Key Takeaways
- While gender and ethnicity shape experiences, real diversity extends beyond demographic representation. Companies that focus solely on hitting diversity quotas without integrating diverse perspectives into decision-making risk missing the true business benefits of inclusion.
- Some companies treat DE&I as a branding exercise, making public commitments without changing internal cultures or leadership dynamics. Diversity only creates value when it is embedded in decision-making processes and actively leveraged to drive innovation and adaptability.
- Research shows that diverse teams can face friction and slower decision-making, but when managed effectively, they produce better outcomes. Like an orchestra needing a skilled conductor, companies must cultivate leadership that embraces and integrates different perspectives for long-term success.
As soon as President Donald Trump took office, he began signing executive orders—one of which declared Diversity, Equity & Inclusion (DE&I) policies and programs illegal in order to “protect the civil rights of all Americans.”
Since then, we have seen corporations such as Goldman Sachs, Bank of America, Google, Amazon, and Target, among others, rolling back their DE&I programs. This shift raises a critical question: as companies navigate a changing political landscape in a country where government contracts are critical to its economy, are they abandoning evidence-based strategies that have proven effective in enhancing stakeholder value?
To explore that question, Clarity AI’s CEO, Rebeca Minguela, and Head of Product Research & Innovation, Patricia Pina, sat down for a candid discussion on what diversity really means in a business context—and why some companies are getting it wrong.
Defining Diversity: More Than Just a Numbers Game
Rebeca: You know, I was looking at some of the latest headlines on DE&I rollbacks, and I have to say—it’s like watching companies try to outdo each other in a race to ignore science. But let’s be real, is diversity always the golden ticket?
Patricia: I get what you’re saying, but let’s not pretend that gender and ethnicity don’t shape perspectives. The reason those factors are measured is because they do correlate with different life experiences.
Both academic and industry research provide strong evidence supporting this thesis. McKinsey & Co.’s latest Diversity Report found that companies with greater diversity on their boards of directors are more likely to outperform financially, with statistically significant correlations for both gender and ethnicity.
Rebeca: I’m not saying we ignore them—I just think we need a broader definition. Otherwise, we risk forcing diversity in ways that create more problems than they solve. I’ve seen teams thrown together for the sake of optics, and instead of driving innovation, they just slow down decision-making. Not all diversity is productive if it’s not properly integrated.
Patricia: Fair point. Diverse teams can definitely experience friction. But friction isn’t inherently bad—it’s a sign that different viewpoints are being challenged. Research shows that while diverse teams might take longer to reach decisions, their outcomes tend to be better. The key is strong leadership. Think of it like an orchestra—without a skilled conductor, it’s chaos. But when you manage it well, you get something powerful.
The Pitfalls of Performative Diversity
Rebeca: Okay, but what about performative diversity? Some companies treat it like a PR stunt, like slapping a new coat of paint on a crumbling building. They make big announcements about hiring more women or people of color but don’t actually change their decision-making culture. That’s not diversity—it’s branding.
Patricia: No argument there.
Rebeca: Exactly. We’re in the business of sustainability analytics—our whole job is helping financial institutions make data-driven decisions. If we believe in data for business strategy, we should apply that same rigor to our own people strategy. Diversity isn’t a checkbox—it’s a tool. But like any tool, if you don’t know how to use it, it’s useless.
Diversity as a Competitive Advantage
Patricia: Couldn’t have said it better. Done right, DE&I isn’t about compliance—it’s about competitive advantage. It’s about actually leveraging differences, not just having them for show. That’s what makes businesses more adaptable and resilient.
Rebeca: And you know what? This conversation itself is proof that diversity is more than just gender and race. Here we are—two white women—bringing very different perspectives to the table. If that doesn’t demonstrate the power of real diversity, I don’t know what does.
