Research question number one addressed the context of diversity initiatives in the corporations. To address this area, the study participants were asked how diversity was defined within their organizations and how they arrived at the definition. The study participants were asked to identify what were the major factors influencing diversity initiatives in their organizations. The study participants were also asked to describe the company's organizational culture as it relates to diversity. In addition, the participants were asked what was the catalyst for addressing workforce diversity in their organizations. Then, the study participants were asked to describe the evolution of diversity initiatives in their organizations and to identify who pioneered the diversity efforts in their organizations.
The study participants were asked to define diversity within their organizations and describe how they had arrived at the definition. There was agreement among all the study participants that diversity needs to be defined very broadly so that it can include everyone in the organization. According to the study participants, the advantage of the broad definition is that it acknowledges the differences all people bring into organizations as assets. Furthermore, diversity has to do with understanding, accepting, and valuing the differences that make each individual unique. A study participant stated,
Inclusion is an approach to diversity that is driven by the demand of business and maximizes individual contribution in a manner that serves the company, the marketplace, and the employees. It also establishes diversity as an initiative that benefits everyone, rather than meet the needs of a collect group of people.
Another research participant indicated that "Diversity today is valuing the differences among people and ensuring that the work environment is representative of the variety of people that represents our country."
The following are additional phrases used by the study participants to define and explain diversity within their organizations:
There were two major ways that the organizations studied arrived at their definition of diversity. First, the definition of diversity was based on the specific needs of the organization and how diversity was affecting the employees and the organization. For example, one study participant stated, "We are a global organization and, therefore, we needed a global perspective; so we defined diversity very broadly in order to tap into all the creativity and potential that diversity brings." Another study participant said,
The definition for diversity was developed by a corporate executive committee based on what would work best for our company employees and business needs. Our company was serving a more diverse customer base and we needed employees that represent that diverse marketplace.
Second, according to the study participants, the definition of diversity first started with concerns regarding affirmative action and compliance issues and related for the most part to race and gender. However, the focus over time has grown more inclusive and includes the implications and impact of diversity on business issues. A study participant noted, "The definition of diversity started with the narrow focus of Affirmative Action and a compliance mode, but has grown into a business case." Still another participant stated,
To begin with, the definition of diversity was very limited and was concerned only with affirmative action and equal employment opportunity types of issues, but the focus now has become more inclusive and recognizes the value of fully utilizing all members of the workforce.
The study participants together cited seven factors influencing diversity initiatives in their organizations. The range of factors cited by participants numbered from 4 to 6. The average number of factors influencing diversity initiatives was 4.9. Table 7 lists in rank order by frequency all the factors influencing diversity initiatives that were cited by the study participants. All of the study participants identified the following factors as influencing diversity initiatives in their organizations: demographic changes, diverse marketplace, and the need to improve productivity and remain competitive.
| Factors | f | % |
| 1. Demographic changes | 8 | 100 |
| 2. Diverse marketplace | 8 | 100 |
| 3. The need to improve productivity and remain competitive | 8 | 100 |
| 4. Globalization | 6 | 75 |
| 5. Top management's focus on diversity as a business strategy | 4 | 50 |
| 6. Legal concerns | 3 | 38 |
| 7. Diverse work teams | 2 | 25 |
According to all the study participants, demographic changes such as the increased number of women workers, minority workers, older workers, and other diverse groups have created a very diverse workforce. These demographic changes in the workforce also represent the changing marketplace for these companies. As this diversification of the workforce and marketplace continues, these corporations are having to implement diversity initiatives that help create work environments that develop and utilize the many talents and perspectives that diverse employees have to offer. This diverse workforce can then communicate with and serve diverse customers more effectively. A study participant stated, "We are now starting to realize that we cannot effectively address diversity in the marketplace without also effectively addressing diversity in the workplace." The need to improve productivity and remain competitive was another key factor influencing diversity initiatives in all the corporations studied. According to the study participants, improved productivity and remaining competitive is dependent upon the full utilization of all employee populations.
Six of the study participants (75%) also considered globalization as an important factor influencing diversity initiatives. The globalization of these corporations has created new challenges in working with very diverse employees, customers, suppliers, and stockholders around the world. Globalization for these companies means that they will have to compete with other companies around the world. This requires that they understand global markets and cultural implications of conducting business worldwide. The increase in global competitiveness has made diversity initiatives extremely important in these corporations.
Half of the study participants indicated that top management's focus on diversity as a business strategy was a major factor influencing diversity initiatives in their organizations. The top managers in these corporations see diversity as a business strategy that is essential for continued success in tapping the full potential of a diverse workforce and in remaining competitive. Three of the study participants (38%) also cited legal concerns as a factor influencing diversity initiatives. The study participants indicated that implementation of effective diversity initiatives can assist in the reduction and prevention of costly lawsuits relating to race discrimination, sexual harassment, and gender discrimination lawsuits. In addition, two of the study participants (25%) stated that diverse work teams was a factor influencing diversity initiatives in their organizations. According to the study participants, well-managed diversity leads to better working relationships, interaction, and communication among diverse work teams, which in turn leads to more productive work teams.
The study participants were asked to describe their company's organizational culture as it relates to diversity. The most frequent way that organizational culture was described with regards to diversity was with the phrase diversity is valued. All of the corporations studied were described as having environments that value the ideas and perspectives that various people bring. Another description given was that the organizational culture accepts and recognizes that diversity is needed. The organizational culture also recognizes that the diversity that various people bring is seen as important to the company's competitive edge. All of the corporations studied have cultures in which diversity is perceived as a key business issue.
Another frequently used term to describe the organizational culture was inclusion. All of the corporations studied have inclusion as a guiding value and ultimate objective. A study participant indicated, "Inclusion for us refers to a corporate culture, management practices, and interpersonal relationships that support the full utilization of a diverse workforce at all levels and in all functions of the organization." Seven of the corporations studied (88%) have strong community commitment as part of their cultures. Developing networks with the community and supporting multicultural activities were seen as part of the culture.
The culture of one of the corporations was described as having been typically male and technically oriented. However, through a cultural transformation, the culture of that organization is changing into one that is "able to value, embrace, and utilize everybody." In addition, another corporation was going through an aggressive organizational restructuring. The corporation was being split and its bureaucratic and hierarchical system was being changed. The corporate leaders' intention was to flatten the organization. This also implied a cultural change in which diversity was going to be integrated. It is the intention of the leaders to ensure that in this new culture, all employees are valued for their unique talents and contributions and that fairness exists. The flattening of the corporation is expected to generate greater participation from each and every employee.
Even though each corporation is different because the nature of their business is different, they all are striving to have a culture that creates an atmosphere of inclusion. They all are striving to develop a culture where differences are valued, all employees feel comfortable being themselves, and employees have the opportunity to contribute to developing their full potential.
Six of the corporations studied (75%) started their diversity initiatives in a proactive way. For these corporations, diversity was a business imperative, a business strategy and a business issue. Diversity was seen as a "way to secure success for the company in the future." Diversity for these companies came from the need to have the best minds, the best ideas, and more creativity, which, in turn, was going to keep the corporations on the cutting edge. Having progressive and visionary CEOs who understood the value and importance of diversity was another catalyst that was mentioned frequently.
For half of the corporations, globalization has been the catalyst for addressing diversity. The need to have a global perspective was one of the reasons. The need to have a diverse workforce that mirrors the global marketplace was another reason that led these companies to start diversity initiatives. One of the study participants stated,
We have been really proactive. We see that if we don't have the diversity we need on board and we don't value and leverage it, we are not going to be successful in the global market, because we will not be able to deal effectively with the diversity issues here and in other countries. To be successful, we have to have the global perspective.
Another catalyst mentioned by half of the study participants was the Texaco incident. The $176 million racial discrimination lawsuit against Texaco was seen as an example that should not be followed. The Texaco incident created awareness for these corporations regarding the negative effects of not having diversity initiatives in place. In other words, the Texaco lawsuit was seen as a negative example from which organizations could learn. One of the research participants stated that the President of his company "basically said he did not want their company to be a Texaco."
Two of the corporations studied (25%) perceived the need for implementing diversity initiatives in a reactive way. For one of the corporations, the need to have diversity initiatives came about as the result of an organizational survey that attempted to assess the Affirmative Action programs. The results showed that employees were not feeling happy within the organization and that inclusion was necessary. These were the major motivators for the organization to implement diversity initiatives. The other organization saw the need to develop diversity initiatives because the corporation was in a serious financial crisis. To solve the financial problem, it was necessary to go through a cultural change and diversity was part of that. It was necessary to restructure the organization and bring new leaders who brought with them the idea that diversity was part of the strategy that would lead the corporation to become a financially stable institution. The leaders from this company knew that diversity was one of the "management strategies that had kept other organizations in the cutting edge, striving, and expanding." They saw diversity as part of their survival and as a way to keep them in the lead and competitiveness.
All of the corporations studied started their diversity programs with the Civil Rights Act or movement. Initially, it was a matter of compliance. All of them had to develop Affirmative Action Plans and set hiring goals or quotas. The compliance based programs made it possible to bring diverse people into organizations. However, as one research participant stated, "Women and minorities were at the lowest levels in the organization." Another participant said, "There were no support systems or policies that were needed to accommodate the new workforce." Another participant put it this way: "Due to legislation, there was a dramatic increase in the hiring of women and minorities in organizations, but they were treated like outsiders." As a result, many women and minorities were not comfortable, were not being fully utilized, and were not advancing, and a high percentage quit and left the organizations that had hired them. Therefore, support systems were needed for successful integration, and new approaches developed for valuing and managing diversity effectively.
The second stage in the evolution of diversity initiatives was the development of support systems. The majority of the corporations started forming task forces, employee networks, steering committees, management teams, and advisory councils or hiring consultants to develop frameworks for addressing diversity. One of the initiatives that became very important in this stage was the delivery of awareness-based diversity training. Seven (88%) of the corporations started offering awareness-based diversity training to provide information about diversity issues and to develop sensitivity. Parallel to this, corporations started developing policies mandated by law (e.g., regarding sexual harassment). In addition, some of the following characteristics were evident: corporations started realizing the importance of needs assessment; some formal benchmarking was taking place; a definition for diversity, its mission, and vision was starting to be developed; and efforts to gain support for diversity across the organization began.
The third stage in the development of the diversity initiatives process was a greater commitment to the concept of diversity and the start of articulation of the business case for diversity. Seven of the corporations (88%) have engaged in cultural transformation or in organizational development, change, or restructuring to accommodate diversity. Five of the corporations studied (63%) have developed a more strategic, holistic and comprehensive approach toward diversity, which is becoming linked to the business strategy or business case. In addition, at this stage, some of the following characteristics were present: more education and training programs were now in place; diversity initiatives started addressing issues with upper level management in the organization; the diversity process, its value, and importance to the organization were now being communicated through employee newsletters, corporate newspapers, company reports, and CEO speeches; diversity training was offered for senior managers; and there was a systematic diversity approach to bringing about change within the organization.
The fourth stage in the development of the diversity initiative process was the formal link of diversity with the strategic business plan of the organization. All of the corporations in the study have linked their diversity initiatives to the organization's strategic business plan. Seven of the corporations (88%) have developed diversity strategic plans to address short and long-term diversity issues. In addition, at this stage, some of the following characteristics were evident: diversity accountability guidelines for managers were established; quantitative and qualitative diversity performance measures were developed; numbers of women and people of color in management positions increased; diversity strategies were approached in the same way as other business strategies; and diversity mission statements were established.
The fifth stage in the development of diversity initiatives was the planning, implementation, and development of international diversity initiatives. All of the corporations studied were very much concerned about the international dimension of diversity. Half of the corporations already had some kind of international diversity initiatives in place. Also, half of the corporations had developed marketing plans for an international customer base. In addition, at this stage, some of the following characteristics were present: education and training programs for international leaders, increased numbers of women in international leadership positions, multicultural work teams from around the world, and global diversity goals and objectives.
The study participants were asked about who pioneered the diversity initiatives in their organizations. In five of the corporations studied (63%), the CEO was the major individual who pioneered the diversity initiatives for the company. In most cases, the CEO had the assistance of the diversity manager, other top managers, or employee groups. In one of these corporations, the CEO and employee groups started diversity initiatives, but the initiatives lacked focus and coordination. It was then necessary for the CEO to hire a diversity manager who could provide focus, organization, coordination, and structure and who could redesign the initiatives. This CEO, company employee groups, and the diversity manager have developed a comprehensive strategic diversity plan for the corporation.
In two of the corporations (25%), the diversity efforts were pioneered by the HR department. Even though the diversity efforts were pioneered by HR department in these corporations, in both cases, they had top leadership support. In one of these corporations the efforts started between the HR department and several business units within the company. A study participant put it this way: "It was the HR department and the business units figuring out that diversity wasn't only an HR issue or only a business issue but a combination of the two."
In one corporation, two divisions simultaneously and internally pioneered the diversity efforts. These divisions were facing major diversity issues, which led them to implement diversity initiatives. These two divisions within the company started focusing on diversity issues and started implementing diversity training and other diversity initiatives in order to solve problems. These diversity efforts resulted in great benefits to the company; therefore, a decision was made by top management that everyone in the company should get involved in diversity efforts. According to the study participant from this company, top management noticed that diversity efforts could help secure the future success of the company.