• Mon. Mar 4th, 2024

Debunking Diversity Myths: Examining the Link between Company Performance and Diversity

ByEditor

Feb 11, 2024
Does diversity truly benefit business?

A McKinsey report claimed a strong link between diversity and earnings before interest and tax (EBIT) using a certain methodology. However, it’s important to note that correlations between company performance and diversity are not always straightforward. A more natural performance measure is total shareholder return (TSR), as this is what investors actually get from investing in a company. Before accepting any claim of diversity without critical thinking, it’s essential to take off your blinkers and look at the evidence objectively.

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