You Can’t Always Get What You Need: Organizational Determinants of Diversity Programs

Abstract

While some U.S. corporations have adopted a host of diversity management programs, many have done little or nothing. We explore the forces promoting six diversity programs in a national sample of 816 firms over 23 years. Institutional theory suggests that external pressure for innovation reinforces internal advocacy. We argue that external pressure and internal advocacy serve as alternatives, such that when external pressure is already high, increases in internal advocacy will not alter the likelihood of program adoption. Moreover, institutional theory points to functional need as a driver of innovation. We argue that in the case of innovations designed to achieve new societal goals, functional need, as defined in this case by the absence of workforce diversity or the presence of regulatory oversight, is less important than corporate culture. Our findings help explain the spotty coverage of diversity programs. Firms that lack workforce diversity are no more likely than others to adopt programs, but firms with large contingents of women managers are more likely to do so. Pro-diversity industry and corporate cultures promote diversity programs. The findings carry implications for public policy.