This thesis explores how inclusive leadership fosters Diversity, Equity, and Inclusion (DEI) within the Swedish engineering sector, with a focus on addressing structural fairness and relational inclusion. Drawing on Procedural Justice Theory (PJT) and Social Exchange Theory (SET), the study examines how leadership practices influence employee perceptions of fairness, inclusion, and engagement, and their implications for organizational growth.

Using a qualitative methodology, semi-structured interviews were conducted with leaders and employees from two engineering organizations in Sweden. The findings reveal that inclusive leadership practices—characterized by openness, accessibility, and a commitment to equity—enhance perceptions of procedural justice and relational trust. Transparent decision-making, targeted mentorship programs, and proactive inclusion of underrepresented voices emerged as critical factors in bridging gaps between DEI policies and employee experiences. However, challenges such as unconscious biases, inconsistent implementation of development initiatives, and the technical and hierarchical nature of the engineering sector were identified as barriers to genuine inclusion.

This research makes several theoretical contributions by extending PJT and SET to demonstrate how inclusive leadership can align structural fairness with relational inclusion, particularly for non-demographic diversity factors such as educational backgrounds and language proficiency. Practical recommendations include embedding inclusivity into everyday managerial actions, implementing tailored mentorship programs, and ensuring the consistent application of inclusive practices.

The study emphasizes the broader societal implications of inclusive leadership in reducing workplace inequalities and promoting sustainable economic growth, aligning with the United Nations Sustainable Development Goals. Despite its valuable insights, limitations such as a small sample size and sector-specific focus highlight the need for future research to adopt mixed-methods approaches, explore additional non-demographic diversity dimensions, and investigate the long-term organizational impacts of inclusive leadership. By addressing these gaps, organizations can better operationalize DEI initiatives to create equitable and innovative workplaces.