Impact of the Law and Social Justice Arguments for Equality on the Business Case

An Assessment of the Impact of the Law and Social Justice Arguments for Equality on the Business Case
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An Assessment of the Impact of the Law and Social Justice Arguments for Equality on the Business Case
           Equality, diversity, and inclusion play an important role in organizational success. According to Ali and Konrad (2017), effective management of equality and diversity is a source of competitive advantage for organizations, and it contributes to superior firm performance. Yet, the road to equality and diversity in the workplace is long and challenging, even in the most developed economies. For instance, Wilton (2019, p. 351) indicates that the UK’s labor market is highly diverse, with over 33.8 million people either working or actively looking for employment. Of these, 15.9 million are women, 4.1 million are ethnic minorities, and 4.1 million are people with disabilities. Yet, the UK labor market is characterized by high inequality. To address inequality in the labor markets, laws and social justice initiatives have been designed over the years, both in the UK and other parts of the world. For instance, the Equality Act 2010 protects people from workplace discrimination in the UK. These laws and social justice initiatives have been supported by arguments that show the need for equality and diversity in the workplace. This essay aims to analyze the rationales for equality and diversity in the workplace from a general and specific perspective. This essay will evaluate the rationales for sex equality and diversity in the workplace from a specific perspective. 
Rationales for Equality and Diversity: A General Overview
           Equality and diversity in the workplace have supporters and critics. However, it is becoming increasingly important for organizations to promote equality and diversity by respecting individual differences in terms of sex, race, disability, age, and sexual orientation, among others as indicated in the Equality Act 2010. One of the rationales for equality and diversity in the workplace is that having a diverse workforce allows the organization to successfully pursue its strategy (Ali & Konrad, 2017). An example provided to support this rationale is that for a firm pursuing a growth strategy, a racially diverse workforce can enhance its growth because it will attract a more racially diverse market and increase its market shares. Groschi (2016, p. 31) refers to this as the access and legitimacy rationale, stating that equality and diversity in the workplace are necessary because organizations serve a diverse market. As such, they need their workforce to reflect this diversity if they want to gain access to these highly diverse markets. In this respect, a diverse workforce will also ensure that the organization understands its customers and what they need. In addition, the workforce will ensure that the company’s products/ services are designed to meet the needs of a diverse market. 
           There is also another rationale that emphasizes integration and learning benefits of workplace equality and diversity. Groschi (2016, p. 31) indicates that this rationale considers the skills, perspectives, and experiences of diverse workforce groups as important resources that can be used to improve organizational productivity and enhance the achievement of the organization’s mission and vision. Every individual from diverse groups possesses different skills, experiences, and viewpoints and interprets the world differently. When put together in a room, they use these differences to identify issues that hinder organizational success and provide creative solutions to these problems. According to Hansen and Seierstad (2017, p. 16), organizations interested in integration and learning have to eliminate bias in their processes and address workplace discrimination. In addition, they have to adapt to ensure the effective integration of diverse groups to enhance organizational performance. 
           Another rationale for equality and diversity in the workplace is the social responsibility rationale. According to the Information Resources Management Association (2021, p. 282), a social justice perspective of equality and diversity incorporates not only moral and ethical principles but also a social responsibility principle. At its foundation, corporate social responsibility (CSR) is built on the pillars of people and the community. Thus, focusing on equality and diversity in the workplace strengthens these pillars because the organization is reflecting what is needed in society. Also, equality and diversity are considered part of CSR strategy. Socially responsible organizations are incorporating equality and diversity programs as part of their CSR strategy because of the associated benefits of such programs (Haski-Leventhal 2021, p. 155). Organizations have increasingly understood that promoting equality and diversity is the right thing to do and that it will enhance the company’s reputation. Consumers have now become conscious of how the actions and practices of an organization affect different stakeholders. How is the firm treating its employees? Is there racism in the organization? Are people of color being treated differently because of their ethnic background? All these questions have become important to consumers. Organizations are now using equality and diversity to show that they are socially responsible and are not only concerned about their shareholders but also other stakeholders. 
           Further, discrimination and fairness are also used as a rationale for workplace diversity and equality. According to Groschi (2016, p. 32), equality and diversity are the gateways towards achieving justice and fairness in organizations. Through equality and diversity, organizations can identify and respond to sources of unfairness in the organization, making it possible to create fair and just workplaces. As Dahanayake et al. (2018) indicate, when organizations treat employees with respect and dignity and use clear rationales in decision-making, they create a culture of fairness and justice in the workplace. Yet, to treat employees with respect and dignity, organizations need to promote equality and diversity first. Equality has also been linked to distributive justice. According to Dahanayake et al. (2018), equality facilitates the equal distribution of not only resources but also opportunities in organizations. Workers are more likely to perceive an organization as just if equality and diversity initiatives are put in place. As such, organizations need to promote equality and diversity if there is to be any form of justice and fairness. 
           However, despite the benefits of workplace equality and diversity, there are many critics of equality and diversity in the workplace. For instance, some critics claim that equality and diversity efforts in the workplace contribute to reverse discrimination (Hawkins, 2016, p. 61). Reverse discrimination occurs when the members of a dominant group feel left out because members of a protected group are receiving preferential treatment. For instance, to increase workplace diversity, a predominantly white or male organization can decide to hire more people of color or female employees. In such a case, whites or male people in the labor market might feel discriminated against. In the UK, the Equality Act 2010 allows this kind of preferential treatment because an organization is taking positive action towards enhancing equality and diversity in the workplace. 
Rationale for Equality and Diversity: A Case of the Sexes
           Sex is a protected characteristic in the Equality Act 2010 in the UK. Thus, the law presents a justification for sex equality in the workplace. Also, sex/gender equality is one of the sustainable development goals as well as a human rights declaration under the United Nations (Haski-Leventhal 2021, p. 156). Yet, female participation in the labor market is still limited. In addition, those participating in the labor market are not given the same treatment as their male counterparts in terms of receiving equal leadership opportunities as well as compensation. According to Thelwell (2017), in the UK, there is at least an 18% difference in compensation among the sexes. Female workers are paid less than their male counterparts for the same contribution in the workplace. The pay gap is even higher in some countries, especially those in developing economies. Further, the percentage of working-age females is lower than that of males across the world. About 75% of working-age males are in the labor force, while only 49% of working-age females are in the labor force (Haski-Leventhal, 2021, p. 156). These statistics show that equality among the sexes is still a challenge in many parts of the world. 
           Female workers are paid less than their male counterparts and yet, the Equality Act 2010 calls for sex equality for relevant and equal work (UK Legislation, n.d.). Also, there is high labor segregation in the UK labor market. According to Wilton (2019, p. 351), about 17% of female workers are employed in secretarial and administrative ...