Diversity

It is perhaps due to greater sociological upheaval and shifting demographics that more and
more CEO’s are devoting considerable energy, time, and money to proactively embrace workplace diversity and
inclusion. But realistically, this recent wave is also due to evidence these initiatives contribute significantly to
greater productivity and therefore, profitability. As reported in Barron’s:

• Credit Suisse studied 27,000 senior managers at more than 3,000 companies globally. When women make up 1⁄2 of the
senior managers, the companies produced 10% percent higher cash flow returns on investment.

• McKinsey’s global study of more than 1,000 companies found that firms in the top quartile for ethnic and cultural diversity
were more likely to achieve above average profitability (33% more likely for firms with diverse executive teams; 43% more for
diverse boards.)

• BCG and the Technical University of Munich conducted a managers’, human resources executives and managing
directors survey at 171 companies across Austria, Germany and Switzerland. Data showed that higher levels of diversity in
management contributes to increased revenue from new products and services.

Why? According to Entrepreneur Magazine:

• Diversity attracts more talent with diverse characteristics and filters of experience.

• Different experiences lead to more innovation. (Listening to the viewpoints of those who have had different experiences
engenders richer brainstorming sessions, which foster outside-the-box thinking and higher levels of creativity.)

• Diverse thought leads to increased customer satisfaction.

• A diverse team resonates with both customers and investors.

For these reasons and more, as noted in a 2017 Deloitte study, it’s no wonder 69% of executives rate diversity
and inclusion as an important issue. The study notes that diversity and inclusion now impacts brand, corporate
purpose, and performance.

Clearly, this is a defining issue that is redefining corporate culture, policies and hiring practices.