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
Other aspects, like having a strong founder and qualified leadership, have a far greater impact on a company's bottom line
Studies repeatedly indicate a more diverse senior management team directly correlates to higher profits.
Diverse workforces are more innovative. Innovate companies are also more profitable.
Company workforces which most accurately affect the demographics of the population record more sales and generate more customers than homogenous workforces.
A sociologist at the University of Chicago examined the impact of racial diversity on a company's sales figures and found that the companies with the highest levels of racial diversity recorded an average of fifteen times more sales than those with the lowest level of diversity. When he investigated further, the direct correlation between racial diversity and sales became clearer. For every percentage increase in a company's rate of gender and racial diversity (up to the rate naturally occurring in the general population), the sociologist found sales revenues increased by 3%-9%. Not only were sales higher, but companies with higher levels of diversity consistently reported larger customer volume. Companies with the highest rates of diversity among employees reported having an average of 35,000 customers. Those with the lowest rates of diversity reported an average of 22,700. This indicates, whether subconsciously or not, customers respond well to diverse workforces and prefer to do business with companies whose racial and gender profile reflect those of the wider population.
This isn't the case everywhere. In Europe, for example, people care much less about diversity than in the United States. In a Pew study, in 6 out of the 10 European countries surveyed, the most popular opinion among the public was that diversity doesn't make a difference. This would indicate that consumers in these countries do not value diversity and would be indifferent to giving their custom and business to a company with a homogenous workforce.
[P1] Companies with higher diversity have more customers and record more sales. [P2] Therefore, diversity is important to a company's profits.
[P1] This isn't applicable everywhere.
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