Managing Demographic and Cultural Diversity
Read this chapter for an in-depth look at how to manage demographic and cultural diversity. First, we will consider what constitutes diversity, as well as the benefits of managing it. We will attempt to describe the challenges of managing a diverse workforce, including multicultural workforces and those organizations with diverse demographics. We will conclude with a discussion on diversity and ethics and how standards of ethics may vary depending on culture, age, gender, and other traits. While reading this chapter, think about what you bring to the workplace. What unique demographical or cultural attributes do you possess? How do these characteristics affect your values and management style? What steps can you take to understand, work with, and manage those with different characteristics than you?
Doing Good as a Core Business Strategy: The Case of Goodwill Industries
Goodwill
Industries International has been an advocate of diversity for over 100
years. In 1902, in Boston, Massachusetts, a young missionary set up a
small operation enlisting struggling immigrants in his parish to clean
and repair clothing and goods to later sell. This provided workers with
the opportunity for basic education and language training. His
philosophy was to provide a "hand up," not a "hand out". Although today
you can find retail stores in over 2,300 locations worldwide, and in
2009 more than 64 million people in the United States and Canada donated
to Goodwill, the organization has maintained its core mission to
respect the dignity of individuals by eliminating barriers to
opportunity through the power of work. Goodwill accomplishes this goal,
in part, by putting 84% of its revenue back into programs to provide
employment, which in 2008 amounted to $3.23 billion. As a result of
these programs, every 42 seconds of every business day, someone gets a
job and is one step closer to achieving economic stability.
Goodwill
is a pioneer of social enterprise and has managed to build a culture of
respect through its diversity programs. If you walk into a local
Goodwill retail store you are likely to see employees from all walks of
life, including differences in gender and race, physical ability, sexual
orientation, and age. Goodwill provides employment opportunities for
individuals with disabilities, lack of education, or lack of job
experience. The company has created programs for individuals with
criminal backgrounds who might otherwise be unable to find employment,
including basic work skill development, job placement assistance, and
life skills. In 2008, more than 172,000 people obtained employment,
earning $2.3 billion in wages and gaining tools to be productive members
of their community. Goodwill has established diversity as an
organizational norm, and as a result, employees are comfortable
addressing issues of stereotyping and discrimination. In an organization
of individuals with such wide-ranging backgrounds, it is not surprising
that there are a wide range of values and beliefs.
Management
and operations are decentralized within the organization with 166
independent community-based Goodwill stores. These regional businesses
are independent, not-for-profit human services organizations. Despite
its decentralization, the company has managed to maintain its core
values. Seattle's Goodwill is focused on helping the city's large
immigrant population and those individuals without basic education and
English language skills. And at Goodwill Industries of Kentucky, the
organization recently invested in custom software to balance daily sales
at stores to streamline operations so managers can spend less time on
paperwork and more time managing employees.
Part
of Goodwill's success over the years can be attributed to its ability
to innovate. As technology evolves and such skills became necessary for
most jobs, Goodwill has developed training programs to ensure that
individuals are fully equipped to be productive members of the
workforce, and in 2008 Goodwill was able to provide 1.5 million people
with career services. As an organization, Goodwill itself has entered
into the digital age. You can now find Goodwill on Facebook, Twitter,
and YouTube. Goodwill's business practices encompass the values of the
triple bottom line of people, planet, and profit. The organization is
taking advantage of new green initiatives and pursuing opportunities for
sustainability. For example, at the beginning of 2010, Goodwill
received a $7.3 million grant from the U.S. Department of Labor, which
will provide funds to prepare individuals to enter the rapidly growing
green industry of their choice. Oregon's Goodwill Industries has
partnered with the Oregon Department of Environmental Quality and its
Oregon E-Cycles program to prevent the improper disposal of electronics.
Goodwill discovered long ago that diversity is an advantage rather than
a hindrance.
Discussion Questions
- What are Goodwill's competitive advantages?
- Goodwill has found success in the social services. What problems
might result from hiring and training the diverse populations that Goodwill is involved with?
- Have you ever experienced problems with discrimination in a work or school setting?
- Why do you think that Goodwill believes it necessary to continually innovate?