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Why Business Leaders Should Stop Justifying Diversity with the Bottom Line

Why Business Leaders Should Stop Justifying Diversity with the Bottom Line
Diversity & Inclusion
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In his latest book "La diversité n’est pas ce que vous croyez", HEC Paris professor Olivier Sibony says it’s time to drop the flawed “business case” and fix the systems that perpetuate inequality.

olivier sibony HEC

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Why are you so critical of the idea that diversity is “good for business”? 

Because it’s an argument that doesn’t hold up under scrutiny. Research shows no reliable correlation between demographic diversity and corporate performance. Yet executives keep repeating it like a mantra. This wouldn’t be such a problem if it weren’t used to justify diversity efforts - but when the promised business benefits fail to materialize, it undermines the entire project. 

If fairness is the goal, we shouldn’t need a financial reason to pursue it.

You argue that the diversity problem in business is unique. Why is that? 

Because other sectors are doing better! In France, for example, women make up the majority of judges and doctors, and close to half of government ministers. In business, meanwhile, women still represent less than 10% of CEOs. If social stereotypes were the only explanation, we’d see the same imbalance across the board. But we don’t, which suggests that something specific to the way corporations operate is holding women and minorities back. That’s what the book tries to understand.

So if cognitive bias training isn’t the answer, what is? 

Changing systems. Companies spend billions trying to “de-bias” minds, but stereotypes are too ingrained to dissolve through training. It’s far more effective to redesign the structures that allow bias to influence decisions in the first place. Set fixed salaries instead of negotiating. Promote in batches so disparities are more visible. Stop relying on people to nominate themselves - use HR data to identify qualified candidates. These small changes make a real difference – and that’s when we might naturally see the C-suites evolve towards gender equity.

Why is self-nomination for promotions so problematic? 

Because nominations operate for the wrong reasons. Research shows men are more likely to overestimate their abilities and apply for jobs they’re not qualified for. Women often wait until they meet all the criteria - and even then, they hesitate. By asking people to raise their hands, companies reward overconfidence, self-promotion, and competitiveness. If those aren’t the traits you actually want in a leader, your process is working against you. Flip it. Identify who’s ready, and let them opt out instead.

What’s the role of experimentation in all this? 

It’s essential. There’s no one-size-fits-all solution - what works for a Silicon Valley startup may flop in a logistics company in Europe. One firm found that tweaking language in a job ad increased female applicants. That doesn’t mean you should copy their wording - it means you should test your own. Don’t look for model companies. Look for small, testable interventions. Treat your diversity strategy like you would a product launch: test, learn, and iterate.

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