Glassdoor analysis shows embracing cultural diversity pays off for companies

A machine-learning analysis of 500,000 Glassdoor.com reviews of S&P 500 firms has shown that companies which embrace a diverse range of cultural values are more innovative an highly valued than companies with more uniform cultures.

Meanwhile, companies whose employees disagree on core values are less profitable than similar companies where workers are culturally aligned. 

The analysis was perfomed by  Berkeley Haas Assoc. Prof. Sameer Srivastava, Assoc. Prof. Amir Goldberg of Stanford's Graduate School of Business, and Asst. Prof. Matthew Corritore of McGill get a nuanced view of the cultures of different organizations and their relationship to business performance, drew on the power of the Computational Culture Lab, which Srivastava and Goldberg co-direct. The joint Berkeley-Stanford lab uses data science to develop new ways of measuring organizational culture. 

They used natural language processing and machine learning to analyze people's comments about the culture at their companies across 500,000 reviews of 492 firms posted between 2008 and 2015. 

Read the full story on Berkeley Haas News.

Media contact:

Laura Counts

lcounts@haas.berkeley

510.643.9977