Do inclusive organizations live up to the term ‘inclusion’? Diversity literature depicts the inclusive organization as an ideal entity that welcomes social minorities who, in turn, feel valued and unique and have a sense of belonging to the organization. Our study offers a critical account of inclusion concepts and practice. We argue that proponents of inclusion overlook that inclusive organizations also may regulate workers’ identities. To examine the relationship between organizational inclusion and identity regulation we conceptualise inclusion as a process involving various organizational actors and practices. Drawing on a multiple-case study of refugees working in Austria we show how organizational practices aimed at inclusion contribute to the forming of refugees as ‘good’, ‘glorious’ and ‘grateful’ subjects. This identity regulation is ambivalent: while it allows refugees to work in inclusive organizations, it also constrains their sense of self.