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International Journal of Hospitality Management 94 (2021) 102864

Contents lists available at ScienceDirect

International Journal of Hospitality Management


journal homepage: www.elsevier.com/locate/ijhm

Walking the talk in diversity management: Exploring links between


strategic statements, management practices, and external recognition
Ashokkumar Manoharan a, *, Juan M. Madera b, Manisha Singal c
a
College of Business, Government and Law, Flinders University, Adelaide, SA, 5001, Australia
b
Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, United States
c
Pamplin College of Business, Virginia Tech, 295 West Campus Drive, Blacksburg, VA, 24061, United States

A R T I C L E I N F O A B S T R A C T

Keywords: Despite a link between external recognition for diversity management and important financial outcomes, very
Diversity management little research has examined the organizational efforts that can lead to such external recognition. To address this
Strategic statements gap, this study examines the links between strategic diversity statements, diversity management practices, and
Diversity practices
external recognition of diversity using the theoretical lenses of the resource-based view (RBV) and institutional
External recognition
Fortune 1000 firms
theory. Data on diversity statements and practices were collected from 27 Fortune 1000 companies, and, using a
time-lag approach, external recognition data were collected from professional organizations one year later.
Results show that organizations that “walk the talk” and institute both diversity statements and practices were
more likely to gain external recognition. This study provides timely and practical recommendations for hospi­
tality firms to integrate diversity statements with diversity practices, a process that may lead to external
recognition and thus to favorable outcomes.

1. Introduction management practices, such as diversity committees, diversity councils,


and diversity advisory boards. Among organizations with these types of
Current world events stemming from movements such as Black Lives diversity management practices, 72 % reported that these groups were
Matter have brought diversity to the forefront of business and social used to help augment their organization’s business efforts. It must be
discourse. Corporate America has stepped forward, re-examined its noted that 13 % of organizations reported having staff dedicated
policies and practices, and committed resources to diversity and inclu­ exclusively to diversity. Globally, 55 % of organizations in a study by
sion in the workplace (Hessekiel, 2020), recognizing their social and Society for Human Resource Management reported their organizations
business value (Hunt et al., 2015). CNBC reports that 40 % of S&P 500 “strongly promote” Diversity and Inclusion (Gehrels and Suleri, 2016).
companies discussed diversity, equality, and inclusion during their 2020 Stronger business performance can be achieved through more signifi­
s-quarter earnings calls, up significantly from last year (Stevens, 2020). cant investment in diversity management practices (Singal, 2014).
In addition, companies invest $8 billion annually on diversity and in­ To leverage and showcase their investment in diversity management,
clusion training, and nearly 50 % of US organizations plan to offer di­ organizations often use external recognition as a measure of success. For
versity and inclusion training in the future (Carter et al., 2020). example, a widely used practice is to benchmark against other organi­
Past research has shown that diverse employees are a competitive zations considered leaders in diversity management, such as those
advantage (Dass and Parker, 1999). This is especially true in the context included on DiversityInc’s annual list of “The 50 Best Companies for
of the hospitality industry, which is labor intensive, caters to diverse Diversity,” Fortune magazine’s “Top 50 Companies for Minorities,” or
customers from all over the world, and experiences high labor turnover the Human Rights Campaign’s “Best Places to Work for LGBTQ
(Madera, 2013). To achieve sustainable competitive advantage and Equality.” Research shows that external recognition for diversity pays
maximize the positive outcomes related to workforce diversity, almost off for organizations. Specifically, receiving external recognition for
98 % of companies, based in the US, have a diversity program. As far diversity has been linked to strong financial performance via conscious
back as 2011, a Society for Human Resource Management study found efforts to build a positive reputation to signal a competitive advantage to
that 21 % of companies reported using a variety of diversity stakeholders (Cook and Glass, 2014; Richard et al., 2013; Roberson and

* Corresponding author.
E-mail addresses: ashokkumar.manoharan@flinders.edu.au (A. Manoharan), jmmadera@uh.edu (J.M. Madera), msingal@vt.edu (M. Singal).

https://doi.org/10.1016/j.ijhm.2021.102864
Received 4 September 2020; Received in revised form 31 December 2020; Accepted 10 January 2021
Available online 29 January 2021
0278-4319/Crown Copyright © 2021 Published by Elsevier Ltd. All rights reserved.
A. Manoharan et al. International Journal of Hospitality Management 94 (2021) 102864

Park, 2007). these firms received.


Despite a link between external recognition for diversity and Addressing these gaps is important because gaining a deeper un­
important financial outcomes, very little research has examined the derstanding of the relationship between strategy statements, diversity
antecedents and organizational efforts that can lead to this external management practices, and external recognition for diversity will
recognition. That is, what do organizations do to gain external recog­ benefit both academics and practitioners. For academics, examining the
nition for diversity? Using Yang and Konrad’s (2011) model of diversity relationships between strategy, practices, and performance through the
management, we propose that linking both strategic diversity state­ lens of diversity management builds on the tradition of strategic human
ments (henceforth, diversity statements) and diversity management resource management (HRM), investigating how practices such as those
practices is related to external recognition for diversity—“walking the for diversity management can be measured and compared between or­
talk” is the way to receive recognition. Yang and Konrad’s model of ganizations and linked to strategy and important outcomes (Madera
diversity management is grounded in resource-based view (RBV) and et al., 2017). For practitioners, there is a need to understand the effects
institutional theory, which suggest that organizational motivation to of diversity management practices on external recognition for diversity,
invest in diversity management starts with corporate strategy. A strategy because hospitality organizations substantially invest in diversity man­
is defined as “a set of goal directed actions a firm takes to gain and agement to generate reputations for being diversity leaders (Gajjar and
sustain superior performance relative to competitors and can act as a Okumus, 2018; Madera, 2013).
guiding policy to address the competitive advantage” (Rothaermel,
2019, p. 4). Thus, hospitality firms seeking to implement diversity 2. Literature review and theory
management start by including diversity as an agenda item in their
corporate strategic statements, which helps them formulate policies 2.1. Strategic diversity statements
toward diverse employees and external stakeholders. A clear diversity
statement can guide diversity management practices and the positive Strategic communication to stakeholders in the form of corporate
outcomes of such practices (Thomas, 2004). Diversity management is website statements benefits organizations in many ways. They help an
planning and implementing organizational systems and practices to organization state priorities that point to its future direction as a firm,
manage people, thus maximizing the potential advantages of diversity improve performance, and stimulate creative thinking while also
and minimizing its potential disadvantages (Cox, 1994). Research shows building team expertise by using limited resources effectively (Patterson
that diversity management leads to innovation, strong financial out­ and Radtke, 2009). These statements include mission statements, vision
comes (Manoharan et al., 2019), and lower turnover (Richard and statements, and detailed strategic statements, such as diversity and in­
Johnson, 1999), and positively influences group performance and job clusion statements. To promote diversity, organizations often use tools
satisfaction (Pitts, 2009). Richard and Johnson (1999, p. 89) find that “if that include images of ethnically and gender-diverse employees, images
the diversity practices ‘fit’ with the firm’s business strategy, productivity of awards they may have won for diversity, and diversity statistics on
and market performance are higher than for those firms without ‘fit.’” their corporate websites. These statements are essential tools for
While existing research confirms that strategic diversity statements communication both inside and outside the organization (Kemp and
and diversity management practices can lead to positive organizational Dwyer, 2003; Stallworth Williams, 2008). Companies often aim these
outcomes, the literature has several limitations. First, little is known kinds of corporate messages about their ethical and social re­
about the actual strategic diversity statements that organizations adopt sponsibilities at external audiences—for example, investors, govern­
(Kossek et al., 2005). Instead, the majority of the research has focused on ment authorities, the media, and customers—to achieve reputational
the antecedents and outcomes of strategic diversity statements (Cook gains (Fombrun and van Riel, 2004).
and Glass, 2015; Friday and Friday, 2003; Richard, 2000; Roberson and Singh and Point (2006, p. 363) point out that “diversity statements
Park, 2007), but not on what they are (i.e., their content). Second, are important because of their role in the social construction of diversity,
research on diversity management practices is often micro-level—for through their discourses helping to shape how differences are to be
example, it examines the effect of team and work unit demographics, or considered, valued and managed in companies and the business world.”
the effect of the manager- and employee-perceived diversity climate on Organizations promote diversity through pragmatic legit­
team- and individual-level outcomes (Kalargyrou and Costen, 2017; imacy—supporting self-interest and moral legitimacy—and the diversity
Manoharan and Singal, 2017). Third, although some research has been and equality procedures they place on their websites and in their di­
conducted at the macro or organizational level, much of this has only versity statements thus shape their diversity climate (Plaut, 2010; Singh
focused on the effect of diversity management practices on individual and Point, 2006). In their examination of 241 European companies,
aspects of firm performance and not on external recognition for diversity Singh and Point (2006) find that 131 of them justified managing di­
(e.g., Richard, 2000; Richard et al., 2004). In addition, these studies versity and equal opportunities, and that the outcomes of diversity
have often been conducted as silos, creating a gap in understanding statements included better performance, better reputation, and a better
relationships between strategy statements, diversity management climate that met stakeholder needs. Research demonstrates that when
practices, and external recognition for diversity. Lastly, although in­ hotels communicate their diversity management activities on their
dustry context matters (Johns, 2018), only two studies have used hos­ websites, they reinforce recruitment efforts, build stronger relationships
pitality organizations to examine external recognition for diversity. Both with suppliers, and create a better corporate social responsibility (CSR)
were limited to investigating the relationship between diversity man­ image, which leads to new markets (Gröschl, 2011) and boosts company
agement practices and a single type of external recognition for diversity, competence, cultural learning, talent management, recruitment, and
and neither looked at diversity statements (Madera, 2013; Gajjar and creativity (Singh and Point, 2006). Recognizing this, Holcomb et al.
Okumus, 2018). (2007) examine CSR patterns and find that among the top ten hotel
To address these gaps, we build on Yang and Konrad’s (2011) model companies globally, 60 % had specific diversity policies. This line of
of diversity management to examine (1) the content of diversity state­ research thus clearly demonstrates the importance of strategic diversity
ments, (2) diversity management practices, and (3) the links between statements. However, research has yet to explore the content of diversity
diversity statements, diversity management practices, and external statements, which led us to formulate Research Question 1: What is the
recognition for diversity management. Using Fortune 1000 companies to content of diversity statements in hospitality companies?
select our sample, we identified hospitality-related firms, manually
collected data related to their diversity statements and diversity prac­ 2.2. Diversity management practices
tices from their websites, and examined the links between these data and
external recognition, such as any diversity-related awards and accolades Strategic diversity statements should translate into diversity

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management practices. For the purpose of this paper, diversity and di­ (2011) model suggests that when diversity is perceived to be highly
versity management includes all stakeholders, such as employees, cus­ relevant to firm strategy, managers are motivated to adopt diversity
tomers, owners, and suppliers, and is defined as “the distribution of practices more comprehensively to acquire and exploit this valuable
differences among members of a unit with respect to a common attri­ resource.
bute” (Harrison and Klein, 2007, p.1200). While organizational research From the institutional theory perspective, institutions are defined as
has predominantly focused on employee diversity management the cognitive, normative, and regulative structures and activities that
(Roberson, 2019), recent research has begun to examine the diversity give stability and meaning to social behavior (Scott, 1995). Cognitive
management of other stakeholders (Richard et al., 2013). Diversity institutions include cultural and ethical positions such as inclusivity;
management programs take a variety of forms, the critical components normative institutions include social and professional norms; regulatory
of which include initiatives to recruit, promote, and retain a diverse institutions include laws and regulations (Scott, 1995, 2013). To meet
group of employees (Jayne and Dipboye, 2004). the expectations of these institutions, three forms of pressure are applied
Diversity management plays a crucial role in the hospitality and to organizations: (1) coercive institutional pressures, which are the
tourism industries, where interacting with and providing services to formal pressures that external bodies exercise through law and legisla­
diverse customers is a salient feature compared with other industries tion, such as Equal Employment Opportunities and Affirmative Action;
(Singal, 2014). Thus, it is important that diversity management pro­ (2) normative institutional pressures, which are based on the norms of
grams signal an organizational commitment to recruit, retain, reward, the local society (Scott, 2013); (3) and mimetic institutional pressure,
and promote a heterogeneous mix of productive and committed workers which is the force of uncertainty in the environment encouraging or­
(Ivancevich and Gilbert, 2000). Wilson and Iles (1999) argue that the ganizations to imitate the practices of their peers to gain legitimacy
paradigm of managing diversity is internally driven and based on (DiMaggio and Powell, 1983). Therefore, institutional theory suggests
organizational objectives, and the diversity management agenda is an that organizations may adopt diversity management practices not just
investment in organizational goals. due to external pressures such as regulations, but also to meet prevailing
Madera (2013) identifies seven categories of diversity management social and professional norms (Yang and Konrad, 2011).
practices—corporate diversity council, diversity training programs, Both RBV and institutional theory have been applied in the hospi­
supplier diversity, employee networking and mentoring, cultural tality literature in several contexts. For example, Pera et al. (2019) use
awareness, support for women, lesbian, gay, bisexual, and transgender institutional theory to examine Airbnb bookings, while Soares et al.
(LGBT) network programs, and same-sex benefits—in the top (2020) use institutional theory to examine technology adoption. Sus­
service-oriented companies cited by DiversityInc in the United States skind et al. (2014) use institutional theory to understand individuals’
(US). The author contends that the hospitality industry should be able to attitudes, beliefs, and perceptions toward affirmative action. Similarly,
increase and sustain a diverse workforce at all levels through these Ružić (2015) employs RBV to examine HRM practices in hospitality,
practices (Madera, 2013). Further, Gajjar and Okumus (2018) identify while Sun and Lee (2018) refer to RBV in their study on franchising.
three additional practices: veterans’ benefits, disability benefits, and Regarding diversity management, only a handful of studies have
intergenerational benefits. In the context of small- and medium-sized deployed these theories, despite their broad explanatory power, as dis­
hotels, scholars have often noticed that diversity management assumes cussed above. RBV is used to understand the recruiting and hiring of
an informal nature, especially in recruitment, training and development, individuals from minority populations (Houtenville and Kalargyrou,
and performance appraisal (Manoharan et al., 2014). However, these 2012), and how hospitality firms can achieve competitive advantage
studies have limited their samples to organizations that have received through disability-related inclusive initiatives (Kalargyrou, 2012).
only one type of external recognition, thereby creating a need to further Table 1 lists recent studies that have used RBV and institutional theories
explore the content of diversity management practices. To address this in the hospitality context.
gap, we formulated Research Question 2: What are the diversity man­
agement practices used by hospitality companies?
Table 1
Resource-based view and institutional theory in hospitality and tourism
2.3. Theoretical underpinnings
literature.

Although the aforementioned literature on strategic diversity state­ Theory Research themes Empirical evidence from
hospitality and tourism
ments and diversity management practices shows the positive outcomes
literature
of formulating a strategic diversity statement and implementing it in
practice, much of this research has examined these elements in isolation. Workforce diversity and Houtenville and Kalargyrou
diversity management Practices (2012); Kalargyrou (2014)
However, in practice, strategy and practices are interconnected. Yang Strategic HRM and HRM Gannon et al. (2015); Ružić
and Konrad (2011) propose a diversity management model grounded in practice (2015)
both RBV and institutional theory. RBV suggests that an organization’s Business strategy and González-Rodríguez et al.
motivation to invest in diversity management may stem from economic performance (2018)
Corporate Andreu et al. (2010); Song
gain, such as the gains that external recognition can provide, whereas Resource-
strategy—diversification and Kang (2019)
institutional theory suggests that the motivation to invest in diversity based view
Global strategy –
de Correia et al. (2019); Sun
management is derived from pressure exerted by government regula­ Internationalization of hotels,
and Lee (2018)
tion, legislation, and the institutional environment. Franchising
According to RBV, “firm resources include all assets, capabilities, Elhoushy et al. (2019);
Revenue management
Espino-Rodríguez and Lai
organizational processes, firm attributes, information, and knowledge outsourcing and outsourcing
(2014)
controlled by a firm that enable the firm to conceive of and implement Hotel eco-innovation practice Wang et al. (2020)
strategies that improve its efficiency and effectiveness” (Barney, 1991, Airbnb booking Pera et al. (2019)
p. 101). Resources play a vital role in planning and implementing pro­ Attitudes and perceptions
toward affirmative action Susskind et al. (2014)
cesses for a firm’s strategy (Yang and Konrad, 2011), and result in
programs
competitive advantage (Barney and Clark, 2007). A firm’s competi­ Institutional
Technology adoption Soares et al. (2020)
tiveness can be improved by a diverse workforce, as this is a valuable, theory
De Grosbois (2016); Lee
CSR
rare, and inimitable resource (Richard et al., 2004). Research shows that et al. (2018)
workforce diversity leads to stronger performance when organizations Dolores Lopez-Gamero et al.
Environmental management
(2011)
pursue an innovation strategy (Richard, 2000). Yang and Konrad’s

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By integrating RBV and institutional theory, Yang and Konrad’s Table 2


(2011) model of diversity acknowledges the value of diverse employees Stage and description of the thematic analysis process.
as an inimitable resource, and requires effective business strategies and Stages Description of the thematic analysis process
diversity management practices to execute the goals of diversity stra­
Stage Firms in the sample were divided equally among the authors, who studied
tegies. Based on logic derived from both RBV and institutional theory, 1: and familiarized themselves with all aspects of the companies’ data
we posit that strategic alignment—when strategic diversity statements sources, such as websites and annual reports.
are translated into diversity management practices—relates to the Stage Seventy-two initial codes emerged related to the diversity
question of how likely an organization is to reap the benefits of diversity 2: statements. Example codes include “equal opportunity,” “inclusive work
environment,” “value of diversity,” “inclusive workforce,” “color,”
through external recognition for its efforts, which, in turn, may lead to “supporting other local community interests,” and “minority suppliers.”
positive outcomes such as employee retention and customer loyalty. Based on the theory-driven approach, seven themes (corporate diversity
Based on RBV and institutional theory, we thus developed Research council, diversity training programs, supplier diversity, employee
Question 3: Are organizations that communicate both diversity strategy networking and mentoring, cultural awareness, support for women,
support for LGBT network programs and same-sex benefits) were related
statements and management practices more likely to receive external
to diversity management, and 19 new codes emerged related to
recognition for diversity compared with organizations that do not diversity practices.
communicate diversity strategy statements and diversity management Stage The relationship was identified with each code related to diversity
practices? 3: statements, diversity management practices, and codes were combined
into overarching themes. For example, codes such as “diversity,”
“inclusion,” “inclusive,” “inclusiveness,” and “inclusive workforce” were
3. Methodology combined as the theme diversity and inclusion. At this stage, no themes
were rejected.
To evaluate (1) the content of diversity statements, (2) diversity Stage The themes were then reviewed and refined, resulting in 12 themes
management practices, and (3) the nature of the link between diversity 4: based on discussion and deliberation among the authors. In addition,
there were 11 themes for diversity practices based on the theory-driven
statements, diversity management practices, and external recognition
approach, yielding a total of 21 themes.
for diversity, we employed a textual qualitative approach. Qualitative Stage The themes were further defined and refined in Stage 5. The first
research offers a holistic view of the occurrences under investigation 5: theme related to diversity statements was divided into six themes: (1)
(Bogdan et al., 1975; Patton, 1980), and compared with quantitative diversity management practices, (2) organizational culture, (3) diversity
research, it offers flexibility in terms of data collection, analysis, and and inclusion as a core value, (4) diversity and inclusion as a strategy, (5)
diversity dimensions, and (6) valuing/support/inclusion for external
interpretation of collected data (Matveev, 2002). It is useful for stakeholders. The second theme related to diversity practices was divided
exploratory and explanatory purposes (Marshall and Rossman, 1995). into nine themes, including (1) diversity talent management and (2)
Thus, a qualitative approach that explores the links between diversity disability support. In addition, consistent with the existing literature (
statements, diversity management practices, and external recognition Madera, 2013), we identified seven diversity management practices: (3)
corporate diversity council, (4) diversity training programs, (5) supplier
for diversity was deemed suitable for this study.
diversity, (6) employee networking and mentoring, (7) cultural
awareness, (8) support for women, and (9) support for LGBT network
3.1. Sample and data collection programs and same-sex benefits.
Stage In the final stage, the reports, theme meanings, and evidence with
For our sample, we selected companies from the Fortune 1000 list in 6: data were finalized and reported (see section 4).

the hotels, restaurants, and leisure sector. Fortune 1000 companies are
the largest US companies that operate globally, often considered leaders the other author, who independently coded all the transcripts. An in­
in their field, and the Fortune 1000 list has been used in several studies dependent scholar was given the anonymized spreadsheets who then
as a sample source (Parola et al., 2015; Richard et al., 2013). We iden­ manually calculated the intercoder agreement using the formula (the
tified a total of 27 Fortune 1000 firms in the hospitality sector (see number of coding agreements by the number of agreements and dis­
Table 4). Data on diversity statements and diversity practices were agreements combined) proposed by Campbell et al. (2013). The inter­
gathered from these companies’ websites in 2017. Practices and polices coder agreement was above 90 % for both the diversity statements and
often take time to translate into outcomes, especially when they relate to the diversity management practices, indicating acceptable agreement
employees; therefore, to factor in the time lag, data for external recog­ between the coders (Fahy, 2001).
nition were collected in 2018 and 2019. Thorough Google and second­ Step 2: To satisfy the purpose of the current study, all authors
ary site searches were conducted to identify recent diversity awards or independently coded the data to identify the links between diversity
recognition that the sample firms had received. statements, diversity practices, and external recognition. The authors
specifically coded to identify the link between the diversity statements
3.2. Analysis and diversity practices. For example, if a company’s website mentioned
a supplier diversity strategy, the authors looked for the practices related
We used thematic analysis to understand the diversity statements to supplier diversity management practices. Coding discrepancies were
and practices communicated by the selected hotel, restaurant, and lei­ very rare, but when they occurred—such as when one coder placed a
sure firms. Thematic analysis is a suitable method for textual data, as it company into “connected links” and the others placed that company into
offers “flexibility” and is able to “usefully summarize key features of a “no links”—the authors discussed them until they reached a consensus.
large body of data, and/or offer a ‘thick description’ of the data set”
(Braun and Clarke, 2006 p.97). We applied an inductive approach, a 4. Findings
bottom-up approach that allows the data to direct the process, to the
strategic diversity statements. We applied a deductive approach, a The purpose of the present study is to explore (1) the content of di­
top-down approach in which the theory directs the process, to the di­ versity statements and (2) diversity management practices, and (3) the
versity practices. We categorized diversity management practices into links between diversity statements, diversity management practices, and
seven groups based on analysis performed by Madera (2013). We coded external recognition for diversity management. Consistent with the
the data from the companies’ websites and conducted a six-stage the­ objectives of this study, we identified three overarching themes. The
matic analysis (Braun and Clarke, 2006), as presented in Table 2. first theme is diversity statements, which has six subthemes. The second
The study involved a two-step coding process. Step 1: To increase the theme is diversity management practices, which has nine subthemes.
validity of this study, one author organized the data manually in a
spreadsheet. The coding categories and definitions were then given to

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4.1. Diversity statements favorite—we believe in celebrating the differences that make a good
company great and in leveraging individual strengths to create an
To answer the first research question, we identified six themes innovative, inclusive and unified team.”
related to diversity statements: (1) diversity management practices,
(2) organizational culture, (3) diversity and inclusion as a core 4.1.4. Diversity and inclusion as a strategy
value, (4) diversity and inclusion as a strategy, (5) diversity di­ Fifteen out of 23 companies communicated diversity and inclusion as
mensions, and (6) valuing/support/inclusion for external stake­ strategic statements on their company websites. As Marriott (2017)
holders. Out of the 27 companies, four had no communication available stated:
regarding diversity statements (Las Vegas Sands, Pinnacle Entertain­
Since 1927, Marriott has valued diversity and inclusion. With our
ment, Texas Roadhouse, and Buffalo Wild Wings). The findings pre­
foundation built upon the wellbeing and happiness of our associates,
sented below are thus based on the remaining 23 companies.
embracing differences is critical to our success as the largest hospi­
tality company with an ever-growing global portfolio. Diversity and
4.1.1. Diversity management practices
inclusion are fundamental to our core values and strategic business
All (23) firms had information about their diversity management
goals. Taking care of people and putting their wellbeing above all
practices on their corporate websites. Two companies (Yum China
else are in our Company’s DNA and our most precious cultural
Holdings and Chipotle Mexican Grill) only disclosed information
inheritance.
regarding equal employment opportunities. The companies that
communicated about diversity management practices emphasized the Hilton Worldwide Holdings (2017) indicated: “our diverse Team
presence of diversity in human resources, such as hiring, recruitment, Members in more than 4,600 owned, managed and franchised hotels
training, and development and retention. Marriott International (2017) across more than 100 countries continue to remind us of the importance
stated: “we create an inclusive environment that supports the recruit­ of celebrating diversity and inclusion throughout our company.” Hyatt
ment.” Hyatt Hotels (2017) declared that “continued efforts of Diversity Hotels’ (2017) diversity statement on diversity and inclusion indicated
& Inclusion embed into talent acquisition” and “we must utilize the “Hyatt knows that diversity & inclusion significantly enhances the
diverse talent we have.” Most of the companies emphasized potential quality of products and services we provide to our guests and col­
development, including Bloomin’ Brands (2017): “we also ensure that leagues” and emphasized the company’s global business strategy:
all existing and potential Team Members have access to training,
development and new career opportunities.” Companies such as We believe the more globally inclusive we are, in terms of culture,
Wyndham Worldwide (2017) specified offering leadership training race, ethnic origin, gender, sexual orientation, age, abilities, per­
(“offers a variety of programs, including leadership training”), and spectives and styles of thinking, the stronger, more culturally
Cheesecake Factory (2018) proposed providing second-language invested and valued Hyatt will be globally as we continue to care for
training: “We are also piloting a program that provides English as a people to be their best.
Second Language training.”
4.1.5. Diversity dimensions
4.1.2. Organizational culture Thirteen out of 23 companies specifically included diversity as
Sixteen companies mentioned fostering a supportive organizational consisting of various dimensions, such as gender, race, ethnicity, sexual
culture for their diverse employees on their websites: McDonald’s, orientation, disability, religion, age, color, cultural background/di­
Starbucks, Marriott International, Hilton Worldwide Holdings, MGM versity, language, minority, citizenship, national origin, veteran status,
Resorts International, Darden Restaurants, Yum China Holdings, and protected status. Possibly due to compliance issues, Yum China
Wyndham Worldwide, Hyatt Hotels, Bloomin’ Brands, Brinker Interna­ Holdings (2017) and Chipotle Mexican Grill’s diversity statements
tional, Cracker Barrel Old Country Store, Scientific Games, Panera explicitly acknowledged several dimensions of its anti-discrimination
Bread, Domino’s Pizza, and Marriott Vacations Worldwide. Cracker policy:
Barrel Old Country Store (2017) stated that fairness and mutual op­
portunity are at the center of its corporate culture: “At Cracker Barrel Chipotle strongly believes that employees and applicants for
Old Country Store, the ideals of fairness, mutual respect and equal op­ employment should be treated without regard to race, color, religion,
portunity for all people are at the core of our corporate culture and the national origin, gender, age, marital status, familial status, sexual
driving force behind everything we do.” orientation, gender identity, status as a domestic violence victim,
Darden Restaurants (2017) stated: “we believe our values and cul­ disability, veteran status, genetic information, or any other pro­
ture help our team members learn, thrive and grow. In fact, we believe hibited basis. (Chipotle Mexican Grill, 2017)
our culture gives our company a competitive advantage.”
Several companies explicitly stated that they saw value in the
different dimensions of diversity:
4.1.3. Diversity and inclusion as a core value
Fifteen out of 23 firms characterized diversity as a value on their Our core value as a company is Believe in ALL People. This means
company websites. Hilton Worldwide Holdings (2017) declared: “we seeing the value in each unique individual and unlocking their full
will achieve and maintain this status by living our core values; attracting potential to be their best, authentic self regardless of ethnicity, race,
the best and brightest talent; and valuing and leveraging the diversity.” religion, age, gender or sexual orientation. (Yum Brands, 2017)
Some companies went beyond values: “we truly believe that diversity Wynn Resorts (2017) specified:
goes beyond simply placing value on differences, it’s about taking ac­ We are a company that recognizes that cultural diversity goes beyond
tion, promoting teamwork that draws out individual strengths and language, ethnicity, race, religion, gender, sexual orientation, range
reaching out to the communities we serve” (Brinker International, of ability and age. We believe in the broad spectrum of human
2017). experience. We believe that amazing things happen when people
Companies also celebrated diversity, with Bloomin’ Brands (2017) from different worldviews work with each other toward a common
affirming that “embracing and celebrating a diverse and inclusive work goal.
environment enables Bloomin’ Brands to delight our guests and grow
our business over the long term.” Brinker International (2017) cited
valuing and celebrating diversity as one of its favorite philosophies: “We 4.1.6. Valuing/support/inclusion for external stakeholders
have a lot of philosophies at Brinker. But this one might be our Eleven out of 23 firms maintained their support for external

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stakeholders, which included suppliers (including minority suppliers), Table 3


partners, owners, partners, local communities, and global communities. Summary of diversity management practices and corresponding illustrative
Brinker International (2017) noted in its diversity statement that it cares quotations.
for its communities and suppliers: “We genuinely value diversity in Diversity Companies that Illustrative quotations
people and perspectives. In order to be truly successful, we understand management communicated diversity
the need to embrace diversity among our team members, guests, com­ practices management practices

munities and suppliers.” Marriott (2017) stated that it conducts business Corporate diversity Hyatt Regency, Wynn (1) Leveraging the resources
with over 4,000 diverse-owned companies annually. Starbucks (2017) council Resorts, and Yum Brands we have to create a culture of
inclusion, (2) creating an
indicated that its work environment encourages its partners: “Our
inclusive work environment
welcoming work environment encourages partners to engage with one that makes full use of the
another and make Starbucks a place they look forward to working each contribution of all
day.” Companies described in detail how they serve their local com­ employees, (3) fostering a
munities through financial support and developmental opportunities: workforce that reflects and
embraces the diversity of our
We share our financial success with our communities by donating community, and (4)
developing outside and
one percent of our profits to civic and charitable causes. Specific
vendor partnerships that
portions of that donation are dedicated to supporting minority cau­ support our commitment and
ses, providing our senior citizens with a helping hand and supporting help work toward to a fair
other local community interests. Our employees also give back to the and equal economy. (Wynn
community by volunteering countless hours of service. (Caesars Resorts)
Diversity training McDonald’s, Starbucks, Ensure all team members
Entertainment, 2017) programs Marriott International, understand the business case
Hilton Worldwide Holdings, for Inclusion & Diversity and
Darden Restaurants, Yum how to apply Inclusion &
4.2. Diversity management practices Brands, Wyndham Diversity as a skill set in their
Worldwide, Caesars day to day jobs. (Darden
Entertainment, Hyatt Restaurants)
Of the 27 total companies, nine (Las Vegas Sands, Yum China Hotels, and Brinker
Holdings, Chipotle Mexican Grill, Domino’s Pizza, Pinnacle Entertain­ International
ment, Cheesecake Factory, Texas Roadhouse, Buffalo Wild Wings, and Supplier diversity McDonald’s, Starbucks, Starbucks Supplier Diversity
Marriott Vacations Worldwide) did not communicate anything about Marriott International, Program strengthens our
Hilton Worldwide Holdings, supply chain and serves as a
their diversity management practices. The findings presented below are
MGM Resorts International, critical component of our
thus based on the remaining 18 companies. To answer the second Darden Restaurants, Yum commitment to ethically
research question, we identified two new diversity management prac­ Brands, Wyndham source our products
tices: (1) diversity talent management, and (2) disability support. In Worldwide, Caesars (Starbucks)
addition, consistent with the existing literature (Madera, 2013), we Entertainment, Cracker
Barrel Old Country Store,
identified seven diversity management practices: (3) corporate diversity
and Scientific Games
council, (4) diversity training programs, (5) supplier diversity, (6) Employee McDonald’s, Starbucks, Provides a friendly and open
employee networking and mentoring, (7) cultural awareness, (8) sup­ networking and Marriott International, forum for veterans and
port for women, (9) support for LGBT network programs and same-sex mentoring Hilton Worldwide Holdings, veteran supporters to come
MGM Resorts International, together for networking,
benefits. Because these are replicated themes from the existing litera­
Darden Restaurants, Yum collaboration and the
ture, Table 3 presents the details of the companies and the illustrative Brands, Wyndham sharing of ideas that foster
quotations. Worldwide, Caesars personal and professional
Entertainment, Hyatt development, as well as
4.2.1. Diversity talent management Hotels, and Panera Bread giving back to those who
served and continue to serve.
Diversity talent management includes diversity recruitment, hiring,
(MGM Resorts
retention, development, and planning future talent. Ten companies International)
mentioned diversity talent management policies: Starbucks, Hilton Cultural awareness McDonald’s, Marriott Facilities designed to foster
Worldwide Holdings, MGM Resorts International, Darden Restaurants, International, Hilton an understanding,
Worldwide Holdings, Hyatt appreciation, and
Yum Brands, Wyndham Worldwide, Wynn Resorts, Hyatt Hotels,
Hotels, Yum Brands, and celebration of different
Cracker Barrel Old Country Store, and Boyd Gaming. To increase the Penn National Gaming cultures and encourage
talent pool among youth, Starbucks (2017) has committed to partner participation among
with community-based youth organizations and educational institutions individuals of different
and developed college achievement plan pathways. To improve talent cultures and belief systems.
(Penn National Gaming)
management, MGM Resorts International (2017) offers a number of
Support for women McDonald’s, Starbucks, Which includes several key
programs and courses, including new hire orientation and on-boarding, Hilton Worldwide Holdings, initiatives: a signature
language courses, computer and systems training, management devel­ MGM Resorts International, women’s leadership
opment, leadership development, and hard and soft skills development. Yum Brands, Hyatt Hotels, development program, an
and Brinker International Executive Committee
Diverse talent recruitment at Darden Restaurants (2017) takes place
Networking program, a
through partnerships with diverse sponsorship organizations and exec­ women’s mentoring
utive search firms. Yum Brands (2017) has a number of recruitment program, hotel operations
initiatives to reach its goal of 30 % diverse candidates, including the programs and year-round
following; networking opportunities.
(Hilton Worldwide
(1) Hiring top, diverse internship and post MBA talent via the Con­ Holdings)
Support for LGBT Starbucks, Hilton Boyd Gaming is striving to
sortium for Graduate Study in Management (2) Building dynamic,
network programs Worldwide Holdings, create opportunities and a
and robust partnerships with the National Society of Hispanic MBAs Wyndham Worldwide, culture of equality for LGBT
(NSHMBA), National Black MBA Association (NBMBAA), the (continued on next page)
Women’s Foodservice Forum (WFF) and the Multicultural

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A. Manoharan et al. International Journal of Hospitality Management 94 (2021) 102864

Table 3 (continued ) with clear links between their diversity strategic statements and man­
Diversity Companies that Illustrative quotations agement practices have received some form of external recognition and
management communicated diversity rank higher on the Fortune 1000 list than those without these links. This
practices management practices indicates that companies that “walk the talk” on diversity earn rewards
and same-sex Caesars Entertainment, team members, customers in terms of external recognition for their efforts, which in turn may lead
benefits Wynn Resorts, Cracker and business partners. We to higher financial performance. Mechanisms through which higher
Barrel Old Country Store, took a key step forward in recognition leads to performance include greater employee satisfaction,
and Boyd Gaming this regard recently, when we
higher customer loyalty, and an overall better CSR reputation (Cook and
extended health benefits to
same-sex partners of our Glass, 2014; Richard et al., 2013; Roberson and Park, 2007). Table 4 lists
married team members. the companies and their links (or lack of links) between their diversity
(Boyd Gaming) statements, diversity management practices, and external recognition.
Categories of diversity management practices are based on Madera (2013). However, 13 companies showed negligible or no links between their
diversity statements and diversity practices. As expected, based on the
literature, nine of the companies without links between their diversity
Foodservice and Hospitality Alliance (MFHA), and (3) Leveraging
statements and diversity practices did not receive external recognition.
online business networking tools to communicate our job openings to
Contrary to our expectations, five organizations received some external
key diversity groups and associations.
recognition despite having no link between their diversity strategy and
diversity management practices. Interestingly, despite Las Vegas Sands
4.2.2. Disability support being at the top of the Fortune 1000 ranking, we did not find any
The second new theme that emerged as a diversity practice was communication regarding its diversity statements and diversity man­
disability support. Marriott International (2017) communicated that it agement practices readily available in a public forum.
engages with organizations that support people with disability and In addition, if a company has links between its diversity statements,
provides extensive disability training: “For many years, our hotels have diversity practices, and external recognition does not guarantee suc­
worked with community-based disability organizations and high schools cessful diversity outcomes. For example, in spite of being among the
to introduce and help train people with disabilities for employment.” highest ranked in the Fortune 1000 list in our hospitality firm sample,
MGM Resorts International (2017) explicitly stated: and with clear links between its diversity statements and practices,
McDonald’s, as recently as January 8, 2020, found itself the subject of a
MGM Resorts International believes in providing opportunity for
lawsuit by two black executives for racial discrimination. Several studies
every employee to grow, develop and succeed in a work environment
have noted that diversity initiatives do not work and often have unin­
where you can be your best. We encourage you to explore our job
tended consequences such as backfiring, reporting false progress, or
opportunities. If you are an individual with a disability and need a
negative or positive spillover to non-targets of the initiative (Leslie,
reasonable accommodation for any part of the application process, or
2019). Hence, despite decades of discussion and costly initiatives,
in order to perform the essential functions of a position, please
progress toward diversity in business is considered negligible.
contact our Corporate Diversity and Disability Outreach department.
Although less than 5% of Fortune 500 chief executive officers and 16
Hyatt Hotels (2017) declared that it supports disability through % of their boardroom directors are ethnic minorities (Newkirk, 2019),
Hyatt’s Diversity Business Resource Groups, while Boyd Gaming (2018) the hospitality industry, due to its labor-intensive and customer-centric
expressed its support for people with intellectual disability: nature, has been recognized as being at the forefront of fostering di­
versity. In 2019, 14 hotel companies were listed among the year’s Best
We provide career opportunities for people from this demographic Employers for Diversity (Forbes, 2019). The list, which recognizes or­
throughout our Company. And we are proud to partner with and ganizations for their commitment to diversity and outstanding work­
support organizations that strive to increase our acceptance of and place culture, ranks the top 500 employers in the US, including leading
respect for, the intellectually disabled, such as Opportunity Village in travel and leisure companies, such as Marriott and Hyatt. Hospitality can
Las Vegas and Michiana Resources, which serves communities in thus be considered an exemplar for other industries, especially other
northwest Indiana and Southwest Michigan. service industries, such as technology and banking, where diversity is
lacking.
5. External recognition
7. Implications and contribution
Several organizations give diversity awards for various diversity
initiatives undertaken by hospitality companies. These organizations The study makes several significant theoretical and practical con­
include: (1) Black Enterprise, (1) Business Equality Network, (3) tributions. First, it contributes to the literature by exploring the preva­
Comparably (an online portal that reveals company cultures and market lence and content of diversity statements in hospitality firms. We
compensation, as contributed by real employees, and showcases the identified six different diversity statements: (1) diversity management
most fair and accurate display of employer brands), (4) DiversityInc, (5) practices, (2) organizational culture, (3) diversity and inclusion as a core
Forbes Best Employer for Diversity, (6) Great Place to Work®, (7) value, (4) diversity and inclusion as a strategy, (5) diversity dimensions,
Human Rights Campaign Corporate Equality Index, (8) Mogul’s Top 100 and (6) valuing/support/inclusion for external stakeholders. This study
Innovators in Diversity & Inclusion, and (9) the US Government honor to contributes to the diversity literature by examining how hospitality
employers for supporting National Guard and Reserve employees. companies communicate diversity statements that form the basis of
organizational culture. These diversity statements are essential for
6. Discussion linking diversity strategies, practices, and hospitality firms not only because they are employers of a diverse
recognition workforce, but because they must deal with diverse stakeholders, such
as owners, franchisees, suppliers, and community groups (Gajjar and
To answer the third research question, we examined the links be­ Okumus, 2018; Madera, 2013). Past research has explicitly called for
tween diversity strategies, practices, and recognition for diversity. studies that examine diversity practices within industry contexts (Yang
Fourteen companies showed clear links between diversity statements, and Konrad, 2011).
diversity practices, and external recognition. Most of the companies Second, the study contributes to the literature by exploring the di­
versity practices in hospitality firms. While existing research identifies

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A. Manoharan et al. International Journal of Hospitality Management 94 (2021) 102864

Table 4
List of hospitality-related Fortune 1000 companies and their diversity links.
Company name Fortune 1000 ranking Diversity Diversity Diversity-related external Connected No
2017 statements practices recognitionsa linksb links

McDonald’s 112 Yes Yes 1 ✓


Starbucks 131 Yes Yes 5 ✓
Marriott International 163 Yes Yes 14 ✓
Hilton Worldwide Holdings 241 Yes Yes 16 ✓
Las Vegas Sands 249 No No – ✓
MGM Resorts International 297 Yes Yes 6 ✓
Darden Restaurants 385 Yes Yes – ✓
Yum China Holdings 399 Yes No 1 ✓
Yum Brands (KFC, Pizza Hut and Taco 422 Yes Yes 2 ✓
Bell)
Wyndham Worldwide 461 Yes Yes 1 ✓
Caesars Entertainment 541 Yes Yes 3 ✓
Wynn Resorts 548 Yes Yes 1 ✓
Hyatt Hotels 552 Yes Yes 9 ✓
Bloomin’ Brands 568 Yes Yes 1 ✓
Chipotle Mexican Grill 599 Yes No 1 ✓
Brinker International 684 Yes Yes – ✓
Penn National Gaming 728 Yes Yes – ✓
Cracker Barrel Old Country Store 747 Yes Yes 2 ✓
Scientific Games 750 Yes Yes 2 ✓
Panera Bread 760 Yes Yes – ✓
Domino’s Pizza 815 Yes No – ✓
Pinnacle Entertainment 840 No No – ✓
Cheesecake Factory 867 Yes No 2 ✓
Boyd Gaming 894 Yes Yes 1 ✓
Texas Roadhouse 942 No No 1 ✓
Buffalo Wild Wings 944 No No 1 ✓
Marriott Vacations Worldwide 994 Yes No – ✓
a
Number of external recognitions received in 2018 and 2019.
b
A company that has communicated diversity statements and practices leading to external recognition.

seven categories of diversity management practices used in the hospi­ valuable resources (Yang and Konrad, 2011). While the diversity man­
tality industry (Madera, 2013), this study extends the current literature agement model proposed by Yang and Konrad (2011), which is based on
by discussing two additional categories, diversity talent management institutional theory and RBV, suggests that diversity practices lead to
and disability management, that go beyond simply forming a network performance outcomes such as cost reduction, value creation, and
and support group, as reported by Gajjar and Okumus (2018). We note innovation, our study extends the model, providing empirical support by
that disability support had a much broader scope, with hospitality examining external recognition as an outcome of diversity management
companies extending their support to community-based disability or­ practices.
ganizations, providing support during the employment application Our study provides practical implications for hospitality firm man­
process, and creating career opportunities. agers. Since good diversity management is good business management,
Third, the study examined the antecedents of external recognition for we believe that hospitality firms can integrate the six different diversity
diversity by examining the links between diversity statements, diversity statement themes identified in this study with their management prac­
practices, and external recognition. We found support for the proposi­ tices. This would not only reap the benefits of diversity management,
tion, derived from Yang and Konrad’s (2011) theoretical model based on such as maintaining a heterogeneous and valuable workforce that is
institutional theory, that diversity statements may be posted on com­ conducive to innovation and improving firm growth, but would also
pany websites due to mimetic institutional pressures to reduce uncer­ enhance firm image by aligning business strategy with management
tainty. This leads to a misalignment between diversity statements and practices as a tool for competitive advantage (Kim, 2006).
practices to empower and leverage diversity as a company-wide Further, our results point to the importance of hospitality firms
resource, and this misalignment might not lead to positive recognition communicating and showcasing their diversity statements and goals on
outcomes. Based on institutional theory, the outcomes of such diversity their websites. Corporate websites can act as information and publicity
management practices may lead to external legitimacy from govern­ tools (Gröschl, 2011); therefore, diversity initiatives should be
ment, advocacy groups, customers, and funders (Yang and Konrad, communicated through words and pictures on these websites. Hospi­
2011). Seven out of nine organizations that offer diversity awards do not tality firms must devise a cogent communication strategy that presents
fall into these categories, resulting in no recognition for the companies their diversity goals and efforts. A dedicated website section—either
that do not align their diversity statements and diversity practices. part of a CSR statement or, better still, a standalone page—that is an
We also found support for the proposition, derived from Yang and integral component of a firm’s overall strategic mission would go a long
Konrad’s (2011) theoretical model based on RBV, that diversity state­ way toward raising internal and external awareness of the importance of
ments and diversity practices posted on company websites can relate to diversity, supporting recruitment efforts, and enhancing reputation
external recognition. These companies post diversity statements because (Chinnery and Bothwick, 2005). In addition, since our results suggest
they value diversity and believe it can enhance competitiveness, as that companies that align their communication of diversity statements
diverse employees are a valuable, rare, and inimitable resource (Richard with diversity practices have a better chance at external recognition, we
et al., 2004, 2003). In addition, these companies have integrated their suggest that diversity practices be woven throughout the fabric of a
diversity agenda into their strategic statements. They have a bundle of firm’s operations, from recruitment and retention of employees to that
diversity management practices that are difficult to imitate, leading to a of suppliers, managers, and franchisees. Moreover, hospitality com­
competitive advantage. It must be noted that when diversity becomes panies need to identify various diversity-awarding bodies and partici­
part of a company’s strategic statement, managers adopt it to exploit pate in recognition schemes with the involvement of all their

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A. Manoharan et al. International Journal of Hospitality Management 94 (2021) 102864

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