DEI as a strategic imperative for modern leadership

Published
Oct. 9, 2025
Read
5 minutes
DEI as a strategic imperative for modern leadership
As organisations navigate an increasingly complex and competitive business landscape, Diversity, Equity and Inclusion (DEI) has emerged not merely as a social responsibility but as a strategic imperative. It is now recognised as a critical driver of organisational effectiveness, shaping leadership practices, enhancing decision-making and ensuring that companies remain resilient and adaptive in the face of global challenges.

Insights from the Kestria Global Leadership Barometer 2025 reveal that companies integrating DEI into leadership strategy outperform their peers in innovation, talent retention and market relevance. We interviewed leading global executives to share their perspectives on how embedding DEI at the core of leadership can unlock organisational potential, foster high-performing teams and ensure sustainable growth in an evolving global workforce.

Why should DEI be a core pillar of leadership strategy today?

Fabian Ringwald, Chief Information Officer at SWICA, Switzerland, stresses that at a time when DEI is under considerable political pressure from outdated mindsets, it still makes clear economic sense to embrace all available talent. ‘Doing so not only enables you to discover exceptionally gifted individuals who may never have been on your radar, but also allows you to harness the powerful, positive impact diversity brings to an existing, perhaps still somewhat homogeneous, workforce. If your ambition is to build high-performing teams, DEI must be regarded as a strategic pillar, ensuring that your teams transcend narrow perspectives and unconscious limitations shaped by traditional structures and limited experience.’

Kenny Carvalho, Chief Human Resources Director at Sempre AgTech, Brazil, notes that several global studies show companies with strong DEI practices achieve better results than those that do not. They perform better financially, attract and retain top talent and are more innovative. 

‘From a practical perspective, this makes perfect sense: if companies are creating products and services for a diverse society across gender, race, sexual orientation, religion and more, then having a diverse team increases the likelihood of understanding customer needs and making better decisions. When everyone in the room thinks the same way, the company misses out on different perspectives. A diverse culture fosters greater creativity and more effective solutions.

However, DEI should not be implemented solely for social reasons; it must also be pursued strategically. It is not about ticking boxes, but about building a stronger, more connected and future-ready organisation.

I am a clear example of why DEI matters. I had the opportunity to participate in a leadership programme called Black Leadership, created by iFood Group, which focused on developing and promoting Black executives in Brazil. The programme aimed to identify high-potential professionals and prepare them for senior leadership roles. I was nominated because I had recently taken on an executive position, and the programme helped me strengthen my leadership mindset and strategic thinking.

This kind of initiative demonstrates how DEI can directly influence lives, careers and business outcomes. When leaders commit to inclusion, they create genuine opportunities — and everyone benefits.’

Anne Gnanapragasam, Head of People, HSBC GSC Malaysia, emphasises that the strength of DEI lies in understanding diversity and applying it to maximum effect. ‘The topic is broad, yet it is often reduced to a narrow focus on the male–female equation. The question of whether we need more women in the boardroom is no longer relevant; it is now a business imperative. With populations declining in many nations and talent pools shrinking, every capable voice is needed. DEI should therefore be reinforced to ensure that all perspectives are heard.’

How can organisations move from compliance-driven DEI to a strategic approach?

As Anne GNANAPRAGASAM stated above, this is a business imperative. ‘Benefits should be aligned to support workforce enhancements for both men and women in addressing childcare and eldercare responsibilities. The real question is: what happens if we fail to act and what competitive advantage does the organisation lose as a result?

According to Fabian Ringwald, the priority is to actively integrate DEI principles into company culture and to set the tone from the top. ‘Leading by example and making it a personal priority is the most visible and effective way forward. Communicate the benefits and acknowledge the challenges that accompany this journey, going beyond simple measurable statistics. After all, depending on your starting point, this may represent a significant change for your company, and it is important to be mindful of that.’

In Kenny Carvalho’s perspective, the first and most important step is for companies to invest in developing their leaders’ awareness and understanding of DEI. ‘It is essential that leaders regard DEI as a strategic tool, not merely a social obligation. They must recognise how it can benefit them personally as leaders, while also enabling the company to become more innovative, attractive and profitable.

Setting clear, measurable goals is equally critical. These objectives should, wherever possible, be embedded within both short- and long-term incentive plans. For instance, establishing a minimum number of women in leadership roles, alongside other diversity targets, should form part of the company’s DEI roadmap.

Another key consideration is to decouple internal DEI efforts from political or ideological movements. Positioning DEI as a business and cultural value, rather than a political agenda, reduces internal resistance and helps prevent misinterpretation by employees, customers or external stakeholders.

In summary, moving from compliance to strategy requires organisations to develop inclusive leaders, set clear goals, link DEI to performance and rewards, and communicate it as an integral part of the company’s long-term vision rather than as a passing trend or political statement.’

What’s the impact when DEI isn’t a leadership priority?

When DEI is not a leadership priority, the organisation may experience negative effects both internally and externally,’ says Kenny Carvalho. ‘Externally, the quality of products and services may decline. Strategies and decisions could be shaped by limited beliefs and perspectives that fail to reflect the reality of the company’s target audience. Consequently, the organisation may lose competitiveness, market relevance, and customer trust.

Internally, the workplace is likely to become less inclusive, less collaborative and less engaging for employees. This can result in difficulties attracting and retaining key and diverse talent, which are essential for innovation and long-term success.

Ultimately, companies that do not prioritise DEI risk falling behind not only in people management but also in business growth and brand reputation.’

‘By not incorporating DEI into your leadership, you are leaving opportunities for others to explore and benefit from. Failing to prioritise DEI damages your employer brand and limits your potential to achieve high performance through diverse teams,’ adds Fabian Ringwald.

Summary

The Kestria Global Leadership Barometer 2025 underscores the pivotal role of Diversity, Equity and Inclusion (DEI) in contemporary leadership. While approximately one-third of global executives consider DEI a core element of their leadership strategy, a significant portion, over 25%, indicates that their DEI initiatives are either non-existent or predominantly compliance-driven rather than strategically integrated. This disparity highlights the necessity for organisations to transition from viewing DEI as a mere obligation to embracing it as a strategic asset that drives innovation, enhances talent retention and fosters organisational resilience. As global leaders continue to navigate an increasingly complex and competitive business landscape, embedding DEI at the heart of leadership strategies is not just beneficial; it is imperative for sustainable success.