How Inclusive Leaders Build Trust and Drive Results

By Dr. Sarah Horn, Program Director and Executive Coach, ESMT Berlin

For many, inclusive leadership is associated with one or both: compliance targets or diversity, equity and inclusion (DEI) initiatives driven by external policymakers, HR departments, senior management, or assigned diversity officers. Over the past decades, these initiatives have made important strides but failed to create deeper change at a systemic level.

As a result, companies continue to find themselves puzzled by low employee engagement survey results. And despite having attended bias trainings, prioritized DEI goals, and followed recommended best practices in their people management processes, leaders remain unsure how to improve scores around sense of belonging or psychological safety. Why? Traditional approaches have failed to provide leaders with sufficient support to confront their deeply rooted beliefs, or those of their team members, often leaving them on their own to face challenges and feelings of failure.

Social psychologist Jonathan Haidt’s “elephant and the rider” offers a helpful analogy. The “rider” symbolizes the rational mind, guiding leaders toward inclusive goals and practices. Yet, the “elephant” – representing ingrained beliefs, habits, and unconscious biases – frequently resists, pulling in another direction.

There is thus growing recognition that a new approach is needed. The #MeToo and Black Lives Matter movements, and the COVID-19 pandemic, which exposed systemic inequities in race, gender, and socioeconomic status, have further caused expectations around DEI and leadership to evolve. Inclusive leadership is increasingly regarded as both a business strategic and moral imperative. Today, psychological safety, mental health, fairness, and feeling connected and valued are considered essentials to a workplace where everyone thrives. Belonging (the “B” in DEIB) as the outcome of DEI initiatives is what ultimately defines success.

Leader, know thyself

True inclusive leadership isn’t easy, though. It demands self-awareness, a capacity for self-regulation, and the ability to communicate with compassion. At its core, it is grounded in vulnerability and self-knowledge, particularly an understanding of positionality.

Positionality is how our diverse identities (race, gender, socioeconomic or family of origin background, nationality, sexuality, education etc.) and life experiences shape our worldviews and guide how we navigate social environments, encouraging us to understand diversity beyond the typical (e.g., legally regulated) dimensions. It also informs our perception of privileges and barriers.

By reflecting on their positionality, leaders can understand how they might unintentionally reinforce exclusion and privilege, and how they can act to disrupt these patterns. This requires being mindful of both visible and invisible differences in people’s backgrounds and experiences, and how these differences shape the way individuals engage with the world. Recognizing the intersectionality of diverse identities also helps leaders appreciate that these complexities not only deserve space to be expressed but can also enhance business outcomes. Engaging authentically with their own identities allows leaders to notice and actively dismantle barriers that prevent others from fully participating. While hard or uncomfortable for some, this inward journey is critical.

The non-negotiable for the modern leader

Inclusive leaders and employees co-create environments where different perspectives are considered and innovation thrives. They embody key qualities like empathy, which helps them listen, understand, and put themselves in others’ shoes. They show courage by challenging the status quo and calling out biases, both individual and organizational. They hold themselves and others accountable – setting and demanding measurable DEIB goals, regularly reviewing the organization’s culture, and seeking feedback to ensure everyone’s sense of belonging. Humility allows them to recognize their limitations and admit mistakes. Curiosity keeps them learning and open to new, evolving perspectives.

Inclusive leadership is more than a style – it’s a mindset grounded in values of respect, holistic well-being, and collective responsibility. Leaders and employees with an inclusive mindset take a stand, even if it means discomfort, conflict, or resistance. They lead through moments of awkwardness and embrace tension and conflicting demands. They take time for introspection and self-care to role model inclusive leadership at multiple levels:

1. They begin with the self, frequently investing in deep reflection and confronting unconscious biases rooted in their identities that have afforded them certain advantages and disadvantages.
2. They engage their teams in challenging conversations about discrimination, privilege, and inequity, even when it’s uncomfortable for themselves and others.
3. They tackle organizational resistance by influencing not just policies but strategies and goals that drive expectations around behaviors and mindsets.
4. They embrace broader ecosystem exposure, willing to be held accountable for their actions on DEIB issues, not just internally by employees and peers, but externally by consumers, stakeholders, and investors.

Next steps in the inclusive leadership journey

Inclusive leadership is an ongoing journey of self-discovery and shared learning, which benefits individuals, teams, organizations, and society. The best leaders recognize that while we may not know where DEIB will be in a decade, the responsibility lies in taking the best decisions and actions today, based on the current knowledge and context.

To make the shift from a focus on DEIB programs to a more introspective, inside-out approach to inclusive leadership that everyone is responsible for:

1. Reflect on positionality. Regularly examine how your identities shape your leadership principles, behaviors, and decision-making, and step into other people’s shoes.
2. Understand inclusive leadership as a journey. Recognize that inclusive leadership is a continuous process of reflection, learning, and growth, not a destination.
3. Lead by example and embrace difficult conversations: Model inclusive behaviors and ensure diverse perspectives are heard, even when it feels uncomfortable.
4. Create feedback loops. Continuously gather input from your team on psychological safety and belonging, and act on that feedback to foster trust.
5. Seek support. If DEIB feels misaligned with your views, seek executive coaching or peer support to navigate your discomfort and grow as an inclusive leader.

Inclusive leadership is not only about compliance or quotas – it’s about creating spaces where everyone can be their true selves. Leaders and employees who commit to this journey of growth and vulnerability build cultures of belonging, truly making a sustainable difference for people, their organization, and society.