CFO Studio magazine with David Turner, CFO, KPMG

M any successful companies regard diversity and inclusion as a source of competitive advantage. Bank of America Merrill Lynch held a discussion exploring the ROI of diversity and inclusion at the CFO Innovation Conference, hosted by CFO Studio, where Cathy Callahan, New Jersey Market Executive, Bank of America Merrill Lynch, interviewed Calandra Jarrell, Senior Vice President, Global Diversity, Bank of America Corporation, on the topic. Here are some highlights from the discussion. Defining D & I Cathy Callahan: What dowemean by diversity and inclusion (D&I)? Calandra Jarrell: Diversity is literally being seen. It is making sure we have the right amount of representation. Inclusion is being heard. I’ll say it this way: Diversity is the mix, inclusion is making the mix work. You can have the right amount of numbers at the table, but if you don’t feel included, then those numbers don’t mean anything. We have to make sure that our workforce feels like we have a great place to work in order to drive the revenue that we want. Achieving the right balance of D& I is fundamental to achieving that goal. Financial Impact of D & I Callahan: Most people think about D& I as an HR thing to worry about. But I think Bank of America Corporation has evolved to the point where we realize that there really is a true financial impact of D& I. So can you take us through the return on investment that a robust approach to D& I can help drive? Jarrell: We have data that shows that diverse teams outperform homogeneous teams. We also have data that shows that a more diverse thought perspective comes from having people from diverse backgrounds in the room. And that’s not just gender and ethnicity, it’s also diverse backgrounds. That’s when you get the diversity of thought that will help you to market to your customers. Leadership Matters Callahan: Howdoes theCFO impact diversity and inclusion? Jarrell: [to the audience]: How many of you in your roles as CFOs influence hiring decisions? How many of you have influence on the benefits package? That’s where your leadership and influence can make a difference. Most companies that have attractive benefits and wellness packages have a diverse mind-set. D & I, in terms of your company benefits, is giving somebody 16 weeks of maternity or paternity leave. Or, it’s giving benefits to someone who has a partner as opposed to a traditional spouse. So, there’s tons of ways you can influence D & I. There’s a Penalty for Opting Out Callahan: What are some of the consequences for notmoving in the direction of D&I? Jarrell: First, it puts the reputation of a brand at risk. No one wants to be known as the company that is not diverse and inclusive. Second, you will not be competitive in the marketplace if you tolerate a workplace environment where there is no diversity. Callahan: What dowe, as leadership within our companies, do to keep that fromhappening? Jarrell: The tone is set at the top. We can get the voice of the employee and the client all day long, but if your senior leadership and your CEOs aren’t brought into it, then it’s not going to work. It has to come from the top. It has to be role-modeled. C ACHIEVING BALANCE There’s financial relevance to promoting diversity The Inclusive Organization Calandra Jarrell, SVP Global Diversity, Bank of America Corp. Cathy Callahan, NJ Market Executive, BofA Merrill Lynch