Why diversity and inclusion in organizations or corporations are associated with improvements in financial targets or the company’s performance?
In: Economics
It is proven that more diverse teams are more successful and win more. Think of diversity as more expansive than your protected class categories. When you think about it, diverse background and thought lead to more well rounded and curated ideas, plans, approaches…which in turn lead to more competitive angles and overall performance improvement. Variety begets ingenuity, a bunch of the same quickly falls behind the pack.
A good comparison I like to make for engineering teams is do you want all the same sorts of engineers on your teams? How about people that all went to the same school with the same basic program? How about people from different places around the world that might bring in other experiences? Just keep on thinking about how a diverse set of life experiences can help lead to a diverse set of solutions for problems.
There are alternatives to the “diverse views create better outcomes” theory. That may be the case, but I suspect it’s not.
I think the more likely scenario is that the fastest growth areas of the last 10 years have been technology companies and financial services. Technology is well-known for having a progressive employee base and culture, but financial services is also pretty progressive as well.
So these companies have the capacity to implement these diversity and inclusion standards, want to implement them, and were likely going to be successful anyway.
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