McKinsey & Company studied the relationship between diversity on executive teams and the likelihood of financial outperformance.
The study utilized publicly available data from 1,039 companies across 15 countries globally. Reviewed materials included corporate websites, annual reports, and other industry websites. Statistics on the proportion of women and ethnic/cultural groups were gathered.
Key findings include:
– Companies in the top quartile for gender diversity on executive teams were 25% more likely to have “above-average profitability” than companies in the fourth quartile.
– Companies with more than 30% female executives were more likely to outperform companies where this percentage ranged from 10-30%.
o Companies that were the most gender-diverse outperformed the least gender-diverse companies by 48%.
– Organizations that were in the top quartile for ethnic and cultural diversity outperformed those in the fourth quartile by 36%.
– The likelihood of outperformance is higher for diversity in ethnicity than for gender.
Read more to learn about the financial benefits of gender, ethnic, and cultural diversity within companies.
Citation:
Dixon-Fyle, S., Dolan, K., Hunt, V., & Prince, S. (2020, June 18). Diversity wins: How inclusion matters. Retrieved September 08, 2020, from https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
