Is diversity our strength? Our leaders certainly seem to think so. And many multinational corporations are of the same mind. In a series of influential reports with cringeworthy titles like ‘Diversity Wins’, researchers at McKinsey have put forward the officious-sounding “business case for diversity”. In short, they claim that more ‘diverse’ management leads to better company performance.
As for proposed mechanisms, they list several: ‘diverse’ teams are more innovative, ‘diverse’ companies have a more positive global image, and employees in ‘diverse’ companies feel a greater sense of belonging.
The image below details some of their findings. Each chart is a comparison between firms in the bottom 25% and top 25% for executive ‘diversity’, with the outcome being the likelihood of financial outperformance (a measure of company performance). So for example, the 2014 report ‘Diversity Matters’ found that firms in the top 25% for executive ‘diversity’ were 35% more likely to achieve financial outperformance than those in the bottom 25%.
The McKinsey researchers measured ‘diversity’ using something called the Herfindahl–Hirschman index. This sounds very complicated, but it just means squaring the proportions of different racial groups in the company’s management, and then adding up the results. For example, if a company’s management was 70% white and 30% black, the index would be (0.7*0.7) + (0.3*0.3) = 0.58.
Enter Jeremiah Green and John Hand – two U.S. economists who tried to replicate McKinsey’s findings. In a new paper published in Econ Journal Watch, they summarise what they found.
To begin with, McKinsey would not provide Green and Hand with their data. Nor would they even share the names of the relevant firms. (This is obviously bad scientific practice on McKinsey’s part.) Hence the authors decided to focus on public U.S. companies in the S&P 500 – a sample that likely overlaps substantially with the one used by McKinsey. They also used data from the same pre-Covid time window.
What did the authors find? McKinsey’s “business case for diversity” is built on sand.
Their main finding is shown below. Each chart plots company performance from 2015–2019 on the y-axis against executive ‘diversity’ in 2020 on the x-axis. The left-hand chart uses eight racial categories to calculate diversity, while the right-hand chart uses five. In both cases, there is zero association between the two variables: companies with more executive ‘diversity’ do not perform better than those with less.
And as Green and Hand point out, there’s an additional problem with McKinsey’s argument. Even if company performance was associated with executive ‘diversity’, that wouldn’t prove the latter causes the former. After all, it could be the other around: perhaps companies that perform better can afford the luxury of greater executive diversity.
In a separate paper co-authored with Sekou Bermiss, the economists show that nine measures of executive ‘diversity’ do not predict any of six measures of company performance in the next financial year. So their null result appears to be very consistent.
Green and Hand have not conclusively falsified the claim that more ‘diverse’ management leads to better company performance; that would require studies that can get around the problem of reverse-causality mentioned above. Nonetheless, they have shown that evidence supporting the “business case for diversity” in fact does no such thing.
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This was never about a virus!
It was never about the science either.
They got the memo too early!
Lol, if you don’t laugh at this…
Update: I soon descended into sobs.
It’s their country – let them have their own circus.
I expect the uptake is far higher than 10% in the major cities and I don’t think people are going to be checking out in the countryside. its kenya’s guardian reading class having a moral panic
That was my guess too, it will be the urban elite who have taken the vax.
Why should they care about the rural poor not having access to their bars, shops and restaurants?
Rather similar to the Soviet Nomenclatura having exclusive use of such places.
“Kill The Poor” as Jello Biafra would put it.
Might be a problem for their houseboys, cleaners, nannys and other domestic servants.
Might be a problem for their houseboys, cleaners, nannys and other domestic servants.
That’ll be a bonus to the NPD grauniad-reading classes.
Coherent with the general global strategy. Impose the new order on the gentry and the plebs will eventually follow.
At this point the well to do, urbanites are the only ones they care about. For now.
They’ve set up a good system of capture with the vax for travel rules.
Orwell foresaw this quite well in 1984. The regime cared mostly about the upper.echelons. The lower classes were.left to themselves.
That’s what the Kenya thing is about.
Going to be some very empty bars.
Winter surge, in Kenya, in December ???
My thoughts exactly.
Nairobi average temperatures in November and December are 19 – 20 degrees Celsius.
In Africa It’s just a little more obviously a shakedown exercise than about health.
Shit for brains, typical of them!
No longer news and no longer surprising.
Me thinks is about international donors to public health than any attempt to handle their epidemic. He who writes the checks writes the rules. Given a) the young age of the population b) expose to other viruses c) limited benefit in stopping infections from vaccine (trending to nil over time) and d) the larger issues facing Kenya, this rule makes about as much sense as requiring everyone to have their wisdom teeth pulled before entering. I’m not conspiracy theorist but have seen and read of international donors demanding odd thing of nations in return for grants in the best of times.
So, any intrepid investigative journalist want to tackle this? Because the answers could be very illuminating.
Jabbing at risk populations made sense. Jabbing everyone didn’t make sense when we still had high hopes for the vaccine. I wonder if Kenya will be required to jab it’s 5 year olds too?
I sure the Kenyans have the infrastructure in place to police this. Thought not, none story.
Africa skipped/leapfrogged land lines so there are a lot of internet connected mobile phones.
Again, a biased intro taking the official narrative as truth.
Kenya catches up with Agenda 30. Let the backhanders begin.
Didn’t Nigeria introduce a similar policy months ago, with an even lower uptake? Any news how that has worked out for them?
Sturgeon’s 70-page dossier finds no evidence for vaccine passports
https://www.spectator.co.uk/article/sturgeon-s-70-page-dossier-finds-no-evidence-for-vaccine-passports
Send to your MP, MSP or MS: https://www.writetothem.com/
Headline should read, ‘African nation bows to NGO’ s financial incentives…again’.
NGO colonialism.
Has Gates been talking to them recently?
Roll on the Kenyan riots.
UNcle Bill’s altruism is well understood in Africa….
https://lichtnahrung2015.wordpress.com/2020/09/06/un-forced-tothat-admit-that-gates-funded-vaccine-is-causing-polio-outbreak-in-africa/
Our healthcare system is about to experience a tsunami! Potential side effects of jabs include chronic inflammation, because the vaccine continuously stimulates the immune system to produce antibodies. Other concerns include the possible integration of plasmid DNA into the body’s host genome, resulting in mutations, problems with DNA replication, triggering of autoimmune responses, and activation of cancer-causing genes. Alternative COVID cures EXIST. Ivermectin is one of them. While Ivermectin is very effective curing COVID symptoms, it has also been shown to eliminate certain cancers. Do not get the poison jab. Get your Ivermectin today while you still can! https://ivmpharmacy.com
That’s right, play the game, you wouldn’t want to end up like that Tanzanian president, would you?
Well done Kenya. I should like to see how this works out. Thankfully it’s a warm country and so no one will be left out in the cold so to speak.
That reminds a little bit of “cargo cults” behavior… Just jab enough arms and the cargo will come. After all that’s what all the great white people are doing.
We all know countries are being paid a lot of money to do as they are told.
How did Kenya get the vaccine? Where did they pull the dollars from?