ABSTRACT
This chapter explores the interconnections between workforce diversity and organisational performance. It outlines and critically appraises the bases of the business case for diversity and evaluates the evidence for the claim that creativity, innovation, and competitive advantage are enhanced by workforce diversity. There is a specific focus on diversity at work group and team levels and at board level: the social processes of diversity, the impact on work relations, and, hence, performance. The chapter shows that while endorsing the business case for diversity might be a first step towards increasing and valuing diversity in the workplace, without strong evidence to support the claims that organisational performance will improve, the business case will always rest on shaky ground. While some studies do provide at least qualified support for the business case, the chapter reveals that the bottom-line benefits of workforce diversity remain highly debatable and contingent on a range of contextual and situational factors.
