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Investing in diversity: How public companies can promote inclusivity
Betty Liu, Executive Vice Chairman for NYSE Group, provides her perspective:
What role does diversity play in investing?
So, diversity has played an increasingly important role in investing. In an earlier episode, I talked about ESG - that's environmental, social and governance - and ESG factoring more into investment decisions. Diversity is a key component of ESG. It's seen as crucial in looking at good governance and good decision making. So, a growing number of investors are looking at diversity as a metric to show whether or not this company is worthy to invest in.
What are public companies doing to advance diversity today?
As you all have seen in the last several weeks, there has been an increasing focus on diversity and companies have come out and reaffirmed their commitment to diversity and also pledging to do better. So, some of those commitments include looking at pay equity as well as opportunities for advancement, real opportunities for advancement. One of the things we're doing at the New York Stock Exchange and I'm very proud of, is reform the NYSE Board Advisory Council, whose mission is to improve diversity on public and private company boards. We help our listed companies find and place diverse board candidates.
The Future of Environmental, Social, and Governance (ESG)
Kevin Sneader, global managing partner for McKinsey & Company, provides perspective on how corporate business leaders should reassess their approach to ESG criteria.
What's going to happen to Environmental, Social, and Governance (ESG)?
The answer in one way is quite simple, "S" is going to become a whole lot more important. Social. Many CEOs rushed to sign declarations of purpose at the end of last year. We're going to find out now what those mean. As I chatted with CEOs across the globe, one of things that struck in my mind from one of them was that now we have to deliver. What will it take to deliver on purpose? First thing is to be clear on what that purpose is. Many businesses have been working on that.
Most importantly, what are we going to do that's different?
Some simple words of advice come to mind. The first is make sure that our people will now see this in metrics, and in responsibility and accountability. This matters more than anything. Secondly, be clear on how you as a leader are going to hold people to account on those metrics. Thirdly, walk the talk. Make sure your own house is in order. Do everything you can to ensure that before you talk about what the world should do, you're clearer on what you should do