Organizations that integrate diversity, equity, and inclusion perform better.

In every sector – private for-profit, public, and nonprofit – the evidence base is growing to demonstrate that paying attention to DEI improves outcomes.  In 2015, McKinsey & Company research demonstrated that “companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.”   More recent McKinsey studies of diversity in the workplace reaffirm the global relevance of diversity for financial outperformance, and reveal that while challenging to implement, inclusive practices lead to longer-term value creation.   The most recent McKinsey report, Diversity Wins:  How Inclusion Matters, asserts not only that “the business case for DEI remains robust but also that the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time.” 

In the public sector, initiatives are increasingly drawing attention to DEI.  In public education, both K-12 schools and postsecondary institutions are addressing DEI to improve outcomes among all students.  In the criminal justice system, DEI efforts are exposing disparate treatment, sentencing, and outcomes among alleged offenders based on race/ethnicity and socioeconomic status.  Perhaps the most striking example today is how health and human services agencies are confronted with inequities exposed by COVID-19.  In an attempt to ensure that high-risk populations, including the elderly and their caregivers, are able to access vaccines and treatment, federal and state resources are being directed to geographic areas with the highest rates of exposure and incidence of the coronavirus pandemic.  Targeting the highest-impact places and populations will make better use of scarce public resources.  The Government Performance Lab at the Harvard University Kennedy School of Government is one example of an institute that aims to improve the ability of government leaders at all levels to address difficult social challenges.  Its resource library  offers public sector information and solutions that center DEI.

Similarly, in the nonprofit sector, the case is being made that organizations that pay attention to DEI will achieve greater impact with their mission-driven work.  The National Council of Nonprofits’ statement on Why DEI Matters cites research on how diversity improves decision-making within groups; improves creativity, diligence, and work ethic; and fosters enhanced innovation.   Nonprofits are increasingly focusing on DEI and instituting systems that will enable their organizations to track progress and outcomes.