Chapter 16

Culture and Diversity

in Business
pp. 246-261

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Chapter 16
Why It’s Important
To succeed in the workplace, you
need to know a company’s
corporate culture and diversity
issues.

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Chapter 16
Cultural Mores
In business, culture refers to the
culture of other countries with which
companies have to do business.
It also refers to the standards of a
particular company.

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Chapter 16
Culture in a Global Economy
Failure to understand the culture of a
country where you’re doing business
can ruin a deal or lead to a marketing
disaster.

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Chapter 16
Marketing Abroad
To successfully market products in
another country, you need to be aware
of differences in language and
customs.

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Chapter 16
Workers Abroad
Companies doing business in other
countries need to be aware of cultural
differences in the workplace.

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Chapter 16
Business Etiquette
What is considered acceptable social
behavior and manners in business, or
business etiquette, differs from
country to country.

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Chapter 16
Business Etiquette
Many companies avoid cultural
problems by hiring local managers in
countries where they do business.

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Chapter 16
Business Etiquette
As more companies trade globally,
there is an increasing demand for
people who have studied other
languages and cultures.

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Chapter 16
Corporate Culture
A company’s corporate culture is its
shared values, beliefs, and goals.
It can be defined formally through a
company code of ethics, a written
manual, and the orientation process.

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Chapter 16
Corporate Culture
A company’s corporate culture can be
defined informally through dress
codes, work habits, and social
activities.

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Chapter 16
Formal Culture
In a formal culture, there might be a
strict hierarchy, or chain of command,
with one person at the top who makes
all the decisions.

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Chapter 16
Formal Culture
In a formal culture, there might be
several levels of management, or
bureaucracy, below.

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Chapter 16
Formal Culture
Job titles are very important as
indicators of power and status within a
company.
Dress codes and work hours are
strictly enforced.

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Chapter 16
Informal Culture
At a company with an informal culture,
employees are encouraged to make
decisions on their own rather than
going through layers of management.

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Chapter 16
Informal Culture
Job titles are not as important as
creativity and teamwork in the informal
culture.

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Chapter 16
Informal Culture
Few companies have a culture that is
entirely formal or informal.
Within the same company there are
often different cultures.

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Chapter 16
Q: Describe the effect of culture on doing
business globally?
Ans: As companies trade globally, they
must be aware of different cultural and
business practices. Knowing how to
approach people from different cultures
will give better impression of the
company

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Chapter 16
Q: Describe how corporate culture differ
among businesses?
Ans: Some companies have formal
culture, with a strict chain of command
and dress codes. Other companies have
an informal culture, in which employees
can make own decisions, dress casually.

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Chapter 16

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Chapter 16
Diversity in the Workplace
Companies have to deal with a variety
of people with different backgrounds
and identities, or diversity.

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Chapter 16

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Chapter 16
Chp 16.2
Diversity in the Workplace
Diversity is a feature of people in the
workforce.
Diversity in the workforce means
differences in skills, work habits, and
ideas to do tasks.
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Chapter 16

Chp 16.2 pg-278

Define the term Stereotype?
Ans: To stereotype people, is to identify
them by a single trait or as a member of a
certain group rather than as individual.

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Chapter 16
The Impact of Diversity on
Business
The population of the United States
has become more ethnically diverse.
The population is also getting older
and living longer.

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Chapter 16
Chp 16.2 pg 279

Q: What is meant by baby boom

generation?
The 76 million babies born in the
United States between 1946 and 1964
are called the baby boom generation.

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Chapter 16
The Impact of Diversity on
Business
The baby boom generation controls
$2.6 trillion and has about 51 percent
of the wealth in the country.

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Chapter 16
The Impact of Diversity on
Business
The older baby boomers will turned 65
in 2011 and the number of Americans
over 65 will nearly double in 2030.

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Chapter 16
The Impact of Diversity on
Business
The number of families with single
parents is now around 30 percent.
Changes like these have a far-reaching
effect on business.

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Chapter 16
Chp 16.2 Pg 282
Q: Identify ways in which way cultural
diversity has an impact on business?
 More opportunities are available for
workers to advance
Enables companies to anticipate the needs
of diverse market.

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Chapter 16
Changes in the Workplace
In the last few years about 85 percent
of the people who entered the
workforce were women and members
of ethnic minorities.

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Chapter 16
Changes in the Workplace
There are greater numbers of women,
Asians, Hispanics, and African
Americans in management positions.

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Chapter 16
Changes in the Workplace
The youth labor force (ages 16 to 24)
is expected to grow more rapidly than
the overall labor force for the first time
in 25 years.
Meanwhile, people are working more
years than ever before.
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Chapter 16
Changes in the Marketplace
A more diverse population means a
more diverse marketplace.
Companies that used to target only
white males now target many groups.

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Chapter 16
Figure
16.2 A SNAPSHOT OF THE WORKFORCE

U.S workers in the workforce grouped by age.

Which age
group has the
largest number
of workers?
Which group
do you think
will increase as
a percentage
of the
workforce over
the next 25
Introduction to Business, Culture and Diversity in Business
years? Slide 35 of 59
Chapter 16
Managing Diversity
Q: Who manages the diversity?

Human resource managers,

manage diversity.

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Chapter 16
Managing Diversity
Q: What is the goal of diversity
management programs?
Ans: To help all employees find a
place in the company and help
the company to achieve its
objectives.
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Chapter 16
Pg-280
Q: What is meant by term
discrimination?
Ans: Excluding someone on the basis
of age, gender, or ethnicity is called
discrimination.

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Chapter 16
Laws Against Discrimination
Pg 280
Q: What is meant by term Ageism?

To discriminate against someone on

the basis of age is called ageism.

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Chapter 16
Pg 281
Q: What are the three laws about
discrimination in U.S.?
1. To protect older workers, the U.S.
government passed the Age
Discrimination in Employment Act.
Which Prohibits discrimination against
workers because of age.
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Chapter 16
Laws Against Discrimination
2. The Equal Employment
Opportunity Act was passed to
strengthen laws protecting workers
from discrimination on the basis of
gender, ethnicity, or other aspects of
identity.

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Chapter 16

3. In 1990, the Americans with

Disabilities Act (ADA) was passed which
prohibits discrimination against qualified
people who have disabilities.

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Chapter 16
Diversity Programs
To deal with diversity in the workplace,
most companies now offer diversity
training programs.

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Chapter 16
Diversity Programs
The goal of diversity training programs
is to promote trust and cooperation
among workers of different
backgrounds so they work more
effectively together.

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Chapter 16

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Chapter 16

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Chapter 16
Chp 16.2 pg 281
Q: What are some benefits of diversity?
• A broader range of ideas
• Increased productivity and efficiency
• Lower turnover rates
• Less absenteeism
• Fewer legal costs from employee
complaints.
continued
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Chapter 16
Benefits of Diversity
• Helping a company to understand
and serve the needs of a more
diverse marketplace
• A greater sense of morale and
commitment to company goals

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Chapter 16
Benefits of Diversity
Companies that value diversity have:

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