Ethnic/cultural diversity 9 Brazil, Mexico, Singapore, South Africa, United Kingdom, Top-team ethnic/cultural diversity is correlated with profitability. In our 2017 data and the United States. set, we looked at ethnic/cultural diversity in six countries where the definition of ethnic/ 10 As in our first report, 9 we measure ethnic diversity cultural diversity was consistent and our data were reliable. As in 2014, we found that using the normalized companies with the most ethnically/culturally diverse executive teams – not only in terms Herfindahl-Hirschman Index 10 – are 33% more (NHHI). See Methodology of absolute representation, but also of the variety or mix of ethnicities appendix for details. likely to outperform their peers on profitability. This is comparable to the 35% greater likelihood of outperformance reported in 2014, and both findings are statistically significant (Exhibit 4). Women are underrepresented in line roles; in our data set this holds true even for top-quartile gender-diverse companies experiencing above-average financial performance. 12