The Future of Tech is Sustainable, Diverse & Makes a Difference Mark Aufflick @mark_sabbatical mark@htb.io
“More talent. Broader perspectives. Better innovation. A healthier bottom line.” –The Diversity Paradox: The Boston Consulting Group, bteam.org
Management Diversity Organisational Diversity
Executive Board Gender Diversity Management Diversity Organisational Diversity 160 120 Top Quartile 80 53% more ROE Bottom Quartile 40 0 Returns on Equity (ROE) McKinsey & Company report in 2010
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROE (p < 0.05)
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement & embezzlement; illegal share buybacks…
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement & embezzlement; illegal share buybacks…
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement & embezzlement; illegal share buybacks… More Innovation
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement & embezzlement; illegal share buybacks… More Innovation More Sales
Management Diversity Organisational Diversity 9 % 9 % Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price American Sociological Review study of REVENUE over 1,000 organisations, published in Nationality Diversity REVENUE 2009, found that a racially and gender positively associated with ROA (p < 0.05) diverse workforce was positively Ethnic Reputational Risk associated with more customers, 📊 likelihood of financial restatement increased sales revenue, greater relative & embezzlement; illegal share buybacks… 3 % Gender 1 profits, and greater market share % More Innovation REVENUE Increase in diversity More Sales
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement & embezzlement; illegal share buybacks… More Innovation - 9 % 9 % More Sales More Sales REVENUE REVENUE Ethnic 3 % G e n d e r 1 % REVENUE Increase in diversity
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity & firm nationality diversity (p < 0.10) positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement - & embezzlement; illegal share buybacks… More Innovation - 9 % 9 % More Sales More Sales REVENUE REVENUE Ethnic 3 % G e n d e r 1 % REVENUE Increase in diversity
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity & firm nationality diversity (p < 0.10) positively associated with ROA (p < 0.05) Reputational Risk 📊 likelihood of financial restatement - & embezzlement; illegal share buybacks… More Innovation - 9 % 9 % More Sales More Sales REVENUE REVENUE Ethnic 3 % G e n d e r 1 % REVENUE Increase in diversity
Management Diversity Organisational Diversity Executive Board Gender Diversity & EBIT, 53% more ROE Stock Price Nationality Diversity positively associated with ROA (p < 0.05) & firm nationality diversity (p < 0.10) Reputational Risk 📊 likelihood of financial restatement - & embezzlement; illegal share buybacks… More Innovation - 9 % 9 % More Sales More Sales REVENUE REVENUE Ethnic 3 % G e n d e r 1 % REVENUE Increase in diversity
8,000,000,000 USD
Psychology
Diversity training Measuring representation
“Prejudiced attitudes and beliefs can operate without a person’s awareness or endorsement .” –Patricia Devine 1989, Journal of Personality and Social Psychology 56:5–18
“(un)consciousness-raising” strategies aim to combat implicit prejudice through thought suppression, awareness, reconditioning” –Paluck & Green 2009, Annual Review of Psychology, citing Banaji MR. 2001. “Implicit attitudes can be measured”, The Nature of Remembering, American Psychological Association
Instruction to suppress stereotypes has the opposite effect (Galinsky & Moskowitz 2000; Kulik et al. 2000)
(Greenwald et al. 1998, Dasgupta & Greenwald 2001, Wittenbrink et al. 2001)
And that’s the carefully constructed theoretical studies…
Representation
“exclusively focusing on and measuring the representation of minority groups in an effort to create a diverse staff not only fails to accomplish that end but also prevents companies from capturing the value of difference.” –The Diversity Paradox: The Boston Consulting Group, bteam.org
“Men were more likely than women to believe that their company was committed to gender diversity and were also more likely to believe that men were involved in championing gender diversity at their company.” –Financial Times paraphrase of BCG report into UK Company Diversity
Representation is not the same as Diversity –Aubrey Blanche, Tech Firms Striving For Diversity Fixate On The Wrong Metric, Wired, May 2017
“Interventions such as targeted college recruitment, mentoring programs, self- managed teams, and task forces have boosted diversity in businesses. Some of the most effective solutions aren’t even designed with diversity in mind. ” –Why Diversity Programs Fail—Dobbin & Kalev, HBR July 2016
Self worth Claude Steele, Vol. 21: Social Psychological Studies of the Self: Perspectives and Programs 1998
Contact Hypothesis Gordon Allport
Organisations as Organisms Hypothesis: Larger Wholistic Cultural Change Is Needed
2.2 Establishing strategic SDG linkages with fjrm specifjc strategic topics. Using the SDGs as a starting point to benefjt from the opportunities provided by the SDGs to scale and The fjgure below provides an example of how company X can link its In order to yield the most benefjt from the established strategic SDG W h y w e ’ r e i n b u s i n e s s ��li� fjnancial Social and performance durable products T Honest h Employer Your and fostering e of choice fairness Company w a name y w e Diversity Lead d and female by example o leadership b Life long u s learning i n e s s s s e n i s u b n i y a t s o t w o H an example of a random company
“When companies focus on a purpose that is rooted in creating value for others, improving the world we live in and inspiring the organization at all levels, they increase their ability to drive profits and create sustainable value .” –Franc van den Berg Partner EY Climate Change and Sustainability Services
#1 #3 2017, 2016, 12 years on list
increased understanding of what it means to behave inclusively how to work more effectively with others to achieve outcomes better enabling … leveraging diversity in the workforce
Disruptive Innovation for Social Change www.hbr.org HBR S POTLIGHT In the social sector, too much Disruptive Innovation attention is devoted to providing more of the same to for Social Change narrow populations that are already served. It’s time for a fundamentally different approach. by Clayton M. Christensen, Heiner Baumann, Rudy Ruggles, and Thomas M. Sadtler •
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