Running head: DIVERSE WORKFORCE 1

Managing Social Responsibilities and Ethical Issues in a Diverse Workforce

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 DIVERSE WORKFORCE 2

Managing Social Responsibilities and Ethical Issues in a Diverse Workforce

Today, diversity in the workforce is an inevitability. Workplace diversity refers to the

diversity of a company “which employs people of varying characteristics, such as gender, age,

religion, race ethnicity, cultural background, sexual orientation, religion, languages, education,

abilities, etc.” (TalentLyft). With a diverse workforce, though, comes challenges that are driven

by a lack of cultural competency, awareness and lack of exposure to varying groups of people.

Thus, it becomes imperative that managers know how to handle diversity and its related social

responsibilities and ethical issues such as stereotyping, discrimination, bias, etc. Having a diverse

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workforce is not a negative for an organization; what turns out to be negative is when the

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differences of those in the workplace are ignored instead of embraced and respected. It is the

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responsibility of organizations worldwide to manage diversity in an effective way that positions
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its benefits as worth the potential challenges.

The world, and thus the workforce, has gone through numerous demographic shifts as
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elder people remain in the workforce out of preference and necessity, Millennials become the
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most educated and most underpaid generation in the workforce, and as technology grows that

both enhances and eliminates jobs. No matter the reason, the people within the workforce are no
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longer a homogenous group of people characterized by age, gender, race, values, etc. People of

color, for example, make up nearly a third of the United States labor force; women make up
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nearly half of it; and Baby Boomers who grew up in the nation’s war-torn times are exiting the
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workforce (Burns et al., 2012). It is the responsibility of workplace managers to accept,

acknowledge and respect that the changes in the workforce will eventually become a part of their
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organization. One of the greatest ethical issues when it comes to workforce diversity is

disparities and discrimination in hiring. Even with the workforce statistics being what they are,

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hiring practices and employment of these minority groups are not reflecting their presence in the

workplace, their compensation, and more—and companies are reluctant to present the diversity

data from within for unknown reasons. It is well-studied and well-documented that many

corporate suites and boardrooms are filled with white males (Donnelly, 2017) according to

Fortune 500 research. Although diverse companies are shown to have greater cash flow, greater

creativity and greater outward reputation than their less diverse peers, the makeup of the

workplace in general is primarily male and especially primarily white. To keep diversity statistics

for organizations kept from the public, especially if a company were to tout its diversity and

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inclusion practices, is contradictory and demonstrates a lack of transparency and thus a lack of

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trust. Diversification lowers risk both pathetically and personally, yet companies are reluctant to

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implement and set forth how they implement diversity and inclusion.
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Out of all the companies on the Fortune 500, 400 of them shared no gender-related or

ethnicity-related data about their employees and even less have proof of measuring progress. It is
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the responsibility of managers not only to create a diverse and psychologically safe workforce,
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but to be forthcoming about it. In today’s social climate, especially the #MeToo era, it can be

argued that gender, race and ethnicity-based practices are taboo to be discussed lest the wrong
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thing be said or misinterpreted, which can spell trouble for a company publicly and privately.

However, it does no one well to pretend that these demographics do not exist at all. To ignore
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what makes people diverse is to ignore, for most, the center of their identities. People are defined
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by their race, sex, age gender, etc. and unfortunately, there are stereotypes that go along with

these labels that creep into the C-suites of organizations worldwide. Addressing the “issue” of
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diversity from recruitment to hiring to retention is to first evaluate the risks of homogeneity, not

use demographics as indicators of performance, work ethic, etc., and perhaps the hardest of all,

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 DIVERSE WORKFORCE 4

to confront the conscious and unconscious biases toward any group for any reason that exists in

the top levels of the organization. Diversity management is part of corporate social responsibility

policy, which refers to the sense of obligation and responsibility of corporations to promote the

well-being of the market, environment and world in which it operates politically, socially,

environmentally, economically, etc. One company that has done diversity management well is

Deutsche Post DHL (DP-DHL), German mail and logistics services group. DP-DHL is the

largest of its kind in the world and its operations and organizational mission are social-based,

working to simplify the lives of customers, make its stakeholders more successful, and positively

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contribute to the world (Starostka-Patyk et al., 2015). DP-DHL’s corporate culture is built on

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mutual understanding, respect and openness. Its diversity practices begin in the hiring processes

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and specifically compensation. Although personal factors like race, age and sex should be
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acknowledge in the workplace, DP-DHL steers away from them to prevent any discriminatory

practices. Positions in the company are evaluated for compensation based on responsibilities and
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job classification rather than the people who fill them. DP-DHL’s workforce is diverse, full of
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men and women of varying religious backgrounds, with disabilities, of different sexual

orientations, etc. The company sees its people as a genuine strength and in its Code of Conduct
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makes clear that discrimination is intolerable in any and all circumstances, anywhere throughout

the company. Its workplace culture is guided by fairness rather than the demographic
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characteristics of people. The company established a Diversity Council, Diversity Awareness

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Training, and a Corporate Diversity and Inclusion statement as just a few of its measures to show

its commitment to inclusive hiring. Making concrete goals like increasing the number of women
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in executive positions, DP-DHL has done the internal work to externally position itself as a truly

inclusive company. This shows that what it primarily takes to have a diverse workforce is

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 DIVERSE WORKFORCE 5

genuine concerted effort with key performance indicators, full internal support and training for

managers to reinforce the necessity of diversity especially at the executive level, rather than just

blanket statements. DP-DHL also ensures a fair work/life balance for its employees, namely its

parents with part-time arrangements, flexible schedules and home office setups—a stark contrast

from the corporate world in the United States. For people with disabilities, DP-DHL creates

opportunities for them to have an active part in working for both new hires and existing

employees. DP-DHL’s diversity management methods are backed by action and not just words,

exhibiting a sense of corporate social responsibility that is lacking in other parts of the world.

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DP-DHL takes care of its employees in every facet of life and appropriately so, as the human

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capital is the most valuable resource of a company. For its LGBTQ members of the workforce,

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DP-DHL held 50 seminars for German apprentices on homophobia and transphobia. It also
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created the RAINBOWNET network for LGBTQ employees.

The courses of action needed to effectively manage diversity in the workplace are
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difficult, but not insurmountable. Increasing and managing diversity in the workplace is a
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responsibility to this diverse corporate world in which organizations operate. The basics, such as

effective communication, psychological and physical safety, and rules and regulations all go a
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long way in establishing the foundation for a diverse and inclusive workplace. Diversity refers to

more than just the demographic characteristics of people but also their thoughts, values,
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behaviors and motivations. Understanding discrimination laws and the penalties for breaking
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them reduces conflicts and issues at the surface level—this is the bare minimum for

organizations. An investment in real diversity training also goes a long way to reinforce the set
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policies that protect employees from being discriminated or stereotyped against for factors out of

their control. Like DP-DHL, an empowered, open and communicative atmosphere also aids in

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 DIVERSE WORKFORCE 6

enabling diversity and takes away from the “stigma” of it all. When an organization’s leaders are

hesitant, reluctant or even afraid of tackling diversity head-on, it shows in how the organization

runs. Company leaders must also be the ones to whom those in the organization look to see why

diversity matters. As a leader, one must be able to identify their biases, hang-ups and

misconceptions before attempting to create a diverse organization, let along managing it.

For organizations to flourish in terms of leadership and human resources, there must be

an atmosphere of communication, openness, fairness and tolerance when building and managing

a diverse workforce. Diversification mitigates risks and brings out the best in companies in

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productivity, experience and creativity. From the top down, the organization must work to

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positively respect and reflect the difference between people in all ways. Employers, employees

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and organizations who value the benefits and significance of diversity fare better in management,
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productivity and reputation building than those who do not. To manage a diverse workforce

properly and effectively is part of corporate social responsibility itself. It would not do well for
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an organization to operate in a diverse world and refuse to acknowledge that diversity in its
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organizations and although many do, the tide is turning as the demographics of the world change

even more.
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 DIVERSE WORKFORCE 7

References

Burns, C., Barton, K., & Kerby, S. (2012, July 12). The State of Diversity in Today's Workforce.

Retrieved June 2, 2019, from

https://www.americanprogress.org/issues/economy/reports/2012/07/12/11938/the-state-

of-diversity-in-todays-workforce/

Donnelly, G. (2017, June 7). Only 3% Of Fortune 500 Companies Share Full Diversity Data.

Retrieved June 2, 2019, from http://fortune.com/2017/06/07/fortune-500-diversity/

Starostka-Patyk, M., Tomski, P., & Zawada, M. (2015). Diversity management as a part of

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corporate social responsibility policy. Procedia Computer Science, 65, 1038-1045.

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TalentLyft. (n.d.). What is Workplace diversity? Retrieved June 2, 2019, from

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https://www.talentlyft.com/en/resources/what-is-workplace-diversity
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