The cost of racism, discrimination, and workplace trauma

In this article, you’ll learn:

  • How racism and discrimination harm employees, workplace culture, and employer branding
  • Why workplace trauma is an often-overlooked but costly consequence of exclusion
  • The financial impact of discrimination through turnover, absenteeism, and legal risks
  • How DIEP (Diversity, Inclusion, Equality, and Purpose) strengthens performance, engagement, and ROI
  • A case study showing how companies can reduce discrimination-related costs and foster inclusion

Racism and discrimination don’t just hurt individuals—they undermine entire companies. While many businesses have Diversity and Inclusion statements, they often overlook the deep, lasting trauma that exclusion causes.

Workplace trauma from discrimination leads to lost engagement, increased sick leave, and higher turnover. And the financial consequences are real, hitting profitability, reputation, and growth.

Companies that embed DIEP into their culture build healthier environments where people and business thrive together.

The invisible cost: workplace trauma

Employees who face racism or discrimination often carry an invisible burden. Workplace trauma affects mental, emotional, and physical well-being—and eventually, it affects business performance too.

Common signs of workplace trauma caused by discrimination:

  • Chronic stress leading to anxiety, depression, or burnout
  • Emotional exhaustion, detachment, and reduced motivation
  • Erosion of trust in leadership and loss of loyalty
  • Higher absenteeism and increased resignations

Trauma isn’t just personal, it weakens teams, drains energy, and damages culture from within.

How discrimination damages company performance

A culture that tolerates discrimination doesn’t just fail employees—it risks

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