• Fri. Mar 1st, 2024

Uncovering the Truth: Separating Fact from Fiction in Studies of Diversity and Company Performance


Feb 11, 2024
Does diversity truly benefit business?

In many cases, it is possible to manipulate studies to present a more favorable outcome. While some research has found a correlation between diversity and company performance, it is important to note that these correlations are often not definitive. A McKinsey report claimed a strong link between diversity and earnings before interest and tax (EBIT) using a specific methodology. However, a more accurate measure of performance for investors is total shareholder return (TSR), as this is what they ultimately receive from investing in a company. It’s crucial to approach claims of diversity with critical thinking and not blindly accept them without thoroughly examining the evidence.

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