Corporate initiatives focused on diversity, equity and inclusion (DEI) for vulnerable social groups can change a company in many ways. According to researchers at the University of New Hampshire, how DEI affects a business' bottom line may depend on the presidential administration and the general public's perception at the time.
, the researchers analyzed the stock prices and public tweets of financial services firms listed in the Fortune 1000 related to DEI initiatives for LGBT groups and military veterans in the last 500 days of each presidency.
According to the study, during Obama's administration companies with DEI for LGBT saw their stocks decrease by 0.34%, while companies with DEI for veterans saw their stocks increase by 0.65%. During Trump's administration companies with DEI for LGBT saw their stocks increase by 0.24%, while companies with DEI for veterans saw very little change with stocks slightly increasing by 0.09%.
"DEI initiatives are important to companies—they can't thrive without engaging in socially responsible issues—but I think they just have to be smart about it, as well as any perceptions around any controversial topics, because if they don't, they will likely face a competitive disadvantage," said Kim."The key is that it is a matter of public perception and something they should be aware of, no matter who the is president.
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