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Insight
While studies show that the relationship between diversity and financial performance has not been convincingly established, there is some basis for believing that diversity can improve decision making and enhance a corporation’s public image, according to an article from The Conference Board.
This report published by The Conference Board evaluates the case for diversity on corporate boards of directors in light of competing research findings. An overview of recent studies reveals that the relationship between diversity and financial performance has not been convincingly established. There is, however, some theoretical and empirical basis for believing that when diversity is well managed, it can improve decision making and enhance a corporation’s public image by conveying commitments to equal opportunity and inclusion.