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Is diversity critical to a business' financial success? Show more Show less

Research proves that diversity (gender, ethnic and social) can improve work place culture and productivity. Some argue that workplace diversity can increase growth or revenues, by increasing the comfort of workers and ensuring different views are represented. But diversity really have that much of a baring on a business' success?

Diversity is critical to workplace success Show more Show less

Diversity allows companies to tap into different opinions and work styles that could help it navigate different geographies, market segments, as well as tap into new talent pools
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Diverse workforces drive profits through innovation

Diverse workforces are more innovative, and innovate companies are also more profitable. Therefore, diversity is critical to a business' success, and their financial growth.
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Context

Innovation is key to profitability. Companies with fresher product portfolios offer more creative and novel solutions sell more products and services, and ultimately, record higher profits.[1] Diversity helps companies achieve innovation. There is a clear correlation between a company's diversity and its creativity, flair, and innovation.

The Argument

A recent study from the Harvard Business Review examined 1,700 companies across eight different countries (the US, France, Germany, China, Brazil, Austria, Switzerland and India). In all the countries studied, it found a positive correlation between diversity and innovation. [2] At the end of the study, based on the 1,700 companies assessed, researchers were able to put a number on the value of diversity. They found that diversity helped boost innovation revenue by 12.9%

Counter arguments

Framing

Premises

[P1] Diversity promotes innovation. [P2] Higher levels of innovation generate higher profits. [P3] Therefore, diversity leads to higher profits.

Rejecting the premises

Proponents

Further Reading

References

  1. https://sloanreview.mit.edu/article/are-innovative-companies-more-profitable/
  2. https://hbr.org/2018/01/how-and-where-diversity-drives-financial-performance

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This page was last edited on Friday, 3 Jul 2020 at 19:51 UTC