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Inclusion at the top

Magazine

Greater inclusion at the top strengthens company performance

IbyIMD+Published 16 June 2022 in Magazine β€’ 14 min read

Research shows that appointing women and people of color to senior positions leads to greater innovation, higher profits and better governance.Β 

For more than a decade, we have examined the impact of representation among senior leaders β€” on the board and in the C-suite β€” on organizational performance. How does appointing white women as well as men and women of color to senior leadership roles change how organizations do business?Β Β 

We define performance expansively to include a range of outcomes that stakeholders care about: innovation, product strength, community relations, equity and diversity records, environmental sustainability and governance.Β 

Our findings are clear: more inclusive organizations are more innovative, more profitable, more equitable, more sustainable, better governed and enjoy stronger relationships with their communities and suppliers.Β Β 

By contrast, firms that fail to prioritize inclusion and equity pay a high cost. They suffer from lower job…

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