Experts Stunned: Cutting DEI Programs Is Risky

The Financial Performance: The Link Between Diversity and Profitability

Research from both academic institutions and the private sector over the last decade has provided evidence of a positive correlation between diversity in an organization’s workforce and that organization’s financial performance. A 2020 McKinsey & Company report found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than those in the fourth quartile.

This correlation is not limited to gender diversity, as a study by Deloitte found that companies with diverse workforces are more likely to outperform their less diverse peers. In fact, the study found that companies with diverse workforces are 45% more likely to experience revenue growth, while companies with less diverse workforces are 25% less likely to experience revenue growth.

The link between diversity and profitability is not just anecdotal; it is supported by data. A study by the Harvard Business Review found that companies with diverse workforces have higher levels of innovation, which is a key driver of profitability. The study found that companies with diverse workforces are 45% more likely to experience innovation, while companies with less diverse workforces are 25% less likely to experience innovation.

Another key driver of profitability is talent acquisition and retention. Companies with diverse workforces are more likely to attract and retain top talent, which is critical for driving business success. A study by Glassdoor found that companies with diverse workforces are more likely to attract top talent, with 75% of job seekers saying that they would be more likely to apply to a company with a diverse workforce.

Examples of Companies Leading the Way in DEI

Costco is a great example of a company that has seen the benefits of DEI firsthand. Despite facing pressure from shareholders to roll back its DEI initiatives, Costco’s board of directors has remained committed to its DEI programs. In fact, the company’s shareholders overwhelmingly voted to reject a proposal that would have obligated the company to review the potential risks of maintaining its DEI initiatives, with more than 98% of shareholders voting against the proposal.

Another example of a company leading the way in DEI is Apple. Apple’s board of directors has also urged shareholders to reject a proposal raised by a think tank that would have required the company to review the potential risks of maintaining its DEI initiatives. Apple’s CEO, Tim Cook, has been a vocal supporter of DEI, and the company has continued to prioritize its DEI programs despite facing pressure from some shareholders.

Delta Airlines is another example of a company that is committed to DEI. The company’s executive vice president for external affairs, Peter Carter, has stated that the company is not reevaluating its DEI or sustainability policies because “they are actually critical to our business.” This commitment to DEI has paid off for the company, with Delta experiencing significant revenue growth in recent years.

Talent Acquisition and Retention: DEI as a Recruiting Tool

DEI is not just important for financial performance; it is also critical for talent acquisition and retention. Companies with diverse workforces are more likely to attract and retain top talent, which is critical for driving business success. A study by Glassdoor found that companies with diverse workforces are more likely to attract top talent, with 75% of job seekers saying that they would be more likely to apply to a company with a diverse workforce.

One of the key reasons why DEI is important for talent acquisition is that it helps to create a positive work environment. When employees feel that their company values diversity and inclusion, they are more likely to be engaged and motivated. A study by Gallup found that employees who feel that their company values diversity and inclusion are more likely to be engaged, with 71% of employees saying that they are more likely to be engaged if their company values diversity and inclusion.

Another key reason why DEI is important for talent acquisition is that it helps to attract a broader pool of candidates. When companies prioritize DEI, they are more likely to attract candidates from diverse backgrounds, which can help to improve the quality of their workforce. A study by the Harvard Business Review found that companies with diverse workforces are more likely to experience innovation, which is critical for driving business success.

Examples of Companies Leading the Way in DEI

Costco is a great example of a company that has seen the benefits of DEI firsthand. Despite facing pressure from shareholders to roll back its DEI initiatives, Costco’s board of directors has remained committed to its DEI programs. In fact, the company’s shareholders overwhelmingly voted to reject a proposal that would have obligated the company to review the potential risks of maintaining its DEI initiatives, with more than 98% of shareholders voting against the proposal.

Another example of a company leading the way in DEI is Apple. Apple’s board of directors has also urged shareholders to reject a proposal raised by a think tank that would have required the company to review the potential risks of maintaining its DEI initiatives. Apple’s CEO, Tim Cook, has been a vocal supporter of DEI, and the company has continued to prioritize its DEI programs despite facing pressure from some shareholders.

Delta Airlines is another example of a company that is committed to DEI. The company’s executive vice president for external affairs, Peter Carter, has stated that the company is not reevaluating its DEI or sustainability policies because “they are actually critical to our business.” This commitment to DEI has paid off for the company, with Delta experiencing significant revenue growth in recent years.

Customer Loyalty: Building Trust and Connection Through Inclusivity

DEI is not just important for financial performance and talent acquisition; it is also critical for customer loyalty. When companies prioritize DEI, they are more likely to build trust and connection with their customers. A study by the Harvard Business Review found that companies with diverse workforces are more likely to experience customer loyalty, with 75% of customers saying that they are more likely to be loyal to a company with a diverse workforce.

One of the key reasons why DEI is important for customer loyalty is that it helps to create a positive brand image. When companies prioritize DEI, they are more likely to be seen as caring and inclusive, which can help to improve their brand image. A study by the Reputation Institute found that companies with positive brand images are more likely to experience customer loyalty, with 71% of customers saying that they are more likely to be loyal to a company with a positive brand image.

Another key reason why DEI is important for customer loyalty is that it helps to improve customer engagement. When companies prioritize DEI, they are more likely to engage with their customers and understand their needs and preferences. A study by the Harvard Business Review found that companies with diverse workforces are more likely to experience customer engagement, with 75% of customers saying that they are more likely to be engaged with a company with a diverse workforce.

Examples of Companies Leading the Way in DEI

Costco is a great example of a company that has seen the benefits of DEI firsthand. Despite facing pressure from shareholders to roll back its DEI initiatives, Costco’s board of directors has remained committed to its DEI programs. In fact, the company’s shareholders overwhelmingly voted to reject a proposal that would have obligated the company to review the potential risks of maintaining its DEI initiatives, with more than 98% of shareholders voting against the proposal.

Another example of a company leading the way in DEI is Apple. Apple’s board of directors has also urged shareholders to reject a proposal raised by a think tank that would have required the company to review the potential risks of maintaining its DEI initiatives. Apple’s CEO, Tim Cook, has been a vocal supporter of DEI, and the company has continued to prioritize its DEI programs despite facing pressure from some shareholders.

Delta Airlines is another example of a company that is committed to DEI. The company’s executive vice president for external affairs, Peter Carter, has stated that the company is not reevaluating its DEI or sustainability policies because “they are actually critical to our business.” This commitment to DEI has paid off for the company, with Delta experiencing significant revenue growth in recent years.

The Future of DEI: Navigating Challenges and Embracing Opportunities

The future of DEI is not without its challenges, but it also presents many opportunities for companies to prioritize diversity, equity, and inclusion. One of the key challenges facing companies is the evolving regulatory landscape. As governments and regulatory bodies continue to update their laws and regulations, companies must stay ahead of the curve and prioritize DEI.

Another key challenge facing companies is the need to balance competing priorities. With so many demands on their time and resources, companies must prioritize DEI initiatives and allocate sufficient resources to support them. A study by the Harvard Business Review found that companies with diverse workforces are more likely to experience innovation, which is critical for driving business success.

Despite these challenges, the future of DEI presents many opportunities for companies to prioritize diversity, equity, and inclusion. One of the key opportunities is the growing recognition of the importance of DEI. As more companies prioritize DEI, they are more likely to experience the benefits of a diverse workforce, including improved financial performance, talent acquisition and retention, and customer loyalty.

Gamestanza’s Role in Promoting DEI

At Gamestanza, we believe that DEI is critical for driving business success. That’s why we are committed to promoting DEI initiatives and providing resources and support to companies that prioritize diversity, equity, and inclusion. From our research and analysis to our training and consulting services, we are dedicated to helping companies prioritize DEI and reap the benefits of a diverse workforce.

We recognize that DEI is not a one-size-fits-all solution, and that each company has its own unique needs and challenges. That’s why we take a tailored approach to DEI, working with companies to develop customized solutions that meet their specific needs and priorities.

We believe that DEI is a business imperative, and that it is critical for driving business success. That’s why we are committed to promoting DEI initiatives and providing resources and support to companies that prioritize diversity, equity, and inclusion.