How social investors, entrepreneurs can promote diversity, inclusion in portfolio companies

Creating an inclusive workplace can improve employee satisfaction, retention, and engagement. [iStockphoto]

In recent years, there has been a growing movement towards promoting diversity and inclusion in the workplace. This movement has gained particular momentum in the tech industry, where companies are recognising the importance of having diverse perspectives and experiences represented within their teams. But diversity and inclusion are not just important for tech companies - they are important for all types of businesses.

The case for diversity and inclusion has been made many times over. Studies have consistently shown that diverse teams are more innovative, creative, and effective than homogenous teams. For example, a study by McKinsey found that companies in the top quartile for ethnic and racial diversity in their executive teams were 33 per cent more likely to have above-average profitability than companies in the bottom quartile. Similarly, companies with more women on their boards or in leadership positions tend to outperform those with fewer women.