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The business case for diversity is not always clear-cut

The business case for diversity is not always clear-cut

HR bosses say greater workplace diversity is good for a company’s bottom line. Critics emboldened by Donald Trump say there’s no evidence to support that. The answer lies somewhere in the middle.

President Donald Trump signs an executive order on TikTok in the Oval Office of the White House, Monday, Jan. 20, 2025, in Washington. (AP Photo/Evan Vucci)

One of the many executive orders signed by President Donald Trump last month ordered federal government agencies to ditch their DEI initiatives. AP

If you’ve ever sat through a staff meeting on diversity, equity and inclusion, chances are you’ve heard that such programs are good for the bottom line.

The assertion that greater workplace diversity leads to improved financial performance has become a sacred cow for human resources executives and is often used in organisations to secure C-suite support for DEI work.

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Euan Black
Euan BlackWork and careers reporterEuan Black is a work and careers reporter at The Australian Financial Review. Email Euan at euan.black@afr.com

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Original URL: https://www.afr.com/work-and-careers/workplace/the-business-case-for-diversity-is-not-always-clear-cut-20250131-p5l8l5