1 The Importance of Diversity for Business Success Ligia Ferreira Cardoso Mercy University Junior Seminar 301 CRN-2363.202330 Dr. Shehnaz Khalfan-Washington 1 November 2023 2 The Importance of Diversity for Business Success In a global marketplace, businesses are always looking for ways to adapt and achieve success. The world has become more connected, and technology-driven with social media platforms and artificial intelligence. While companies have been looking to combine traditional policies with innovation and technology, diversity is a pertinent topic. More than improving opportunities for disadvantaged groups, diversity is not only a moral aspect necessary for a better society. It has become part of lawful, ethical business practices and a relevant strategy that brings positive results and benefits in the long term for businesses. To recognize how and why diversity is important, it is necessary to understand the definition of the term and what encompasses. Diversity can thus be an all-inclusive term that incorporates people from many different classifications (Cedric Herring, 2009). For a workplace to be diverse, it should consist of different ethnic and racial backgrounds as White, Black, Asian, Hispanic, mixed races, and so on. It also should include variances in gender identity and sexual orientation including cisgender, transgender, non-binary, heterosexual, homosexual, bisexual, and others. Age, people with disabilities, and physical appearance are other aspects that should be included. It should also consist of different religions, political preferences, socio-economic status, health status, and parental status. Having a diverse and inclusive business is the right thing to do. History supports this notion, through laws and acts that have the purpose of decreasing discrimination. Title VII of the Civil Rights Act of 1964 amended in 1972 prohibits discrimination related to the person’s race, color, national origin, sex, and religion. The law ended the Jim Crow Laws and minimized the racial segregation existing at the time. The Age Discrimination in Employment Act of 1967 amended in 1978 prohibits discrimination against employees that are 40 years old or older. 3 Finally, the Americans with Disability Act of 1990, amended in 2008, prohibits discrimination against people with disabilities in private places, and organizations, and against people that are applying for jobs. The law also requires that employers offer reasonable accommodations to qualified employees, adapting the workplace so they are able to perform their best despite their disabilities. These laws are relevant, and their rights continue to have an impact on improving people's lives. Business should not discriminate but also work towards the increase of a diverse workplace, because doing so translates into numerous benefits. When diverse groups work together, they combine different experiences, backgrounds, and perspectives. They are usually more receptive to other people’s opinions, having a facility to understand another point of view. Being around people who are different from us makes us more creative, more diligent, and harder working (Katherine W. Phillips, 2014). It begins with the premise that when people face diversity, they believe that a different perspective exists, and that reflects on their behavior. A group formed with people coming from different backgrounds and perspectives has better decision-making outcomes. They are likely to consider more possibilities and have a deeper knowledge of a subject because of their diverse point of view. Diversity increases the opportunity for creativity and the quality of the product of group work (Di Tomaso et all., 2007). In the late 80’s, the franchise KFC tried to expand their business to foreign countries, including China. The company had the famous slogan “It’s finger liking good”, and the American customers could understand that the food was delicious when reading the slogan. In China, the same slogan means “Eat your fingers off”. The phrase was confusing for the Chinese customers and of course, transmitted a totally different meaning that was not intended. This marketing mistake and a costly error could have been avoided if a diverse team with a focus on culture and 4 understanding of their public had worked together. Having diverse knowledge also rises the probability of success with different markets and customers. It increases the probability of creating better products and services, adapting ideas to customer demand. Therefore, influencing the final customer and increasing monetary gains, that is the main purpose of a company. Finally, diversity is a crucial strategy that is proven to increase revenue for businesses. A Boston Consulting Group study found that companies with more diverse management teams have 19% higher revenues due to innovation (Vijay Eswaran, 2019). People with different perspectives and backgrounds pursue the same problem with different views, consequently solving it with different resolutions and innovating. Revenues also increase with the inclusion of racial and gender diversity. A study from the University of Chicago concluded that 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 profit (Cedric Herring, 2009). Innovation is crucial for any company looking to adapt to the current market, looking for better monetary gains. Diversity is an advantageous strategy. Anti-discrimination laws protect employes making sure that equal opportunities and principles are being followed. A diverse group works better towards better outcomes having a better decision-making solution, understanding costumers and market. Business that understands the importance of diversity are innovative and increase their monetary gains. In a world that is evolving and being driven by constant changes, a diverse marketplace combined with anti-discrimination laws are a formula to adapt and to be successful as a business. 5 References Eswaran, V. (2019) The business case for diversity is now overwhelming. here’s why. World Economic Forum. (n.d.). https://www.weforum.org/agenda/2019/04/business-case-fordiversity-in-the-workplace/ Helfrich, T. (2022). How diversity can help with business growth. Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/11/12/how-diversity-can-help-withbusiness-growth/?sh=4e014d9652ad Herring, C. (2009). Does diversity pay?: Race, gender, and the business case for diversity ... (n.d.). https://journals.sagepub.com/doi/10.1177/000312240907400203 Phillips, K. W. (2014). How Diversity Works. www.scientificamerican.com. https://www.scientificamerican.com/index.cfm/_api/render/file/?method=inline&fileID=9F 4FCDB9-A5B3-40AB-A9A525FDC71156A
