The Cost of Exclusion: How Lack of Diversity Has Shaped Corporate America and What We Can Do About It

Corporate America has long been shaped by a particular demographic—predominantly white, male, and heterosexual. This lack of diversity hasn’t just influenced who holds power; it has directly affected the products we buy, the workplace policies we follow, and the systemic barriers that continue to hinder progress for women and people of color. But what if we could shift this? What if, instead of maintaining the status quo, we actively sought to balance the scales?

In a recent White Women Wake Up podcast episode, Karen and I explored the One-Third Rule, a concept introduced by Tina Tchen, former Chief of Staff for Michelle Obama. It’s a simple but powerful idea: ensuring that at least one-third of leadership and decision-making spaces include diverse voices. If we implemented this, what might change? How could it reshape the very foundation of our workplaces and, by extension, our country?

The Consequences of Homogeneity in Corporate America

The effects of male-dominated corporate culture have been far-reaching, often resulting in products, services, and policies that fail to consider the needs of those outside that narrow perspective. Let’s take a few examples where the exclusion of women, people of color, and LGBTQ+ individuals has led to massive blind spots.

1. The Seatbelt Problem

For decades, crash test dummies were based on the male physique. Car safety tests did not consider female anatomy, meaning that women were 47% more likely to suffer serious injuries in crashes than men. Why? Because the teams developing these safety features were largely male, and the voices of women simply weren’t in the room.

2. The Office Temperature Debate

Have you ever felt like you're freezing at work? That’s because office temperature settings are based on a decades-old formula developed around the metabolic rate of a 40-year-old, 154-pound man. Women, who typically have slower metabolic rates, are left shivering because no one thought to question the standard. Again, if there had been more diversity in the decision-making process, this oversight might never have happened.

3. The Health Gap in Medicine

Historically, medical studies have prioritized male subjects, assuming that female bodies would react the same way to medications and treatments. This has led to severe consequences, with women being misdiagnosed at higher rates for conditions like heart disease because the symptoms they experience differ from those of men. The consequences of this exclusion are literally life and death. For women of color, particularly Black and Indigenous women, the stakes are even higher. Due to systemic biases in healthcare, they face significantly higher maternal mortality rates and are less likely to be given pain medication when they report severe symptoms. Additionally, the lack of women in medical research and leadership positions has meant that many of these disparities remain unaddressed, further entrenching inequities in healthcare outcomes.

These are just a few examples, but they illustrate a pattern—when we exclude diverse voices from the decision-making process, we create a world that works well for a select few and leaves others struggling.

Corporate Decision-Making: Who Gets a Say?

In our podcast, Karen shared a crucial observation: “One of the things that I learned early on as a leader is the notion of intention. My own circle was predominantly white, and I naturally hired from that pool. It wasn’t until I became intentional about expanding my network that my workplace truly became more diverse.”

This is an issue that extends beyond hiring. The lack of diversity in corporate leadership has led to policies that disregard the needs of many women and people of color. Consider maternity leave in the U.S.—we’re one of the only developed nations without federally mandated paid maternity leave. Why? Because men, who don’t experience childbirth firsthand, have historically been the ones setting workplace policies.

When women and people of color are systematically excluded from decision-making spaces, their needs remain an afterthought.

The One-Third Rule: A Simple but Powerful Solution

Tina Tchen’s One-Third Rule offers a way forward. She proposed that at least a third of decision-making spaces be occupied by women or people of color. The idea is simple: if you have enough diverse voices in the room, the conversations—and ultimately, the decisions—change.

Karen and I talked about this concept in our podcast, reflecting on how easy it is to fall into the trap of thinking you’re being fair while still operating in a homogenous environment. Karen shared how she intentionally started sitting at different tables at conferences, avoiding her usual group of white colleagues. “If I’m not hanging out with diverse people, how can I possibly consider them for positions or leadership roles?” she said.

This intentional shift is critical. It isn’t enough to just think we support diversity; we must create environments that actively reflect it. And when we do, the benefits are undeniable.

The Ripple Effect of True Diversity

There’s a mountain of research proving that diverse teams perform better. Companies with higher gender diversity in executive teams are 21% more likely to outperform their peers in profitability. Racial and ethnic diversity boosts financial performance even more. But beyond the financials, diversity strengthens innovation, creativity, and overall workplace culture.

When we expand the table, we don’t just give opportunities; we create better opportunities for everyone.

Why White Women Must Lead the Charge

As white women, we sit at an interesting intersection of privilege and marginalization. While we have historically been excluded from many leadership roles, we have also benefited from systemic racial advantages. The feminist movement, for example, has often centered white women’s struggles while sidelining the unique barriers faced by women of color. Historically, women have also been pitted against each other in male-dominated workplaces, competing for the limited spots available to them rather than lifting each other up. This scarcity mindset, ingrained by patriarchal structures, has made it even more difficult for women—particularly women of color—to advance. However, research has shown that when women support one another, they are collectively more successful, creating stronger networks and opportunities for all.

If we truly want a more equitable society, we must ensure that our efforts are not just about getting more women into corporate spaces but also ensuring that all women, particularly women of color and LGBTQ+ individuals, have representation in all aspects of decision-making. A diverse corporate America doesn’t just impact those in the workforce—it influences policies, cultural norms, and opportunities that shape the daily lives of women across the country. When companies prioritize inclusion, the ripple effects extend beyond office walls, affecting economic stability, healthcare policies, community investment, and societal progress as a whole.

What You Can Do Right Now

1.Audit Your Own Circle – Look around at your workplace, your social circles, and the voices you prioritize. Are they diverse? If not, make a change.

2.Advocate for the One-Third Rule – If you’re in a position of hiring or influence, push for policies that ensure at least a third of leadership roles go to women and people of color.

3.Challenge Bias in Hiring – Studies show that applicants with “white-sounding” names are more likely to get callbacks. Advocate for blind resume reviews to reduce bias.

4.Educate Yourself – Read books by women of color, listen to their experiences, and seek out perspectives that challenge your assumptions.

5.Speak Up in the Workplace – When you see exclusion happening, call it out. Change happens when we refuse to accept the status quo.

Moving Forward with Intention

The lack of diversity in Corporate America is not an accident—it’s a direct result of deeply embedded systems that prioritize certain voices over others. But we have the power to change that. By embracing the One-Third Rule and making conscious efforts to expand representation in our workplaces, we can build a future where decisions are made for all of us, not just a privileged few.

As Karen and I discussed in our podcast, diversity isn’t just a buzzword—it’s the key to a stronger, more inclusive, and more effective workforce. And it starts with us.

Want to Keep the Conversation Going?

This is just the beginning of an ongoing dialogue about diversity, equity, and inclusion. Change doesn’t happen in isolation—it happens when we engage, listen, and act. We’d love to hear from you! Share your thoughts in the comments, start a conversation with friends and colleagues, and take action in your own communities.

Stay curious, be open and keep waking up!

-Jonelle

Want more discussions like this? Tune into the White Women Wake Up podcast for more deep dives into topics that challenge the status quo and push for meaningful progress.

Follow us on social media (@whitewomenwakeup), join our community discussions, and let’s work together to create the change we wish to see.