Goldman Sachs received a flurry of media attention after announcing at Davos that it will carry out IPOs only for companies that have at least one woman or non-white board member. As CEO David Solomon put it, “Starting on July 1st in the U.S. and Europe, we’re not going to take a company public unless there’s at least one diverse board candidate, with a focus on women.”
Why Goldman Sachs’s Push for Diversity Is Unlikely to Drive Real Change
The bank announced it will only take public companies with at least one female or non-white board member.
February 20, 2020
HBR Staff/miniloc/Getty Images
Summary.
Goldman Sachs received a flurry of media attention after announcing at Davos that it will carry out IPOs only for companies that have at least one woman or non-white board member. This is an attempt to address a real problem: An analysis of “some of the most heavily funded private companies” found that 60% do not have any women on the board, and only 7% of seats are held by women. Although Goldman’s new rule may stem from the best of intentions, I see it as misguided and potentially damaging. This piece outlines why.
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HBR Learning
HBR Learning
Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.