More Disclosure Is Not the Answer to Corporate Diversity Shortfalls
— June 30, 2021
By Alison Taylor
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