Businesses benefit by having diversity in their work force. The business case for diversity stems from the progression of the models of diversity within the workplace since the 1960s. In the United States, the original model for diversity was situated around affirmative action drawing from equal opportunity employment objectives implemented in the Civil Rights Act of 1964. Equal employment opportunity was centered around the idea that any individual academically or physically qualified for a specific job could strive for (and possibly succeed) at obtaining the said job without being discriminated against based on identity. These initiatives were met with accusations that tokenism was the reason an individual was hired into a company when they differed from the dominant group. Dissatisfaction from minority groups eventually altered and/or raised the desire to achieve perfect employment opportunities in every job.

The social justice model evolved next and extended the idea that individuals outside the dominant group should be given opportunities within the workplace, not only because it was instituted as a law, but because it was the right thing to do. Kevin Sullivan an ex-vice president of Apple Inc. said that "diversity initiatives must be sold as business, not social work."

Diversity (business)

In the deficit model, it is believed that organizations that do not have a strong diversity inclusion culture will invite lower productivity, higher absenteeism, and higher turnover which will result in higher costs to the company. Establishments with more diversity are less likely to have successful unionization attempts.

Diversity (business)

Classification of workplaces

In a journal article entitled "The multicultural organization" by Taylor Cox Jr., Cox talks about three organization types that focus on the development of cultural diversity. The three types are: the monolithic organization, the plural organization, and the multicultural organization. In the monolithic organization, the amount of structural integration (the presence of persons from different cultural groups in a single organization) is minimal. This type of organization may have minority members within the workforce, but not in positions of leadership and power. Even though Diversity, Equity, and Inclusion are three interconnected concepts represented by the abbreviation DE&I, they are not interchangeable. Diversity without equity and inclusion is often perceived as "tokenism".

Diversity (business)

The plural organization has a more heterogeneous membership than the monolithic organization and takes steps to be more inclusive of persons from cultural backgrounds that differ from the dominant group. This type of organization seeks to empower those from a marginalized standpoint to encourage opportunities for promotion and positions of leadership.

The workplace diversity can be categorized into single-gender and mix genders. It focuses on mostly "identity-based differences among and between two or more people". The multicultural organization not only contains many different cultural groups or different genders, but it values this diversity. It encourages healthy conflict as a source of avoiding groupthink.

Benefits

Diversity is believed by many to bring substantial benefits such as better decision making and improved problem solving, greater creativity and innovation, which leads to enhanced product development, and more successful marketing to different types of customers. Diversity is also claimed to enhance organizations' abilities to compete in global markets. Simply recognizing diversity in a corporation helps link the variety of talents within the organization. DePree believes that the act of recognizing diversity also allows for employees to feel have a sense of belonging, which increases their commitment to the company and allow each of them to contribute in a unique way.