HRevolution

A recent invitation to a seminar included the line: “Thought leaders will agree that diversity is a pillar of corporate strength - the business case for diversity is just too strong to ignore. Corporations that are supported by a diverse employee base usually find themselves at the top of their industry.”

Like so much marketing, the juxtaposition of strong diversity program and industry leadership implies diversity is the cause of success. This linkage is one of debatable significance. The language suggests causation; it is more likely that the relationship between diversity and success is correlated. This isn’t nitpicking, its important. The HR community is notorious for putting forth faulty arguments disguised as “business cases” to further an agenda.

I don’t see how a company can prove that their diversified employee base is instrumental to their success. While diversity may contribute to success, it is not necessarily key to that success - any more than any other characteristic of the firm (e.g. the firm’s product lines, patents, market position, fiscal policy, etc.). To demonstrate diversity as the cause of success would require isolating the benefits of diversity from marketing, sales, product development, etc., which is impossible. As a result, the “business case” for diversity is easy to ignore.

On the other hand, the correlation between diversity and business success is much easier to support. Companies with strong diversity initiatives often have success in other areas. In effect, excellence in diversity can imply excellence in other areas. There are many examples of companies with strengths in diversity and great management, or a range of market achievements. In these cases, a strong diversity program may be the hallmark of a good company, not the cause of it. Does diversity contribute to their strength? Undoubtedly. Is it the cause of their strength? This is much harder to verify, and therefore unlikely. The issue is whether diversity correlates with success or causes it. Knowing the difference helps form a persuasive argument instead of undermining our credibility as business-savvy professionals.

Don't argue a "business case" that diversity drives business success. You simply cannot prove it. Doing so undercuts our credibility; it shows how weak our understanding of business really is. The business case is that if a firm aspires to excellence, it needs a solid diversity program. This appeals to management’s goals and aspirations without presuming a direct impact the bottom line. While such contributions do exist, they are ancillary benefits and a by-product of diversity not the direct result. If you’re going to make a pitch for strengthening diversity point out the correlation between excellence in diversity and excellence as a company. That should grab their attention without undermining your credibility.