Jun 17 2025 | theoutcastcollective
Over the last year, talk of Diversity, Equity, and Inclusion (DEI) being “dead” has rippled through mainstream media. These assertions often cite political backlash, legal scrutiny, or momentary program changes within corporations. But when you peel back the headlines, what emerges is not retreat—but evolution: a more nuanced, embedded, and strategic path forward for DEI. And a prime example of this is India’s urban centers, where progress on LGBTQ+ inclusion is gaining momentum, despite national-level constraints.
DEI’s Bold Reality Check: 87% Clarity
Despite the noise, 87% of U.S. companies are maintaining or even increasing their DEI budgets in 2025—according to a ResumeBuilder.com survey from March¹. This is not a figure from wishful thinking; it reflects real dollar commitments, policy retooling, and internal accountability measures.
Further bolstering this narrative, DiversityInc reports that 78% of Fortune 500 companies have woven DEI into their corporate governance frameworks. And Gartner’s 2025 HR report highlights a shift in measurement—63% of HR leaders are broadening their DEI metrics to assess true impact rather than optics². DEI isn’t dying. It’s evolving—deepening its roots.
The Strategic Pivot: Sensible, Not Superficial
In the past, flashy DEI slogans dominated external communications. Now, companies recognize that sustainability lies in integration—not just branding.
- Goldman Sachs transformed its “One Million Black Women” initiative into “One Million Women in Communities.” Critics saw a retreat; strategy experts spotted an adaptive reframe. The mission—to reduce opportunity barriers—remains unchanged.
- McDonald’s CEO Chris Kempczinski emphasized:
“Our commitment to DEI is not a moment; it’s a movement. We are embedding inclusion into every part of our operations—from the boardroom to our frontlines.”
- Tiffany Dufu, founder of The Cru, echoed this shift:
“When inclusion is authentic, it transcends compliance; it becomes a business advantage.”
Rather than abandoning DEI, these organizations are infusing it into leadership, product innovation, recruitment, and internal systems—where it can sustainably influence outcomes.
DEI Champions in the C-Suite
Public pronouncements from senior leaders reinforce that DEI remains a strategic priority:
- Anthony Capuano, CEO of Marriott, received 40,000 emails after reiterating DEI’s moral and business significance on an earnings call:
“DEI is not just a business imperative—it’s a moral one. Our people and our guests come from every walk of life…”
- C.S. Venkatakrishnan, CEO of Barclays, affirmed:
“We remain fully committed to building a workforce that reflects the communities we serve. Adjusting goals does not mean abandoning values.”
- Mary Barra of General Motors warned:
“To walk away from DEI now is to walk away from progress.”
These aren’t platitudes. They’re signals that DEI remains central to leadership strategies, shaping firm culture and direction.
The Business Case: Hard Data, Strong Outcomes
DEI is grounded in real value:
- McKinsey (2024): Firms in the top quartile for racial and ethnic diversity are 36% more likely to outperform on profitability.
- Deloitte (2025): Inclusive teams make better decisions 87% of the time.
- Boston Consulting Group: Diverse leadership correlates with 19% higher innovation revenue.
In a connected and complex world, inclusion isn’t peripheral—it’s foundational.
Rosalind Brewer, former CEO of Walgreens Boots Alliance, put it succinctly:
“Inclusion drives innovation. The companies that embrace diversity now are the ones that will win tomorrow.”
Indra Nooyi, former PepsiCo CEO, added:
“When people feel like they belong, they give their best.”
When DEI is done well, it boosts recruitment, retention, creativity, and brand equity—quantifiable factors that move the bottom line.
Rebranding for Endurance: Words Matter, Strategy Matters More
Company labels have shifted from “DEI” to broader, more universal language: Belonging, Inclusive Leadership, and Equity Performance. This gives programs resilience amid shifting socio-political winds.
- Brian Chesky of Airbnb remarked:
“We’re not stepping back; we’re stepping forward with more intention and strategy.”
Inclusion, he notes, “is how we future-proof our business.”
What once seemed like a retreat is often just a choice of more enduring strategic paths.
India’s Urban Resurgence: LGBTQ+ Inclusion in Focus
While national LGBTQ+ policies in India evolve slowly, city-level mobilization is picking up.
The City Ratings 2025 report from Open for Business places five major Indian metros—Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad—in the “C” category (“Partially Open for Business”) out of 149 global cities³. This performance exceeds many other Asia-Pacific peers. Here’s why it’s a meaningful signal:
- Judicial Progress: The Supreme Court orders separate restrooms for trans individuals in courts and the Madras High Court affirms that “homosexuality is not a disorder”⁴.
- Private Sector Leadership: Companies like Flipkart launched India’s first LGBTQ+-run delivery hub in Delhi-NCR. Tata Steel, Mahindra, Axis Bank, and others have rolled out queer-friendly hiring strategies⁵.
- NGO Ecosystem: Organizations such as Chennai’s Rainbow Voices Community Center offer legal aid, mental health support, and educational programs⁶.
- Pride Visibility: Major city pride marches—Bengaluru Namma Pride, Chennai Rainbow Pride, and Hyderabad Queer Swabhimana Yatra—have grown significantly in participation and political engagement⁷⁸.
This momentum shows that urban India is ready for LGBTQ+ inclusion, even as national laws remain unchanged.
Why Cities Matter for Inclusion—and Impact
According to Open for Business’ 2020 analysis, LGBTQ+-inclusive cities deliver economic advantages: stronger innovation, better talent attraction, and improved quality of life⁹. These characteristics align closely with the DEI business case.
India’s cities are embracing this:
- They foster venues for dialogue: Pride marches are now vast, intersectional movements with corporate partners, human-rights NGOs, and local media.
- They serve as testing grounds for policy: Even if national directives lag, local orders and corporate practices set new norms.
- They bolster talent pipelines: Inclusive cities attract skilled professionals who seek workplaces where they can belong openly.
The correlation between inclusion and competitiveness is no longer theoretical—it is increasingly concrete.
Still, the Journey Ahead
Despite progress, challenges persist:
- Cultural stigmas remain deeply entrenched outside urban pockets.
- Only 10.2% of employees in India reported feeling genuinely recognized in inclusive workplaces—a concerning figure according to a CultureMonkey report¹⁰.
- National legal frameworks lack uniform protections, especially for trans rights, healthcare access, and family law.
Progress in cities cannot happen in a vacuum—it needs to spill over into national systems, legislation, public discourse, and rural investments.
TOC’s Practitioner Perspective
At The Outcast Collective, we partner with diverse organizations—ranging from fintech start-ups to multinationals—to build holistic, lived-in DEI and LGBTQ+ inclusion strategies.
What we’re seeing and doing:
- Beyond policies: We audit cultural markers—ket to shaping real inclusion, from restroom access and pronoun use to bias-free promotion systems.
- Employee Resource Groups (ERGs): These hubs for community and mentorship foster belonging and retention for queer employees.
- Leadership dialogue: Regular executive roundtables on intersectionality keep DEI centralized in decision-making.
- Awareness programming: Sensitization workshops are co-designed with NGOs like Rainbow Voices and bring LGBTQ+ lived experiences into dialogue with staff.
- Partnerships with city entities: By collaborating with municipal governments and city pride committees, we advocate for trans-inclusive public spaces, such as gender-neutral toilets and transit safety initiatives.
In cities like Bengaluru, Hyderabad, and Chennai, we’ve leveraged both corporate and civic participation—building bridges between private, public, and civil sectors.
Practical Recommendations for Organizations
To harness DEI’s evolving momentum:
- Embed metrics: Go beyond representation. Track belonging, perceptions of safety, and equitable career mobility.
- Deploy ERGs strategically: Ensure LGBTQ+ ERGs have staffing resources, budget, and leadership sponsorship.
- Focus on small actions with big impact: Implement inclusive restroom signage, policies for trans inclusive travel, and pronoun-enabled email signatures.
- Craft intersectional collaborations: DEI teams should partner with local NGOs and city councils to amplify impact.
- Train managers: Equip people leaders with tools to manage bias, microaggressions, and ally-focused practices.
The Next Evolution: From “Checklist” to Systemic Impact
DEI is now moving from checkbox culture to enterprise-wide transformation. Canadian philosopher Margaret Wheatley’s insight applies here: “Nothing ever becomes real until it’s experienced.”
For DEI to be real, employees need to see it—in hiring, salary parity, safety, voice, and upward pathways. Inclusion isn’t a marketing label—it’s a lived experience.
Similarly, LGBTQ+ inclusion in Indian cities is not a slogan. It’s manifesting in gender-neutral restrooms, safe public spaces, mental-health resources, and visible public pride—and backed by private sector co-investment.
The pattern is clear: DEI where it counts, not just where it shows.
Final note: The Myth of DEI’s Death—and the Reality of Resilience
Across boardrooms, city streets, and local communities, DEI and LGBTQ+ inclusion are far from defunct—they’re adaptive, strategic, and socially impactful.
- 87% of companies affirm DEI funding remains steady or rising.
- Corporate leaders—from McDonald’s to Marriott—are publicly fortifying inclusion as business imperative.
- Indian cities are delivering context-specific progress on LGBTQ+ inclusion, even in the absence of federal leadership.
- Public-private-community synergy in places like Bengaluru, Chennai, and Delhi signals a sustainable shift.
Inclusion only loses power when we stop doing it. What we are seeing now is more refinement, not retreat.
TOC Final Thought: DEI’s path isn’t instantaneous or linear—but it’s accelerating. Inclusion is living, not a lens. It shapes workplaces, cities, and societies. The agenda is alive. And louder than any false narrative.
Take the first step today. Schedule an exploratory consultation via WhatsApp at +91-9372177748 or email lakshmi@theoutcastcollective.com with our DEI experts and start building a workplace where everyone belongs.