Ethnic diversity -Financially material, socially imperative

Why diversity matters

LegalGeneralDriving diversity at corporations is a strategy that webelieve is directly linked to value creation and is a concrete action that investors can encourage.

As society’s expectations continue to evolve, we want to ensure we evolve alongside them. The issue of intersectionality has increased in importance. This means that as each diversity element intersects, siloed approaches from organisations no longer make sense.Organisations need to work to avoid simplistic thinking and to consider diversity holistically.

Our view is that improving cognitive diversity is financially material. More diverse organisations make betterstrategic decisions, show superior growth andinnovation, and exhibit lower risk – all significant measures for investors.  Diversity can also help a brand’s image and reputation: consumers increasingly expect companies to be both fair and transparent. We believe that global organisations, with highly diverse consumers, benefit from a diverse employee base across all levels. By using all the talent available to them, companies and economies can be more successful and build more resilient organisations and societies.

We must also not forget that employees are pushing change within the companies at which they work, as they typically want to work for an organisation that supports a diverse and inclusive culture.

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