Equality and Diversity Strategy in an Organization - Case Study Example

Table of Contents Table of Contents Executive Summary 2 Introduction 3 The Role of Behavioural Change in Implementing Workforce Diversity 3 The Enactment of Anti-Discrimination Laws In England 4 The Benefits of realising Workplace Diversity 7 British Companies that have not Effected Workplace Diversity 10 Sainsbury’s, though, is one of the few companies that have invested in making real changes to the workplace (Chartered Institute of Personnel and Development 2011). For most companies, undertaking such changes is something that is viewed as being extremely expensive and often counterproductive (White, Hill, Mills, and Smeaton 2004). Many corporate heads fear that they will disturb the naturally acquired cohesion in their workforce if they try to start instructing workers on how to effect behavioural changes in their personal lives. In many companies in the U.K., the workplace is still a very White male-dominated place. This is particularly true in certain industries such as geology and mining. For a long time, organisations such as Kazakhmys, Glencore, Vedanta, and Crada and Melrose had no women or ethnic minorities in their middle management or even senior management levels (Healy, Kirton, and Noon 2010). 11 In the recent past, there have been British corporations that have been sued in court by aggrieved employees who have claimed that they were discriminated against on the basis of gender, or ethnical background. For instance, an executive of the fashion company Louis Vuitton was recently sued in court by a female employee who claimed that she was constantly exposed to sexual harassment when she worked with him. Dresdner Kleinwort Wasserstein, which is a British based investment bank, was also sued by female employees who claimed that they were denied top jobs on the basis of their gender. This is a complaint that has been voiced by other female employees in British companies such as UBS, Rolls Royce, Merrill Lynch & Co., and the law firm, Sinclair, Roche, and Temperly. The latter three have also been involved in cases in which female employees claimed that they were sexually harassed by male executives. 11 Conclusion 12 Recommendations for Sainsbury’s 13 References 14 The Equality and Diversity Strategy of an Organisation Executive Summary In many developed nations, the issue of workforce diversity has been the focus of concern for decades now. With the onset of globalisation, even more corporations in developed nations such as the United Kingdom are faced with the prospect if integrating workers from different parts of the world into their workforce. Past researches have established that demographic trends in Britain show the evidence of increased diversity. In the 1970s and 80s, there were laws passed to ensure that ethnic minorities and women had equal opportunities in the workplace. Faced with the fact that the United Kingdom no longer has a large enough native population to tend to different needs in numerous sectors, British politicians have demonstrated an increased willingness to ensure social groups that were formerly ostracised in the workplace, are accepted and given equal opportunities. Salisbury’s, which is Britain’s third largest supermarket, prohibits discrimination on the basis of ethnic background, religion, gender, sexual orientation, and disability. At present, Salisbury’s, which was founded in 1869 and has 890 stores and 150, 000 workers who serve more than 19 million consumers on a weekly basis, is viewed as one of the best equal opportunity employers by British citizens who are minorities. Introduction Equality is a term that describes the eradication of barriers which stop different groups of people from benefiting from society in the way that other people do. In a workplace setting, organisations can seek to make sure that there is equality by creating regulations and procedures that slowly introduce a culture of acceptance of others. In addition, equality in organisations may be defined as the equal treatment of all workers, the eradication of discriminative tendencies, the prevention of activities such as victimisation, and bullying, and the portrayal of acceptable behaviour towards all other employees. Diversity is descriptive of the unique differences between human beings. These differences could be based on ethnicity, disability, marital status, religious affiliation, gender, health, sexual orientation, and age. In a work organisation where there is an established culture of respect and acceptance for all, such differences would be celebrated. In Britain, as in other developed nations, there have been numerous regulations that have been passed by successive governments to prevent workplace discrimination on the basis of ethnicity, gender, religion, disability, or even age. The fact that there are still far fewer people from these minority groups in positions of senior or middle management in British organisations, in spite of the fact that they make up a large percentage of the junior workers, shows that discrimination still exists. It has been hypothesised that the reason why the message of non-discrimination is not being accepted by the upper echelons of British organisations is because it involves changing personal behaviour. The Role of Behavioural Change in Implementing Workforce Diversity According to Ozbilgin and Tatli (2011), the best way to implement workplace diversity strategies is by seeking to transform line management behaviour. Organisations should not focus on just implementing regulations in order to realise diversity. In the past, British organisations that have refused to emphasise on making changes to workplace culture and, instead, focused on meeting given regulations have had to contend with cost implications that are associated with low morale in the workforce, low productivity, internal conflict, and even costly court cases filed by aggrieved employees. This is because laws are not enough to effect the necessary changes needed to create workforce diversity. The reality is that workforce diversity is not something that people can be forced to accept. Any type of behavioural change will require a change in the mind, first (Shen, Chanda, D’Netto, and Monga 2009). This means that any company that wants to implement workforce diversity has to invest in ‘learning and development’ initiatives being taught o workers. Sainsbury’s has successfully realised workforce diversity because it invested in the creation of a work environment that revered self-accountability and inclusion. This was only achieved because Sainsbury’s top management was devoted to effecting changes in a strategic manner. The Enactment of Anti-Discrimination Laws In England Anti-discrimination laws in Britain were first passed in the 1970s (Barnes 2009). The effects of these regulations would only be felt in the 1980s, though, as this is when the message of equal opportunity filtered into the mainstream society as a result of business and academic recognition. According to Blackaby, Leslie, Murphy, and O’Leary (1998), in the 1990s, large corporations like Sainsbury’s declared that they were fully committed to meeting objectives concerning equal opportunity employment. The reality is that even though it is important to eradicate all forms of discrimination in the workplace, the subject remains extremely emotive for most people. Britain’s 2010 Equality Act Britain’s Equality and Anti-Discrimination Act, which was ratified in 2010, seeks to protect employees from all kinds of backgrounds from experiencing discrimination in the workplace. This regulation took the place of all previous laws which outlawed discriminatory acts. The Equality and Anti-Discriminatory Act is easier for ordinary employees who are not acquainted with the law to understand. The Equality Act of 2010 even strengthened the protection accorded to minority workers in specific circumstances. This legislation outlaws discrimination in the workplace on the basis of sexual orientation, age, marriage, disability, religion, race, pregnancy, and ethnic background. All these categories are commonly referred to as ‘protected characteristics’. This law also encouraged people who witness others being discriminated against to take ‘positive action’ by alerting the concerned authorities about the incident. At Sainsbury’s, the creation of an accepting work culture could only be effected after the workforce was encouraged to understand that it was important, in the first place, to recognise that the differences between people were an acceptable part of who they were, and not necessarily a bad thing that had to be avoided at all costs (Sturgis, Brunton-Smith, Read, and Allum 2011; Terjesen, Sealy, and Singh 2009). The company invested in long-term strategies to change the way the company’s workforce viewed different cultures. According to Kyle (2009) the challenge of ensuring that all workers feel respected and valued can be even more difficult in workplaces such as Sainsbury’s which have employees from numerous social groups. This is because there is an even greater potential for episodes of unconscious bias, or unintended micro-inequities. This is one of the reasons why Sainsbury’s considered the significance of inclusion policies long before it was trendy to do so. Whether personal bias is unintentional or deliberate, it will negatively affect the professional lives of the employees who are exposed to it. This is also the reason why corporations have to invest in changing the mindsets of prejudiced people. Those with unconscious bias will not change their minds on the basis of established laws. Even if they decide not to show overt discrimination in order not to be fired from their jobs, they may still exhibit micro-inequities, or micro-aggressions towards employees whom they are prejudiced against. To deal with this reality, Sainsbury’s has implemented policies over the years that encouraged all employees to change their mindsets while also developing a sense of personal ownership in terms of the success of the company. Sainsbury’s Diversity Initiatives Sainbury’s has had a long history of creating laws that support diversity initiatives. As one of the largest employers in Britain, Sainbury’s recognizes the importance of creating initiatives that will include the needs of Britain’s modern multicultural community. This will then generate economic and social value for the supermarket. Sainsbury’s regulations forbid the generation of unfair decisions, requirements, or practices, for instance, that exclude or disqualify any workers from meeting the necessary employment requirements, for instance. Sainsbury’s also discourages discrimination on the basis of age, nationality, race, colour, community background, religion, family status, gender re-assignment, marriage, civil partnership, ex-offender status, pregnancy, or sexual orientation. Sainsbury’s aims to create a business environment in which every individual from every background can feel as though he or she were a part of the community. Sainsbury’s also has regulations that assist workers to realize their full potential. Workers are given the opportunity to discuss their professional aspirations while suggesting work-related programs which could contribute towards their long-term development. Sainsbury’s has even sponsored events such as diversity programs, and the 2012 Paralympic Games. Sainsbury’s even has programs that allow for employees to be coached with the aim of being promoted into senior positions within the company. Sainsbury’s has entered into agreements with various external partners such as ‘Race for Opportunity’ and ‘Business Disability Forum’ to ensure that employees are accorded all the support they need in the achievement of their professional objectives. Sainsbury’s has realised the implementation of three types of diversity. It has realised social diversity, value diversity, and informational diversity. This has allowed the corporation to successfully realise workers’ ability to operate in a better environment. Social diversity has to do with improving cohesion and communication in a workforce that has assorted demographic characteristics in terms of gender, age, ethnic background, and religious affiliation (Moss 2010). Informational diversity, which is also identified as organisational diversity, speaks to realising cohesion in a workforce that has employees with different levels of educational experience, knowledge, skills, and functional background. In achieving informational diversity, Sainsbury’s reduced the possibility of being negatively affected by task-related conflicts. In achieving value diversity, Sainsbury’s has been able to reduce the chances of productivity being affected by differences in attitudes and personalities in the workforce. The Benefits of realising Workplace Diversity The main purpose of realising workplace diversity is to help in realising an organisation’s objectives, while also meeting possible challenges (Kirton and Greene 2010). For Sainsbury’s, achieving workplace diversity has brought numerous advantages. For example, the company has been able to access a pool of diverse talent on the global scene. The company has also benefited by using different ideas and perspectives to increase creativity. It is not surprising that Sainsbury’s is viewed as a market changer in terms of communication between different social groups, and reduced turnover. This makes its workforce have increased enthusiasm, competitiveness, and motivation. At Sainsbury’s, there has been a marked reduction in absenteeism witnessed over the years, as a result of investing in workplace diversity and cultural education programs (Zanoni, Janssens, Benschop, and Nkomo 2010). The company has also benefited from an improved image that facilitated strong corporate branding. Its diversity policies have implemented improved relationships with contractors from different ethnic backgrounds, as well as with customers. Salisbury’s has also been able to gain access to new markets as a result of its workplace diversity culture. Sainsbury’s is today recognised as being an example of what inclusiveness can achieve in a work organisation. Today, the corporation has a ‘Diversity Champion’ program that comprises of 140 managers. This program encourages people to give feedback on various corporate aspects of implemented diversity policy while also giving suggestions on how they can be improved. This is a program that has an extensive agenda that constitutes of development training, and supporting employees to invest in community programs along with their professional responsibilities. The company even invested in the creation of a ‘You Can’ plan in 2008, which worked with workers like formerly incarcerated people, military veterans, and the disabled who had special needs (Fagan, Gonzalez Menendez, and Gomez-Anson 2012). The aim of this program was to hire workers from special needs groups to work in various capacities, and then mentor them so that they regained confidence in their own skills. Policies from different Organizations that Sainsbury’s could Adopt To be wildly successful in meeting the needs of Britain’s increasingly multicultural society, it is necessary for Sainsbury’s to conduct business operations while being sensitive to the needs of people with different perspectives on life. Sainsbury’s executive management could achieve this by making sure that equality analysis is something that is always built into the supermarket’s key programs. Sainsbury’s could also seek to improve communications when generating ways of addressing diverse peoples by eliminating communication barriers. To achieve this, it may be necessary to include people from diverse backgrounds in the supermarket’s advisory bodies. It is also important to stress on the importance of having an inclusive corporate culture; rather than just an inclusive policy. Inclusive cultures are harder to achieve because there has to be real effort on the part of the employees, as well as the executive management to include people from diverse backgrounds in the workforce. Having an inclusive policy does not take much effort, as all that has to be done is to include people from diverse backgrounds, even if they are semi-skilled, in the organization’s workforce. This does not bring the company any gains; and could even compromise its objectives. Different organizations have realized the objectives of in depth diversity policies by establishing networks for LGBT people, ethnic minorities, and women that generate support and camaraderie across business units. British Companies that have not Effected Workplace Diversity Sainsbury’s, though, is one of the few companies that have invested in making real changes to the workplace (Chartered Institute of Personnel and Development 2011). For most companies, undertaking such changes is something that is viewed as being extremely expensive and often counterproductive (White, Hill, Mills, and Smeaton 2004). Many corporate heads fear that they will disturb the naturally acquired cohesion in their workforce if they try to start instructing workers on how to effect behavioural changes in their personal lives. In many companies in the U.K., the workplace is still a very White male-dominated place. This is particularly true in certain industries such as geology and mining. For a long time, organisations such as Kazakhmys, Glencore, Vedanta, and Crada and Melrose had no women or ethnic minorities in their middle management or even senior management levels (Healy, Kirton, and Noon 2010). In the recent past, there have been British corporations that have been sued in court by aggrieved employees who have claimed that they were discriminated against on the basis of gender, or ethnical background. For instance, an executive of the fashion company Louis Vuitton was recently sued in court by a female employee who claimed that she was constantly exposed to sexual harassment when she worked with him. Dresdner Kleinwort Wasserstein, which is a British based investment bank, was also sued by female employees who claimed that they were denied top jobs on the basis of their gender. This is a complaint that has been voiced by other female employees in British companies such as UBS, Rolls Royce, Merrill Lynch & Co., and the law firm, Sinclair, Roche, and Temperly. The latter three have also been involved in cases in which female employees claimed that they were sexually harassed by male executives. It is only after the British government began to demand that the largest companies include female staff as well as workers from ethnic minorities or suffer from penalties that these companies each employed a woman in a position of senior management (Davidson and Burke 2011). According to Armstrong, Flood, Guthrie, Liu, MacCurtain, and Mkamwa (2010), the British government has stipulated that, by 2015, the board of directors of FTSE 100 companies should each have at 25% female representation. To compel companies to effect workplace diversity, the British government has also stipulated that refusal to comply with workplace diversity rules will result in definite penalties. Conclusion There are definite guidelines that the government has passed to assist companies in realising diversity policies. For example, there are ‘gay friendly’ regulations that have been provided. There are efforts being channelled through the ‘equality strategy’ which are in support of compelling organisations to make changes. The most influential concept introduced by the British government is ‘positive action’. This concept allows employers to opt for qualified people from minority groups to occupy positions in industry instead of qualified people from the mainstream culture. If implemented, employers will be able to use the reforms under ‘positive action’ to voluntarily promote and recruit qualified people from minority groups in order to deal with their under-representation in various industries. While controversial, this could result in more people from minority groups gaining access to various industrial roles in which they qualify. Recommendations for Sainsbury’s There has been a real change in British society in terms of increased diversification. This is evident through the growing popularity of ethnic foods in urban areas. To remain competitive, Sainsbury’s has to take these changes into consideration, and consider the changing regional demographics of all communities into which it hopes to install branches. With the competitiveness that marks the business sector today, it is necessary for supermarkets to target customers with ingenious marketing methods such as ‘tweets’ about existing or new products, or even e-mailing consumers about new offerings. Sainsbury’s could use these channels of communication to target customers from diverse backgrounds with offerings that are specially tailored to their particular tastes. This would be particularly appealing to customers who may not even have been exposed to such marketing techniques. Research has proved the fact that many consumers today prefer the familiarity and routine afforded by large and impersonal service in big supermarkets. Sainsbury’s can take advantage of this preference by targeting customers with offers through electronic mail, and creating an environment that makes them feel as though the supermarket cherishes their input. The inclusion of employees from different minority backgrounds would be of particular use in suggesting how best to target minority consumers.   References Armstrong, C., Flood, P.C., Guthrie, J.P., Liu, W., MacCurtain, S. & Mkamwa, T. (2010) ‘The impact of diversity and equality management on firm performance: beyond high performance work systems’, Human Resource Management, vol. 49, no. 6, pp. 977-998. Barnes, L. (2009) ‘Equality law and experimentation: the positive action challenge’, Cambridge Law Journal, vol. 68, no. 3, pp. 623-654. Blackaby, D., Leslie, D.G., Murphy, P.D. & O’Leary, N.C. (1998) ‘The ethnic wage gap and employment differentials in the 1990s: evidence for Britain’, Economics Letters, vol. 58, pp. 97-103. Chartered Institute of Personnel and Development. 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(2010) ‘Unpacking diversity, grasping inequality: rethinking difference through critical perspectives’, Organisation, vol. 17, no.1, pp.9-29. Read More