In the past two decades, the area of Diversity, Equity, and Inclusion(DEI) has evolved from being a mere compliance-driven regulatoryprocess to a strategic driver in the private sector. This has beeninfluenced by economic and societal trends, demographics, globalization,stakeholder activism, and the recognition that people represent a criticalsource of competitive advantage. The paper relies on adopted theoriesintrinsically human capital theory, resource-based view theory, socialidentity theory, institutional theory, and organizational learning theory.The study also offers SPSS quantitative data to demonstrate therelationship between DEI factors such as gender and ethnic diversity,inclusion climate, and employee engagement and organizationaloutcomes such as innovation and financial performance. The findingsindicate that companies integrating DEI into their overall strategyperform better than others in terms of profitability, innovation strength,retention, and reputation (Deloitte, 2017; Boston Consulting Group,2018; McKinsey Shore et al., 2011). This researchprovides actionable suggestion for business executives, HR managers,and policymakers seeking to integrate inclusive approaches and leveragediversity as a sustained source of competitive advantage in a global andIndian context.
Yadav et al. (Thu,) studied this question.