A new national survey shows that a majority of senior business executives across political lines say diversity efforts are important to achieving good business performance. The findings, conducted by Morning Consult, a public-private strategy institute, run counter to many recent headlines criticizing diversity, equity, and inclusion (DEI) efforts.
Mr. Yin McGuire is the Chairman and CEO of the National Minority Supplier Development Council. The council is one of several business groups that sent a letter to Fortune 500 CEOs citing the study as evidence of the business case for diversity in suppliers and business. McGuire spoke with “Marketplace His Morning His Report” host David Brancaccio. Below is an edited transcript of the conversation.
David Brancaccio: Some celebrities, including Bill Ackman, an activist investor in Tesla and X Company president Elon Musk, have loudly stated that they think diversity campaigns are bad for society and business. ing. The survey now covers a wider range of companies. What are these executives telling you?
In McGuire: What we're hearing is that 82% of senior executives surveyed are considering addressing diversity, making it essential to their business strategy. So the findings I'm talking about as facts are certainly encouraging and not what we were expecting based on what we read in the headlines.
Brancaccio: This means companies working to reduce the likelihood that their culture and systems are discriminatory. It may be based on moral obligation. That's the right thing to do. But we're also hearing business cases where it could actually contribute to the bottom line.
McGuire: It's completely business-driven. In my case, I tend to see better business outcomes because I focus on incorporating diverse businesses into a company's supply chain.
Brancaccio: And for people to fully understand the diversity of supply, it's something companies can choose from when deciding who to do business with.
McGuire: That's exactly right. It's about giving everyone and every entrepreneur an equal opportunity to compete. This is not a handout. These are therefore great reasons to buy from diverse suppliers to improve competitiveness and increase supply chain resilience.
Brancaccio: I want to ask: Are you still breaking traditional partisan lines? CEO A is conservative and not interested in diversity, equity, and inclusion. CEO B: Liberal, do you agree? Or is that not what you found?
McGuire: The survey found strong support across ideological and political persuasion. In fact, 75% of executives who describe themselves as politically conservative say that addressing diversity is essential to their company's business strategy. And that directly contradicts some claims that diversity is an inherently partisan topic. And McKinsey did a study. They found that ethnically and culturally diverse companies outperformed their competitors in terms of profitability by 36%. This shows that this isn't really about politics. Diversity is simply good business.
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