Principles vs. Profits: Is a Fairness or Business Rationale for Workplace Diversity Most Effective at Promoting Diversity?

Abstract

In today’s global world, organizations are increasingly committed to diversity. Yet, diversity in the workplace is a controversial topic that is often met with opposition. As such, organizations regularly attempt to justify why they value diversity by arguing that it contributes to organizational profitability (business rationale) or that it is the right thing to do (fairness rationale). However, little is known about which rationale is most effective at eliciting pro-diversity behavior. This study used experimental methods to investigate whether the type of rationale given for workplace diversity (business, fairness, or no rationale) influenced support for diversity and inclusion (D&I) initiatives and anti-Black hiring discrimination through two mediators: diluted diversity definitions and perceived organizational morality. Additionally, I tested whether colorblindness, egalitarianism, and prejudice moderated these associations across two studies in samples of White people with management experience. In Study 1 (N = 489, 38% women; 61% men, 1% trans/non-binary), I found that exposure to a business rationale made individuals adopt a definition of diversity that was more focused on heterogeneity in skills and expertise than in race and gender (diluted definition of diversity). In addition, a fairness rationale improved perceptions of an organization’s morality while a business rationale hurt perceptions of an organization’s moral character, especially among those that supported racial colorblindness. In Study 2 (N = 821, 50% women; 49% men; 1% trans/non-binary), diluted diversity definitions did not mediate the association between a business rationale and support for D&I initiatives or anti-Black hiring discrimination - in part because a business rationale did not cause individuals to have a more diluted definition of diversity than a fairness or no rationale for diversity. Though diluted diversity definitions were associated with reduced support for D&I initiatives among prejudiced, racially colorblind, and anti-egalitarian individuals, diluted diversity definition did not predict anti-Black hiring discrimination. In addition, greater perceptions of organizational morality mediated the association between a fairness rationale and increased support for D&I initiatives, especially among those who endorsed prejudiced, racially colorblind, and anti-egalitarian sentiments. However, greater perceptions of morality also predicted increased anti-Black hiring discrimination among participants low in colorblindness. Taken together, this research provides organizations with initial evidence about the effectiveness of diversity rationales for eliciting pro-diversity behavior from White managers and challenges lay assumptions about the superior persuasive ability of a business rationale over a fairness rationale. This research is important because identifying which rationale is most effective at promoting workplace diversity can help to increase the representation and inclusion of marginalized groups within the workplace and reduce inequality.