Two different lines of research into how investors react to the appointment of Black CEOs finds that while there are often short-term negative reactions, some types of shareholders, such as institutional investors, react more positively. Research finds that there is no difference in the actual financial performance of Black CEOs and their peer CEOs. The article suggests ways to mitigate bias in CEO hiring.

Data analytics is key to gaining a clear picture of diversity, equity, and inclusion in an organization and designing more effective interventions, but few managers are collecting the right data in the right way. The authors review common missteps and problematic approaches and provide guidance to managers to improve their data collection strategies and practices around DEI.

Protests against racial injustice in the summer of 2020 resulted in a raft of corporate statements against racism, along with new racial equity initiatives. To effect meaningful change, businesses must maintain their commitments over time to address the concerns of their employees, customers, and other stakeholders. The authors suggest ways employers can ensure that their anti-racist statements continue to be backed by concrete actions.

Leaders must engage with the issue of racism and discrimination, both because of its effect on employees and in order to demonstrate their genuine commitment to diversity and human rights. Here are five actions your organization can take right now to contribute to addressing the national issue of racism and help your employees cope.