• Understand the benefits and challenges of having a diverse workforce

Social Diversity

The United States is a nation of immigrants. Its first inhabitants are believed to have traveled across the Bering Straits, a land bridge connecting Asia and North America, more than 15,000 years before the arrival of European colonists in the Americas. From the early days of European immigration through the present, America has been viewed as the land of opportunity, a place where diverse people can transcend perceived limitations or persecution based on a person’s identity or beliefs.

What do immigration, diversity, and equity—arguably social or political matters—have to do with business? In many industries, it is an increasingly important competitive advantage for businesses to cultivate diversity and an inclusive culture. Indeed, surveys indicate that both consumers and employees expect businesses to take a stand on and be transparent in their performance relative to social diversity issues. Finally, as technology and globalization accelerate the pace of change, companies are often very influential in shaping policy and practice about diversity, equity, and other issues—not only internally, but throughout their supply chain and society.

Factors of Diversity

What do we mean by diversity? Even though it’s in the top one percent of words searched on Merriam-Webster’s dictionary website, the concept isn’t as well understood as you might think.

diversity

Diversity in a business context refers to the inclusion of individuals from a variety of backgrounds, cultures, perspectives, and experiences within a company or organization.

In practice, diversity can be understood as a range of human characteristics that differ from our own or from those of the groups we belong to. Points of difference can include a range of demographic and psychographic factors, both of which are traditionally used by marketers, researchers, and influencers to target segments of a larger population.

• Demographic factors describe the “who,” including traits such as age, education, gender, race/ethnicity, religion, income and profession, and marital or family status.
• Psychographic factors are considered the “why” (how we’re wired) and reflect our behavior, beliefs, lifestyles, and values. Other important aspects of diversity include disabilities, sexual orientation, and cognitive styles.

A key point to note is that there are many more possible points of difference than there are categories legally protected from discrimination. In practice, diversity is not about meeting the minimum requirements of legislation or minimizing legal liability for claims of discrimination. Businesses pursuing a true diversity strategy define diversity broadly and seek to leverage the possibilities of diversity across categories.

equity

Equity in a business context is the fair treatment, access, opportunity, and advancement for all people, while striving to identify and eliminate barriers that have prevented the full participation of some groups.

Equity aims to ensure that all individuals have equal opportunities to succeed, which is foundational to creating diverse and inclusive environments. Equity is important to diversity because it addresses systemic inequalities and biases that can hinder the full participation of underrepresented or marginalized groups. By focusing on equity, organizations can create a more level playing field, where everyone has the opportunity to contribute to their fullest potential. This not only enriches the workplace with a variety of perspectives and ideas but also fosters a sense of belonging and respect among all employees, driving innovation and improving organizational performance.