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Diversity & Inclusion: Six Critical Benefits of a D&I Program
By admin December 11, 2020

Diversity and Inclusion: Black man and Asian woman working together (reviewing paperwork) over laptop

Diversity & Inclusion (D&I) or Diversity, Equity & Inclusion (D, E&I) is now a critical component of business planning, HR and operations. Smart companies understand that investing in D&I is a critical part of business performance and short and long-term investment.

Here are some reasons why you should consider developing and implementing a comprehensive D&EI program. Scroll below and take our 2min quiz and get your FREE D&I grade/score and report.

 

(1) Diverse Companies Generate More Revenue & Cash Flow — Per BCG, diversified companies generate 19% more revenue. They also generate 2.3x more cash flow per employee, are 120% more capable of meeting financial targets. That’s why leading business groups like the NASDAQ and leading companies like BlackRock are now pushing companies for greater ethnic and gender diversity for their boards and workforces, and committing to voting against it will vote against directors who fail to act.

 

(2) Ethnically Diverse Companies Outperform the Competition — Per McKinsey, racially diversified companies are more likely to outperform the competition by 35%. McKinsey notes that the following: “While correlation does not equal causation (greater gender and ethnic diversity in corporate
leadership doesn’t automatically translate into more profit), the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful.”

 

(3) Diversity Drives Employee Recruitment — Per a Monster.com survey, “83% of Gen Z candidates said that a company’s commitment to diversity and inclusion is important when choosing an employer.” This is critically important because of the changing workforce. According to “the data from a Randstad survey, Gen Z is set to comprise 37% of the global workforce this year, outranking millennials and Gen X.” The concept of diversity for younger workers is also different as they “define diversity as a mix of experiences, identities, ideas and opinions, rather than more traditional definition of diversity, such as underrepresented racial, ethnic and gender demographics.”

 

(4) Gender Diverse Companies Outperform the Competition — Per McKinsey, companies that invest in gender equity and representation are more likely to outperform the competition by 15%. McKinsey notes that “companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians” while “companies in the bottom quartile both for gender and for ethnicity and race are statistically less likely to achieve above-average financial returns than the average companies in the data set.”

 

(5) Diversity Drives Innovation — Per BCG, “companies that reported above average diversity on their management teams also reported innovation revenue that was 19% higher than that of the companies with below average leadership diversity – 45% of total revenue versus just 26%.

 

(6) Management Priority — According to Glassdoor, the vast majority of executives state that diversity and inclusion are important issues to them. Unfortunately, almost half of managers say they’re too busy to focus on creating a diverse and inclusive workplace. This is why it is critically important to enlist experienced and proven D,E&I consultants who can review current systems and then recommend, implement and measure key systems.

YOUR D&I SCORE:

Do you want to find out where you stand in the D&I landscape? Take our quick 2-minute quiz and we’ll send you a FREE report with your grade/score and recommendations. Get in touch with TBG’s Diversity practice group for customized solutions.

TAKE ACTION: 

To access TBG Purpose’s Diversity & Inclusion services, just send an email. A Black-owned company with a global reach across 150 countries, TBG Purpose is a leading D&I consultancy that works with corporations and institutions around the world.

 

RECENT STORIES:

BlackRock to Push Companies on Racial Diversity in 2021

Leading companies like BlackRock understand the necessity of Diversity, Equity & Inclusion. Not only is BlackRock leading the way on Sustainability, the company is also charting the best course forward on Diversity, Equity and Inclusion. Per Bloomberg: “BlackRock Inc., the world’s largest asset manager, plans to next year push companies for greater ethnic and gender diversity for their boards and workforces, and says it will vote against directors who fail to act. The money manager, which oversees more than $7.8 trillion of assets, is asking U.S. companies to disclose the racial, ethnic and gender makeup of their employees — data known as EEO-1 — as well as measures they’re taking to advance diversity and inclusion, according to a stewardship report released Thursday… (cont).”

 

NASDAQ:

Per the New York Times, “NASDAQ will ask the S.E.C. this morning for permission to adopt a new requirement for the 3,249 companies listed on its main U.S. stock exchange: have at least one woman and one “diverse” director and report data on board diversity — or face consequences.

Nasdaq will require boards to have at least one woman and one director who self-identifies as an underrepresented minority or L.G.B.T.Q. (Those categories are not, of course, mutually exclusive.) To give companies time to comply, they will need to publicly disclose their board diversity data within a year of S.E.C. approval, and have at least one woman or diverse director within two years. Bigger companies will be expected to have one of each type of director within four years.

Companies that don’t disclose diversity information face potential delisting, while those that report their data but don’t meet the standards will have to publicly explain why. Over the past six months, Nasdaq found that more than 75 percent of its listed companies did not meet its proposed diversity requirements.

Nasdaq lobbied the S.E.C. to make diversity disclosure a rule for all companies. “The ideal outcome would be for the S.E.C. to take a role here,” Adena Friedman, Nasdaq’s C.E.O., told DealBook. “They could actually apply it to…” Click here to continue story.

 

 


Thanks for sharing !


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