More than political correctness
Diversity & Inclusion is about more than gender, age, nationality, or quotas.
Diversity and inclusion are strategic issues that belong on every CEO's agenda
Diverse and inclusive companies clearly outperform their competitors on the hard financials. Studies have shown that they are 69% more profitable, realize a 35% higher return on equity and 34% higher total shareholder returns. Why is that?
A hard financial factor
A new think: act CONTENT argues that, in terms of top line growth, diversity and inclusion drives sales growth and helps win market share in global markets that are very diverse. It increases employee engagement and stimulates their creativity and drive. And it helps attract and retain (increasingly scarce) talent from all relevant talent pools. This, in turn, minimizes HR costs and thus boosts profits.
Looking some more at the bottom-line results, diversity and inclusion increases access to capital markets by positively rating companies on indexes that are relevant to and rewarded by shareholders. Plus, it mitigates compliance risk that could ensue legal costs and penalties.
Diversity and inclusion, rather than being an issue merely of political correctness, is a practical, hard financial factor that drives tangible results.
Examples of excellence
The authors of the latest think: act CONTENT identified more than 40 major companies around the globe that prove these benefits are real. For instance, one of the largest diversified technology companies in the world used diverse employee groups to mirror customer segments and thus involve customer experience in product development – with marked results. For the Indian market, for example, team members that understood and identified with local customers worked with technology experts to design a electrocardiogram for remote medical treatment that fits into a physician’s backpack.
A telecom multinational, by utilizing its diverse workforce, realized several product innovations, including spoken text messages for the visually impaired. It also realized EUR 330 million in additional revenue by running marketing campaigns that emphasized how the diversity of its workforce and their competencies enabled it to find the best solutions to customer needs.
A strategic issue
Diversity and inclusion is thus about more than gender, age, nationality, or quotas. It's about competencies and values, and, being measurable and actionable, it has real impact on revenue, profit and shareholder value. As such, diversity and inclusion is a strategic issue belonging on the CEO’s agenda.
Diverse and inclusive companies clearly outperform their competitors on the hard financials. Studies have shown that they are 69% more profitable, realize a 35% higher return on equity and 34% higher total shareholder returns. Why is that?
A hard financial factor
A new think: act CONTENT argues that, in terms of top line growth, diversity and inclusion drives sales growth and helps win market share in global markets that are very diverse. It increases employee engagement and stimulates their creativity and drive. And it helps attract and retain (increasingly scarce) talent from all relevant talent pools. This, in turn, minimizes HR costs and thus boosts profits.
Looking some more at the bottom-line results, diversity and inclusion increases access to capital markets by positively rating companies on indexes that are relevant to and rewarded by shareholders. Plus, it mitigates compliance risk that could ensue legal costs and penalties.
Diversity and inclusion, rather than being an issue merely of political correctness, is a practical, hard financial factor that drives tangible results.
Examples of excellence
The authors of the latest think: act CONTENT identified more than 40 major companies around the globe that prove these benefits are real. For instance, one of the largest diversified technology companies in the world used diverse employee groups to mirror customer segments and thus involve customer experience in product development – with marked results. For the Indian market, for example, team members that understood and identified with local customers worked with technology experts to design a electrocardiogram for remote medical treatment that fits into a physician’s backpack.
A telecom multinational, by utilizing its diverse workforce, realized several product innovations, including spoken text messages for the visually impaired. It also realized EUR 330 million in additional revenue by running marketing campaigns that emphasized how the diversity of its workforce and their competencies enabled it to find the best solutions to customer needs.
A strategic issue
Diversity and inclusion is thus about more than gender, age, nationality, or quotas. It's about competencies and values, and, being measurable and actionable, it has real impact on revenue, profit and shareholder value. As such, diversity and inclusion is a strategic issue belonging on the CEO’s agenda.
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