Does diversity truly benefit business?

It is important to critically evaluate the evidence before accepting claims of diversity without blindly accepting them. While there are ways to make studies look more favorable towards a certain outcome, correlations between company performance and diversity are not always clear-cut. For instance, a McKinsey report claimed a strong link between diversity and earnings before interest and tax (EBIT) using a specific methodology. However, it is essential to recognize that total shareholder return (TSR) is a more natural performance measure for investors as it represents the actual returns they receive from investing in a company. Therefore, it is crucial to approach claims of diversity with critical thinking and not simply accept them without questioning their validity.

By Editor

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