Diversity and Corporate Performance: A Review of the Psychological Literature

Abstract

This Article examines two approaches to diversity management in the context of procedural justice theory: 1) maximizing the benefit of diversity in the workplace and 2) minimizing any potential harm. With regard to the former, this Article argues that the application of procedural justice theory will create conditions under which employees of all backgrounds feel comfortable contributing their unique perspectives, thus maximizing the benefits of diversity. Applying procedural justice theory may also reduce potential conflicts arising from a diverse workforce by encouraging non-prejudiced, respectful behavior and strengthening organizational identity. As a test of these principles, a data set of 2,366 employees is examined. These data show that procedural justice principles promote better productivity among both white and black employees. Thus, procedural justice may be an important tool in diversity management.