Diversity, Equity, and Inclusion (DE&I) is no longer a side project or a compliance box to tick—it’s a critical business imperative. Companies that prioritize DE&I are more innovative, attract stronger talent, and are better positioned to win in diverse global markets. Yet, in many organizations, the Head of DE&I reports into Human Resources, limiting the function’s reach and influence.
The question leaders must ask is this: if DE&I is central to business success, should its leader have a direct line to the CEO? This article argues yes. To achieve meaningful, measurable impact, DE&I must sit at the very top of the organizational hierarchy. We’ll explore the strategic, operational, and cultural reasons why reporting directly to the CEO matters, the risks of a traditional HR-based structure, and the nuances leaders should consider.
The Case for Reporting to the CEO
Strategic Integration and Business Alignment
When DE&I reports to the CEO, it’s positioned as a business priority, not just an HR initiative. This shift is more than symbolic—it embeds DE&I into the company’s strategic DNA.
A direct reporting line gives the DE&I leader a seat at the table during critical decision-making moments: annual strategy sessions, market expansions, product launches, and organizational redesigns. They’re able to connect DE&I metrics to business outcomes, such as improved employee retention, faster innovation cycles, or access to new customer markets.
Example: A DE&I leader who reports to the CEO can directly advocate for a new product feature designed to serve an underrepresented user group. Rather than being viewed as a “nice-to-have,” the proposal is evaluated in terms of market expansion and revenue potential. In this way, DE&I becomes a driver of growth, not just compliance.
Accountability and Leadership Buy-In
The CEO sets the tone for the entire company. When DE&I reports directly to them, it ensures the issue stays at the top of the leadership agenda. This reporting structure also empowers the DE&I leader to hold executives accountable for progress—something that is far more difficult if they sit two layers down.
With direct access, the DE&I leader can present quarterly updates to the CEO and even to the board, ensuring transparent accountability. This creates a feedback loop where DE&I isn’t just measured by headcount diversity but by tangible outcomes: leadership pipeline diversity, pay equity, and retention across demographic groups.
Example: Instead of DE&I goals getting lost in departmental scorecards, the DE&I leader can align them with CEO-level KPIs and ensure every senior leader knows they are directly responsible for results.
Credibility and Cultural Shift
Reporting structure is not just internal mechanics—it’s a cultural signal. When employees see that the Head of DE&I has a direct line to the CEO, it communicates that the company takes DE&I seriously.
This credibility is especially important for attracting diverse talent. Candidates often ask about the role of DE&I in leadership, and the reporting line is a visible indicator of commitment. Employees are also more likely to trust that DE&I initiatives are more than performative gestures when they see the function embedded at the highest level.
Example: A candidate weighing two job offers may choose the company where DE&I reports directly to the CEO, interpreting it as a sign of genuine commitment rather than lip service.
Cross-Functional Influence
DE&I is not limited to HR policies—it spans the entire business. Marketing teams must ensure campaigns resonate across demographics. Product teams must design for accessibility. Sales must connect with diverse customer bases.
When the DE&I leader reports to the CEO, they can directly collaborate with other department heads without being filtered through HR. This eliminates unnecessary bureaucracy and ensures DE&I initiatives are woven into every corner of the business.
Example: A DE&I leader under the CEO can partner directly with the Chief Marketing Officer to review campaigns for inclusive representation, or with the Chief Product Officer to embed accessibility into product design. This cross-functional collaboration is harder to achieve when DE&I is siloed within HR.
The Challenges of Reporting to the CHRO/CPO
While many organizations default to having DE&I report into HR, this traditional structure can be limiting.
Risk of Being Seen as a “Check-the-Box” Initiative
When DE&I sits under HR, employees may perceive it as a compliance program—focused on hiring quotas, training modules, or anti-harassment policies. While these elements are important, they don’t capture the transformational role DE&I can play. This framing diminishes its strategic weight and can undermine employee engagement.
Lack of Strategic Authority
A DE&I leader under HR often struggles to influence other functions like product, marketing, or engineering. They may need to go through the CHRO/CPO to gain executive support, adding another layer of approval that slows progress. The result: DE&I initiatives remain siloed and disconnected from broader business priorities.
Example: A DE&I leader may want to influence the design of a new product, but without direct access to the CEO or Chief Product Officer, their input gets deprioritized.
Potential for Competing Priorities
The CHRO/CPO’s portfolio is already enormous: recruiting, compensation, compliance, employee relations, workforce planning, and more. In this mix, DE&I can easily become “one of many” rather than a defining pillar. Even with the best intentions, bandwidth constraints mean DE&I may not get the attention it deserves.
Internal and External Perception
Externally, investors, customers, and potential employees are increasingly asking tough questions about DE&I commitments. If the DE&I function is seen as a sub-function of HR, it may appear to lack influence at the strategic level. Internally, employees may also interpret this as a sign that leadership is not fully invested.
Nuances and the “Right” Answer for Your Company
There is no one-size-fits-all answer. For many early-stage startups, the Head of HR and Head of DE&I may be the same person, or DE&I may be embedded in the People function until the company scales. In these cases, practicality wins out.
But as organizations grow, the question of where DE&I reports becomes more consequential. The most important factor is not structure—it’s leadership. A DE&I leader with direct CEO access can only succeed if the CEO is genuinely committed to advancing the agenda. Without that buy-in, even the best structure will fail.
The nuance is clear: smaller companies may need to integrate DE&I into HR initially, but planning for a direct reporting line to the CEO as the company matures ensures that DE&I evolves into a true business strategy.
Conclusion
The debate over whether the Head of DE&I should report to HR or the CEO is not about organizational charts—it’s about intent. If DE&I is viewed as compliance, it can live under HR. If it is seen as a driver of innovation, growth, and competitive advantage, it must sit at the CEO’s table.
A direct reporting line to the CEO is the clearest possible signal—to employees, candidates, customers, and investors—that DE&I is not a side initiative but a fundamental force in shaping the company’s future.
Placing the right leader in this critical role is the first step. Partner with our HR executive search experts to find a Head of DE&I with the strategic vision to report to the CEO and transform your business.
