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No, boardroom diversity does not mean higher profits

No, boardroom diversity does not mean higher profits

by Starling Insights

Starling Insights Editorial Board

Aug 30, 2021

Observations

Several financial regulators globally have announced their intentions to institute mandatory diversity reporting and quotas. Many of these are based on research that claims to prove a strong, positive correlation between diversity and improved financial performance and/or reduced operational risk.

However, the studies these initiatives cite are frequently dubious and their findings have not been found to be replicable.  In some cases, the studies make claims that are simply not supported by their own data. More importantly, the effort itself implies that diversity should be valued for its bottom-line contribution, rather than for its contribution to society.

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