Workplace Inclusion Drives Productivity
Advancing Workplace inclusion
We urge companies to create meritocratic environments where all employees—regardless of gender, race, or sexual orientation—can contribute and thrive. Effective human capital management practices ensure that no group is unfairly advantaged or disadvantaged.
Multiple research studies indicate that inclusive practices to provide equal opportunity to all employee have measurable company-wide benefits. These studies point to the advantages of a diverse workforce. A small subset of such findings include:
Repeated McKinsey studies have found that companies with higher percentages of gender, race and ethnic diversity in corporate leadership have a greater likelihood of outperforming peers on profitability. As of 2024, this includes a 39% greater likelihood of outperformance for companies in the top quartile for gender or ethnic representation on their executive teams, versus those in the bottom quartile.
Whistle Stop researchers, working with As You Sow, reviewed the workforce diversity of 1,641 companies between 2016-2021. Linear regressions found statistically a link between management diversity and corporate financial performance—including enterprise value growth rate, free cash flow, return on equity, return on invested capital, and 10-year revenue growth, among other indicators.
Inequality may also threaten the total portfolio return of diversified investors by slowing economic growth: for example, one study determined gender and racial gaps reduced GDP by $2.6 trillion in 2019.
actionable steps
Companies are advised to:
Commit to Strong Internal Policy: Uphold policies and practices intended to create a workplace free of bias and discrimination and support the company’s best talent in hiring, promotion, and retention.
Provide Oversight: Implement clear oversight of workplace culture, with systems that include executive management and the board.
Ensure Transparency: Publish quantitative data on workforce diversity and inclusion data.
company Research & engagement
Whistle Stop supports its clients with extensive research related to workplace opportunity and inclusion. We have, on behalf of our clients, also spoken to 100s of companies about their initiatives, efforts, and disclosure practices.