In 2020, international management consultancy, McKinsey & Company published a report entitled – Diversity wins: How inclusion matters. The report revealed that the business case for diversity and inclusion is stronger than ever, consequently, data was gathered across 15 countries and more than 1000 large companies.
This illustrates that the business case for D&I initiatives remains robust, and the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time.
Their 2019 analysis finds that companies in the top quartile for ethnic diversity on executive teams outperformed others by 36% in profitability. Thus, showing its strength and potential.
by gender diversity
by ethnic diversity
McKinsey reported that:
“While most (companies) have made little progress, are stalled or even slipping backwards, some are making impressive gains in diversity, particularly in executive teams. We show that these diversity winners are adopting systematic, business-led approaches to inclusion and diversity (I&D). Furthermore, with a special focus on inclusion, we highlight the areas where companies should take far bolder action to create a long-lasting inclusive culture and to promote inclusive behavior.”
Read the full report here.
Additionally, For more insights and thought leadership on diversity, head over to our blog!