ESG Update: Is Diversity Dead or Alive? 

Diversity has been a stated goal of corporations for decades and the conversation was elevated to the Board level by a widely read McKinsey report in 2015. The study concluded that companies in the top quartile of racial and ethnic diversity and those in the top quartile for gender diversity were 35% and15%, respectively, more likely to have financial returns above their industry mean.

However, Diversity, Equity & Inclusion (DEI) has been under attack for the last several years and the McKinsey study has been questioned. In June 2023 the Supreme Court struck down the affirmative action policies used in admissions at universities, and companies are still considering the impact of this decision on the corporate environment. A high-profile CEO recently called for renaming the effort “MEI” (Merit, Excellence and Intelligence). Are companies retrenching on diversity? If diversity is no longer a factor in hiring from entry level employees to the Board, will executives and directors revert to hiring from their own networks who tend to look like themselves? What are the implications for the composition of the C-Suite and the Board? What can and should Board members be asking and doing? What are the key considerations for directors from the legal and investor relations perspective? This multi-faceted subject was discussed by our panel of experts.

Read the program summary here.

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