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59 I L T A N E T . O R G D iversity in the workplace is not a new topic, but especially since the murder of George Floyd last summer and ensuing protests against racial inequality, diversity has become imperative for businesses to address. Since last year, many organizations issued press releases and posted statements on social media in support of racial equality; however, words mean little without action. Businesses must truly invest in furthering diversity, equity, and inclusion (DEI)1 internally, both for their own bottom line and the good of society. Business leaders are likely familiar with the concept of corporate social responsibility (CSR), which suggests that "companies integrate social and environmental concerns in their business operations and interactions with their stakeholders" as a way to achieve "a balance of economic, environmental and social imperatives… while at the same time addressing the expectations of shareholders and stakeholders" (UNIDO). CSR is not charity; it is a recognition that factors outside of the work environment directly impact a business's profitability. By investing in DEI, an organization can begin to counter the history of injustice that has resulted in underrepresentation of groups in the workplace, which progresses society and ultimately the business's profitability. A social commitment to DEI has a strong return on investment for the business. McKinsey conducted a series of studies following hundreds of companies and the impact of diversity on their profitability. The 2019 report found companies in the top quartile of racial diversity on executive teams were 36 percent more likely to have above-average profitability, with a similar series of increases over the years (Dixon-Fyle). In fact, racial and ethnic diversity had a stronger impact on profitability than gender diversity, with a linear relationship between this diversity and improved performance: "[F]or every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes (EBIT) rise 0.8 percent" (Hunt). However, companies with more gender diversity in their executive teams also consistently outperformed their competitors: "Our 2019 analysis finds that companies in the top quartile for gender diversity on executive teams were 25 percent more likely to have above-average profitability than companies in the fourth quartile—up from 21 percent in 2017 and 15 percent in 2014." The magnitude of representation matters as well: the greater the number of women executives, the more the business outperformed other businesses with fewer or no women executives (Dixon-Fyle). These findings are in keeping with a study by HBR which concluded that "firms with more women in senior positions are more profitable, more socially responsible, and provide safer, higher- quality customer experiences" (Reynolds). The increase in profitability for these businesses is almost certainly due to the varied perspectives and ideas offered by a diverse group; the HBR study found that Welcome to the first in a series of articles on Diversity, Equity, and Inclusion from the ILTA DEI Taskforce! Over the next year, our Taskforce will be bringing ILTAns new, fresh, and innovative articles on DEI. We hope that you will take the time to learn, grow, and continue the forward- march of Progress! Enjoy the Read!

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