In an exclusive interview with CanadianSME Small Business Magazine, we sat down with Karen Craggs, a globally recognized Inclusive Leadership Expert and founder of Conscious Equality, whose work has shaped policy and leadership across continents. With over 25 years of experience, Karen has worked with global institutions, governments, and Fortune 500 companies, while staying rooted in her identity as a Kenyan-born Canadian passionate about systemic inclusion.
Interview by Kripa Anand
Karen Craggs is a globally recognized Inclusive Leadership Expert, award-winning DEI Strategist, and Human Connection Speaker with over 25 years of experience advancing social justice. A proud Kenyan-born Canadian of mixed race heritage, she is a trusted go-to advisor to governments, global institutions, and Fortune 500 companies, having supported the United Nations initiatives and been recognized by President Obama’s Administration for her global leadership in gender equality. As the founder of Conscious Equality and former VP of ESG and Head of Anti-Racism, Diversity, Equity and Inclusion at ThoughtExchange, Karen works at the intersection of personal healing, institutional transformation and systems change, helping mission-driven organizations build human-first, psychologically safe cultures rooted in compassion, trauma-informed leadership, and conscious inclusion strategy.
Many organizations are re-evaluating their diversity programs. In your view, what led to the current backlash against traditional DEI initiatives, and why was this shift predictable?
There are several factors that contributed to the backlash against traditional DEI Initiatives. Let’s talk about two that had very real implications for organizations: the harm caused by performative initiatives and the lack of measurable impact.
Many organizations implemented DEI programs, post-2020 incorrectly. They set them up as stand alone initiatives rather than embedding them as part of their core business strategy or culture. Without the right approach, support and resources, DEI programs can quickly feel like a window dressing initiative or a check the box exercise, leading to very costly backlash.
Meaningful transformation, especially when it comes to inclusion, requires deep systems and cultural change, not surface-level fixes. When people don’t see real progress or feel genuinely included, it can cause an erosion of trust and can do more harm than good.
While painful, the backlash offers an opportunity for us to reconsider how to best achieve the outcomes we seek from DEI work in the first place. A human-centred approach focuses on building trust, addressing bias with compassion and creating workplaces where everyone can thrive. For small businesses this is a chance to lead from the heart and embed inclusion into the very fabric of how you hire, lead and serve your customers.
Your work emphasizes both “ways of doing” and “ways of being” in inclusion. Can you explain how these two approaches differ, and why both are essential for lasting organizational change?
In my Conscious Equality™ approach, I guide organizations to look at inclusion through two lenses: “ways of doing” and “ways of being.”
“Ways of doing” are the visible actions such as inclusive hiring practices, equitable policies, and training. These are necessary and measurable, but they’re only part of the equation.
“Ways of being” are about cultivating an inclusive mindset and emotional intelligence behind our actions. It’s about how leaders and staff show up with empathy, self-awareness, humility, and the courage to create change, starting with ourselves. This inner shift is where transformation truly begins.
Many DEI initiatives fail because they focus only on actions without addressing attitudes. Sustainable change requires alignment between the systems we build, the values we hold and the humans who bring them to life.
For small and medium-sized businesses, this dual focus is powerful. You may not have big DEI budgets, but you can lead with intentionality. When inclusion becomes the way we do everything, on a day to day basis, belonging shifts from being ‘an initiative’ to being a lived experience.
That’s what real change looks like.
How did your experiences growing up as a mixed-race child in Kenya, and later immigrating to Canada, shape your passion for systemic inclusion and your approach to building bridges across differences?
Growing up mixed-race in Kenya, with a Brown mother, a White father, and a Black brother, I lived between worlds, never fully belonging to one “side” or the other. The experience of being both an insider and an outsider taught me early on how power, privilege, and exclusion operate, often in ways invisible to others. It gave me a genuine sense of empathy and a deep passion for connecting across lines that divide.
When I immigrated to Canada, I saw similar dynamics play out, this time in different forms. I came to understand how institutions and systems can unintentionally create barriers, and how people’s talents and voices are often overlooked when they don’t “fit the mold.”
These personal and professional experiences ignited a fire in me to drive systemic change, focusing not only on policy but also on human connection. That is why my Conscious Equality™ work focuses on building bridges – across race, gender, culture, identity and more. True inclusion, for me, means creating spaces where people are seen, heard, celebrated, valued, and able to contribute meaningfully, while being exactly who they are.
This work is deeply personal. Every conversation, policy and relationship I help shape is one step closer to building the inclusive world I’ve always believed is possible.
What are some common mistakes organizations make when trying to foster inclusion, and how do you guide leaders from performative diversity efforts to authentic, psychologically safe cultures?
One of the biggest mistakes organizations make is treating inclusion as a checklist rather than a culture to nurture. This often leads to one-off trainings or token hires with no follow-through or real accountability, which doesn’t build the trust inclusion needs.
Psychological safety means having the freedom to speak up without fear. It is also foundational for high performing teams, but requires intentional action to develop.
In my Conscious Equality™ work, I help leaders move beyond surface-level efforts through intentional Inclusive Leadership. This involves building self awareness, having courageous conversations, and building inclusive habits in daily leadership. We focus on not only what leaders do but also how they show up with consistency, humility and curiosity.
For small and medium-sized businesses, inclusion is not about perfection but about commitment and progress. The good news is that you don’t necessarily need a big DEI budget to have a meaningful impact. You can start with leaders who are willing to listen, learn, and lead with empathy so their teams can thrive!
What advice would you offer to small and medium-sized business leaders who want to create workplaces where everyone truly belongs, especially in today’s rapidly changing social landscape?
I’d say start by remembering this: inclusion is not a one-time achievement but a daily practice. In a fast-changing, often divisive world, leaders play a crucial role. They must show up with empathy, clarity, and intention.
For SME leaders, belonging does not need to start with big DEI statements. It starts with small, consistent actions. Ask yourself who is not at the table? Whose voice isn’t being heard? How am I making it safer for people to speak up, with respect and without fear, even if they disagree?
In my work with leaders I encourage them not to wait for perfect plans. Begin where you are. Focus on building trust. Be transparent. Reflect on your biases. Remember: Inclusion is a daily commitment, not a project.
SMEs have a significant advantage. Their agility allows them to shape culture deeply and quickly. Small actions can have a profound impact. When people feel they belong, they bring their best. Research shows that this is not just good for people, it is also good for business!
Disclaimer:
The views and insights shared in this interview reflect the personal and professional experiences of the guest. CanadianSME Small Business Magazine is committed to fostering open, respectful dialogue and supporting the growth of inclusive, human-centered workplaces across Canada.
