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Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medi

Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Falsely equivocating spending on diversity programs to "donating to the KKK or literally setting cash on fire" is really telling. This monthly discussion comes up on HN and it's already turning into a dumpster fire.

it_citizen 4y ago
> Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. I hope this is right. But I keep seeing stats like that being thrown around and implying that the cause of those high financial returns are diversity when it is as likely that projections of high financial returns give you the money and time to focus more heavily on diversity. Both can also be symptoms of a common cause such as healthier management. Again, correlation is not causation.
- edgyquant 4y ago
  This is surely the case. It gets old watching progressives paint their interpretations as objective fact.
- minsc_and_boo 4y ago
  Could you share some of these stats being thrown around that you're eluding to?
dmitrygr 4y ago
> Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Falsely equivocating correlation and causation is really telling.
- rdslw 4y ago
  So true. SJW at its finest :-(
- minsc_and_boo 4y ago
  And yet, somehow, there is zero correlation between hiring KKK members and organizational competitive success - hence the false equivocation. Nobody said anything about causation, you raised that straw man yourself. If you'd look up the stat I quoted, you'd see McKinsey says the same thing: >While correlation does not equal causation (greater gender and ethnic diversity in corporate leadership doesn’t automatically translate into more profit), the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/why-diversity-matters https://www.mckinsey.com/capabilities/people-and-organizatio...
edgyquant 4y ago
Right but it is instead likely the case that companies with ridiculous profitability are likely to have diversity programs. That’s the thing about statements like this, it’s just one interpretation of the data.
telotortium 4y ago
> top quartile for racial and ethnic diversity This is the rare case where BIPOC is actually a useful concept. Is this still true when counting only BIPOCS (no Asians, no Hispanics, etc.)?

it_citizen 4y ago

> Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. I hope this is right. But I keep seeing stats like that being thrown around and implying that the cause of those high financial returns are diversity when it is as likely that projections of high financial returns give you the money and time to focus more heavily on diversity. Both can also be symptoms of a common cause such as healthier management. Again, correlation is not causation.

edgyquant 4y ago
This is surely the case. It gets old watching progressives paint their interpretations as objective fact.
minsc_and_boo 4y ago
Could you share some of these stats being thrown around that you're eluding to?

dmitrygr 4y ago

> Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians. Falsely equivocating correlation and causation is really telling.

rdslw 4y ago
So true. SJW at its finest :-(
minsc_and_boo 4y ago
And yet, somehow, there is zero correlation between hiring KKK members and organizational competitive success - hence the false equivocation. Nobody said anything about causation, you raised that straw man yourself. If you'd look up the stat I quoted, you'd see McKinsey says the same thing: >While correlation does not equal causation (greater gender and ethnic diversity in corporate leadership doesn’t automatically translate into more profit), the correlation does indicate that when companies commit themselves to diverse leadership, they are more successful. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/why-diversity-matters https://www.mckinsey.com/capabilities/people-and-organizatio...

edgyquant 4y ago

Right but it is instead likely the case that companies with ridiculous profitability are likely to have diversity programs. That’s the thing about statements like this, it’s just one interpretation of the data.

telotortium 4y ago

> top quartile for racial and ethnic diversity This is the rare case where BIPOC is actually a useful concept. Is this still true when counting only BIPOCS (no Asians, no Hispanics, etc.)?