AS THE WORLD speeds into a new economic era, Ernst & Young CEO James Turley hammers home several key points that many companies still seem to ignore in the year 2010. Accounting giant Ernst & Young and other U.S. multinationals anticipated the new global diversity arising years ago. In a BusinessWeek opinion piece ("The New Global Mindset: Fostering Diversity . . . Is the Key"), Turley writes that global financial crisis has compelled companies to examine "talent management and development, and the connection between diversity of thought and innovation." Turley also talks about global diversity and innovation in an Ernst & Young videotaped interview for the World Economic Forum's annual meeting in Davos, Switzerland:
On global demographics and capital (World Economic Forum): "Each company in the world needs to recognize the two big shifts that are taking place: Both the demographic shift . . . and the shift in capital flows from West to East, from developing markets to emerging markets. If a company doesn't recognize these two big shifts, they're going to be left behind."
On women entrepreneurs (World Economic Forum): "Economic analysis by the World Bank, the United Nations and Goldman Sachs show links between gender equality and the level of development of countries. Other studies examine the relationship between corporate financial performance and women in leadership roles. Their conclusion is that having a critical mass of women at the top improves financial performance. One of the most important changes we can make is to support the vast potential of women as an economic force."
On innovation and diversity (BusinessWeek): "The knee-jerk reaction is to relegate diversity to the realm of human resources, associated with fair hiring practices and good corporate citizenship. But any company that clings to that old-fashioned notion of diversity risks limiting its creative potential and ultimately losing its competitive edge. In a globalized world, diversity is much more than just a question of race or gender. It is a spectrum of attributes, including culture, generation, educational background, skills, personality, education, and life experiences. And research shows that capitalizing on these differences is a powerful factor in encouraging innovation. Leading companies have shown that visible benefits to the bottom line result from leveraging inclusive ways of thinking."
- Ernst & Young news release, "Diversity Drives Innovation."
- Ernst & Young survey of 520 senior executives, "The New Global Mindset."
- World Economic Forum, "Women Leaders and Gender Parity Programme."
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