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The business case for diversity by McKinsey

This week, we want to flag the fourth and latest report on the business case for diversity by McKinsey (you can find it here). We recommend a full read since it is filled with very interesting data and conclusions, but here are eight key highlights:

 

  • “…the business case for gender diversity on executive teams, as measured by an increased likelihood of financial outperformance, has more than doubled.”
  • “…leadership diversity is also convincingly associated with holistic growth ambitions, greater social impact, and more satisfied workforces.”
  • “…companies with diverse leadership teams continue to be associated with higher financial returns. Our expanded dataset shows this is true across industries and regions, despite differing challenges, stakeholder expectations, and ambitions.”
  • “Eight in ten companies now have at least one woman on their executive team, compared to less than two-thirds in 2020’s Diversity Wins.”
  • “Women are least likely to hold board positions in Latin America, followed by Asia-Pacific, whilst in continental Europe, 98 percent of companies have at least one woman on the board.”
  • “…advanced economies in our dataset see a much higher likelihood of outperformance for executive gender diversity (at 51 percent) than do emerging economies (11 percent). This difference is even starker at board level, where the business case is more than sevenfold.”
  • “…companies in the top quartile for gender and/ or ethnic diversity found that effective organizations started reaching out to talent pipelines and networks early on to identify top candidates, and actively maintained these relationships to fill upcoming board seats.”
  • “Gender diversity, too, is strongly correlated with impact across all components, especially at board level.”

 

Examining the diversity landscape within global corporate spheres sheds light on a crucial aspect demanding attention: the underrepresentation of women in boardrooms and top management positions in Mexico. As businesses strive for excellence and sustainable growth, it is imperative to recognize the untapped potential that gender diversity brings to the table. While strides have been made, there exists a clear imperative for a paradigm shift in corporate culture and governance.

I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.

Best,

Marimar

CEO, Miranda ESG

Contacts at Miranda Partners

Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com

Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com

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