In “How Diversity Makes Us Smarter“, Katherine Phillips highlights numerous findings illustrating the benefits of diversity.
On the financial benefits:
business professors Cristian Deszö of the University of Maryland and David Ross of Columbia University studied the effect of gender diversity on the top firms in Standard & Poor’s Composite 1500 list… [and] found that companies that prioritized innovation saw greater financial gains when women were part of the top leadership ranks.
in 2003, Orlando Richard, a professor of management at the University of Texas at Dallas, and his colleagues surveyed executives at 177 national banks in the U.S., then put together a database comparing financial performance, racial diversity and the emphasis the bank presidents put on innovation. For innovation-focused banks, increases in racial diversity were clearly related to enhanced financial performance.
In August 2012 a team of researchers at the Credit Suisse Research Institute issued a report in which they examined 2,360 companies globally from 2005 to 2011,… [and] found that companies with one or more women on the board delivered higher average returns on equity, lower gearing (that is, net debt to equity) and better average growth.
On creative problem-solving and decision-making:
In 2006 Margaret Neale of Stanford University, Gregory Northcraft of the University of Illinois at Urbana-Champaign and I set out to examine the impact of racial diversity on small decision-making groups in an experiment where sharing information was a requirement for success. … The groups with racial diversity significantly outperformed the groups with no racial diversity.
In 2004 Anthony Lising Antonio, a professor at the Stanford Graduate School of Education, collaborated with five colleagues from the University of California, Los Angeles, and other institutions to examine the influence of racial and opinion composition in small group discussions. … When a black person presented a dissenting perspective to a group of whites, the perspective was perceived as more novel and led to broader thinking and consideration of alternatives than when a white person introduced that same dissenting perspective.
professors of management Denise Lewin Loyd of the University of Illinois, Cynthia Wang of Oklahoma State University, Robert B. Lount, Jr., of Ohio State University and I asked 186 people whether they identified as a Democrat or a Republican, then had them read a murder mystery and decide who they thought committed the crime. … Democrats who were told that a fellow Democrat disagreed with them prepared less well for the discussion than Democrats who were told that a Republican disagreed with them. Republicans showed the same pattern.
Richard Freeman, an economics professor at Harvard University and director of the Science and Engineering Workforce Project at the National Bureau of Economic Research, along with Wei Huang, a Harvard economics Ph.D. candidate, examined the ethnic identity of the authors of 1.5 million scientific papers written between 1985 and 2008 using Thomson Reuters’s Web of Science, a comprehensive database of published research. They found that papers written by diverse groups receive more citations and have higher impact factors than papers written by people from the same ethnic group. Moreover, they found that stronger papers were associated with a greater number of author addresses; geographical diversity, and a larger number of references, is a reflection of more intellectual diversity.
In a 2006 study of jury decision making, social psychologist Samuel Sommers of Tufts University found that racially diverse groups exchanged a wider range of information during deliberation about a sexual assault case than all-white groups did.
Phillips concludes that diversity promotes hard work and creativity through greater information-sharing and perspective-taking.