Honestly, diversity means so much!
In the post-2020 newfound racial awareness in the U.S. following the murder of George Floyd, “diversity” has largely come to mean “racial diversity” and that is indeed one of the traditionally low points of the business school industry.
(Note: The MBA ecosystem is most definitely an industry! Even though academia tries to consider itself above the teeming masses of manufacturing and productivity in the world, by gosh, it’s totally an industry. Bschools are typically one of the major profit centers on a university campus. Given the complex interactions of the machinery between rankings and schools jockeying for standing amongst each other and of course the near-constant marketing that you get once you’re on a mailing list at a school, you better bet that there are real dollars moving through the cogs of this machine.)
Diversity does not only mean your ethnicity, though.
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That’s what really matters in the context of diversity. The adcom will want to understand who you are, as your identities, in order to imagine how you will influence and contribute to the dynamics of the student body and school community.