Tuesday, March 22, 2016

Race and Gender diversity is good for Business

In this study by Sociologist Cedric Herring, he found an association between Diverse workforce and increased corporate profits and earnings. This is in contrast to other accounts that view diversity as either nonconsequential to business success or actually detrimental by creating conflict, undermining cohesion, and thus decreasing productivity.

This research tests eight hypotheses derived from the value-in-diversity thesis. The results support seven of these hypotheses: Racial diversity is associated with increased sales revenue, more customers, greater market share, and greater relative profits. Gender diversity is associated with increased sales revenue, more customers, and greater relative profits.

 The value-in-diversity perspective makes the business case for diversity, arguing that a diverse workforce, relative to a homogeneous one, produces better business results. Diversity is thus good for business because it offers a direct return on investment, promising greater corporate profits and earnings.

A paradoxical view suggests that greater diversity is associated with more group conflict and better business performance. This is possible because diverse groups are more prone to conflict, but conflict forces them to go beyond the easy solutions common in like-minded groups. Diversity leads to contestation of different ideas, more creativity, and superior solutions to problems. In contrast, homogeneity may lead to greater group cohesion but less adaptability and innovation.

1 comment:

  1. This is in contrast to other accounts that view diversity as either nonconsequential to business success or actually detrimental by creating conflict, undermining cohesion, and thus decreasing productivity.business telephony

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