A paper in the Harvard Business Review last year showed an organisation’s main driver for DEI is to ensure that its practices match its values.
DEI pays off with such firms. They are
73% more likely to earn revenue from innovation
36% more likely to enjoy above average profitability
than their peers
McKinsey’s 4th Report on Diversity & Performance (2023) comparing executive team diversity & financial performance showed:
firms in top quartile for female representation OR ethnic representation were BOTH 39% more likely to have higher profitability than firms in the other quartiles.
DEI pays!
A second recent McKinsey publication also showed that a subset of US businesses where the executive team is headed by a woman or a person from a minority ethnic background, over a 20 year run out-performed: S&P 500; Nasdaq listed companies; Russell 3000 companies.
DEI feeds into long-term company value.