Examining The Relationship Between Diversity And Firm Performance

Abstract

There is a heated debate taking place in the between those who think firms should be more diverse because it is the right thing to do and those who think firms should be more diverse because it actually enhances shareholder value. This study establishes a solid business case for managing diversity as a bottom line initiative. I find a positive and significant relationship between firm diversity and long-term firm performance. These findings forecast an increase in the employment opportunities for educators, students and recent graduates from diverse backgrounds.