Objectives of Cultural Diversity

Significant Statistics

Why Organizations Need to do Cultural Diversity

Work Workforce Demographics The bulk of the entering workforce in the 1990's is and will be people of color, white women, and immigrants. Diversity is here to stay.

Marketing Argument
Changing demographics in the U.S. are creating new customer groups. Opportunities continue to arise for niche marketing to ethnic, social and other groups.

"To succeed internationally, we need to understand the cultures of the world; and we have all the cultures of the world represented right here - a tremendous competitive advantage."
-- Ernest Thompson, Proctor and Gamble

The customer base is increasingly diverse and segmented; companies can no longer market as though every family consisted of a white working male, a white stay-at-home female, and 2.2 children. Buyers are more likely to respond positively if the marketing/sales person is like them.

Competition Argument
In a competitive marketplace it is necessary to keep a competitive edge through innovation and problem solving.

"When you are surrounded by sameness, you get only variations on the same."
-- Kevin Sullivan, VP of Human Resources at Apple Computers

Creativity Argument
Heterogeneity in problem solving groups produces more creative responses in an increasingly competitive global marketplace. Diverse teams are more effective and creative in an increasingly competitive economy.

Lack of innovation and problem solving leads to uncreative responses to the marketplace both domestically and overseas, which results in a decline in market share.

Talent Argument
When a business limits its selection and promotion process to one group, it denies itself the full talents of the entire employment pool.

To get good workers, organizations will have to put aside old definitions of "fit" and employ people of different colors and cultures. Those with the best reputations for managing diversity will win the competition for the best personnel which will become increasingly important as the composition of the labor pool changes.

Cost Argument
As organizations become more diverse, the cost of a poor job in integrating workers will increase. Those who handle this well will have a cost advantage over those who don't.

Lower productivity/poor performance of a large proportion of the workforce is likely to happen when employees may feel alienated because their contributions are not valued and consequently they do not find it an affirming place to work.

Other potential problems include employee absenteeism and turnover, conflict and tensions amongst staff, discrimination complaints, and time lost due to misunderstandings.

Definitions

RACES HAVE DIFFERENT ETHNIC GROUPS, AND DIFFERENT ETHNIC GROUPS HAVE DIFFERENT CULTURES.

RACE: Denotes a system of classifying humans into sub-groups according to biological and physical characteristics such as skin color, facial features, and stature. Three racial types commonly recognized are Caucasian, Negroid, and Mongoloid.

ETHNICITY: That part of our identity derived from membership, usually through birth, in a racial, religious, or national or linguistic group, which share a unique cultural and social heritage from one generation to another.

CULTURE: Refers to the sum total of acquired values, beliefs, practices, laws, customs, traditions, and knowledge reasoned and experienced by a group.


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