The DEI ripple effect: How inclusive leadership shapes culture and performance

When diversity, equity, and inclusion (DEI) first took hold in the workplace, it often took the form of standalone initiatives: training sessions, task forces, and one-off programs. While these were well-meaning efforts, they weren’t enough to drive lasting cultural change on their own. 

Organizations that have made DEI central to their leadership are seeing tangible results. In Canadian Underwriter’s 2025 DEI Survey, sponsored by Sovereign Insurance, a resounding 90% of brokers cite benefits to workplace DEI initiatives. Mutual respect and a welcoming environment top the list of benefits (70%), followed by fairness and transparency in policies (52%). Nearly half (48%) say DEI initiatives encourage personal growth. 

When it starts at the top, DEI isn’t about another committee meeting or training session. Leaders who embed DEI create a ripple effect — strengthening workplace culture and setting the tone for fairness, respect, and accountability. 

The survey also found that brokerages with diverse leadership teams are more likely to support DEI across all levels — and report fewer negative workplace experiences. Brokers cite several key reasons for supporting DEI initiatives: They believe it creates fair opportunities for all (78%), fosters unity and collaboration (56%), and builds authentic representation (49%). Additionally, DEI initiatives are seen as enhancing innovation and problem solving — ultimately making work easier or better (43%). 

Research supports the idea that when leaders prioritize DEI, it encourages “a trickle-down effect,” fostering an inclusive environment at all levels. For instance, studies show that leadership buy-in is critical for successfully implementing DEI programs and policies. And when employees see that their leaders are genuinely committed to fostering an inclusive workplace, and actively participating in meaningful change, they’re more likely to support and engage in DEI practices themselves. This alignment between leadership and organizational values reinforces DEI as a key driver of business success.¹

While embedding DEI throughout the organization may seem like an overwhelming task, it doesn’t need to be complicated. Leading inclusively isn’t about being perfect, it’s about showing up authentically and embracing the small steps that can drive meaningful progress. Being vulnerable as a leader helps build a culture of trust and belonging where DEI can thrive. 

Next steps: Embedding DEI across your organization 

Rather than focusing on sweeping changes, start by evaluating how you can create a ripple effect in your brokerage. Here are a few ways to begin. 

·         Model inclusive behaviour: Leadership sets the tone for workplace culture. According to Catalyst, leaders have the most direct impact on employee experiences, with inclusive leaders accounting for 45% of employees’ experiences of inclusion.² By demonstrating inclusive behaviour — whether it’s using respectful language, modelling empathy, promoting inclusive decision-making, or commending inclusive actions from your team — you can pave the way for others to follow.³ 

·         Listen actively: Inclusion doesn’t happen with leaders doing all the talking – it’s about listening, too. Actively listening is “a conscious, deliberate effort to fully understand, interpret, and respond to the messages being communicated by others.” ⁴ To become a better listener, try using nonverbal communication, avoid interrupting, ask open-ended questions, and be present in the moment. The benefits are wide-ranging: Active listening can help foster psychological safety, bridge cultural gaps, empower employee voices, and enhance decision-making.⁴ 

·       Make space for diverse perspectives: Beyond active listening, it’s crucial to actively seek different and diverse perspectives. Whether through meetings, open forums, or anonymous feedback forms, create an environment where diverse perspectives are valued and your employees feel comfortable sharing their ideas without fear of judgment.⁵ Embracing diversity of thought brings significant benefits, including enhanced creativity and innovation, increased employee engagement and satisfaction, and improved understanding of customers and markets.⁶ 

The changes needed for a more inclusive workplace don’t have to wait for the next strategy session or budget planning cycle. Small, consistent actions lay the groundwork for lasting cultural shifts. By making DEI a part of your daily actions and interactions, you help build a culture of respect and fairness. The ripple effect starts with you – watch as it flows outward throughout the whole organization.

Sources

1 Dinasti International Journal of Economics Financing & Accounting, “Workplace Diversity and Inclusion: Strategies for Effective Implementation and Benefits to Organizational Culture,” October 2024 
2 Catalyst, “Business leaders shaping the future of inclusion,” Feb. 20, 2025
3 Praxis Labs, “5 Ways Leaders Can Model Inclusive Behavior” 
4 Inclusion Geeks, “How to Practice Active Listening for Inclusive Team Success,” Sept. 10, 2024 
5 Diversity Resources, “Building Better Teams: Why Diverse Perspectives Drive Success” 
6 Berkshire Associates, “How to Harness the Power of Diversity of Thought at Work,” July 20, 2021, updated Dec. 6, 2023