These 47 Companies working to eliminate discrimination are more profitable than other companies
In the US and the UK, whether you are a woman or an ethnic minority, you are likely to be outnumbered in your company or organization by at least 2 to 1, and if you have made it to the executive level, that increases to more than 4 to 1. In the UK, more than 50 percent of executive teams and boards have zero ethnic minority representation. Zero.
Companies in the top quartile for ethnic/cultural diversity were 33% more likely to have industry-leading profitability. Those in the top quartile for women on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation.
The highest performing companies on both profitability and value creation 'bucked the trend' on gender, in that they had more women in line roles (usually revenue generating roles) versus staff roles on their executive teams.
Laziness hurts. Those companies in the bottom quartile for both ethnic and gender representation on executive teams were 29% less likely to achieve above average profitability.
McKinsey and Company
“The benefits of diversity are really about the different experiences that individuals bring to a problem,”
“Demographically diverse groups make better decisions and produce more innovations, because they bring in different perspectives.
Studies suggests that diverse teams change how individuals think within that team, rendering them more effective decision makers at a group level, with a boost in their economic output.
The Parker Review releases its Final Report on the ethnic diversity of UK Boards
Within the FTSE 100, we report that UK citizens of colour represent only about 2% of the total director population. This is not good enough; we need to increase the ethnic diversity of Boards.
We propose that every FTSE 100 Board should have at least one director of colour by 2021, and every FTSE 250 Board should achieve the same goal by 2024.