Goldman's Anadu on Ethnic and Gender Diversity in the Workplace

Goldman Sachs Asset Management emphasizes the importance of board diversity for improved performance and sustainability. They use proxy voting to enforce diversity standards, requiring companies to have diverse board members. This approach has shown positive results, with increased gender and ethnic diversity leading to better financial outcomes. The focus is on performance benefits rather than moral obligations, with evidence supporting higher returns and innovation from diverse teams.

What tool has Goldman Sachs Asset Management used to enforce board diversity since 2019?

• Public campaigns

• Financial incentives

• Legal action

• Proxy voting

What new requirement will Goldman Sachs Asset Management enforce for S&P 500 boards?

• At least one member from an underrepresented minority group

• A minimum of three women on the board

• A majority of independent directors

• Mandatory environmental sustainability reports

How does increased diversity on boards impact company performance according to the transcript?

• It leads to higher marketing costs

• It results in lower employee satisfaction

• It causes a decrease in innovation

• It contributes to higher return on equity and lower stock volatility

What societal benefit is associated with having a more diverse management team?

• Reduced need for training programs

• Increased regulatory scrutiny

• Higher employee turnover

• Enhanced engagement with a diverse customer base

What is the primary focus of Goldman Sachs Asset Management's diversity efforts according to the transcript?

• Public relations

• Regulatory compliance

• Performance improvement

• Moral obligation