Diversity: a Competitive Advantage for Business Vera Budway-Strobach Head of Diversity & Inclusion

1. The Business Case for Diversity2. Diversity & Innovation 3. Unconscious Bias AGENDA

Challenges Facing 21 st Century Organizations Cultural Social EconomicTechnology Mobility Cloud economy Digitalization Activity-based working Flexibility Digital natives Demographics Migration & immigration Female shift Ageing society “War for talent” Shrinking markets Low to no growth Globalization of the workplace Innovation Global competition Communities Work-life balance CSR & sustainability Shared-use Cultural diversity Social media

Diversity is Good for Business Broader talent pool Work environment Decision making Innovation New markets New customers

Diversity Drives Performance 66% higher return on invested capital 56% higher EBIT margin 55% higher total shareholder return Up to 41% higher ROE 26% better share price performance Investment funds: Barclays Women in Leadership Index, Calpers, Amazone, Naissance Capital Studies show that companies with diversity on Boards have: 5 Source: McKinsey „Women Matter“ series, Credit Suisse, Catalyst, Roland Berger

Equal participation of women in the economy, would add an additional $28 trillion or 26% to annual global GDP by 2025 SOURCE: McKinsey, “The power of parity: how advancing women´s equality can add 12 trillion to global growth”, September 2015

Diversity & Clients

Diverisity & Innovation Diversity is a key driver of innovation + critical for being successful on a global scale Senior executives are recongnizing that a diverse set of experiences, perspectives + backgrounds is crucial to innovation and the development of new ideas. When asked about the relationship between diversity + innovation, the majority agreed that diversity is crucial to encouraging different perspectives & ideas that foster innovation. (Forbes insights, pg 3)

„ If Lehman Brothers had been a bit more Lehman Sisters... We would not have the degree of tragedy that we had as a result of what happened“ Christine Lagarde LEHMAN BROTHERS SISTERS

Investing 101 A diverse portfolio of risk is always better than a concentrated portfolio

Your team is your portfolio

unconscious bias

Who would you hire?

Check your Bias Harvard Impicit Association Test Test your bias in over 90 different areas

Dealing with Personal Bias Recognize Observe biased situations Analyze your perception process Identify your hidden beliefs Reduce

Checking for Bias in HR Check HR processes Identify key decision points Anti-bias training Create a culture of calling out bias Develop & implement a D&I strategy

Target Setting & Remuneration Target Setting & Remuneration Recruitmen, Retention & Talent Recruitmen, Retention & Talent Culture & Commitment Culture & Commitment Target setting with Board – diversity KPIs Monitoring diversity indicators Monitor and close the gender pay gap Target setting with Board – diversity KPIs Monitoring diversity indicators Monitor and close the gender pay gap Inclusive work environment Awareness raising Corporate culture (ethics code, CSR) UN Global Compact / Diversity Charter Inclusive work environment Awareness raising Corporate culture (ethics code, CSR) UN Global Compact / Diversity Charter HR tools, processes Succession planning Balanced talent pools, transparency Mentoring Employee Resource Groups HR tools, processes Succession planning Balanced talent pools, transparency Mentoring Employee Resource Groups Putting Diversity into Action

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