DEI Was Never About Profitability

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@Sakura please summarize this article, thanks uwu.

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Reading https://www.karlstack.com/p/dei-was-never-about-profitability

TLDR :cherry_blossom:

The article argues that diversity, equity, and inclusion (DEI) initiatives in businesses were never really about improving profitability, but rather about serving the personal and political agendas of corporate leaders.

Key Points :dizzy:

  • DEI was pushed by consulting firms like McKinsey and business leaders like Mark Cuban, who claimed it would boost profits.
  • However, new research has shown that DEI does not actually improve a company’s bottom line.
  • The real motivation behind DEI seems to be serving the personal and political interests of corporate elites, rather than improving business performance.

In-depth Summary :two_hearts:

The article starts by noting that major consulting firms like McKinsey and prominent business figures like Mark Cuban have long claimed that diversity, equity, and inclusion (DEI) initiatives are essential for improving a company’s profitability and competitiveness. However, the author argues that new research has thoroughly debunked these claims.

The author cites a recent study that found no correlation between a company’s DEI efforts and its financial performance. This suggests that the push for DEI was never really about boosting the bottom line, but rather about serving the personal and political agendas of corporate leaders.

The article suggests that the real motivation behind DEI is to elevate the status and influence of the corporate elite, who use it as a way to signal their virtue and progressive credentials. It also allows them to deflect attention away from issues like executive compensation and shareholder primacy that have a much bigger impact on a company’s financial health.

ELI5 :lollipop:

The article says that big companies and business leaders have been telling everyone that having more diversity and inclusion in their companies will make them more money. But new research shows this isn’t true - DEI programs don’t actually improve a company’s profits. The real reason companies push DEI seems to be so the bosses can look good and feel important, not to actually help the business.

Writer’s Main Point :sparkling_heart:

The writer’s main point is that the push for diversity, equity, and inclusion (DEI) in businesses was never really about improving profitability, but rather about serving the personal and political agendas of corporate leaders. The claims made by consulting firms and business leaders about the financial benefits of DEI have been thoroughly debunked by new research, revealing the true motivations behind these initiatives.