Diversity (business)

'''Diversity''', in a business context, means ensuring that the workforce mix is representative of the local population. It is achieved through hiring employees in alignment with business needs and including individuals from a variety of different backgrounds and identities into appropriate levels of the organization, and consistently investing in their development and promotion. Advancing diversity is believed to not only support equity in the workplace but also ensure the stability of the broader social infrastructure in which the business operates, by fostering inclusion, reducing societal tension, and strengthening community resilience. Diversity characteristics may include various legally protected groups, such as people of different religions or races, or backgrounds that are not legally protected, such as people from different social classes or educational levels. A business or workplace with people from a variety of backgrounds is called ''diverse,'' and one with individuals who are very similar to each other is called ''not diverse''.

Proponents of diversity argue that businesses benefit by having '''diversity in the work force'''.<ref>{{Cite web |title=Why Diversity and Inclusion Are Good for Business |url=https://online.uncp.edu/articles/mba/diversity-and-inclusion-good-for-business.aspx |access-date=2023-05-02 |website=The University of North Carolina at Pembroke Online |date=27 October 2021 |language=en |archive-date=2023-05-02 |archive-url=https://web.archive.org/web/20230502161757/https://online.uncp.edu/articles/mba/diversity-and-inclusion-good-for-business.aspx |url-status=live }}</ref><ref>{{Cite news |last1=Ely |first1=Robin J. |last2=Thomas |first2=David A. |date=2020-11-01 |title=Getting Serious About Diversity: Enough Already with the Business Case |work=Harvard Business Review |url=https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case |access-date=2023-05-02 |issn=0017-8012 |archive-date=2023-05-03 |archive-url=https://web.archive.org/web/20230503185401/https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case |url-status=live }}</ref><ref>{{Cite web |title=HR022/HR022: Diversity in the Workplace: Benefits, Challenges, and the Required Managerial Tools |url=https://edis.ifas.ufl.edu/publication/HR022 |access-date=2023-05-02 |website=edis.ifas.ufl.edu |language=en |archive-date=2023-05-02 |archive-url=https://web.archive.org/web/20230502161800/https://edis.ifas.ufl.edu/publication/HR022 |url-status=live }}</ref> The institutional catalyst for diversity stems from the progression of diversity models within the workplace since the 1960s. In the United States, the social justice model for diversity was originally situated around affirmative action drawing from equal employment opportunity initiatives implemented in the Civil Rights Act of 1964. Equal employment opportunity was centered around the idea that any individual academically and physically qualified for a specific job could strive for (and possibly succeed) at obtaining that job without being discriminated against based on identity. These initiatives were met with accusations that tokenism, above other factors, was the reason that individuals from minority groups were being hired. The deficit model explains why dissatisfaction among minority groups led to a moral imperative for diversity efforts that extend beyond the idea of equal opportunities across the workforce.{{cn|date=January 2025}}

The business case perspective proposes that organizations which do not have an inclusive culture will invite lower productivity, higher absenteeism, and higher turnover, which will result in higher costs to the company.<ref>{{cite book |last=Harvey |first=Carol P. |title=Understanding and Managing Diversity |publisher=Pearson Education, Inc. |year=2015 |isbn=978-0-13-354819-8 |location= |pages=338}}</ref> Establishments with higher diversity have a lower incidence of unionization attempts.<ref>Ferguson, J.-P. (2016). Racial Diversity and Union Organizing in the United States, 1999–2008. ILR Review, 69(1), 53–83. https://doi.org/10.1177/0019793915602253</ref>

== Purported benefits and negative results== Diversity is believed by some to bring substantial benefits such as better decision making and improved problem solving,<ref>{{Cite journal |last1=Boroomand |first1=Amin |last2=Smaldino |first2=Paul E. |date=2021 |title=Hard Work, Risk-Taking, and Diversity in a Model of Collective Problem Solving |url=https://www.jasss.org/24/4/10.html |journal=Journal of Artificial Societies and Social Simulation |language=en |volume=24 |issue=4 |pages=10 |doi=10.18564/jasss.4704 |s2cid=240483312 |issn=1460-7425 |doi-access=free |access-date=2022-08-11 |archive-date=2022-08-11 |archive-url=https://web.archive.org/web/20220811062411/https://www.jasss.org/24/4/10.html |url-status=live }}</ref> greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers.<ref name="Cox 1991"/><ref name=Harvey>{{cite book|last=Harvey|first=Carol P.|title=Understanding and Managing Diversity|year=2012|publisher=Pearson Education, Inc.|location=New Jersey|isbn=978-0-13-255311-7|pages=xii–393|edition=5th|author2=M. June Allard}}</ref> Diversity is also claimed to enhance organizations' abilities to compete in global markets.<ref name="Fine, Marlene G. 1996">Fine, Marlene G. (1996). "Cultural Diversity in the Workplace: The State of the Field". ''Journal of Business Communication, 33''(4), 485-502.</ref> Simply recognizing diversity in a corporation is said to link the variety of talents within the organization.<ref>De Pree, Max. ''Leadership is an Art''. New York: Doubleday Business, 1989. print</ref><ref>{{Cite web| url=http://onlinemasters.ohio.edu/public-administration-building-more-diverse-public-organizations-and-businesses/| title=Public Administration: Building More Diverse Public Organizations and Businesses| date=2018-03-21| access-date=2017-07-06| archive-date=2017-07-19| archive-url=https://web.archive.org/web/20170719090413/http://onlinemasters.ohio.edu/public-administration-building-more-diverse-public-organizations-and-businesses/?| url-status=live}}</ref> However, there is no conclusive evidence that token diversity yields a competitive advantage; rather, without diversity of thought, a supportive culture, and collaborative decision-making, diversity may negatively affect performance.<ref>{{Cite journal |last=Dobbin |first=Frank |last2=Kalev |first2=Alexandra |date=September 2018 |title=Why Doesn't Diversity Training Work? |url=https://scholar.harvard.edu/files/dobbin/files/an2018.pdf |journal=Anthropology Now |volume=10 |issue=2}}</ref><ref>{{cite journal | url=https://hbr.org/2019/03/when-and-why-diversity-improves-your-boards-performance | title=When and Why Diversity Improves Your Board's Performance | journal=Harvard Business Review | date=27 March 2019 | last1=Creary | first1=Stephanie | last2=McDonnell | first2=Mary-Hunter ("Mae") | last3=Ghai | first3=Sakshi | last4=Scruggs | first4=Jared }}</ref><ref>{{cite journal | url=https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case#:~:text=A%202015%20survey%20of%20Harvard,leads%20to%20improved%20financial%20outcomes. | title=Getting Serious About Diversity: Enough Already with the Business Case | journal=Harvard Business Review | date=November 2020 | last1=Ely | first1=Robin J. | last2=Thomas | first2=David A. }}</ref> Despite this, a 2024 research showed that there is a plausibly causal link (not only a correlation) between workforce gender diversity and financial performance in major firms,<ref>{{Cite journal |last1=Daniels |first1=David P. |last2=Dannals |first2=Jennifer E. |last3=Lys |first3=Thomas Z. |last4=Neale |first4=Margaret A. |date=2024-08-27 |title=Do Investors Value Workforce Gender Diversity? |url=https://pubsonline.informs.org/doi/10.1287/orsc.2022.17098 |journal=Organization Science |volume=36 |pages=313–339 |language=en |doi=10.1287/orsc.2022.17098 |issn=1047-7039|url-access=subscription }}</ref> according to a study that measured financial performance using stock returns (which are a very common measure of firm performance in finance, economics, accounting, and management research).<ref>{{Cite journal |last=Zhang |first=Letian |date=March 2020 |title=An Institutional Approach to Gender Diversity and Firm Performance |url=https://pubsonline.informs.org/doi/10.1287/orsc.2019.1297 |journal=Organization Science |language=en |volume=31 |issue=2 |pages=439–457 |doi=10.1287/orsc.2019.1297 |issn=1047-7039|url-access=subscription }}</ref><ref>{{Cite web |last=Edmans |first=Alex |date=2024-03-12 |title=Discernment matters even more |url=https://maycontainlies.com/discernment-matters-even-more/ |access-date=2024-11-21 |website=May Contain Lies |language=en-GB}}</ref> Mathematical modeling research of team work by Scott Page demonstrates that heterogeneous teams consistently out-performed homogeneous teams on a variety of tasks.<ref>{{cite book |last=Page |first=Scott |author-link= |url=https://archive.org/details/differencehowpow0000page |title=The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies |publisher=Princeton University Press |year=2007 |isbn=978-0-691-12838-2 |location=Princeton, N.J. |url-access=registration}}</ref>

Page points out, however, that diversity in teamwork is not always simple and that there are many challenges to fostering an inclusive environment in the workplace for diversity of thought and ideas. For example: "If we look at the evidence on whether identity diverse collections of people perform better than more homogeneous collections, we see mixed results at every level. At the country level, we find that in advanced economies, ethnic diversity proves beneficial. In poorer countries, it causes problems. In cities, we see similar effects. Diversity has the same pluses and minuses. Cognitive diversity increases innovation. Preference diversity leads to squabbles" (p. 14). Also, "We have no logical reason to think that identity diverse groups would perform better than more homogenous groups – unless we believe that mysterious collective cognitive capability emerges from the interactions of people with diverse identities" (p. 326).

In order to benefit from diversity, keep organizations competitive, and drive business success, comprehensive strategies are required that encompass all dimensions of diversity (race, gender, cognitive styles, beliefs, experience etc.).<ref>{{cite news |last1=Kwamu-Nana |first1=Setche |date=September 19, 2020 |title=Diversity of thought at your company: A façade or a hidden gem? | url = https://www.sandiegouniontribune.com/business/story/2020-09-19/column-diversity-of-thought-at-your-company-a-facade-or-a-hidden-gem | access-date =14 May 2023| archive-url= https://web.archive.org/web/20230514032627/https://www.sandiegouniontribune.com/business/story/2020-09-19/column-diversity-of-thought-at-your-company-a-facade-or-a-hidden-gem | archive-date= 14 May 2023 |newspaper=The San Diego Union-Tribune}}</ref>

A study of diversity efforts in a Swedish workplace led the authors to conclude, "it is futile to describe diversity work in terms of success or failure." The authors called for efforts toward diversity, but could not point to evidence that it was measurably helpful.<ref>Risberg, Annette, and Hervé Corvellec. "The significance of trying: How organizational members meet the ambiguities of diversity." ''Gender, Work & Organization'' 29, no. 6 (2022): 1849-1867. [https://onlinelibrary.wiley.com/doi/10.1111/gwao.12883]</ref>

==Classification of workplaces==

In a journal article entitled "The Multicultural Organization", Taylor Cox Jr. talks about three organization types that focus on the development of cultural diversity. The three types are:

* the monolithic organization, * the plural organization, and * the multicultural organization.

In the monolithic organization, the amount of structural integration (the presence of persons from different cultural groups in a single organization) is minimal. This type of organization may have minority members within the workforce, but not in positions of leadership and power.<ref name="Cox 1991">Cox, Jr., Taylor (1991). "The Multicultural Organization". ''Academy of Management Executive, 5''(2), 34-47.</ref> Even though Diversity, Equity, and Inclusion are three interconnected concepts represented by the abbreviation DE&I, they are not interchangeable. Diversity without equity and inclusion is often perceived as "tokenism".<ref>{{Cite web |last=Bush |first=Matt |title=Why Is Diversity & Inclusion in the Workplace Important? |url=https://www.greatplacetowork.com/resources/blog/why-is-diversity-inclusion-in-the-workplace-important |website=Great place to work |access-date=2022-09-22 |archive-date=2022-09-22 |archive-url=https://web.archive.org/web/20220922122101/https://www.greatplacetowork.com/resources/blog/why-is-diversity-inclusion-in-the-workplace-important |url-status=live }}</ref>

The plural organization has a more heterogeneous membership than the monolithic organization and takes steps to be more inclusive of persons from cultural backgrounds that differ from the dominant group. This type of organization seeks to empower those from a marginalized standpoint to encourage opportunities for promotion and positions of leadership.<ref name="Cox 1991"/>

==Challenges== One of the greatest challenges an organization has when trying to adopt a more inclusive environment is assimilation for any member outside the dominant group. The interplay between power, ideology, and discursive acts which reinforce the hegemonic structure of organizations is the subject of much study.<ref name=Mumby>{{cite book|last=Mumby|first=Dennis|title=Communication and Power in Organizations|year=1988|publisher=Ablex Publishing|location=New York|isbn=978-1-56750-160-5|pages=1–210}}</ref> Everything from organizational symbols, rituals, and stories serve to maintain the position of power held by the dominant group.<ref name=Mumby />

When organizations hire or promote individuals that are not part of this dominant group into management positions, a tension develops between the socially constructed organizational norm and acceptance of cultural diversity.{{citation needed|date=June 2020}} Some have claimed that cultural diversity in the workplace will increase interpersonal conflicts.{{citation needed|date=December 2019}} Often these individuals are mentored and coached to adopt the necessary traits for inclusion into the privileged group as opposed to being embraced for their differences.<ref name=Harvey /><ref name="Allen 1995 143–55">{{cite journal|last=Allen|first=Brenda J.|title=Diversity and Organizational Communication|journal=Journal of Applied Communication Research|date=September 1995|volume=23|issue=2|pages=143–55|doi=10.1080/00909889509365420}}</ref> According to the journal article "Cultural Diversity in the Workplace: The State of the Field", Marlene G. Fine explains that "those who assimilate are denied the ability to express their genuine selves in the workplace; they are forced to repress significant parts of their lives within a social context that frames a large part of their daily encounters with other people". Fine goes on to mention that "People who spend significant amounts of energy coping with an alien environment have less energy left to do their jobs. Assimilation does not just create a situation in which people who are different are likely to fail, it also decreases the productivity of organizations".<ref name="Fine, Marlene G. 1996"/> That is, with a diverse workforce, management may have to work harder to reach the same level of productivity as with a less diverse workforce.

Another challenge faced by organizations striving to foster a more diverse workforce is the management of a diverse population. Managing diversity is more than simply acknowledging differences in people.<ref>{{cite book | last = Vaughn | first = Billy | author-link = Billy e. Vaughn, PhD | title = High Impact Diversity Consulting | publisher = Diversity Training University International Publications Division | year = 2006 | location = San Francisco, CA. | url = http://www.dtui.com/consultbkadvall.html | access-date = 2008-11-30 | archive-date = 2013-05-17 | archive-url = https://web.archive.org/web/20130517164939/http://www.dtui.com/consultbkadvall.html | url-status = live }}</ref> A number of organizational theorists have suggested that work-teams which are highly diverse can be difficult to motivate and manage for a variety of reasons. A major challenge is miscommunication within an organization. Fine reported a study of "work groups that were culturally diverse and found that cross-cultural differences led to miscommunication".<ref>p. 494. Fine, Marlene G. (1996). "Cultural Diversity in the Workplace: The State of the Field". ''Journal of Business Communication, 33''(4), 485-502.</ref> That is, a diverse workforce led to challenges for management. The meaning of a message can never be completely shared because no two individuals experience events in exactly the same way. Even when native and non-native speakers are exposed to the same messages, they may interpret the information differently.<ref name="Brownell, Judi 2003">Brownell, Judi (2003). "Developing Receiver-Centered Communication in Diverse Organizations". ''Listening Professional, 2''(1), 5-25</ref> There are competencies, however, which help to develop effective communication in diverse organizational environments. These skills include self-monitoring, empathy, and strategic decision-making. Impromptu speaking is also considered a key allyship skill to communicate with authenticity in everyday words and reactions.<ref>{{Cite book |last=Obah Jr. |first=Herbert |url=https://www.amazon.com/CAN-YOU-TOO-Inspirations-award-winning/dp/B0C522W4Z5 |title=If we can do it, you can, too! |year=2023 |isbn=9798379235413 |editor-last=Sha |editor-first=Mandy |pages=13–16 |chapter=Black and Asian Allyship Through Impromptu Speaking |publisher=Amazon Digital Services LLC - Kdp |editor-last2=Lee |editor-first2=Cassandra}}</ref>

Maintaining a culture which supports the idea of employee voice (especially for marginalized group members) is another challenge for diverse organisation. When the organizational environment is not supportive of dissenting viewpoints, employees may choose to remain silent for fear of repercussions,<ref name="Milliken 2003 1453–76">{{cite journal|last=Milliken|first=Frances J. |author2=Elizabeth W. Morrison |author3=Patricia F. Hewlin|title=An Exploratory Study of Employee Silence: Issues that Employees Don't Communicate Upward and Why|journal=Journal of Management Studies|date=September 2003|volume=40|issue=6|pages=1453–76|doi=10.1111/1467-6486.00387|citeseerx=10.1.1.471.3802}}</ref> or they may seek alternative safe avenues to express their concerns and frustrations such as on-line forums and affinity group meetings.<ref>{{cite journal|last=Gossett|first=Loril M.|author2=Julian Kilker|title=My Job Sucks: Examining Counterinstitutional Web Sites as Locations for Organizational Member Voice, Dissent, and Resistance|journal=Management Communication Quarterly|date=August 2006|volume=20|issue=1|pages= 63–90|doi=10.1177/0893318906291729|s2cid=146253712}}</ref> By finding opportunities such as these to express dissent, individuals can begin to gather collective support and generate collective sense-making which creates a voice for the marginalized members so they can have a collective voice to trigger change.<ref name="Milliken 2003 1453–76"/>

Research into organizational behavior further complicates these challenges by distinguishing between employees' attitudinal endorsement of diversity and inclusion policies and their active behavioral participation. Two studies identified distinct profiles of employee engagement based on this distinction, exploring the underlying reasoning for these stances.<ref>{{Cite journal |last=Jansen |first=Wiebren S. |last2=van der Toorn |first2=Jojanneke |last3=Bokern |first3=Yonn N. A. |last4=Ellemers |first4=Naomi |date=2024 |title=Shades of support: An empirical assessment of D&I policy support in organizations |url=https://onlinelibrary.wiley.com/doi/abs/10.1111/jasp.13025 |journal=Journal of Applied Social Psychology |language=en |volume=54 |issue=4 |pages=221–229 |doi=10.1111/jasp.13025 |issn=1559-1816}}</ref><ref>{{Cite journal |last=Bokern |first=Yonn N. A. |last2=Toorn |first2=Jojanneke van der |last3=Ellemers |first3=Naomi |date=2026-01-13 |title=Voices behind walking the talk: Quantified qualitative insights on D&I policy support reasoning |url=https://advances.in/psychology/10.56296/aip00050/ |journal=advances.in/psychology |language=en-US |volume=1 |pages=e536151 |doi=10.56296/aip00050/ |issn=2976-937X}}</ref> "Champions" exhibit high levels of both attitudinal and behavioral support, often acting as ambassadors who justify their advocacy using moral arguments regarding fairness and justice. In contrast, "Opponents" resist policies in both attitude and behavior, frequently basing their resistance on a lack of policy awareness or meritocratic beliefs that view diversity efforts as a threat to competency standards. "Bystanders" express high attitudinal support, agreeing that diversity is good, but remain behaviorally disengaged; this lip service support is often attributed to role ambiguity or a lack of practical mastery rather than ideological disagreement. Finally, "Reluctants" comply behaviorally with policies, such as attending training or following hiring protocols, despite harboring attitudinal skepticism. This compliance often occurs alongside doubts regarding the specific implementation or effectiveness of the initiatives, rather than opposition to the goals of diversity itself.

==Strategies to achieve diversity== Three approaches towards corporate diversity management can be distinguished: Liberal Change, Radical Change, and Transformational Change.<ref>{{cite journal|last=Tatli|first=Ahu|author2=M. Ozbilgin|title=Understanding Diversity Managers' Role in Organizational Change: Towards a Conceptual Framework|journal=Canadian Journal of Administrative Sciences|date=22 July 2009|volume=26|issue=3|pages=244–58|doi=10.1002/CJAS.107}}</ref>

===Liberal change=== The liberal concept recognizes equality of opportunity in practice when all individuals are enabled freely and equally to compete for social rewards. The aim of the liberal change model is to have a fair labor market from which the best person is chosen for a job based solely on performance. To support this concept, a framework of formal rules has been created and policymakers are responsible for ensuring that these rules are enforced on all so none shall be discriminated against. The liberal-change approach centers on law, compliance, and legal penalties for non-compliance.

One weakness of the liberal view is that the formal rules cannot cover every aspect of work life, as there is almost always an informal aspect to work such as affinity groups, hidden transcripts, and alternative informal communication channels.<ref>Jewson, Nick; Mason, David. ''Sociological Review'', May 1986, Vol. 34 Issue 2, p307-34, 28p</ref><ref name="Cynthia Cockburn 1989">Cynthia Cockburn, 1989, "Equal Opportunities: the short and long agenda", ''Industrial Relations Journal'', 20 (3): 213-25</ref>

===Radical changes=== In contrast to the liberal approach, radical change seeks to intervene directly in the workplace practices in order to achieve workforces with less White people. The radical approach is thus more outcome focused than focused on the forming the rules to ensure less White people.<ref name="Cynthia Cockburn 1989"/> One major tool of radical change is quotas which are set by companies or national institutions with the aim to decrease the number of White people employed.

Arguments for and against quota systems in companies or public institutions include contrasting ideas such as quotas * compensating for actual barriers that prevent marginalized members from attaining their fair share of managerial positions * being against equal opportunity for all and imply that a marginalized member only got the position to fill the quota.<ref>N. Jewson and D. Mason, 1986, "The theory of equal opportunity policies: liberal and radical approaches", ''Sociological Review'', 34 (2)</ref> Sweden's quota system for parliamentary positions is a positive case for radical change through quota setting.<ref>"Increasing Women's Political Representation: New Trends in Gender Quotas", in Ballington and Karam, eds. ''International IDEA. 2005: Women in Parliament. Beyond Numbers'' (revised edition) and Drude Dahlerup, ed., ''Women, Quotas and Politics''. Routledge 2006 7Drude Dahlerup & Lenita Freidenvall, "Gender Quotas in politics — A Constitutional Challenge", in Susan H. Williams, ed., ''Constituting Equality. Gender Equality and Comparative Constitutional Law''. Cambridge University Press 2009.</ref> A quota system was introduced at the Swedish parliament with the aim of ensuring that women constitute at least a 'critical minority' of 30 or 40 percent of all parliament seats. Since the introduction of the system, women representation in parliament has risen dramatically even above the defined quota. Today, 47% of parliamentary representatives are women, a number which stands out compared to the global average of 19%.{{citation needed|date=July 2014}}

===Transformational change=== Transformational change covers an equal opportunity agenda for both the immediate need as well as long-term solutions.<ref>C. Cockburn, 1989, "Equal Opportunities: the short and long agenda", ''Industrial Relations Journal'', 20 (3): 213-25</ref> For the short term it implements new measures to minimize bias in procedures such as recruitment, promotion, and communication. The long term, however, is seen as a project of transformation for organizations. This approach acknowledges the existence of power systems and seeks to challenge the existing hegemony through implementation of equality values.{{cn|date=January 2025}}

One illustrative case for transformational change is ageing management;<ref>V. Pahl, "Altern und Arbeit – Chancengleichheit für alle Altersgruppen", in C. von Rothkirch, ''Altern und Arbeit: Herausforderung für Wirtschaft und Gesellschaft'', Sigma Rainer Bohn Verlag, 2000</ref> Younger employees are seen as more innovative and flexible, while older employees are associated with higher costs of salary, benefits, and healthcare needs.<ref>L. Brooke, "Human resource costs and benefits of maintaining a mature-age workforce", ''International Journal of Manpower'', 24 (3): 260-83</ref> Therefore, companies may prefer young workers to older staff. Through application of the transformational concept an immediate intervention provides needed relief while a longer-term culture shift occurs.

For the short-term, an organization can set up legislation preventing discrimination based on age (e.g., Age Discrimination in Employment Act). However, for the long-term solution, negative stereotypes of older employees needs to be replaced with the positive realization that older employees can add value to the workplace through their experience and knowledge base.<ref>J. Ilmarinen, "Die Arbeitsfähigkeit kann mit dem Alter steigen", in C. von Rothkirch, ''Altern und Arbeit: Herausforderungen für Wirtschaft und Gesellschaft'', Sigma Rainer Bohn Verlag, 2000</ref> To balance this idea with the benefit of innovation and flexibility that comes with youth, a mixture of ages in the workforce is ideal.<ref>R. Guest & K. Shacklock, "The impending shift to an older mix of workers: perspectives from the management and economics literature", ''International Journal of Organisational Behaviour'', 10 (3): 713-728</ref> Through transformational change, the short-term solution affords the organization the time necessary to enact deep rooted culture changes leading to a more inclusive environment.

==== Movements ==== In 2017, PwC's U.S. chairman, Tim Ryan, amassed more than 175 c-suite executives (some belonging to the ''Fortune 500'') to sign their CEO Action for Diversity & Inclusion pledge. The pledge is a business commitment to advance diversity in the workplace and is made by executives from notable companies such as Walmart, Staples, Dow Chemical, Cisco and Morgan Stanley.<ref>{{Cite web|title=175 CEOs Join Forces For Diversity and Inclusion|url=https://fortune.com/2017/06/12/175-ceos-join-forces-for-diversity-and-inclusion/|access-date=2021-05-22|website=Fortune|language=en|archive-date=2021-05-22|archive-url=https://web.archive.org/web/20210522020100/https://fortune.com/2017/06/12/175-ceos-join-forces-for-diversity-and-inclusion/|url-status=live}}</ref> As of 2021, more than 2,000 CEOs have signed the pledge including James Murdoch, Tom Buttgenbach, Jeanne Crain, M. Patrick Carroll, James C. Foster and Wayne A.I. Frederic.<ref>{{Cite web|last=Torkildson|first=Adam|date=2021-03-01|title=CARROLL Founder M. Patrick Carroll Joins CEO Action for Diversity and Inclusion|url=https://www.valuewalk.com/carroll-founder-m-patrick-carroll-joins-ceo-action-for-diversity-and-inclusion/|access-date=2021-05-22|website=ValueWalk|language=en-US|archive-date=2023-11-09|archive-url=https://web.archive.org/web/20231109215734/https://www.valuewalk.com/carroll-founder-m-patrick-carroll-joins-ceo-action-for-diversity-and-inclusion/|url-status=live}}</ref><ref>{{Cite web|url=https://www.ceoaction.com/|archiveurl=https://web.archive.org/web/20221123184334/https://www.ceoaction.com/media/4575/ceo-diversity-pledge-all-signatory-list.pdf|url-status=dead|title=Home|archivedate=November 23, 2022|website=CEO Action for Inclusion & Diversity}}</ref>

Following the murder of George Floyd in 2020, many companies made substantial commitments to racial equity by establishing dedicated diversity, equity, and inclusion teams.{{cn|date=January 2025}} In early 2024 the ''Washington Post'' reported that there is a trend in corporate America to reduce in-house DEI positions (e.g., an employee in the human resources department who works to promote DEI principles across the organization) and delegate the work to external consultants. The number of DEI jobs reached its highest point in early 2023, but subsequently decreased by 5 percent that year and has further shrunk by 8 percent in 2024.{{cn|date=January 2025}} The attrition rate for DEI roles has been approximately twice as high as that of non-DEI positions. The scaling back of DEI initiatives has aligned with a rise in legal challenges and political opposition to systematic endeavors aimed at enhancing racial equity.<ref>Taylor Telford, "As DEI gets more divisive, companies are ditching their teams" ''Washington Post'' February 18, 2024, [https://www.washingtonpost.com/business/2024/02/20/corporate-diversity-job-cuts/?utm_campaign=wp_post_most&utm_medium=email&utm_source=newsletter&wpisrc=nl_most&carta-url=https%3A%2F%2Fs2.washingtonpost.com%2Fcar-ln-tr%2F3cca38a%2F65d22e824747fb47ca6caf05%2F596b40329bbc0f403f8de828%2F10%2F43%2F65d22e824747fb47ca6caf05 online]</ref>

== Implementation == {{Main|Diversity training}}

Intentional "diversity programs" can assist organizations facing rapid demographic changes in their local consumer market and labor pool by helping people work and understand one another better.<ref name=Harvey /> This process includes analyzing where the organization is currently at through a diversity audit, creating an action plan aligned with a diversity inclusion strategy, gaining support by seeking stakeholder input, and holding individuals accountable through measurable results.<ref name=Harvey /><ref>{{cite web | publisher = SHRM | title = Make This Checklist Your DE&I Launching Point | date = 5 October 2020 | url = https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/global-and-cultural-effectiveness/pages/viewpoint-make-this-checklist-your-dei-launching-point.aspx | access-date =14 May 2023| archive-url= https://web.archive.org/web/20230514023042/https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/global-and-cultural-effectiveness/pages/viewpoint-make-this-checklist-your-dei-launching-point.aspx| archive-date= 14 May 2023 | url-status= live}}</ref>

== See also == {{Portal|Organized labour}} * Affirmative action * Ageism * Diversity (politics) * Diversity, equity, and inclusion * Ethnic penalty * Fair-chance employer – employer that does not automatically disqualify all people with any criminal background * Functional diversity (organizational) * Reverse discrimination * Team composition * Women in the workforce * Stigma management

== References == {{Reflist}}

{{DEFAULTSORT:Diversity (Business)}} Category:Affirmative action Category:Multiculturalism Category:Identity politics Category:Corporate social responsibility Category:Diversity (business) Category:Workplace