More Disclosure Is Not the Answer to Corporate Diversity Shortfalls

Alison Taylor Article 230 x 260

By Alison Taylor

By Alison Taylor

Listening to CEOs, investors, or the popular press, you would think the path to racial equity in the corporate world mainly involves disclosure, on the premise that actions speak louder than words and that “what gets measured gets managed.”

Not so fast. Fixating on the disclosure of diversity data, however well-intentioned, can perpetuate inequity rather than confront it.

The reason is simple: Making information available does not mean it will be used to change behavior. In fact, on everything from diversity to climate change and conflicts of interest, disclosure has become a substitute for action, not a driver of it. This is not just my opinion. A study from the University of Chicago Booth School of Business shows that getting a higher score on ESG issues is based on the number of metrics companies disclose, not even their quality.

Read the full Quartz article.

Alison Taylor is a Research Scientist for the Ethical Systems collaboration