On Sunday, Governor Greg Abbott gave his two -year state address. This is a speech where the governor describes their advantages of politics and provides an update on the status of the Lone Star State.
In his 30-minute speech, Abbott spoke of things as property taxes, immigration and reform of the state education system-but he also mentioned diversity, equality and inclusion, or dei. Dei refers to a type of program or initiative aimed at giving historically marginalized groups opportunities to advance.
For supporters of these efforts, Dei is often described as good for diversity, but also good for business. But how true is this?
Bloomberg columnist and economist of the Manhattan Allison Schger Institute joined the standard Texas for more analysis. Listen to the above interview or read the transcript below.
This transcript is easily edited for clarity:
Texas Standard: In your last column, you write that when it comes to Dei, it is “difficult to be agnostic on this issue”. What do you mean by that?
Allison Schger: Well, that’s for sure. I mean, in the column, I explain that followers have always shown evidence of evidence that diversity is good for business.
It was this idealistic argument – that everyone with a different ethnic background or genres have a different living experience. So if you merge people with different lives lived, they will make somewhat better decisions that will be better for business.
What I argue in my column is that, after all, Dei comes down to values. If we continue with dei or reform it, it must be based on values, and people should be very clear what their values are.
And when you talk about values, are you referring to the advantages within a business, or are you talking about personal value?
Well, personal values, that is why it is so difficult at the business level.
People just have to be clear about it. On the one hand, Dei’s supporters see it as a way to correct historical injustice – people are closed by roles, and the fact that we still have a higher portion of white men in these positions. They see it as bad, and Dei as a way to address it.
On the other hand, opponents see employment based on race and gender as just another form of discrimination. And I argue that both sides have a point. This makes it a wild issue for companies in the private sector, as they are forced to take a stand in one way or another.
You mention data and say that it does not support the idea that Dei is good for business. Sometimes you are specifically referring to?
Well, many advisory firms, financial firms and research institutes within universities have tried to argue that Dei increases benefit and sales. But academics with more rigorous statistical training have reviewed those studies – measuring things such as returning shares and more carefully profits – and found that there is really no link between having a more diverse board or high management and business performance.
Some studies even find a negative connection, though the cause is difficult to determine. There is simply no strong evidence that Dei improves business performance.
That being said, there is also no major evidence that exacerbates the business. That is why I argue that, after all, it really comes down to values.
Is there any version of Dei that can provide opportunities for under -represented groups while also benefiting businesses, as you can see?
Yes. Alex Edmans, a professor at London Business School, is one of the most vocal research critics he claims to be good for business. But he still supports Dei – simply defined differently.
He argues that you cannot say alone, “we have many women or minorities on board”, and assumes it is progress. On the contrary, you must ask: Is there evidence that the job is really comprehensive, where people feel heard and where the environment feels right?
There is evidence that a fair and inclusive job improves benefit. In fact, race -based employment can sometimes undermine justice perceptions.
But after all, we should all strive for a job, where everyone thinks they can succeed if they are talented, work hard and perform well.