Business Case for Diversity
Diversity Wins: How inclusion matters
The business case for gender and ethnic/cultural inclusion and diversity (I&D) is stronger than ever as the business case continues to strengthen. The most diverse companies are now more likely than ever to outperform less diverse peers on profitability. The experience of the diversity winners we have studied suggests that it’s time to be bold, in deploying a systematic approach to I&D, and in purposefully tackling inclusion. Taking a closer look at diversity winners reveals what can drive real progress. - McKinsey & Company
The business case for I&D as a source of competitive advantage is growing stronger. Increasingly, we find that the most diverse companies recognize I&D as more than a social-justice imperative; they also see it as a core enabler of growth and value creation. These diversity winners are pulling ahead of the rest..
Companies in the top quartile for both gender and ethnic diversity are 12 percent more likely to outperform all other companies in the data set.
Diversity Leaders are taking bold and courageous steps to build fairer and more inclusive workplace cultures at all levels of the organization.
A disconnect between what the company says and the progress it is making on the ground can seriously erode credibility both inside and outside of the organization, and further contribute to a lack of experienced inclusion.
While overall sentiment on diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse at only 29 percent positive and 61 percent negative.
Many diversity Leaders are seizing the opportunity to advance the I&D agenda, while strengthening their sense of purpose and ability to attract customers and talent.
Delivering Through Diversity
Latest research reinforces the link between diversity and company financial performance, competitive advantage and growth - McKinsey & Company
It makes sense that a diverse and inclusive employee base – with a range of approaches and perspectives – would be more competitive in a globalized economy.
Companies with the most ethnically/culturally diverse boards worldwide are 43% more likely to experience higher profits.
Companies in the top-quartile for ethnic diversity on their executive teams were 33% more likely to have above-average profitability than companies in the fourth quartile.
Black women potentially suffer a double burden of bias that keeps them from the uppermost levels of corporate leadership.
Companies report that materially improving representation of diverse talent as well as effectively utilizing I&D as an enabler of business impact, are particularly challenging goals.
Companies succeeding on I&D are able to articulate the link between their I&D goals and specific business growth priorities.