THE CEO OUTDOOR EQUITY PLEDGE ADVANTAGE
Diversity of thought, experience, and people in leadership teams is critical for innovation, financial performance, decision-making, and relevance. By pledging to elevate inclusive workplaces where diversity of experience and people as a strategic business imperative, you’re setting your company—and your brand—above the status quo.
One of the biggest opportunities for member companies in the next 10 years will be to attract talented, diverse employees with specialized skills, who understand the consumer’s needs.
Because the active-outdoor industries rely on technology and engineering for innovation, we are in direct competition with Fortune 500 companies in the energy, automobile, and hi-tech sectors for talent.
Companies with diverse leadership teams perform better than those without on a variety of indicators including return on invested capital, firm value, and stock price growth.
Companies with women, people of color, and members of the LGBTQ community in leadership roles, like director positions, also have a lower risk of insolvency even when controlling for the background and experience of the director (Wilson & Altanlar, 2009)
Board of Directors:
– 53% higher return on equity
– 42% higher return on sales
– 66% higher return on invested capital
(Joy, Carter, Wagner, & Narayanan, 2007):
– 41% higher return on equity
– 56% higher EBIT (operating results)