April 28, 2024

Stop Making the Business Case for Diversity

I was shocked, shocked when I read the above headline for an article on HBR.org, the Harvard Business Review’s online newsletter. The article was written by Oriane Georgeac and Aneeta Rattan. Georgeac is a Ph.D. and Assistant Professor in Organizational Behavior at the Yale School of Management and Rattan is also a Ph.D. and an Assistant Professor in Organizational Behavior at the London Business School. Therefore, the authors’ research had great credibility to me, even though I was skeptical when I first began to read the article.

Here’s what they wrote:

Most organizations don’t feel the need to explain why they care about core values such as innovation, resilience, or integrity. And yet when it comes to diversity, lengthy justifications of the value of hiring a diverse workforce have become the norm in corporate America and beyond. AstraZeneca’s website, for example, makes a business case for diversity, arguing that “innovation requires breakthrough ideas that only come from a diverse workforce.” Conversely, Tenet Healthcare makes a moral case, noting in its Code of Conduct that “We embrace diversity because it is our culture, and it is the right thing to do.”

These statements may seem innocuous — but our forthcoming research suggests that how an organization talks about diversity can have a major impact on its ability to actually achieve its diversity goals. Through a series of six studies, we explored both the prevalence of different types of diversity rhetoric in corporate communications, and how effective these narratives are when it comes to attracting underrepresented job candidates

In Georgeac and Rattan’s first research study, they looked at publicly available text from all FORTUNE 500 companies’ websites, diversity reports, and blogs, and then used a machine-learning algorithm to classify the data into two categories:

* The “business case” for diversity: a rhetoric that justifies diversity in the workplace on the grounds that it benefits companies’ bottom line

* The “fairness case” for diversity: a rhetoric that justifies diversity on moral grounds of fairness and equal opportunity

The authors discovered that about 80% of organizations used the business case to justify the importance of diversity, and less than 5% used the fairness case.

Given the business case’s popularity, you would think that underrepresented candidates would find the business case compelling, and that reading this type of justification for diversity would increase their interest in working with a company.

Unfortunately, our next five studies demonstrated the opposite. In these studies, we asked more than 2,500 individuals — including LGBTQ+ professionals, women in STEM fields, and Black American college students — to read messages from a prospective employer’s webpage which made either the business case, the fairness case, or offered no justification for valuing diversity. We then had them report how much they felt like they would belong at the organization, how concerned they were that they would be judged based on stereotypes, and how interested they would be in taking a job there.

So, what did we find? Translated into percentages, our statistically robust findings show that underrepresented participants who read a business case for diversity on average anticipated feeling 11% less sense of belonging to the company, were 16% more concerned that they would be stereotyped at the company, and were 10% more concerned that the company would view them as interchangeable with other members of their identity group, compared to those who read a fairness case. We further found that the detrimental effects of the business case were even starker relative to a neutral message: Compared to those who read neutral messaging, participants who read a business case reported being 27% more concerned about stereotyping and lack of belonging, and they were 21% more concerned they they would be seen as interchangeable. In addition, after seeing a company make a business case, our participants’ perceptions that its commitment to diversity was genuine fell by up to 6% — and all these factors, in turn, made the underrepresented participants less interested in working for the organization.

For completeness, we also looked at the impact of these different diversity cases on well-represented candidates, and found less consistent results. In one experiment, we found that men seeking jobs in STEM fields reported the same anticipated sense of belonging and interest in joining a firm regardless of which type of diversity rationale they read. But when we ran a similar experiment with white student job candidates, we found that as with underrepresented job candidates, those who read a business case also reported a greater fear of being stereotyped and lower anticipated sense of belonging to the firm than those who read a fairness or neutral case, which in turn led them to be less interested in joining it.

Clearly, despite having a positive motivation, companies making a business case for diversity is not the best way to attract underrepresented job candidates — and it may also hurt well-represented candidates’ perceptions of a prospective employer.

The business case assumes that underrepresented candidates offer different skills, perspectives, experiences, working styles, etc., and that it is precisely these “unique contributions” that drive the success of diverse companies. This frames diversity not as a moral necessity, but as a business asset, useful only insofar as it bolsters a company’s bottom line. It also suggests that organizations may judge what candidates have to contribute on the basis of their race, gender, sexual orientation, or other identities, rather than based on their actual skills and experience — a stereotyping and depersonalizing approach that undermines candidates’ anticipated sense of belonging.

Ultimately, the business case for diversity backfires because it sends a subtle yet impactful signal that organizations view employees from underrepresented groups as a means to an end (an instrumental framing of diversity). This undermines organizations’ diversity efforts, before they’ve even had any direct interaction with these candidates.

So what should organizations do instead? Our research shows that the fairness case, which presents diversity as an end in itself (i.e., a non-instrumental framing of diversity), is a lot less harmful than the business case — in our studies, it halved the negative impact of the business case. But there’s another option that may be even better and simpler: Don’t justify your commitment to diversity at all. Across our studies, we found that people felt more positive about a prospective employer after reading a fairness case than after reading a business case — but they felt even better after reading a neutral case, in which diversity was simply stated as a value, without any explanation.

When we share this suggestion with executives, they sometimes worry about what to do if they’re asked “why” after they state a commitment to diversity with no justification. It’s an understandable question, especially in a world that has so normalized prioritizing the business case over all else — but it has a simple answer. If you don’t need an explanation for the presence of well-represented groups in the workplace beyond their expertise, then you don’t need a justification for the presence of underrepresented groups either.

It may seem counterintuitive, but making a case for diversity (even if it’s a case grounded in a moral argument) inherently implies that valuing diversity is up for discussion. You don’t have to explain why you value innovation, resilience, or integrity. So why treat diversity any differently?

The position of Georgeac amd Rattan seems counterintuitive, but after thinking about it, it makes sense. If I were a member of an underrepresented group, say a Black woman, would I want to feel like I was hired because I was Black or a woman to fill some diversity quota. No, I think I would want to feel that I was hired for my skills and because the team I’m on liked me.

So, organizations should be very careful about how they promote their diversity values. I hope The New School read this article.