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Equality plans and DEI policies: From formal compliance to cultural transformation

Regulations on equality have transformed corporate culture in Spain. But the future entails going beyond mere legal compliance and viewing diversity as a true competitive advantage  
DEI

Alexandra Molina-Martell (Lic&MD 00), board member of the Esade Alumni WE Club and Law Club, M&A and Corporate Counsel at Uría Menéndez, and Pilar Baltar Fillol (Lic&MD 05), board member of the Esade Alumni WE Club and Partner at RocaJunyent, have written this article in relation to the session on “Diversity, Equity, and Inclusion (DEI) Policies”, organized jointly by the Esade Alumni Women Empowerment Club, the Esade Alumni Law Club, and the Esade Alumni People and Organization Management Club.

In recent years, Spanish regulations on equality have driven a structural change in companies. The entry into force of Royal Decrees 901 and 902 in 2020 signaled a turning point: for the first time, equality ceased being an abstract commitment and instead became a measurable legal obligation, with diagnoses, pay audits, and official records.

However, the true impact of this regulation lies not only in formal compliance but also in the transformation it has prompted in organizations’ internal management. Equality has become a mirror that reflects institutional maturity and the way companies view their own culture.

In the early years when it was in force, the priority was to meet deadlines and comply with the complex legal architecture. Companies had to learn how to negotiate with union representatives, analyze pay gaps, and translate what used to be intuitions or perceptions into hard data. Today, having overcome this first stage, the challenge is different: how to go from formal compliance to culture change. Equality plans cannot be limited to just an exercise in compliance or a record; they should be a management tool that influences decision-making, pay policies, talent promotion, and internal communication.

Five years after the regulation’s approval, the results are mixed. Large companies have developed solid structures and internal continuous assessment processes. In contrast, many SME’s are still encountering technical and organizational difficulties implementing plans with real substance (many of them due to cost issues more than a lack of conviction).

The impetus from Labor Inspection has been crucial. Recent actions have focused on the material content of the plans and the traceability of the negotiation process, not their mere existence. This has raised the stringency standards and highlighted the need for rigorous diagnoses with objective indicators and periodic follow-up.

But beyond legal technique, the underlying question is still the same: Are we transforming the structures or merely adapting the language?

Where are we?

The conversation on equality has broadened. Today we talk about diversity, equity, and inclusion (DEI) as a framework that goes beyond the gender perspective to include other factors such as generational, cultural, functional, or LGTBIQ+ diversity.

The shift in perspective emerged not only from regulatory compliance but also from social, reputational, and governance pressures. DEI policies are now part of the ESG criteria and sustainability indicators that investors, international bodies, and social audits assess.

More and more boards of directors understand that diversity is a strategic asset that is directly connected to innovation and performance. In this sense, managing equality has ceased being the exclusive purview of human resources and has instead become a matter of good corporate governance.

European regulations are working towards greater transparency and responsibility. Directive (EU) 2023-970 on pay transparency will require companies, by June 2026, to report on not only salary differences between women and men but also the criteria used to set pay and the corrective measures taken. This step will mark a qualitative leap: equality will cease being a static picture and become a constant process of verification and adjustment. Companies will have to explain and document how pay decisions are made following the principle of objective, verifiable justification.

This is joined by the emerging challenge of artificial intelligence applied to hiring and assessment processes. Algorithmic tools may reproduce gender or background biases if not properly designed and audited. The future European regulation on AI will force companies to review how automated decisions that affect jobs are made and to guarantee that they respect the principles of equality and nondiscrimination enshrined in the Constitution and the Workers’ Statute.

Experience shows that the companies that make the most headway are those that have included equality in their corporate purpose. It is not enough to have a registered plan; equality has to become part of the strategy. This implies aligning variable pay with diversity objectives, training managerial teams in inclusive leadership, and communicating results transparently.

Real transformation begins when equality ceases to depend on regulations and becomes a value that is inherent to the organization. At that point, equality becomes not a legal obligation but a competitive advantage. Plus, Spanish regulations have achieved a multiplying effect: thousands of companies have taken a step forward and put equality on their agendas. But the next leap will be qualitative: going from “what” to “how.” On the other hand, effective equality requires leadership, coherence, and perseverance. It entails acknowledging that the hardest changes come from neither sanctions nor records but internal conviction.

Plus, the success of these policies does not depend solely on the regulatory framework or the determination of businesses. The transformation towards real equality also requires society to make progress on this front. Legislative changes can only reach their full potential when they come hand-in-hand with a cultural evolution that normalizes diversity and questions deeply-rooted stereotypes. Without this backing from society, regulatory improvements and business advances are unlikely to yield their full effects.

In short, equality plans are just the starting point, not the endpoint. True progress will come when we stop seeing them as a formal requirement and view them as what they truly are: an opportunity to redefine business culture.

In a context in which sustainability and social responsibility define organizations’ reputations, equality has become as an essential cornerstone of competitiveness. Its advance will depend less on new regulations and more on each company’s ability to internalize it, measure it, and turn it into an everyday practice. Only in this way will the cultural transformation be authentic and lasting.

 

 

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