How Is Diversity And Competitive Advantage For Business?

There is the assertion that diversity is a positive factor that results in an economic competitive advantage for businesses. The Chinese concept of Yin and Yang illustrates that diversity and inclusion and innovation are intrinsically interconnected. Strategies for business growth, expansion into new markets and mergers and acquisitions could be enhanced by diversity and inclusion. As Katherine Phillips reports in Scientific American, “Diversity can improve the bottom line of companies and lead to unfettered discoveries and breakthrough innovations.” Organizations that cultivate an inclusive environment, making the most of diversity can generate innovations helping them outperform the competition. The reciprocal relationship between diversity

In spite of the view as espoused by the scholars above, diversity can be managed properly to achieve the intended benefits. The concept of concept of diversity management is clear and unambiguous in definition and it is often interchanged with the term managing diversity. The concept was first introduced in the United States in the 1980s. RR Thomas wrote in 1991: ‘Managing diversity is an idea whose time has come. The majority of corporations and organizations are becoming conscious of the fact that a diverse workforce is not a burden, but rather their greatest potential strength; when managed properly’ (Thomas 1991, viii). According to McCuiston et al. (2004), for example, proper implementation of policies to promote workplace diversity can result in an improved bottom line; increased competitive advantage; superior business performance; higher levels of employee satisfaction and loyalty; a strengthened relationship with multicultural communities, and attracting the best and the brightest candidates. Indeed, contemporary scholars concur: having and making use of a diverse workforce is beneficial to organisations (Stewart and Brown, 2010; Ivancevich and Konopaske, 2012; Dessler, 2013; Mathis et al., 2013; Mondy and Mondy, 2014; Noe et al.,