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A research study titled “Diversity Matters” examined the impact of diversity in leadership on the financial performance of large companies. The study analysed data from multiple countries and industries, looking at the relationship between gender and ethnic/racial diversity in leadership and financial returns. The results revealed a statistically significant correlation between a more diverse leadership team and better financial performance. Companies in the top quartile for gender diversity were 15 percent more likely to have above-average financial returns, while those in the top quartile for ethnic/racial diversity were 35 percent more likely. The study also highlighted variations in the impact of diversity based on country and industry. It emphasised the importance of addressing unconscious bias and implementing robust diversity programs to attract and retain diverse talent. Overall, the research underscores the significance of diversity in the increasingly interconnected global business landscape, urging organisations to invest in diversity initiatives to gain a competitive advantage.
