In today’s changing society where just about everyone, but the younger generations especially, has started to pay greater attention to diversity and inclusivity, most big brands have come to a common conclusion. Employing people of diverse races and sexual orientations can be extremely beneficial towards the goal of enhancing public perception and increasing revenues.
Common examples of this tactic that we notice in our day to day lives are casting actors from a variety of races and gender identities in mass media, social media posts about diversity among a firm’s employees and even changing marketing and branding based off of events that younger generations sympathize with (pride month, black history month, etc.) and many many more. So much effort, but does any of this even work? Do firms actually see their revenues increase by doing all this?
Absolutely! According to a McKinsey & Company research, organisations in the top quartile for racial and ethnic diversity are 35% more likely to outperform their respective national industry medians in terms of financial returns. While most large businesses may be doing this for the financial incentive, without ever actually caring about diversity, it isn’t all bad! After all, even if the companies are trying to make a greater profit, the spillover effect is promisingly positive! It’s annoying but it is also an absolute win!
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