Diversity (business)

Diversity (business)

The "business case for diversity" stem from the progression of the models of diversity within the workplace since the 1960s. The original model for diversity was situated around affirmative action drawing strength from the law and a need to comply with equal opportunity employment objectives. This compliance-based model gave rise to the idea that tokenism was the reason an individual was hired into a company when they differed from the dominant group. This primarily included race, ethnicity, and gender. Although affirmative action is the law, in most cases, U.S. employers are prohibited by federal and state laws from giving race or ethnicity any consideration in hiring or assigning employees, including hiring to fill diversity quotas. However, the U.S. Supreme Court has upheld the use of limited preferences based on race, ethnicity, and sex, when there is a “manifest imbalance” in a “traditionally segregated job category”.

The social justice model evolved next and extended the idea that individuals outside of the dominant group should be given opportunities within the workplace, not only because it was the law, but because it was the right thing to do. This model still revolved around the idea of tokenism, but it also brought in the notion of hiring based on a "good fit". From social justice developed the model of representation and diversity acceptance where the scope of diversity expanded beyond gender, race and ethnicity to include age, sexual orientation, and physical ability. Today, the diversity model is one of inclusion which reflects a globalized economy and multicultural work force where value is placed on diversity of thought, and the perspectives shared from individual standpoints are seen to benefit organizations that are savvy enough to capitalize on them. The business case for diversity theorizes that, in a global marketplace, a company that employs a diverse workforce, is better able to understand the demographics of the marketplace it serves and is thus better equipped to thrive in that marketplace than a company that has a more limited range of employee demographics.

Beyond having a workforce that mirrors the changing demographics of the global consumer market and the ability to better understand their desires and preferences, productivity, and costs can be analyzed to assist in building the business case for diversity. In the deficit model, organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover which will result in higher costs to the company. On the other hand, a company choosing to foster an inclusive environment for increased productivity, better problem-solving capabilities, and increased market share is applying the investment model, or value-added model to diversity inclusion strategies. Either model, however, requires an intentional implementation from top leadership for the culture to truly be one of inclusion and acceptance.