By OurOffice Team
Introduction
In May 2025, Google agreed to pay $50 million to settle a sweeping racial bias lawsuit brought by Black employees who reported systemic underpayment, exclusion from leadership tracks, and a toxic workplace culture. But the warning signs came years earlier. Back in 2018, more than 20,000 Google employees staged a global walkout protesting the company's mishandling of sexual harassment claims—an unprecedented moment that signaled deeper problems with inclusion and equity inside one of the world’s major tech companies.
Among those who raised red flags early was April Curley, a former diversity recruiter at Google. She was vocal about the company’s mistreatment of Black talent, alleging that qualified candidates from Historically Black Colleges and Universities (HBCUs) were routinely undervalued and dismissed. Curley later claimed she was fired after speaking out—a move that galvanized broader scrutiny into Google's hiring and retention practices for underrepresented groups.
These stories underscore a painful truth: when organizations ignore DEI concerns, the consequences compound. Lawsuits. Walkouts. Lost talent. Reputational harm. And yet, against the backdrop of increasing political attacks on corporate DEI efforts, many companies are pulling back just when they should be doubling down.
This article explores why DEI is not just a moral imperative, but a strategic necessity. We’ll examine the business case, dispel common myths, and offer actionable steps organizations can take to build cultures of accountability, fairness, and inclusion—before it’s too late.
The Cost of Ignoring Inclusion: Google’s Wake-Up Call
Google’s $50 million settlement is emblematic of a deeper problem that affects many large employers: the disconnect between corporate DEI statements and lived employee experiences. According to Reuters, Black employees involved in the lawsuit reported being funneled into lower-level roles, denied promotions, and exposed to hostile work environments. (Reuters)
Similarly, the 2018 Google walkout brought global attention to how mishandled DEI issues can lead to reputational damage. Thousands of employees participated, protesting a $90 million exit package to an executive, Andy Rubin, the creator of the Android mobile software, even after the company concluded that a harassment claim against him was credible. (New York Times)
These moments of crisis are not born in isolation. They result from a failure to listen, act, and evolve. A proactive DEI framework serves as both a risk mitigation strategy against such mistakes, and also a foundation for sustainable growth.
Why DEI Matters: Data-Driven Business Benefits
The value of DEI is not merely ethical; it's strategic. Consider the following research-backed findings:
Financial Performance
- Companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. (McKinsey)
- Companies in the top quartile for ethnic and cultural diversity on executive teams were 36% more likely to outperform on profitability compared to those in the bottom quartile. (McKinsey)
Innovation and Creativity
- Diverse companies are 1.7 times more likely to be innovation leaders in their market segments. (Josh Bersin, Forbes)
- Companies with above average diversity on their management teams reported greater innovation revenue. (BCG)
Retention and Engagement
- Employees who feel their organization is committed to DEI are 3.6 times more likely to be proud to work there and 4.4 times more likely to stay longer. (SHRM)
- Replacing an employee can cost 90% to 200% of their annual salary, meaning retention directly impacts the bottom line. (Wikipedia)
Addressing the Critics: DEI vs. 'Woke Capitalism'
Some critics argue that DEI is a distraction or political liability, especially as some powerful political figures take aim at corporate diversity programs. However, such arguments often conflate meaningful inclusion work with performative gestures.
Fact-based rebuttals:
- Most DEI programs do not enforce quotas or lower standards. Instead, they aim to broaden talent pipelines, reduce bias, and ensure equitable access to opportunities to be truly merit-based.
- Data shows that inclusive hiring practices increase overall applicant quality and workplace productivity.
In fact, reducing DEI investments in the face of political pressure may increase exposure to risk, including legal challenges, employee disengagement, negative brand impacts, and difficulty attracting next-generation talent.
Practical Strategies: How to Future-Proof Your DEI Approach
1. Invest in DEI Data and Measurement
Without clear metrics, it's impossible to know whether your initiatives are working. DEI platforms with strong Analytics components provide real-time insights into employee sentiment, representation, and inclusion gaps.
Action Tip: Establish quarterly DEI reporting to leadership, and tie DEI metrics to business outcomes such as retention and customer satisfaction.
2. Build Safe, Transparent Feedback Mechanisms
Create multiple, accessible channels for employees to share concerns in a safe environment—anonymously if needed—and ensure follow-up is visible and tracked.
Action Tip: Train managers and HR partners on how to respond to DEI-related concerns with empathy and action.
3. Elevate Equity in Performance and Promotions
Audit performance reviews and promotion processes for bias. Are certain groups consistently rated lower or overlooked for leadership roles?
Action Tip: Implement structured evaluation criteria and blind review processes to improve fairness in evaluations.
4. Prioritize Inclusion in Team Dynamics
A diverse team without inclusion is a missed opportunity. Psychological safety, role clarity, and inclusive leadership must be actively cultivated.
Action Tip: Offer inclusive leadership training and team facilitation support to help managers create belonging across lines of difference.
A Broader Responsibility: Leaders, Policymakers, and Employees
DEI is not just HR’s responsibility. It is a shared commitment across every level of the organization:
- Executives must set the tone and allocate resources.
- Managers must model inclusive behavior and address microinequities.
- Employees must contribute to a respectful and open culture.
- Policymakers must support frameworks that encourage transparency and fairness.
At a time when anti-DEI sentiment threatens to undermine decades of progress, the most forward-thinking organizations must lean in—not retreat.
Tools that Make it Easier to Build Inclusive Workplaces
The truth is we are all stretched thin and have many computing priorities. So strategic efforts like DEI often fall by the wayside, simply due to lack of time. The best solution is to look for tools to facilitate the day-to-day, so that you can focus on the strategy and relationship-building.
Small and medium businesses with limited resources will need to look for right-sized platforms designed with affordability in mind to:
- Enable employee feedback and communications in a safe space
- Make it easier for groups of employees to connect and collaborate
- Make it easier to measure what matters and automate reporting tied to actionable insights
With tools like these, leaders can aim to build cultures that are not only compliant, but also resilient, inclusive, and high-performing.
Conclusion: DEI Is Your Safety Net, Not a Liability
The lawsuits, walkouts, and reputational risks of recent years serve as urgent reminders: DEI isn’t about political correctness—it’s about doing business better. When companies commit to fairness, transparency, and inclusion, they don’t just avoid lawsuits. They unlock the full potential of their workforce.
Call to Action: If your organization is revisiting its DEI strategy, let this be your moment to lead with intention. Explore resources, engage your people, and consider partnering to build a workplace where everyone can thrive.
Because in 2025 and beyond, inclusion is not a "nice-to-have." It’s more than ever, a non-negotiable must have.
For more discussion on this topic see our Linkedin post.
For more blogs on related topics see here.
###
OurOffice helps busy HR and people leaders improve hiring, engagement, and retention by building a more inclusive workplace with an easy and affordable toolset, leading to better business outcomes. Unlike one-size-fits-all solutions, the OurOffice DEI platform is fully customizable to mix and match the right tools and ensure that you have the right solution to drive measurable impact.
Ready to take your DEI initiatives to the next level? Contact OurOffice today to learn how we can support your journey toward a more diverse, equitable, and inclusive workplace, or schedule a free session to discuss the challenges you are facing and get answers and guidance from professionals.
.png)
.png)