The Pros and Cons of a Business Case Approach to Diversity Management
Introduction
"Diversity" generally refers to policies and practices that seek to include people who are considered, in some way, different from traditional members. There are three reasons for diversity: the moral case, the legal case, and the business case.
Moral Case
Thinkers like Levinas and Buber argue for mutual respect and appreciation for all humans. Levinas emphasises the importance of relationships with others, stating that fraternity precedes commonality. Buber argues for a holistic existence between human beings, an I-Thou relationship rather than an I-It relationship that objectifies individuals.
Legal Case
Discrimination is the process of distinguishing between people and treating some differently from others. [cite: 15] It can be legal (e.g., differences in wages based on skills) or illegal (e.g., bullying). Critical success factors for achieving diversity include an equal opportunity policy, implementation, and monitoring. Discrimination can be direct, indirect, harassment, or victimisation, with detrimental impacts on various stakeholders.
Business Case
Social dilemmas arise when self-interested choices accumulate and result in everyone being worse off. Businesses play a significant role in society's social and economic character. They provide platforms for education, socialisation, and challenging prejudices. Organisations should recognise their societal role in workforce diversity.
Uncommons
Uncommons are individuals from less powerful or underprivileged backgrounds. Modern societies continue to sacrifice their uncommon members in subtle ways. Diversity is affected by recruitment, selection, and promotion procedures. Transparency is essential to safeguard against biases and promote diversity. Inclusive high-performance work systems benefit both employers and employees.
Challenges of Diversity
The benefits of cross-cultural teams are most apparent in organisations with multinational operations. In single-market companies, a monoculture can drive efficiency and reduce conflict. Cross-cultural teams offer benefits like market insight and global credibility. However, diversity can also lead to discomfort, mistrust, and conflict. The key is to maximise the gains and minimise the pains of diversity.
Conclusion
Moral, ethical, and social benefits are strong reasons to support diversity management. Businesses are often set up to exploit market gaps and measure performance using financial metrics. The business case for diversity can be at odds with these goals. While the business case has its merits, it's important to recognise the broader societal benefits of diversity and the importance of including individuals from all backgrounds.
