Morgan Stanley FAQ

Greater workplace equality continues to boost companies' performance, according to Morgan Stanley’s proprietary HERS ranking. Over a decade ago, Morgan Stanley Research analysts set out to understand if companies that increase their focus on gender diversity make an impact on their bottom line. Analysts did this by scoring companies based on gender diversity at all levels — board members, executives, managers and employees — and then comparing those scores against share-price performance. The most recent analysis proves again that gender diversity can drive results. Based on an examination of 1,875 firms on the MSCI World Index, those with greater gender diversity— and therefore a higher Holistic Equal Representation Score (HERS)— outperformed less gender-diverse firms (those with lower HERS rankings) by 1.6% in 2022. "We believe that it’s worth keeping an eye on companies that make sustainable progress on gender diversity in the workplace," shared Stephen C. Byrd, Head of Morgan Stanley's Global Sustainability Research team. Read on for more Morgan Stanley ideas.