Diversity reporting and the performance of JSE-listed companies

Abstract

"Diversity and inclusion make money!". This was the opening line that Gibran Registe- Charles, CEO and Founder of Urban Edge Capital, a London-based hedge fund, gave at a keynote address to MBA students during the International Business School (IBS) module on 19 January 2022 (Registe-Charles, 2022). The main premise of his address, and that of his company, was to show the market that diversity and inclusion are no longer just a “Human Resource paper exercise”, but a competitive advantage that can lead to increased performance and better returns for investors (Registe-Charles, 2022). This intriguing argument begs the question of how diversity and inclusion are reported within the South African market. This raises the question of whether diversity and inclusion shape company performance and if this information is available to investors. What information is available to investors who would like to focus their portfolios by including more diverse companies? Recommendations set out by the JSE (Johannesburg Stock Exchange) are to get a range of views in setting up and prioritising goals for sustainability, diversity and inclusion (JSE, 2021). Taken in the context of diversity and inclusion, it is not just the Human Resources Department or Chief Diversity Officer responsible for proposing how diversity and inclusion should be measured.