Life experiences and one’s personal journey will make one react and think differently, each approach different challenges and have different problem solving skills. To gain a status of superior business requires using all of this different uniqueness in each employee. Some say the more diverse a team is the more creativity they bring to a project.
Diversity is a source of opportunity, whether in employment or customer markets. Appreciation of the rich mosaic of difference within the workforce fuels group dynamics and helps create an environment where teams can perform to their full potential. To deliver this companies need to get better at living their values and behavior at all levels. Understanding the importance of each individual’s contribution to business success. Maximizing their potential and inspiring them. Creating a framework of values and behaviors that act as guidance. Including these ideas within the basic principles that define the organization.
Secondary Types of Diversity
To be able to reach a goal of being a global leader in nourishing people and potential, companies must behave in ways that support and leverage the many differences among employees, suppliers, and customers. Issues of difference are everywhere. Companies need to consider these differences vital assets that will help ensure ongoing success, loyalty, innovation, customer focus, and enriched communities. (Diversity, 2007)
Each employee’s unique talents, perspectives, and life experiences are critical to the company’s success. Encouraging employees to support small and minority owned businesses, and those owned by other disadvantaged groups when seeking new sources of supplies and services. While this business practice enables the company to deliver distinctive value to the customer. The communities also benefit from the success of diverse businesses. (Diversity, 2007)
The world is a rich and diverse place full of interesting cultures and people, who should be treated with respect and from whom there is a great deal to learn. Companies know that employing and managing diverse people gives them a more rounded and balanced organization and makes them more adaptable to new situations. This is not simply about gender, ethnicity, disability or age: it is about open mindedness, embracing non-conformity, and creating balanced teams. Respect for individuals of all types will inspire loyalty in both employees and customers, which will have a direct line of sight to the achievement of business goals. (Diversity, 2007)
Legally Mandated
There are many different ways that diversity is watched over legally. There are many different groups out there working to protect those in the diversified groups. These groups work very hard to protect each individual involved in these diversified areas. There are some government groups and even local groups that help people dealing with diversity.
Affirmative Action what is it? According to the Stanford Encyclopedia of Philosophy (2005),
Affirmative action, means positive steps taken to increase the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded. When those steps involve preferential selection—selection on the basis of race, gender or ethnicity—affirmative action generates intense controversy.
The affirmative action was used a lot during the Civil Rights movement and finally The Civil Rights Act finally came about to be followed in the United States. They worked on equal rights for all, women, blacks and other races.
The Americans with Disabilities Act or ADA was brought about in the 1990’s to help protect those individuals with disabilities. There were so many people who had small disabilities but were not allowed to work anywhere. This was so unfair to those certain individuals who were ready and willing to work but could not get hired just because they had a certain disability. The Americans with Disabilities Act helped in many ways, according to the U.S. Equal Employment Opportunity Commission (1997),
A qualified employee or applicant with a disability is an individual who, with or without reasonable accommodation, can perform the essential functions of the job in question. Reasonable accommodations may include, but not limited to:
- Making existing facilities used by employees readily accessible to and usable by persons with disabilities.
- Job restructuring, modifying work schedules, reassignment to a vacant position;
- Acquiring or modifying equipment or devices, adjusting modifying examinations, training materials, or policies and providing qualified readers or interpreters.
So this means that the employer must accommodate the disabled if hired and help the work in the environment comfortably.
The Equal Pay Act or EPA was established in 1963 to help protect those who were not getting equal pay for the same work. It was possible back in the early part of the twentieth century that a woman was doing the same job as a man but making a substantial amount less in wages. This was not fair and was fought and won, thanks to the Equal Pay Act. This not only protects just the women but all people in the workforce.
Stakeholder
Public Image
It is important for stakeholders to take a positive approach toward diversity. Bringing different talents into the organization will allow a variety views and innovations that will in-turn give the organization a competitive edge. Diversity can also widen your market base by introducing your product to new market sectors. Having a diverse workplace shows that the organization values equality and diversity. The public is more likely to have a positive view of organizations with these values than those organizations without them. A negative public image can be very damaging to any organization. The public must feel the company is a positive contributor to its community for the community to show them loyalty and support. A positive image is imperative for the company’s overall success.
Investor Confidence
Having a diverse business organization stimulates investor confidence. Diversity brings innovative ideas into the company, which allows the organization to be competitive in its market. Diversity also attracts the best people to the organization and develops networks within the organization so that people of diverse backgrounds and common interests can work together for the success of the company. Investors are more likely to invest in companies that show signs of long-term success and profitability.
Community Action
Giving back to the community is very important for the image and success of any organization. It is essential that the community project chosen benefit both the business and the community. There are a variety of programs for organization to choose from such as education contributions, social condition improvements, charitable donations, and volunteer work. Community involvement provides an opportunity for organizations to form a relationship with community leaders to work together for the good of the community. It indirectly helps the organization by lending a hand to those that they do business with everyday.
Profitability
A study by Cedric Herring, a sociology professor at the University of Illinois, found that businesses with greater racial diversity reported higher sales revenues than those with more homogenous workforces. (Management Issues, 2006) This not only suggests that a diverse workforce is socially responsible, but it also broadens the amount of skilled and experienced workers the organization has to choose from. The survey further showed that of the same industry the average sales revenue of organizations with low racial diversity was approximately $3.1 million, compared to $3.9 million for those with medium diversity and $5.7 million for those with high diversity. Higher numbers were also reflected in the number of customers as well as market share for organizations with a diverse workforce. Diversity is a win win situation for everyone involved; when the organization profits so do stakeholders.
Conclusion
Diversity offers different viewpoints and perspectives in concepts, initiatives, decision making, greater innovations and creativity, and a broad pool of qualified employees enabling companies to recruit and retain the best talent out there. Diversity refers to all characteristics which distinguish individuals or groups from one another. It includes distinctions based on race, color, creed, religion, gender, age, national origin, marital status, sexual orientation, disability, veteran's status, or status with regard to public assistance. Companies must also abide by federal and state laws regarding diversity. In addition to these laws they also must incorporate stakeholders regarding public image, investor confidence, community action, and profitability.
References
Fullinwider, R. (2005), Affirmative Action. Stanford Encyclopedia of Philosophy,
retrieved on March 12, 2007 from:
The U.S. Equal Employment Opportunity Commission, (1997), Facts about the
Americans with Disabilities Act, retrieved on March 12, 2007 from:
Diversity Inc. (n.d.) Diversity Return on Investment. Revenue and Shareholder Return.
Retrieved March 10, 2007 from:
Business Case for Diversity and Equality. (n.d.) Benefits for stakeholders and the
business as a whole. Retrieved March 10, 2007 from:
and equality.unit.gove.uk/research/bus_case_div.pdf.
More Diversity Brings Increased Profitability. (2006, August 17). Management Issues,
Retrieved March 13, 2007, from:
increased-profitability.asp
United States Small Business Administration. (n.d.) Giving Back to the Community
Guidelines for Action. Retrieved March 13, 2007, from:
equality.unit.gove.uk/research/bus_case_div.pdf
Business Case for Diversity, 2007. Retrieved March 12, 2007, from CHUBB:
http://www.chubb.com/diversity/chubb4450.html
Diversity, 2007. Retrieved on March 12, 2007 from Cargill:
Diversity, 2007. Retrieved March 12, 2007, from HSBC The World’s Local Bank:
http://www.hsbc.com/hsbc/careers/diversity