Don’t drink the ESG koolaid. Turns out McKinsey’s cherry picked papers on how great racial diversity is for the bottom line didn’t stand up to academic scrutiny.
McKinsey’s view that greater racial/ethnic diversity in a firm’s executive team drives better firm financial performance: “What our data shows is that companies that have more diverse leadership teams are more successful. And so the leading companies in our datasets are pursuing diversity because it’s a business imperative and driving real business results”
Vs
In short, a better data set shows no relationship between executive level racial diversity and various measures of corporate financial success, and casts doubt on the whole McKinsey methodology.