{"id":11868,"date":"2022-07-06T13:40:12","date_gmt":"2022-07-06T13:40:12","guid":{"rendered":"https:\/\/www.wellable.co\/blog\/stop-saying-diversity-good-business\/"},"modified":"2023-07-11T10:59:01","modified_gmt":"2023-07-11T14:59:01","slug":"stop-saying-diversity-good-business","status":"publish","type":"post","link":"https:\/\/www.wellable.co\/blog\/stop-saying-diversity-good-business\/","title":{"rendered":"Why Companies Should Stop Saying Diversity Is Good For Business"},"content":{"rendered":"

Companies are investing heavily in diversity, equity, inclusion, and belonging (DEIB) initiatives. One report<\/a> projects that the global market for DEIB will reach $9.3 billion in 2022.<\/p>\n

Given that organizations are setting aside large sums of money to increase diversity, it\u2019s not surprising that they often feel compelled to justify these decisions by pointing to ways in which a diverse workforce is good for the company\u2019s bottom line, directly or indirectly. For example, Geoff Martha, CEO of Medtronic, states:<\/p>\n

\"headshot At Medtronic, we\u2019re focused on creating a more inclusive culture that values all dimensions of diversity, because we know a more diverse culture fosters a more innovative culture, and innovation fuels our growth. Inclusion and diversity are critical for our future success and our ability to deliver fully on the Medtronic mission.<\/p><\/blockquote>\n

Ken Barret, global chief diversity officer at General Motors explains the company\u2019s focus on diversity in a similar fashion.<\/p>\n

\"headshot Diversity is our strength! The unique skills, perspectives, and experiences inherent in our workforce positions General Motors to make the unimagined a reality\u2014by delivering cutting-edge innovation and breakthrough technologies. At GM, with an inclusive and empowered workforce\u2014fully leveraged\u2014we will engineer a world of zero crashes, zero emissions, and zero congestion.<\/p><\/blockquote>\n

<\/p>\n

Why The Business Case For Diversity Can Backfire<\/h2>\n

Despite the positive intentions behind these statements, research suggests that the business case for diversity may cause more problems than it solves.<\/p>\n

<\/p>\n

Effects On Underrepresented Job Seekers<\/h3>\n

Oriane Georgeac, Professor at Yale School of Management, and Aneeta Rattan, Professor at London Business School, set out to assess the business case for diversity\u2019s impact on underrepresented job seekers.<\/p>\n

In their experiments, 2,500 participants viewed statements from companies\u2019 web pages that defended diversity either in terms of fairness or morality, the company\u2019s bottom line, or gave no justification at all.<\/p>\n

The results are striking. The researchers found that, on average, when compared to participants who read justifications based on morality or fairness, subjects from underrepresented groups who read a business case for diversity:<\/p>\n