October 2023

Impact of Diversity and Inclusion on Decision Making

Diversity and inclusion practices have had a massive impact on corporate performance and are widely discussed in the business world today.

Improved Decision Making

Diversity and inclusion is bringing together individuals with a wide range of perspectives, experiences, and backgrounds. This has been shown to lead to better decision making, as a variety of viewpoints can help identify risks and opportunities that might otherwise be overlooked in a more homogeneous environment.

Enhanced Creativity and Innovation

Inclusive workplaces often foster creativity and innovation. When people from diverse backgrounds collaborate, they can develop more creative solutions to complex problems and services and opportunities that cater to a broader range of clients.

Better Understanding of Markets

Diverse teams can have a deeper understanding of diverse markets. This is particularly important in a global economy where businesses need to connect with customers from various cultural, social, and economic backgrounds.

Attracting and Retaining Talent

Companies that prioritise diversity and inclusion are often more attractive to top talent. In turn, they are more likely to retain their best people, leading to increased organisational stability and growth.

Mitigating Bias

An inclusive environment can help mitigate unconscious bias in decision making. By promoting fairness and equity, organisations can make more objective decisions and reduce the negative impact of bias on performance and transactions.

Compliance and Reputation

Many countries and regions have regulations and guidelines promoting diversity and inclusion. Companies that adhere to these compliance standards not only avoid legal issues but also build a positive reputation, which can be a valuable asset.

Customer and Stakeholder Expectations

Customers and stakeholders increasingly expect businesses to embrace diversity and inclusion. Companies that do not reflect these values may face backlash and loss of market share.

Risk Mitigation

Diverse boards and management teams are often better at identifying and managing risks. This can be especially important in the context of corporate performance and transactions, where strategic decisions can have significant consequences.

Corporate Performance Panel

This year, during IBA 2023 in Paris, two committees of the International Bar Association – “Corporate and M&A Law” and “Diversity and Equality Law” – will convene to discuss key trends in the world of business.

Penteris Managing Partner Agnieszka Pytlas will be sharing her insights in the panel entitled “Impact of Diversity and Inclusion on decision making and outcomes in corporate performance and transactions”.

The session will discuss how the push for diversity is driving a positive shift in governance and corporate transactions overall.