An enewsletter (September 15, 2021) from The Case Foundation, an organization that invests in individuals, nonprofits, and social enterprises aiming to connect people, increase giving, and catalyze civic action:
In Breaking Good, we’ve often noted that companies with higher gender and racial diversity rates among their staff and leadership tend to outperform (2020 report “Diversity Wins: How Inclusion Matters” from McKinsey & Co.) And with the growth of ESG focused funds and investing, outperformance leads to increased investor interest — with the caveat that diversity data transparency is a must.
The tricky part, however, is that diversity data is often hard to find, even in companies that have embraced ESG. Many diversity-related factors fall under “Social” and others — like the diversity of a company’s board — fall under “Governance.” For the growing number of investors who prioritize diversity, current ESG score systems bury the lead.
Would an ESGD score ensure diversity gets the attention it deserves? In Forbes this week, Jean Case looks into whether that additional letter could keep the diversity data disclosures coming and help set an appropriately high bar for companies to clear.
Other resources:
How to foster further innovation by increasing diversity in the startup ecosystem by Jennifer Fan, TechCrunch, August 29, 2021
Closing the racial wealth gap is by providing early money to help Black entrepreneurs innovate and grow businesses by Lyneir Richardson, Fortune.com, September 15, 2021
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