Strategic Diversity
Advisors
While diversity is frequently viewed as a social good or an altruistic gesture, the facts prove that diversity is a business operating principle. Unfortunately, the detail is often buried in hundreds of pages of material. The following is a high-level summary of some of the more poignant facts. All sources for the quotes are available at www.strategicdiversityadvisors.com.

Diversity is proven to increase stock valuation and ROI
• “The 100 companies rated lowest in diversity averaged 7.9% annualized stock return; compared to 18.3% for the 100 companies that rated highest.”
• “Companies with the highest representation of women on their top management teams experienced better financial performance than the group of companies with the lowest women’s representation. This finding holds for Return on Equity which was 35.1% higher and total Return to Shareholders which was 34% higher”.
• “Companies that intentionally managed their culture significantly outperformed those that did not”.

An Inclusive workplace reduces the cost of turnover
• “…$64 billion in cost annually is attributed to turnover of women and minority employees.”
• “…the average cost of replacing an employee is approximately 150% of the annual salary.”
• “Unfairness, in the form of everyday inappropriate behaviors, such as stereotyping and public humiliation, is real and prevalent resulting in the voluntary resignation of 2 million women and minorities each year.”

Diversity breeds innovative solutions
“From a problem-solving team from a diverse population of intelligent agents, a team of randomly selected agents outperforms a team comprised of the best-performing agents.”

Diversity is a business development tool
• “The buying power of minorities in the US has grown and continues to grow exponentially – 2013 projections are $3,378 billion.”
• “Women-owned firms have an economic impact of $3 trillion annually that translates into the creation and/or maintenance of more than 23 million jobs – 16% of all U.S. jobs.”

In conclusion, diversity and inclusion is a business imperative that increases profitability in tangible, measureable ways. Companies that commercialize diversity will reap the financial rewards.
Strategic Diversity Solutions: The Business Case for Diversity
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