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The business case for diversity and the perverse practice of matching employees to customers

Marc Bendick Jr (Bendick and Egan Economic Consultants, Washington, District of Columbia, USA)
Mary Lou Egan (Bendick and Egan Economic Consultants, Washington, District of Columbia, USA)
Louis Lanier (Econ One Research, Washington, District of Columbia, USA)

Personnel Review

ISSN: 0048-3486

Article publication date: 8 June 2010

5079

Abstract

Purpose

The typical “business case” for workforce diversity management in the USA implies that matching the demographic characteristics of sellers to buyers increases firms' productivity and profitability. This paper aims to explore the consequences for both employers and employees of following that guidance.

Design/methodology/approach

The paper statistically analyzes employment data on African Americans from one large US retailer and from the US advertising industry.

Findings

In both cases analyzed, a badly conceived business case for diversity perversely translated into discriminatory employment practices, starting with stereotype‐based segregation in work assignments and spreading to consequent inequality in other employment outcomes such as earnings and promotions. Such patterns illegally limit employment opportunities for women and race/ethnic minorities. Simultaneously, they fail to promote customer relationships and sales.

Practical implications

To avoid negative effects on both business and societal objectives, employers need to be guided by a business case promoting workplace inclusion, not “diversity without inclusion”, which buyer‐seller matching represents.

Originality/value

The business case for diversity is often considered unimportant “boilerplate”. This paper alerts employers to the importance of articulating, and then following, a correct business case.

Keywords

Citation

Bendick, M., Lou Egan, M. and Lanier, L. (2010), "The business case for diversity and the perverse practice of matching employees to customers", Personnel Review, Vol. 39 No. 4, pp. 468-486. https://doi.org/10.1108/00483481011045425

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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