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Are Some Major Companies

Are Some Major Companies "Diversity-Washing?"

by Starling Insights

Starling Insights Editorial Board

Feb 01, 2023

Observations

Diversity & Inclusion The Era of Accountability ESG Regulatory Reporting Data Sharing Governance & Metrics Better G Metrics

A recent study of nearly all US public companies from 2008 to 2021 found that corporate leaders who espouse the virtues of diversity may benefit from greater investment in their firms, even without actually improving diversity, equity, and inclusion internally — terming this 'diversity-washing.'

The researchers scanned the firms' regulatory filings for mentions of diversity and compared this to their commitment to diversity in practice utilizing private data and discrimination claims. They found that the companies with the biggest disconnect between their words and actions had 13% higher ESG scores and were 10% more likely to be included in a socially responsible fund.

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