• The Business Case for Commitment to Diversity

    Does an organization's commitment to diversity--as reflected by CEO commitment, human capital, corporate communications (internal and external), and supplier diversity - result in competitive advantage and superior financial performance? Diversity can bring new voices and perspectives into the strategy dialogue, help managers understand and address the needs of a demographically diverse customer base, and stimulate a wider range of creative decision alternatives. However, the anticipated benefits of corporate diversity efforts may also be accompanied by costs that can affect shareholder wealth. In a study comparing the financial performance of the DiversityInc Top 50 Companies for Diversity to a matched sample, we find evidence that firms with a strong commitment to diversity outperform their peers on average. For commitment to diversity to become ingrained in corporate culture there must be visible and ongoing support from senior management, a clear articulation of the business case for diversity, line manager accountability, and training programs directed at communications, conflict resolution, and team building.     
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  • Fit Products and Channels to Your Markets

    Courts increasingly frown on companies' efforts to keep markets separate. To avoid conflicts and problems that can arise along the channel or in the laws under which a business operates, and understanding of the various possible combinations of markets, channels, and products is essential. Sellers sending their products through both captive and independent outlets may face the problem of discrimination during periods of supply shortages or a possible "price squeeze". A company that uses separate channels to sell the same product to different markets must often deal with price differentials and contracts. Suppliers using different types of channels when selling in different geographic regions are subject to government intervention through price controls and tax differences.
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