viral. She also expressed an opinion that could have been the start of an open debate, but instead her words were too high stakes and she was let go.

No follow-through by company managers and leaders

As important as it is for a CEO to have a vision for DEI (and even if they serve as a role model for DEI principles), without buy-in from managers and other leaders to drive broader implementation across the organisation, nothing will change.

Why? Many middle managers are overwhelmed with work, and believe that they have a good team dynamic and simply don’t need DEI training. But ultimately, embedding DEI becomes more tangible and understandable for employees once they have had a positive experience of utilising their diversity and inclusive behaviours to improve what matters to them – and managers are those who have real power to influence and set a positive example.

In fact, a study by Catalyst found that while 92% of CEOs consider diversity to be a top priority, only 20% of organisations have comprehensive diversity and inclusion strategies in place. This gap often results in ineffective DEI initiatives and a lack of buy-in at various organisational levels.

Loss of existing staff, and disruption of exciting company structures

A recent Forbes article cited that there is a significant worry that the diversification of the American workforce “will put numerous white men out of work and lock them out of leadership opportunities.”

Despite there being limited evidence to show that this is actually happening, many more senior leaders are worried about rocking the boat for fear of losing the work of those they have always been able to rely on. The article continued, stating that “Many also worry that the white, masculine, heterosexist, ableist cultures that were created long ago in companies will no longer exist, and the persons who created those cultures will no longer have a place.”

Funnily enough, research indicates otherwise. A report by the Harvard Business Review found that 57% of employees believed that diversity initiatives positively impacted team performance, while only 20% felt that such initiatives were a threat to their jobs.

Optics not structural changes are celebrated

Real change takes time, and creating an environment where equal opportunities really exist is hard and seeing results will take years. Often superficial measures are more readily visible, and, of course, the question of quotas and hiring for aesthetics (rather than on merit) is a whole other loaded area that many CEOs simply do not want to get into.

According to the 2023 Deloitte Global Human Capital Trends report, organisations that focus on deep structural changes rather than just “optics” see better long-term results in employee satisfaction and organisational performance. Plus the report shows that “organisations that embed DEI deeply into their corporate strategy and operations are 1.7 times more likely to see significant improvements in organisational performance compared to those that only implement surface-level changes.” But how long are CEOs prepared to wait for change and results after announcing a DEI initiative?

Public backlash

Worryingly, some parts of society are becoming less tolerant, and some CEOs are “afraid of lawsuits or becoming the next target on conservative news outlets and social media. Watering down or altogether abandoning DEI efforts is easier, more comfortable, and perceivably less risky for those execs.”

But let’s face it. Not acting simply because you are scared just does not work. We need bold leaders who share – and execute on – a better vision for the future, and in the same way, they are not afraid to put their necks on the line for hard business decisions, they should not be afraid to make decisions about DEI within their organisations. So where can CEOs start, and what do they need to keep in mind?

1. Foster a culture of openness and accountability

Establishing a culture where open dialogue about DEI is encouraged is crucial for successful implementation. CEOs should promote transparent conversations and actively seek feedback from employees at all levels. Setting clear DEI goals, tracking progress with specific metrics, and holding leadership accountable for these targets can drive meaningful change.

2. Start with small steps, but be deliberate and consistent with system building

Conte, co-founder of Patreon, shared some thoughts on this: “As with building any culture, the key is to add changes to multiple systems at once. Ubiquity jumpstarts culture. All hands. Then an all-team email. Then the next day there’s a diversity and inclusion Slack channel. Then an Asana project with a few D&I initiatives. Then the company’s open recs get rewritten to be more inclusive. Then hiring managers get bias training. Then diversity and inclusion language gets included in manager expectations… The key is adding changes to multiple systems at once.”

3. Educate and engage in continuous learning

To effectively address DEI challenges, CEOs must prioritise their own education on the subject. This involves actively participating in DEI training sessions, consulting with experts, and staying informed through books, articles, and research reports. By deepening their understanding of diversity, equity, and inclusion issues, CEOs can make well-informed decisions and confidently navigate the complexities of implementing DEI initiatives.

In short, the fear is justified. But refusing to take action in the 21st century is simply not a course of action. We need bold leaders who lead by example, prioritise structural change, are open and accountable, and are ready to truly follow through on their visions. The vision doesn’t need to change the world, in fact, it’s better if it is smaller and more specific to the organisation, the people and the product of the business, that way, CEOs have a much greater chance of succeeding in implementing meaningful change.

Have you had a CEO who has been afraid of a DEI initiative? Or perhaps the opposite – a glowing example of a CEO with a tangible vision for DEI that they pushed forward? Let us know about it in the comments below. For more updates, follow us on LinkedIn, subscribe to our newsletter, and check out our YouTube channel.

Written by Emily Hoffschmidt-McDonnell , and researched by Rachel Bolte and edited by Sophie Webber .

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