That joy of the market - everything gets tested against an absolute standard
It’s entirely possible that the standard diversity argument works. That a business which employs a diversity of staff will find that it is better able to serve the increasingly diverse consumer base. We do tend to think that it will be diversity of view, not gender or ethnicity, that matters but maybe that’s just us.
It’s also possible that the diversity movement does not in fact increase profitablility at a company. That the claims it does are simply a method of smuggling in a social or societal desire by being, umm, misleading shall we say.
As we say, either of those could be true. What we desire is some emthod of working out which is true. Not claims and counterclaims made by partisans on either or any side, but actually verifiable and unfakeable results.
Behind office doors, HR departments at some of Britain’s biggest businesses have recently been feeling defensive and on the backfoot.
Increasingly laid at their doors is the blame for allowing toxic identity politics to enter the workplace, and wasting millions of pounds on pointless diversity, equity and inclusion (DEI) schemes.
….
Fuelling this blame game are recent findings that Britain’s diversity drive is “counterproductive” despite businesses spending millions of pounds on ultimately ineffective workplace initiatives.
We’d not say that the evidence is wholly conclusive either way as yet. We’d also point out that we don’t in fact mind what the answer is. If attention to diversity is profit increasing then great, do more of it. And, of course, profit maximising businesses will do more of it - it’s profit maximising, they’re profit maximising, see? It’s also possible that it isn’t and so folk should do less as they will do less.
Our point isn’t about the answer at all. It’s about the method of working it out. The system of answering a question. Does x increase profits? Great, do some x and see whether, in a market economy - that is, the plan having to meet the marketplace - profits increase? If so then great, x is value additive. If not then don’t do x - it’s just a cost with no benefit.
All we insist upon is that it’s very useful to subject all claims to this same test. Does it actually work? In business that means do profits increase by having done it?
That is, it’s grand to have a system - that market - that actually answers questions for us.
Tim Worstall