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A McKinsey report claimed a strong link between diversity and earnings before interest and tax (EBIT) using a specific methodology. However, it is important to critically evaluate the evidence before accepting any claim of diversity without careful examination. In fact, correlations between company performance and diversity are often less than clear-cut.

A more natural performance measure is total shareholder return (TSR), which reflects what investors actually receive from investing in a company. While EBIT is an important metric, it may not fully capture the impact of diversity on overall performance.

Therefore, it is essential to approach studies on diversity and company performance with a critical eye. By considering multiple factors and evaluating the evidence objectively, we can gain a more nuanced understanding of how diversity affects business outcomes. Ultimately, this will lead to more informed decision-making and better outcomes for both companies and investors alike.

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