Page 34 - The Case For Change

THE CASE FOR CHANGE 33

For the company’s change agents, understanding the cultural infl uence of your brand is a
key task. It speaks to the expectations of a brand among the many customers who represent
today’s diverse consumer.

“Being inclusive, socially responsible, and authentic are traits that can lead to increased trust
from the diverse consumer,” added Arsuaga. “But it cannot stop there. An allocation shift to
media super-serving the Multicultural and/or diverse consumer is a must. It is perhaps the
biggest challenge remaining for many marketers.”

A. BUSINESS IS BETTER WITH DIVERSITY AT ITS CORE

As seen in the chart below, diversity generates higher returns. According to McKinsey,
gender-diverse companies outperform the industry by 10 percent and ethnically-diverse
companies outperform the industry by 35 percent. Simply put, companies that prioritize ethnic
diversity in their executive ranks fi nancially outperform others. There is a direct correlation
between ethnic composition of staff and fi nancial growth: for every 10 percent increase in
racial and ethnic diversity on the senior executive team, earnings before interest and taxes
rise 0.8 percent (McKinsey, Why Diversity Matters, 2015).

Additionally, the study indicates that diverse companies:

• Had 2.3 times higher cash fl ow per employee over a three-year period
than non-diverse companies did