Skip to main content

How global companies are dialling down diversity

whisper.b

HR departments urged to get a grip on crumbling initiatives

Workers’ wellbeing is under increasing risk, business experts warn, as trends show a worrying shift where worldwide companies’ diversity initiatives are unravelling.

A Journal of World Business study highlights this alarming pattern, urging HR professionals to confront what it calls this ‘unlearning’ process head-on.

The study underlines the impact of outside influences on organisational values, prompting questions about the long-term sustainability of corporate diversity drives.

Over eight years, researchers tracked an offshoot of a French multi-national after it was sold to the Polish government, uncovering an alarming slide in diversity practices.

"Our research reveals much about how companies handle HR practices, like diversity, when they're sold off," said  Human Resources Management specialist Dr Joana Vassilopoulou.

While company values can still stick around after a sale, businesses face mounting pressure to justify their inclusion strategies, But rejecting diversity efforts can hurt employees, especially in places where they were once supported.

MNC-French was recognised for its commitment to equality. It valued diversity for understanding clients, reflecting society and maximising talent. They focused on non-discrimination and promoted diversity through initiatives like diversity training and employee resource groups.

When STATE-Polish bought it in 2017, the energy company subsidiary first adopted diversity practices from MNC-French, creating a local diversity team and starting an anti-stereotype campaigns and a women's network. They held Diversity Week annually and introduced new policies to promote diversity.

Then came a noticeable cultural shift that sent a clear message, the study charts. Key people were replaced and the company simply stopped doing diversity. LGBTQ+ staff were sacked and diversity-related roles went in what the team called ‘a systematic dismantling’ of diversity practices.

This ‘unlearning’ process happened in several ways, from belittling the previous employer and derogatory jokes about minorities to silencing talk about diversity and dismissing staff who disagreed with the new regime.

It’s a stark reminder of the challenges companies face to uphold workplace inclusivity when cultural and political landscapes shift, cautions Dr Vassilopoulou at Brunel Business School. “This paper provides HR and people managers with the tools to identify red flags of organisational diversity management unlearning in order to protect and sustain diversity in organisations,” she said.

“HR professionals urgently need to address these issues to ensure a more equitable future for all employees.”