Unpacking DEI in FMCG: From Workforce Dynamics to Organizational Performance

Abstract

The Fast-Moving Consumer Goods (FMCG) sector, known for rapid production and broad consumer reach, is increasingly recognizing Diversity, Equity, and Inclusion (DEI) as essential for strategic growth. This study explores DEI’s role across workforce dynamics, product innovation, inclusive marketing, and supply chain equity in FMCG organizations. While DEI is well-studied in industries like technology and finance, its practical impact in FMCG remains underexplored. The research has three objectives: to assess how workforce diversity affects organizational performance, to evaluate DEI’s influence on product innovation, and to identify global implementation challenges. A mixed-methods approach was used, combining quantitative data from Likert-scale surveys of 100–150 FMCG professionals with qualitative thematic analysis of open-ended responses. Statistical analysis revealed that DEI factors explain 17.6% of the variance in organizational performance and 18.8% in product innovation, supporting the link between inclusive practices and improved outcomes. Respondents highlighted fairness in hiring, transparent promotions, and gender-neutral leadership programs as key DEI enablers. However, challenges persist, including cultural resistance, unconscious bias, and inconsistent policy enforcement. Recommendations include DEI-specific training, leadership commitment, equitable compensation, and use of supportive technologies, while cautioning against algorithmic bias. This study concludes that DEI is a strategic imperative, not a peripheral initiative. FMCG companies integrating DEI into core functions can enhance innovation, adaptability, and brand reputation, positioning themselves for long-term success in a shifting global market.