Originally published: April 4, 2017
For years advocates have called on companies to hire and promote a broader range of employees and managers. Now a growing body of research is starting to demonstrate that diversity is actively good for the bottom line.
In 2015, McKinsey consultants studied more than 350 large public companies in North America, Latin America and the UK. They found that those in the top quartile for gender diversity were 15 per cent more likely to produce better returns than their local peers. Companies in the top quartile for racial and ethnic diversity were even more likely to do better.
The same applied at the bottom end of the scale — less diverse companies were less likely to do well. \