ABSTRACT
This chapter looks at the damage prejudice causes to firms. The first half of this book has looked at how the economy has influenced prejudice. The greater the level of prejudice, the greater the economic damage to a firm or country. The higher price compensates for the damage that prejudice does to profits. Customers and prejudice are also covered in the chapter. The World Values Survey shows that younger generations tend to be less prejudiced than their parents when it comes to most forms of prejudice. Firms that have some diversity among their workers can still lose profits to prejudice. It is in the interest of firms and their profit margins to be prejudiced. Converting the losses into 2020 values, the average prejudiced team had between USD 20 million and USD 25 million of lost profits. Prejudice clearly reduces the pool of talent from which firms can hire. Talented workers will head off to competitors.
