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Role of DEI initiatives on organizational growth: a study in the context of policy rollback

Student name: Ms Ayushi Prakash
Guide: Dr Moumita Acharyya
Year of completion: 2025

Abstract:

This study explores the role of Diversity, Equity, and Inclusion (DEI) initiatives in driving organizational growth, particularly in the context of increasing global rollbacks. It aims to assess the significance of DEI strategies for organizational development, empirically examine the relationship between DEI and various growth dimensions, and analyze the implications of recent DEI retrenchments. Using a mixed-method approach—combining extensive literature review with primary data from 50 professionals across sectors in India—the research investigates DEI’s influence on strategic, operational, and financial performance. The findings reveal strong correlations between DEI and internal outcomes such as innovation, problem-solving, leadership agility, and employee engagement, affirming its role as a lever for organizational capability. However, perceived impacts on profitability, ROI, and investor confidence remain limited, highlighting a disconnect between inclusive culture and structural equity. The study also examines the socio-political and organizational drivers of rollback, revealing that DEI, while culturally valued, is yet to be fully embedded into business systems. These insights present both a challenge and an opportunity for organizations seeking long-term, sustainable growth.

Key words: Diversity, Equity, and Inclusion (DEI), organizational growth, strategic outcomes, operational performance, financial performance, DEI rollback, inclusive culture, leadership agility, employee engagement, empirical research, corporate culture, stakeholder perception.