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Podcast: The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving
Episode: 559: Professor of Finance at London Business School, Alex Edmans, on Why ESG and DEI Data May Contain Lies
Description: In this episode, finance professor and author, Alex Edmans, offers a rigorous examination of the narratives surrounding diversity, equity, and inclusion (DEI) in corporate strategy. Drawing on his critique of widely cited studies, including those from McKinsey and BlackRock, Edmans illustrates how flawed data interpretations and confirmation bias contribute to the persistence of questionable claims. He warns against relying on correlation-based research that lacks causal rigor, especially when such findings are used to justify high-stakes decisions in boardrooms and policy circles. Edmans identifies three recurring issues in the current DEI discourse: cherry-picked performance metrics that...