The Business Case for Diversity – A Critique of McKinsey’s ‘Research’

Abstract

This article critiques an influential section of the research underpinning the claim that business benefits exist for an organisation with more diverse leadership. It focuses on three frequently cited reports by management consultants, McKinsey & Co (McKinsey 2015, McKinsey 2018, & McKinsey 2020). These reports have been, and continue to be, used to support the business case for diversity.

Analysis of one aspect of McKinsey’s research; - the dataset created by the company’s consultants, suggests that it is not sufficiently representative of all listed companies in counties referenced in their reports. Consequently, McKinsey’s conclusions are unreliable and cannot be generalised.

Keywords: Race, Business, Leadership, Recruitment, Performance

JEL Classification: J15, L25, M14