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Diversity is good for business, but our supportive arguments need to better reflect the complexities of the benefits.

How To Make A Better Business Case For Diversity

BY Lydia Dishman3 minute read

Pondering the business case for diversity, Todd L. Pittinsky, a professor of technology and society at Stony Brook University, observes something isn’t quite right. “Different kinds of people will come up with different kinds of ideas, and the more variety, the better,” he writes in Harvard Business Review. Multiple studies have backed this up.

However, he asks, if that’s the case, then why has Silicon Valley consistently been a locus of innovation? Pittinsky rightly notes that there are other kinds of diversity in the Valley, particularly foreign workers on H-1B visas. And just touting the boost to the bottom line by having more women and people of color doesn’t really stand as an argument when tech is an industry that consistently delivers profits.

“Should we just drop the subject? Abandon the cause?” he asks. “No, we shouldn’t. But we do need to be more honest about our motives and about the case to be made for diversity.” Pittinsky argues that there are more accurate business cases to be made.

Much the way the gender pay gap can’t be boiled down to one single cents on the dollar figure, Pittinsky illustrates that there are nuanced ways to approach support for diversity and inclusion in the workplace.

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The Long-Tail Benefit

Workplace diversity has an impact on social good, Pittinsky says. A global study from Harvard University indicates that countries with social cohesion experience greater economic growth. How to get more socially cohesive? By diversifying the population.

“The more the members of an organically diverse society enjoy that diversity and see the visible benefits of investing in shared prosperity and the common good, the more secure and resilient that society will be,” he writes.

This has been true for the U.S. economy as waves of immigrants have come through and assimilated over centuries. And this is the other side of this argument: Companies investing in diversity shouldn’t expect a quick return. But the long-term gains are evident.


ABOUT THE AUTHOR

Lydia Dishman is the senior editor for Growth & Engagement for fastcompany.com. She has written for CBS Moneywatch, Fortune, The Guardian, Popular Science, and the New York Times, among others More


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