Sir, In his article "An issue that is not black and white" (February 21), Stephen Overell suggests that the business case for diversity might collapse altogether because of the paucity of information on net business benefits. He even questions whether it exists at all.
This rather hyperbolic statement draws attention to a real issue in equality and diversity management; "the business case" has become shorthand for saying that diversity is good for business, suggesting that there is one business case whereas in fact there are many.
The problem is that the business case is often (too) narrowly defined, assumes that all benefits will accrue to all organisations and assumes that the business case for diversity remains constant over time. In fact, its success is likely to be highly contingent.
Narrowly defining the business case as increased profitability or adding to the bottom line invites the challenge to prove this for all stated benefits of diversity. It is easier to see the link between becoming an employer of choice, attracting and retaining the best talent available, and the bottom line, than it is to prove the claims of increased creativity and subsequent increased profitability.
The business case is also different for different businesses. A public-sector organisation, such as the police, that polices with public consent, for example, may have a real business driver to reflect the community it serves. A consulting organisation may want to recruit and retain the best talent. One issue may be easier to measure, while another may deliver a better link with increased profitability. Both are valid business cases.
Finally, not all business cases are always as powerful over time. Take recruitment and retention of talent. Recruiting and retaining talent will be easier when the economy is sluggish and there are lots of job-seekers than when the economy is booming. The moral case for diversity, or the imperative to do the right thing, will always be there whatever the state of the job market, but the strength of the business case will ebb and flow over time. This does not mean it will disappear altogether.
