Companies that refuse to be inclusive are hurting profit prospects

Let me ask you something: What if gender bias was costing your company more than your last failed product launch - and you didn’t even notice?

The other day I spoke with a leading company in Switzerland that helps global organizations advance in inclusion. What they told me hit hard: “At this point, companies that don’t invest in inclusion simply can’t afford it. Their reputation suffers - with both investors and customers. And women don’t want to work there.”

As someone who’s worked in women’s empowerment and gender diversity for over a decade, it almost felt like the ultimate goal becoming reality.

In the Gulf - and in many other countries - we’re still getting there. Governments are making bold moves - like the UAE mandating female representation on listed company boards - and there’s a growing number of companies in the GCC joining initiatives like the Gender Balance Council’s ‘Pledge to Accelerate Gender Balance in the Private Sector’.

However, many businesses still aren’t taking inclusion seriously. And the real question is: Are you one of them? Are you aware of the cost your company is already paying for this?

Let’s be clear: it’s not just about reputation.

I’ve written about this before, but for those who haven’t read it, let me repeat:
According to McKinsey, companies in the top quartile for gender diversity are 25% more likely to outperform financially.
If you're not in that group, you’re underperforming.You’re leaving money on the table. Yes, real money.

Another cost? The talent drain.Your company likely doesn’t have the best talent.
You may believe you do – because you say you offer equal opportunities and hire based on merit.

But at IWEI, working with companies across the Gulf, we see this all the time: Meritocracy doesn’t work when bias is at play. And it’s not just us. INSEAD also warns that companies that claim to be the most meritocratic often end up being the least.
Why? Because they don’t see the invisible forces driving their decisions.

Think about it: unconscious bias – like similarity bias or affinity bias – makes us choose people who look like us, think like us, act like us. And who dominates leadership teams today? Hint: the word starts with an ‘m’ - and ends with ‘en’.

So if bias isn’t addressed, you’ll keep hiring and promoting men – without even noticing. And it’s not about blame.

These are unconscious patterns. As Nobel Prize winner Daniel Kahneman said: “We all have biases.”

But the cost of not addressing them is real. And rising.

Let’s talk about innovation.
Companies with diverse teams are 38% more innovative, according to Boston Consulting Group.So if you're not investing in inclusion, you're probably 38% less innovative than you could be. And we’re in the age of AI, disruption, adaptation...Can you really afford to fall behind now?
Do you really want to be that company?

If your leadership all think the same, you’ll make decisions with blind spots. In today’s world, that’s a huge risk.

What about reputation? Here’s a risk that’s not being talked about enough:

Gender metrics are now part of ESG frameworks.So if your company isn’t tracking or improving inclusion, your ESG ratings will suffer. And let me tell you, investors are watching. And so is the next generation.

Gen Z and millennials don’t want to work for (or buy from) outdated companies that lack values and social impact.They want diversity, purpose, and progress.

In the Gulf, many companies are waking up. At IWEI, we partner with forward-thinking organizations every day to help them see their blind spots, support their female talent, and build more inclusive, future-ready cultures.

But many still don’t realize what they’re missing.

My hope is that this article serves as a wake-up call.Because the cost of doing nothing is already here. And it’s high.

The companies of the future won’t be the biggest. They’ll be the ones that open their eyes the fastest.