07-28-2016
According to Inc's online magazine, "diversity is a profit-generator." In support of this assertion, studies by McKinsey and other research firms were cited. The result was that, "Diverse companies simply perform better than companies that are less diverse."
A cite from the Chief Diversity & Inclusion Officer for the tech company SAP supported Inc's conclusion. She was quoted as saying that, "Companies with the highest rate of racial diversity brought in nearly 15 times more sales revenue on average than those with the lowest levels." Notwithstanding this apparent fact, the corporate world has remained mostly homogenous. Just four of the Fortune 500 CEOs are black, which amounts to less than 1%. Even Google, a more progressive company, has a workforce that is just 2% black.
The article explored why in the face of clear evidence about diversity, corporations are not making the necessary changes. It concluded that institutional racism was ingrained in the corporate culture and may be very difficult to overcome. Most of these companies have diversity programs that are not moving things forward. In fact, these same corporations seemed to be backsliding in the amount of diversity within their ranks. To make inroads toward remedying the situation, the writer at Inc. recommended racially blind recruiting, paying minorities more than whites, and compensating CEO's based on financial improvements that are tied to diversity.