Hiring more ethnically diverse management teams does not boost profits, new research has claimed, casting counts on previous studies.
A study in Econ Journal Watch says that previous studies by the consultancy firm McKinsey claiming that racial diversity “is a business imperative that drives real business results” are based on data that cannot be replicated.
It noted that four McKinsey reports between 2015 and 2023 claimed to find statistically significant relationships between the diversity of senior staff in major listed companies and earnings.
