You’ve been scammed. Every company has. And most CEOs still don’t realize they’re footing the bill.
Corporate DEI “initiatives” have become the go-to for businesses eager to demonstrate inclusivity. What began as a well-meaning effort to address the lack of diversity, equity, and inclusion has morphed into a costly problem. Instead of driving business value, these initiatives have focused on performative diversity measures, not performance. And that’s where the scam began. Race became a form of currency, and the appearance of diversity was worth its weight in gold. What could have been a game-changer for business turned into a quota-driven checklist.
Let’s be clear: DEI isn’t inherently bad. When done well, it can be a catalyst for innovation and growth. We’ve heard testimonies and studies showing that diverse teams perform better, and companies that promote inclusivity report better retention and increased engagement. So why has DEI, in its current form, failed to deliver?
The Scam Unfolds
The scam didn’t happen overnight. It started in HR departments, most of which were ill-equipped to handle the complexities of diversity. In their attempt to avoid legal pitfalls and bad press, HR leaders leaned into shortcuts—implementing policies that prioritized representation over results. Race became the fastest route to check the diversity box, sidelining the broader goal of creating environments where different perspectives drive performance–and profits.
Executives, already navigating turbulent times, were afraid of being labeled complicit in systemic racism. They saw the headlines targeting companies accused of being exclusionary, and instead of thoughtful strategy, they opted for panic-driven DEI policies. PR teams, eager to amplify their company's stance on social justice, jumped on the bandwagon without fully understanding the intricacies of DEI, launching campaigns that looked good on the surface but offered nothing to improve the actual business.
This series of missteps contributed to a broken system in which optics trump outcomes, and DEI's original purpose—improving diversity never made it to focus on developing high-performing diverse teams because it was buried under layers of virtue-signaling and tokenism.
What Did the Scam Cost You?
Billions wasted on ineffective DEI training.
Donations to organizations that don't align with company missions.
Resources drained on Employee Resource Groups (ERGs) without actionable insights.
DEI should be good for business, yet most organizations have seen little to no measurable ROI. The reason? Instead of harnessing the power of diverse perspectives, companies have focused on creating the appearance of diversity.
Consider the money being spent: billions on DEI training that doesn’t address root issues, donations to organizations that don’t align with corporate missions, and funding for employee resource groups (ERGs) that aren’t producing actionable insights. Despite these investments, a 2023 report by Deloitte revealed that 70% of executives admit they haven’t seen a significant return from their DEI programs.
Some companies are starting to see the damage—strained cultures, low morale, and a backlash from employees who feel they’ve been reduced to a checkbox. Instead of improving outcomes, DEI has become a source of tension. Leaders are left wondering why the promise of diversity hasn’t materialized into better business performance.
Here’s why: race and gender have been used as a shortcut for what should have been thoughtful, strategic business decisions. Instead of empowering diverse perspectives, companies are paying for optics. And that’s the scam.
How Did We Get Here?
This wasn’t all intentional, but the effects are real. The DEI industry has ballooned into a multi-billion dollar machine that feeds off fear and guilt. From consultants to compliance teams, there’s an entire ecosystem profiting from DEI programs that do little to impact actual business outcomes.
It’s a cycle: Companies, afraid of public backlash, pour money into initiatives that look good externally but fail internally. When those programs don’t deliver, they’re doubled down on, with even more resources funneled into performative actions. The beneficiaries? The cottage industry of DEI consultants, many of whom lack real business expertise and focus on training sessions that tick the box rather than create change.
What’s the Solution?
The solution isn’t to abandon DEI altogether but reclaim it as a real business strategy. DEI should be an asset that drives innovation, improves retention, and enhances company culture. The key is to stop treating it as a checkbox and start demanding that it works for your business—not the other way around.
In my book Black is NOT a Credential, I expose how companies have been scammed by performative DEI practices and what CEOs need to do to fix it. It starts by recognizing that diversity isn’t about race quotas or ticking boxes—it’s about leveraging the strengths of different perspectives to drive business outcomes.
It’s time to audit your DEI programs. Are they really moving the needle, or are you just paying the cost? When was the last time you questioned the ROI of your DEI initiatives?
If you’re serious about seeing results, you must start treating DEI like any other business strategy—demand measurable outcomes. Cut out the fat. Focus on what will drive growth and enhance company culture.
Your Move
Ask yourself this—are you reaping the benefits of DEI, or just paying the cost? If you’re unsure, it’s time to look hard at what’s happening in your company. Don’t wait until the costs are too high to bear.
DEI done right is good for business. But only if you’re willing to move beyond the scam.
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