The Business Case for Cultural Diversity

D07 6

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Abstract

Before implementing diversity programmes in companies, managers usually ask: What is the profit? First insights from theory and research now show that cultural diversity is an asset for fostering satisfaction, market orientation and international success. So, diversity management can be used as a deliberate management tool to reduce conflicts in the first place and create a basis for intercultural synergies in the consequence. The precondition is the acceptance of diversity as an asset among managers and staff; it is necessary to establish a global mindset in corporate culture that embraces individual competence and adequate structures not only to handle and accept, but to make use of cultural differences. It is necessary to adapt diversity management to the strategy of the company and integrate specific programmes in the overall approach. An empirical study will be presented that gives an insight of how cultural diversity is perceived in international companies: Its benefits, its problems and possible instruments are illustrated. Concluding from the preconditions analyzed in the studies, recommendations for a strategically driven diversity management will be derived.