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The business case for commitment to diversity

Author

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  • Slater, Stanley F.
  • Weigand, Robert A.
  • Zwirlein, Thomas J.

Abstract

Does an organization's commitment to diversity - as reflected by CEO commitment, human capital, corporate communications (internal and external), and supplier diversity - result in competitive advantage and superior financial performance? Diversity can bring new voices and perspectives into the strategy dialogue, help managers understand and address the needs of a demographically diverse customer base, and stimulate a wider range of creative decision alternatives. However, the anticipated benefits of corporate diversity efforts may also be accompanied by costs that can affect shareholder wealth. In a study comparing the financial performance of the DiversityInc Top 50 Companies for Diversity to a matched sample, we find evidence that firms with a strong commitment to diversity outperform their peers on average. For commitment to diversity to become ingrained in corporate culture there must be visible and ongoing support from senior management, a clear articulation of the business case for diversity, line manager accountability, and training programs directed at communications, conflict resolution, and team building.

Suggested Citation

  • Slater, Stanley F. & Weigand, Robert A. & Zwirlein, Thomas J., 2008. "The business case for commitment to diversity," Business Horizons, Elsevier, vol. 51(3), pages 201-209.
    • Handle: RePEc:eee:bushor:v:51:y:2008:i:3:p:201-209
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    References listed on IDEAS

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    1. Auh, Seigyoung & Menguc, Bulent, 2006. "Diversity at the executive suite: A resource-based approach to the customer orientation-organizational performance relationship," Journal of Business Research, Elsevier, vol. 59(5), pages 564-572, May.
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    Cited by:

    1. Riccò, Rossella & Guerci, Marco, 2014. "Diversity challenge: An integrated process to bridge the ‘implementation gap’," Business Horizons, Elsevier, vol. 57(2), pages 235-245.
    2. Bello Lawal & Mohammed Nuhu, 2021. "Board Diversity or Tokenism: A Case for Social Inclusion and an Efficiency Model," Applied Finance and Accounting, Redfame publishing, vol. 7(1), pages 22-31, February.
    3. Abhishek & Richa Saxena, 2015. "Realigning Business Strategy to Cater to Customers with Disability (CwD) in the Indian Context," Vikalpa: The Journal for Decision Makers, , vol. 40(2), pages 121-131, June.
    4. Musa Essa, 2023. "Diversity from the customer's perspective: Good or bad? The case of disability," Italian Journal of Marketing, Springer, vol. 2023(1), pages 81-98, March.
    5. Ian Blount & Mingxiang Li, 2021. "How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 3-24, July.
    6. Fernanda Bethlem Tigre, 2024. "Forging Innovative Leadership: The Power of Agility, Diversity, and Risk-Taking Configurations," Merits, MDPI, vol. 4(3), pages 1-14, July.
    7. Anna Wieczorek-Szymańska, 2020. "Gender Diversity in Academic Sector—Case Study," Administrative Sciences, MDPI, vol. 10(3), pages 1-20, July.
    8. Eddy S. Ng & Greg J. Sears, 2020. "Walking the Talk on Diversity: CEO Beliefs, Moral Values, and the Implementation of Workplace Diversity Practices," Journal of Business Ethics, Springer, vol. 164(3), pages 437-450, July.

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