OTC 2022: Diversity Failures are Hurting the Bottom Line

HOUSTON—When McKinsey & Co. crunched the numbers linking diversity to financial performance, the results were clear and, to some extent, brutal.

Companies that had achieved a significant level of gender diversity, i.e., representation of women on executive teams, were 25% more likely to experience above-average profitability and rank in the top quartile of the industry than those in the bottom quartile in 2019. Further, the gap had widened from 15% in 2014 and 21% in 2017.

When ethnic diversity was considered, the gap widened even more. Companies that prioritized inclusivity were 36% more likely to land in the top quartile than those that occupied the bottom quartile.

Oil and gas industry leadership, in particular, is very much a man’s world, the research showed. One or no women were represented on 73% of executive teams in oil and gas. The power industry, by contrast, flipped the equation: only 25% of executive teams had only one or no women...

Read more: Yahoo Finance