This paper explores the rise and recognition of Diversity, Equity, and Inclusion (DEI) as core competencies in Higher Education (HE). The significance of DEI has been increasing across organizations and institutions globally, underscoring the need for DEI literacy among graduates joining the workforce. Institutions are accountable for professional development through curricular design, instructional planning, measurement, and reporting. Beyond legal and strategic considerations, there is a growing recognition of the ethical and moral imperatives of promoting DEI in education. This paper uses bibliometric studies and a systematic literature review to explore DEI growth, trends, implications, and responses in HE. The study can guide institutional DEI response strategies like curricular and instructional interventions, community involvement projects, and faculty training, contributing to the continuing efforts of HEIs in fostering DEI literacy in their graduates.