From Balancing the Numbers to an Encompassing Business Case

The Business Case of Diversity Management has evolved as the predominant concept underlying many diversity studies and practices in the field. In this line of reasoning, corporate bottom line results like an increased return on investment (ROI) are partially explained by the existence of Diversity Management programs that aim at increasing both customer retention and employee performance. This rationale tends to overestimate the process gains and at the same time to underestimate the process losses in the face of mixed evidence on the link between diversity and performance (Kochan 2003; Horwitz and Horwitz 2007). The focus of the paper is on further developing and building on theoretical concepts of diversity. It also establishes links to non-mainstream theories like social network theory. After a short introduction to the model, the three stages of the model (Diversity concept, Diversity goals, Diversity measurement) are presented in more detail, followed by a summary and conclusion on its applicability and relevance for diversity practitioners. An outlook on further research ensues. The paper aims at delineating an approach to building a more encompassing Business Case.