X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Organizations that don’t embrace diversity will likely pay for it later on.

Smart credit union leaders have long known that they need to reflect the diversity of their membership and communities in management and on the board. It makes intuitive sense that in an increasingly diverse society, management and governing bodies should reflect the population they serve. Numerous studies confirm that this insight is correct, yet it is wise to consider diversity in even larger, more strategic terms, because companies that rank above average for diversity have higher margins, greater returns from innovation, improved customer/member-centric service and market awareness than less diverse peers.

A recent Wall Street Journal study reinforced what many other studies have shown. The Journal’s researchers, in their first diversity rankings of S&P 500 companies, concluded that the 20 most diverse companies had better operating results and higher compound average annualized return on investment than the lowest scoring organizations. Moreover, their shares outperformed those of the least-diverse firms. The Journal observed that a well-rounded workforce helps companies create better products and be more innovative, leading to growth in sales and profit. Similarly, a Harvard Business Review study reported how EBIT margins were about 9% higher in companies with greater management diversity than for those that were below-average. HBR also reported that when at least one team member shares a client’s ethnicity, the entire team is better able to understand the client’s needs than in those teams where no member shares that trait. And other studies by economists, demographers and research firms showed socially diverse groups are more innovative than homogeneous groups.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.