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Nesta is an innovation foundation. For us, innovation means turning bold ideas into reality and changing lives for the better. We use our expertise, skills and funding in areas where there are big challenges facing society.

Innovation needs diversity so how can EDI evolve?

Last month President Trump blamed diversity policies for the Washington plane crash, shortly after dismantling all federal EDI teams as one of his first acts. Recently Meta and Amazon also announced they would be rolling back their existing diversity programmes. Apple had to reach out to shareholders to ask them to vote against a motion to reduce its own inclusion initiatives. Looking at the current direction of travel, it can be hard for anyone working in the field to stay motivated and hopeful.

Even in the UK, where legislative changes like the Worker Protection Act, and enhanced pay gap reporting, suggest progress, the media can at times present them as developments to be tolerated rather than genuinely embraced.

But EDI remains critical to organisational success in the modern world - because it’s central to innovation.

Harnessing varied perspectives and experiences is fundamental to finding new ideas and opportunities, especially in our ever more global culture. That’s why we should be proactive in defending the value of equity, and maintaining it as a cornerstone of workplace culture and strategy in the UK, ensuring it remains relevant in an ever-changing world. In essence, EDI needs to evolve.

EDI is about discovery not dividing

In some circles, diversity programmes have become associated with negative perceptions, accused of “taking jobs away” or “creating divisions.”

But when stripped to its essence, equity, diversity and inclusion programs are about something universally resonant: fairness and opportunity. In other words, the discovery and empowerment of talent.

Going back to the basics of what these initiatives aim to achieve reveals its inherent value:

  • Diversity - ensuring that the best people have a fair chance to contribute their talents, regardless of background or circumstance.
  • Equity - recognising that employees have different needs, whether it’s parental leave, caregiving support, or accommodations for health, and ensuring these are met so everyone has an equal opportunity to thrive.
  • Inclusion - creating a workplace where everyone feels valued and accepted for who they are, no exceptions.

It would be hard to find anyone in the corporate world who would disagree with those aims. So why do many leaders, from HR directors to middle managers, say they struggle to sustain it within today’s fraught climate, despite actively believing in equitable principles?

Because businesses haven't always understood that the real challenge isn’t the concept itself but its organisational positioning - but if they can, they might just find there's a path forward.

Positioning: strategic asset not just social justice

It’s important to recognise that EDI initiatives aren’t always seen to have achieved the desired impact, with the result being that the function is often among the first areas to face budget cuts during periods of economic uncertainty.

Why?

Putting aside the political battlelines and media culture wars, and taking a purely business perspective - in other words, how do companies operate successfully and fairly in an increasingly diverse world - the real issue lies in how this work is positioned.

Too often, it operates in isolation, viewed as a standalone initiative rather than integral to core business operations. At best this means ineffective positioning, at worst it means the sidelines.

But viewing it ‘merely’ as a bureaucratic necessity that primarily benefits employees, overlooks the critical importance of fairness and equity to innovation and competitiveness in a global marketplace. This separation reinforces the perception of EDI as a cost centre rather than a profitability driver.

EDI roles and capabilities usually sit within HR departments, relying on one function to drive an agenda can limit the impact of these initiatives.

Instead, EDI should be integrated with the overall organisational strategy and the responsibility of all leaders to ensure its visibility, authority, and integration.

Frame diversity accurately: a key part of innovation

Diverse teams are not just about representation; they are catalysts for innovation.

Research consistently shows that diverse perspectives fuel creativity, drive better decision-making, and produce ideas that resonate with broader audiences.

Organisations that actively involve those most impacted by their products or policies can ensure relevance and avoid unintended harm.

Inclusive innovation also strengthens societal impact, proving that businesses can do well while doing good.

By committing to inclusive practices and embedding diverse voices at every stage of the process, organisations can align profitability with positive societal outcomes. By doing so they can demonstrate that these aims can be mutually reinforcing rather than mutually exclusive.

In a competitive, rapidly evolving market, this approach is not just advantageous - it’s essential.

Smash the silo and integrate equality

To safeguard EDI, we must shift the conversation from it being an optional add-on, a nice to have, to being a strategic advantage.

Leaders must embed EDI into every revenue-generating function, from sales and marketing to product development and operations. When integrated this way, EDI transforms from a perceived expense to a competitive edge.

Metrics are critical here. By using data to link EDI to measurable outcomes - such as improved employee retention, reduced recruitment costs, increased productivity, new markets, and enhanced customer satisfaction - organisations can demonstrate its value in clear financial terms. EDI becomes not just morally imperative but business-critical.

However, structural changes are also necessary.

These functions need to move beyond their siloes and into the highest levels of decision-making, and all leaders, irrespective of their function, need to hold responsibility for driving it.

Reframe and centre on performance and impact

Language matters, but it must not become a distraction. The real goal is systemic change, not endless debates over terminology.

Accessible, pragmatic, outcome-driven language can keep the focus on progress whilst resonating with corporate cultures and avoiding alienating stakeholders.

As Joelle Emerson noted, EDI work should and will continue, but the language around it will shift. (She even suggests the term itself will soon be outdated.)

For example:

  • unconscious bias training can be reframed as inclusive decision-making skills, focusing on fairer, more effective choices.
  • allyship workshops can become leadership coaching for inclusive teams, connecting allyship directly to team success.
  • diversity training can be repositioned as market competitiveness workshops, highlighting how diverse perspectives enhance innovation and customer insight.

These shifts make the work of inclusion more actionable and relatable, emphasising tangible business benefits rather than abstract ideals.

EDI must be evolved, not allowed to die

With thoughtful integration, reframed language, measurable outcomes, and a shift in attitude to see what it really can achieve, EDI can evolve to meet the challenges of today while building the foundations for tomorrow.

EDI is not going anywhere, it's resilient and it's adapting, becoming more integral to business success - so now is the time for leaders to embrace its transformation.

Author

Davina Majeethia

Davina Majeethia

Davina Majeethia

Head of Equity, Diversity & Inclusion (EDI)

Davina is the head of Equity, Diversity & Inclusion (EDI).

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