Through a survey of more than 1,400 managers from a wide range of companies worldwide, women matter 20 confirms that corporate culture plays a critical role in gender diversity. Lareina yee is a senior partner in the san francisco office. An inventory of philippine policies on women in the workplace. Mckinsey report delivering through diversity diversity uk. About the authors vivian hunt is a senior partner in mckinsey s london office, where sundiatu dixonfyle is a senior expert. So have the penalties for companies lacking diversity.
Mckinsey s report, diversity matters, was published in 2015, but in light of the growing discussion on diversity in the it industry, a summary of the results will prove helpful to many. The mission of the thirty percent coalition is to promote gender diversity, including women of color, on corporate boards. Why diversity matters in the selection and engagement of. Mckinsey found that the 89 europeanlisted companies with the highest. Our latest report, diversity matters, examined proprietary data sets for 366 public companies across a range of industries in canada, latin america, the united kingdom, and the united states. Corporate performance and womens representation on boards 20042008 catalyst, 2011. The 2014 diversity matters report from mckinsey which looks into the relationship between the level of diversity defined as a greater share of women and a more mixed ethnicracial composition in the leadership of large companies and company financial performance measured as average ebit 201020. How gender inequality is pervasive in food tech as all tech in addition to the robust business case for improving diversity, mckinsey analysts said that inclusion matters. Russell 3000 board diversity disclosure initiative. Full report pdf11mb diversity wins is the third report in a mckinsey series investigating the business case for diversity, following why diversity matters 2015 and delivering through diversity 2018. View why diversity mattersmckinsey report jan 2015. Top executives ranking behavior as most types of leadership behavior. The diversity matters research looks at the relationship between the level of diversity and company financial performance. Reviewed materials included corporate websites, annual reports, and other industry websites.
Catalyst titled why diversity matters showed that the presence of at least one. Companies with 10 percent higher gender and ethnicracial diversity on management teams and. The 2014 diversity matters report from mckinsey which looks into the relationship between the level of diversity defined as a greater share of women and a more mixed ethnicracial composition in the leadership of large companies and company financial performance measured as. May 19, 2020 overall, much of the key findings of the 2020 report echo similar data from the 2015 why diversity matters mckinsey report. Mckinsey diversity matters database for gender, the executive team shows the strongest correlations. This article is adapted from the report diversity matters pdf1,732kb, which was rereleased in february 2015. Frerichs is leading an investor initiative asking that all companies within the russell 3000 index disclose the makeup of their boards of directors inclusive of gender, race and ethnicity given the correlation between board diversity and longterm performance. Our vision is for senior leadership and board of directors to reflect the gender, racial and ethnic diversity of the united states workforce. Srnasdaq2020081 proposed rule change to adopt listing rules related to. Widely cited, the report has influenced inclusion and diversity policysetting and transformation efforts by corporations, the public sector, and third sector organizations worldwide. Were not suggesting that achieving greater diversity is. There is ample evidence that diverse and inclusive companies are more likely to make better, bolder decisionsa critical capability in the crisis. The study utilized publicly available data from 1,039 companies across 15 countries globally. About the author s vivian hunt is a director in mckinseys london office, where dennis layton is a principal.
Diversity is the solution, not a problem to solve pwc. Jan 01, 2015 this article is adapted from the report diversity matters pdf1,732kb, which was rereleased in february 2015. Jan 18, 2018 as a followup to its why diversity matters study in 2015, mckinsey analyzed more than 1,000 companies across 12 countries, looking at their respective profits and value creation. Taking a closer look at diversity winners reveals what can drive real progress. Diverse teams are still really good for business, mckinsey.
The first report, women matter, published in 2007, identified a positive relationship between corporate performance and elevated presence of women in the workplace in several western. The report reaffirms the global relevance of the link between diversity defined as a greater proportion of women and a more mixed ethnic and cultural composition in the leadership of large companiesand company financial outperformance. Diversity and inclusion in the workplace new research. Diversity matters mckinsey has been examining diversity in the workplace for several years, our latest report, diversity matters, examined proprietary data sets for 366 public companies across a range of industries in canada, latin america, the united kingdom, and the united states. In other words, dont inject social ideals into the boardroom or the management suite.
Why diversity matters vivian hunt, vd mckinsey uk youtube. For more detail on each study, see catalyst, why diversity matters 20. The research is based on financial data and leadership demographics. Why diversity matters was our firms most downloaded publication on diversity in 2016, demonstrating an increasing interest in the business case for diversity. Corporate performance and womens representation on boards catalyst, 2007. The first report, women matter, published in 2007, identified a positive relationship. In previous women matter reports, we identified a comprehensive gender diversity ecosystem. More diverse companiesthose with a greater share of women and a mixed ethnicracial. Diversity matters because increased diversity can lead to increased innovation7 diversity matters because diversity includes diversity of thought and avoidance of groupthink. N 589 companies 6 geographies for ethnicity 1 average economic profit 201115 and average ebit margin 201115. Sep 23, 2020 as another example, a recent study by mckinsey, which has long studied this subject, found that companies with the greatest ethnic diversity on executive teams outperformed those with the least by 36 percent in profitability. May 22, 2020 earlier today consulting behemoth mckinsey released a 2020 report entitled diversity wins. Women matter 2016 reinventing the workplace to unlock the. Another forthcoming mckinsey report, about latin america, highlights the strong correlation between gender.
January 2015 why diversity matters vivian hunt, dennis layton, and. The thirty percent coalition, founded in 2011, is a pioneer advocating for diversity in the corporate boardroom. In its 2015 report diversity matters, mckinsey reported that in its study of 366 public companies, it found that gender, racial, and ethnic diversity correlated to positive financial performance. The 2020 report found that companies with greater gender diversity were. Why gender diversity at the top remains a challenge. Mckinseys survey of global executives finds that corporate culture and a lack of convinced. Our latest research finds that companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns. The unequal performance of companies in the same industry and the same country implies that diversity is a competitive di erentiator shifting market share toward more diverse companies. Further, even though the business case for diversity has been documented by catalyst, mckinsey, credit suisse, and others for two decades, it. January 2015 why diversity matters vivian hunt, dennis layton, and sara prince new. L on gender, while there is plenty more to do, some companies lead the way in both absolute average diversity and representation in topquartile australia, uk, and us companies make up over 70% of this group. Oct 29, 2020 theres no one better suited to talk about the importance of diversity and the fight to advance women inside tech companies than mckinsey s lareina yee. Mckinsey diversity matters database likelihood of financial performance 1 above national industry median, by diversity quartile 2 percent, n991 companies 12 geographies for gender. A mckinsey report found that companies in the top quartile for racial and ethnic diversity were 35% more likely to generate aboveaverage returns.
Diversity matters because diversity includes diversity of thought and avoidance of groupthink. D iversity wins is the third report in a mckinsey series investigating the business case for diversity, following why diversity matters 2015 and delivering through diversity 2018. Mckinseys new report finds that diversity does not equal. Pdf women matter gender diversity, a corporate performance. Mckinsey has been examining diversity in the workplace for several years. In this research, we looked at metrics such as financial results and the. Achieving gender balance in leadership leading together. Automatically reference everything correctly with citethisforme. As the chief diversity officer and leader of the companys global technology hardware and services work, its almost all she thinks about. Diversity matters, examined proprietary data sets for. Companies in the topquartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more. Remarks by commissioner lee at the council of institutional. Mckinsey study finds diversity matters for organizational. Those in the top quartile for gender diversity were 15% more likely to have aboveaverage returns.
Mckinsey diversity database exhibit 4 gender diversity of executive management team 1 percent of companies by percent raceethnicity diversity 1 9 22 38 16 2% 1120% 110% 0% 4150% 3140% 0 1 7 16 31 16 30 50% 4150% 3140% 2% 1120% 110% 0% 0 0 10 19 7 63 2% 1120% 110% 0% 4150% 3140% population diversity percent. Save your work forever, build multiple bibliographies, run plagiarism checks, and much more. Diversity matters by vivian hunt, dennis layton et al. As a threshold matter, it has often been argued that advocating for corporate diversity is about equality for equalitys sake, and that corporate decisionmaking by contrast has to be about maximizing shareholder value. Your use of this heinonline pdf indicates your acceptance. Matters in 2015, the likelihood of diverse companies outperforming industry peers on profitability has increased significantly. Mar 21, 20 why diversity matters leaders working to create diverse and inclusive workplaces in which women can advance must make the connection between diversity initiatives and their organizations business goals. Delivering through diversity executive summary 2 ocal context matters. Why diversity matters southeastern connecticut cultural. We observed a positive correlation between greater levels of gender diversity and higher likelihood of financial outperformance across. Mckinsey has quickly become reliable source for empirical diversity, equity, and inclusion dei research. Mar 16, 2018 mckinsey, the consulting company, just published its latest study of diversity in the workplace, delivering through diversity. Download delivering through diversity, the full report on which this article is based pdf 7 mb. Our latest report shows not only that the business case.
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