Chair Beatty Continues D&I Push, Holds Second Subcommittee Hearing
WASHINGTON, D.C. – On May 1, 2019, the House Financial Services Subcommittee on Diversity and Inclusion, chaired by U.S. Congresswoman Joyce Beatty (OH-03), held its second hearing of the 116th Congress entitled, “Good for the Bottom Line: A Review of the Business Case for Diversity and Inclusion.” The hearing explored the financial services industry and other organization examples of successful diversity and inclusion initiatives, as well as highlighted data that shows that highly inclusive organizations are more productive and profitable.
“This trailblazing hearing gets to the foundation as to why this subcommittee exists. Diversity and inclusion is a business imperative. Those who embrace it are likely to prosper, while those who ignore it are more likely to fail,” Beatty said. “Today, we set the stage and highlight the positive, tangible benefits diversity leads to greater financial performance.” Beatty continued, “In short, not only is diversity and inclusion the right thing to do, it also improves a business’ bottom line.”
Recent studies provide firm evidence that those organizations that make a concerted effort to be diverse in all aspects of their business are more productive and profitable. In fact, the 2018 McKinsey & Company “Delivering Through Diversity” report found that companies in the top 25 percent of gender and ethnic diversity among executive leadership were 21 percent and 33 percent more likely to outperform on profitability respectively. On the other hand, those organizations in the bottom 25 percent of gender and ethnic diversity among executive leadership were 29 percent less likely to achieve above average profitability.
The witnesses for the one-panel hearing included: Rick Guzzo, Senior Leader, Workforce Strategy, Mercer; Victoria Budson, Co-Director, Women and Public Policy Program, Kennedy School, Harvard University; Adrienne Trimble, President, National Minority Supplier Development Council; William Von Hoene, Jr., Chief Strategy Officer, Exelon; and Rory Verrett, founder and Managing Partner, Protégé Search.
For more information and/or to view an archived recording of the Diversity and Inclusion Subcommittee’s May 1st hearing, please visit the House Committee on Financial Services’ website.
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