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EDI 30,1

Diversity management
Challenges, benets, and the role of human resource management in Brazilian organizations
Charbel Jose Chiappetta Jabbour
University of Sao Paulo Business School (FEA-RP/USP), Sao Paulo, Brazil

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Fernanda Serotini Gordono

Sao Paulo State University (DEP/FEB/UNESP), Sao Paulo, Brazil

Jorge Henrique Caldeira de Oliveira

University of Sao Paulo Business School (FEA-RP/USP), Sao Paulo, Brazil, and

Jose Carlos Martinez and Rosane Aparecida Gomes Battistelle

Sao Paulo State University (DEP/FEB/UNESP), Sao Paulo, Brazil
Abstract
Purpose The objective of this study was to analyze the major challenges and benets of diversity management in Brazilian companies by assessing the role of human resources. Design/methodology/approach A total of 15 case studies were carried out on companies that operate in Brazil. Brazil is a country with considerable diversity and multiracial backgrounds. Findings It was found that diversity management in Brazilian companies is still an emerging issue, and the major challenges are related to discriminatory actions taken by coworkers. Among the 15 companies studied, only four had adopted a consistent set of diversity management and human resources practices. These four companies were the only companies to afrm that diversity management requires the strong support of top management and continuous organization to sustain efforts toward incorporating diversity. Originality/value Research studies on diversity management in Brazil are scarce. The ndings of this study, however, can be useful to academic professionals and company directors in countries that exhibit similar characteristics to those of Brazil, or to those who are interested in learning more about Brazil. Keywords Brazil, Equal opportunities, Human resource management Paper type Case study

Equality Diversity and Inclusion: An International Journal Vol. 30 No. 1, 2011 pp. 58-74 q Emerald Group Publishing Limited 2040-7149 DOI 10.1108/02610151111110072

1. Introduction Brazil has a very diverse population, including, for example, European Caucasians, Asians, Africans and their descendants. Religious diversity is also rich, with the presence of many catholics, evangelicals, protestants, and other faiths. This diversity is certainly reected in Brazilian companies, and it requires unique practices to manage this signicant diversity. Fleury (1999), one of the few researchers on diversity in Brazilian companies, concluded that four subsidiaries of multinational companies that operate in Brazil have started the process of adapting their human resource management practices to deal with the enormous diversity that characterizes the Brazilian workforce. Only a few studies have focused on diversity in Brazilian companies (Hanashiro and Carvalho, 2005).

Hence, motivated by the considerable social relevance, and by the lack of research on diversity management in Brazilian companies, we asked the following question: how have Brazilian companies incorporated diversity, and what is the role of human resources in this context? Human resource departments are, in theory, the most relevant area to manage diversity. This issue is addressed in several studies that have conrmed the relevance of diversity management (Cox, 1994; Subbarao, 1995; Gilbert et al., 1999; Bryan, 1999; Fleury, 1999; Hanashiro and Carvalho, 2005; Lockwood, 2005; Thanem, 2008). Thus, the objective of this study was to describe diversity management scenarios based on case studies in Brazilian companies, highlighting the difculties and benets of this practice as well as the role of human resource management in its development. The focus was on the companies support of human resource management, which is justied based on the results found by Richard et al. (2002), who showed that human resources practices are essential for successful diversity management at the organizational level. Methodologically, this study made use of a multiple case studies approach (15 cases), which facilitated a comparative analysis of diversity management practices in Brazilian companies. This approach has proven adequate for similar studies (Fleury, 1999; Fleury, 2000). 2. Diversity management and the role of human resource management theoretical and conceptual perspectives Based on several concepts of diversity management (Table I), this study adopted the denition of Loden and Rosener (1991) to address the primary dimensions of diversity (e.g. race, gender, physical abilities, tness, ethnicity, and religious orientation). In addition, we believe diversity management should also be used (Cox, 1993) to pursue competitive advantages (Fleury, 1999). Diversity management includes acceptance and respect, acknowledging that individuals are unique and different from each other (Lumadi, 2008). Thus, diversity management is often considered to include hands-on management practices that seek to include minorities, who have been marginalized historically in terms of the workplace

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Authors Loden and Rosener (1991)

Denitions of diversity Diversity establishes the primary dimension (age, ethnicity, gender, race, sexual orientation, and physical abilities) and the secondary dimension (educational background, geographic location, income, beliefs, marital status, and work experience) Managing cultural diversity includes planning and executing practices of human resource management to maximize the potential advantages of diversity and minimize its disadvantages Diversity is not a fad, but a requirement to keep a company competitive Organizations have been working more and more with heterogeneous groups in terms of race, ethnicity, gender, and other culturally diverse groups Diversity becomes important and extremely promising if seen as a tool for social inclusion

Cox (1993) Morrison (1996) Thomas (2000) Fleury (2000)

Table I. The relevance and denitions of diversity management

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variables described above. This diversity management process often requires human resources actions, as proposed by Fleury (1999) and Jabbour and Santos (2008). The policies formulated to manage diversity aim to implement initiatives, activities, and practices that recognize, promote, or encourage the differences between groups or people. These elements are seen as positive values that warrant development to achieve social integration, which can also boost the productivity of the company and support the democratization of access to opportunities (Myers, 2003). Thomas (2000) indicated three kinds of initiatives involving diversity: (1) valuing the differences that stimulate better relationships between employees and encouraging the acceptance and understanding of diversity; (2) meeting afrmative action policies by social pressure; and (3) making diversity management a structured process to obtain competitive advantages through a diverse group of employees. Hence, the organization has to change its central cultural values and concentrate its efforts on effective diversity management practices. An organization can develop a strategy for diversity management that combines the aforementioned initiatives. Such combinations may lead to successful outcomes resulting from the development of diversity management practices as a structured process that can provide competitive advantages. Such actions can also benet the organization (OMara, 1994) in the following ways: . the addition of competitive advantages by recruiting and retaining talent; . improvements in productivity, quality, work group efciency, creativity, and satisfaction to improve organization climate; . improvement in customer services; and . reduction in the level of discrimination and harassment present in the company. Based on the previous studies (Fleury, 1999; Jabbour and Santos, 2008), a signicant challenge in diversity management is the involvement of human resource management. According to Cox and Blake (1991), studies on diversity management have suggested that a thorough diagnosis of the organizational climate and the involvement of the top directors are necessary for diversity management efforts to be effective. According to Agars and Kottke (2004), human resource managers should be actively involved in diversity issues by sharing this value with co-workers. These managers should start with the highest ranking executives because these executives inuence many other employees. This process can be accomplished by human resource managers exhibiting exemplary behaviors as an example to other employees. This becomes even more relevant when a diversity management program requires restructuring (Caldas and Wood, 1999). Human resource management involves planning, integration, and actions to achieve effective management of all employees. Diversity can be included in the set of human management practices, guaranteeing an alignment between the strategies of human resources and diversity management goals. Examples of these practices and how they could support diversity management practices are provided in Table II. Myers (2003) argued that human resources managers must play decisive roles in diversity management practices because they can determine the details of practice

Human resources practices Human resources planning Recruiting and selecting Integrating human resources Analysis and description of functions Performance assessment Remuneration and incentives Hygiene and work safety Professional and personal development Human resources audit and control

Alignment of human resources practices with organizational diversity management Policies on the inclusion and retention of individuals included in the diversity concept Setting aside vacancies and job positions for minorities Elaborate actions of integration combined with actions of recognition to attract the attention of the collaborators Fair and transparent job position and salary policies Assessment with homogenous criteria and feedback Egalitarian remuneration, promotion, and incentive policies Better work conditions and changes in the organizational layout to guarantee accessibility Practices of personal development accessible to everybody Control and order actions related to the inclusion

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Sources: Adapted from Gil (2006); Jabbour and Santos (2008)

Table II. Alignment of human resources practices with organizational diversity management

implementation. Myers (2003) also stated that the manager should always be prepared to nd ways to increase diversity due to the economic, individual, and social benets that diversity can create. If diversity is the objective of companies and if human resources managers support such organizational objectives, it can be concluded that human resource management can boost favorable diversity management practices in companies. According to Jabbour and Santos (2008), diversity management should establish human resources policies for employees who belong to marginalized groups. Furthermore, the socially adequate management of a workforce should have policies to reward employees based on equality, distributive justice, respect, and autonomy (Jabbour and Santos, 2008). These politics should be based on the principles of respect, transparency, honesty, privacy, and freedom, all of which can provide more safety in the workplace. 3. Characteristics of diversity management in Brazil Brazilian society reects cultural pluralism because of Brazils history. Brazils population consists of descendants of native Indians, Portuguese, African slaves, and several immigrant groups, mainly from Europe and Asia. As such, there is a rich mixture of ethnic groups and cultures, which is referred to as the Brazilian racial democracy. Diversity in Brazil became present in an educational context in the 1980s and became prominent in the corporate environment in the 1990s. This was a result of claims by minority and union movements that raised issues regarding discrimination and racial diversity, generating a nationwide discussion. Recently, one of the most important discussions regarding diversity involves racial quotas in college admissions (Myers, 2003). Brazilian public policies have introduced redistributive or assistance practices against poverty based on the concept of equality. These policies are supported by politicians from both liberals and conservatives (Oliveira and Rodriguez, 2004).

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These various public policies were consolidated into law with the promulgation of Brazils Federal Constitution of 1988, which guarantees employment as a fundamental right and prohibits any type of discriminatory criteria for hiring or salary. The principle of human dignity is described in the third article of Brazils Federal Constitution of 1988. According to this principle, the objectives of the Brazilian State are dened and based on human dignity through a free and solitary society incapable of promoting any other type of discrimination:
The fundamental objectives of the Federative Republic of Brazil: I To build a free, just, and sympathetic society. II To guarantee national development. III To eradicate poverty and substandard living conditions and to reduce social and regional inequalities. IV To promote the well-being of all without prejudice as to origin, race, sex, color, age, or any other forms of discrimination.

Brazils Federal Constitution of 1988 corroborates the promotion of equality by punishment through a lawsuit, in which any discriminative action is considered a crime. Therefore, all individuals should be treated equally, regardless of social class, religion, race, or gender. As prescribed in the fth article of Brazils (1998) Federal Constitution:
All persons are equal before the law, without any distinction whatsoever, guaranteeing the Brazilians and foreigners residing in the country the inviolability of the right to life, to liberty, to equality, to security and to property.

Brazil also relies on afrmative action, which can be understood as a spontaneous or compulsory practice taken on by the state with the objective of eliminating inequalities accumulated through history and guaranteeing equality in opportunities, treatment, compensation, or losses caused by discrimination and marginalization due to racial, ethnic, religion, and gender discrimination. Thus, afrmative action aims to ban the accumulated effects of past discrimination (Santos, 2000). Afrmative action includes various practices. One of the most common practices is the quota system, which establishes a determined number or percentage to be occupied by a dened group. These quotas may occur proportionally and may also be somewhat exible. Quotas can also provide scal or non-scal incentives and increase bidding opportunities for companies that favor multiracial hiring. The establishment of quotas is considered one of the most polemic diversity management procedures in Brazil, mainly practiced by people who do not need afrmative action. Hence, its effectiveness is frequently discussed in academic, juridical, and organizational environments. 4. Methodology A qualitative approach was adopted for this study because the most adequate previous approach involved case studies (Yin, 1989). According to Yin (1989), case studies are the best approach to investigate new and emerging phenomena that have not been fully systematized.

We chose the case study approach for this research because: . thematic diversity management is considered new and emerging in organizational and academic contexts; . more details are needed regarding diversity in Brazilian organizations; and . there is an evident lack of studies on diversity management in companies located in Brazil, a nation with signicant cultural diversity. This research adopted a multiple case study approach in which the same problem was analyzed comparatively across different companies. This choice was justied because we attempted to provide comparative bases and nuances of the diversity seen in Brazilian companies and contribute to a thorough understanding of the phenomenon. The multiple case study approach has been adopted in other similar research studies (Fleury, 2000; Fleury, 1999). When selecting the organizations for the case studies, the following questions were considered (Voss et al., 2002): . Is the selected organization relevant in terms of our theoretical and conceptual perspectives? . Does the selected organization present the phenomenon to be analyzed? . Is it viable to study the organization during the entire case study period? The rst contact with the companies was made in August 2008. In total, 17 companies agreed to participate and serve as case studies. Two companies did not offer easy access to information, interviews, or observation; therefore, they were excluded from the case analysis. Thus, 15 companies were selected that represented the issue of diversity management. After analyzing the documents provided by each company, various managers were interviewed during a visit to the companies. Individual and semi-structured interviews were conducted, which allowed the managers to speak freely. All interviewees expressed their interest in improving their diversity management programs. All of the companies were considered large businesses based on Brazilian criteria (i.e. having more than 500 employees). Owing to their size, the companies had been facing pressure from the Brazilian Government to incorporate diversity management practices via specic quotas for minority groups (Santos, 1999). Large companies were chosen for this study because they satisfy the conditions for incorporating diversity management programs and show a tendency to utilize more consistent sets of human resource practices (Fleury, 1999). Another criterion used in case selection was picking typical Brazilian companies. Furthermore, we selected companies across different sectors to provide a basis for a broad and meaningful comparison of the diversity management approaches adopted by different industries. The protocol of the studied cases, as suggested by Yin (1989), is presented in Table III. This table summarizes the characteristics of each case study. Data collection was similar for all of the companies. At least two interviews were conducted at each company. The rst interview was conducted with each companys CEO to clarify the companys views on diversity management, specically as to whether it adopted a diversity management policy as well as its major challenges and opportunities. Information about the companys sector and its entrepreneurial activities were also collected during the rst interview. The second interview was conducted with

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Major study issues Unity of analysis Period of study Location Validity of the constructs Internal validity Basic questions

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Table III. Case studies protocol

How do Brazilian companies incorporate diversity management programs, and what is the role of human resource management in this process? The inclusion of diversity management in human resources organizational practices was analyzed This study was conducted between 2008 and 2009 15 companies were chosen from the Central Western region of the State of Sao Paulo, Brazil We used multiple sources of evidence (e.g. direct observation, documents, graphics, and interviews) We assessed verication of the relationships between the ideas of diversity management and human resources and the opposition between theoretical foundation and empirical analysis How do organizations deal with diversity? Which organizational practices offer support for the inclusion of diversity in organizations? What are the challenges and opportunities of diversity management? What is the role of human resources in this process?

the human resources manager of each company to verify how the companys specic practices could support diversity management. Each interview lasted between two and three hours, totaling four to six hours of interviews for each company. In addition to the interviews, we paid one or two technical visits to each company, and each visit lasted an average of two hours. During these visits, it was possible to witness the companys employees engaged in their daily work routine. Whenever possible, we established brief dialogues with some of the employees to question whether that work environment promoted diversity. We also gathered documents, especially those with information on the history, mission, views, and values of the company, as well as socio-environmental reports, if available. Information collected via the company web sites complemented those documents. A literature review was useful for establishing the following main data analysis categories: . involvement of human resources in diversity management practices; . major diversity-related problems found in the companies studied; . company characteristics that were intended to adopt diversity management policies; and . advantages gained by the company by adopting diversity management policies and including employees who are members of minority groups. The data analysis based on these variables is shown in Tables IV through IX. 5. Results In total, 15 companies from a variety of sectors were analyzed. The CEO responses, shown in Table IV, represent the sectors of the companies studied. Many sectors, such as the sugar-alcohol sector, have received signicant national and international attention due to the importance of biofuels. The companies studied are large, typical Brazilian companies. Generally, Brazilian companies are still beginning to use diversity management programs, as suggested by the CEOs interviewed. Many CEOs showed an interest in

Case Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company A B C D E F G H I J K L M N O

Sectors of production activity of the company Food Food Food Automotive Cellulose and paper Metal-mechanics Metal-mechanics Metal-mechanics Cellulose and paper Plastics Chemical Sugar-alcohol Sugar-alcohol Sugar-alcohol Textile

Does it explicitly adopt a diversity management policy? No No Yes Yes No No No No Yes No No No No No Yes

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Table IV. Sectors of economic activity of the case study companies

directly addressing this issue in their companies, but admitted that doing so may be difcult due to the workforce prole. Often, minorities and disabled persons have poor education and lack professional experience due to difculties associated with transportation and access to schools. On the other hand, companies may not be prepared to hire disabled persons because of the lack of vacancies or specic available functions. Therefore, many companies create positions without pre-established functions aimed at fullling the law, but not necessarily due to professional competence. Analysis of the CEOs responses showed that diversity is infrequently systematized or addressed in Brazilian companies. Specically, diversity tends to be irrelevant when recruiting staff; therefore, the inclusion of minority groups often takes place because of legal impositions. Only four companies (C, D, I, and O) had diversity management policies. The responses illustrated in Table V are the actual responses from human resources managers. This table veries the growing efforts by human resources professionals to include diversity in their management practices. Thus, it can be concluded that these human resource managers intend to be involved in the process of adopting diversity management approaches. Table V demonstrates that a signicant number of human resources practices include the integration and socialization of workers, with the intent to integrate employees of the same company (e.g. Companies C and H). The legal imposition was taken seriously, and the hiring of people from diverse backgrounds was mostly due to the requirement to fulll quotas established by the law (e.g. Company N). Most respondents were in favor of hiring those employees because they understood that doing so represented a way to enhance social inclusion. Hence, the human resources managers were seen as supporters of social inclusion and opponents of discrimination. In Company G, for example, practices of diversity management seemed to be intended for minorities only; therefore, the other employees may have difculty dealing with such practices. Some companies (e.g. Company E)

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Case Company A Company B

Involvement of human resource management in the management of diversity We try to vary the prole when recruiting and selecting employees in order to have a mixture of cultures and ideas. Together with the HR managers, the administration aims to formulate policies of hiring people with a wide diversity focusing on social inclusion because, according to the legislation, we must hire disabled individuals. The company promotes activities (e.g. sports, conferences, and gym) as an opportunity for its employees to exchange experiences and knowledge, aggregating value to the company since there will be more integration between diverse people. The HR managers restructured the human resources department, recreated the programs for qualifying the employees who are part of a minority group, and restructured the departments to receive them (i.e. equipment adaptation and wheelchair access ramps). The company observes the minimum number of quotas required when recruiting and selecting employees, but sometimes there are no qualied employees to ll those vacancies. The human resources area is responsible for recognizing and rewarding employees who are members of minority groups through outstanding actions in the company (i.e. general improvement, production improvement in the sector, creation of citizenship actions). At the moment, the company is not hiring people who are members of minority groups due to an undergoing restructuring in the way that we prepare the employees who still have prejudicial views against diversity. The company hired a consulting rm to promote conferences on this issue to seek better acceptance and integration of those people when admitted by the company. The HR Department created an integration day for the employees. On this day, a gathering of all departments was set up, where the annual productivity and employee of the year awards were given, and each department puts on a talent show (e.g. music, theater). The objective is to exchange experiences among the employees besides emphasizing the importance of cultural diversity and create relationships with members of minority groups. We promote conferences and meetings in order to obtain more exibility and receptivity on the part of the employees when members of minority groups are hired, to reinforce the notion of compromise, morale, and discriminatory efforts towards the employees. The company is always open to receive diverse people, but sometimes the professional market is scarce. We created inclusion policies, mainly for those who present competence decits, which resulted in more motivation in the workplace because these employees are happier, as they see this job as their only chance of employment. This positive attitude is a lesson for those who do not present competence decits. The human resources manager created an incentive program to hire women and restructured the salary and position policy introducing women to ll the job positions of the company. The company has faced some difculties with hiring disabled individuals because it would have to restructure the company layout, which is not a priority at the moment. The human resources department does not exclude members of minority groups, though this happens in other companies. We value our employees for their capacity and not for the group to which they belong or their disability. If they are capable of doing good work, they will be promoted. (continued)

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Company C

Company D

Company E Company F

Company G

Company H

Company I

Company J

Company K Company L Company M Table V. Involvement of human resource management in diversity management

Case Company N

Involvement of human resource management in the management of diversity The company makes an effort to observe the minimum quotas required by law, but we have not formulated an afrmative action policy. Sometimes it is not easy to observe the law on quotas since diverse individuals that t the proles of the open vacancies are not available in the market. The company director is a member of a minority group; therefore, he insists on introducing members of these groups to the company. Together with the HR manager, he is always promoting programs for the support of social and cultural development of these employees aimed at exploring their potential to the fullest while also motivating and qualifying them.

Diversity management

Company O

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Table V.

indicated difculties in hiring members of minority groups who were adequately qualied for specic functions, reinforcing the social stigma of poor education and lack of professional competence. Such actions also reinforce economic exclusion because remunerated employment means social inclusion, diversication of social contacts, and the establishment of a professional by employment. On the other hand, no executive position was occupied by a disabled individual at any of the companies that were studied. In three companies, however, there were Brazilian African-descendant leaders. In two companies (in the cellulose paper sector and textile sector), there were female leaders occupying top administration jobs. Furthermore, most of the positions occupied by members of minority groups were in the areas of operation and maintenance, which conrms the lack of qualication mentioned by the managers. Table VI shows the challenges associated with diversity management practices, based on interviews with the human resources managers. In the majority of companies, at least some of the employees tended to underestimate the potential for diversity by showing resistance or humiliating other employees. The most offensive practices involved teasing and jokes that could be considered discriminatory, as described by Company B. These discriminatory actions and nicknames tend to emphasize the distinctive characteristics of some employees, such as skin color and origin. Another important aspect of diversity management is the role of the human resource managers in the interpersonal relationships of the employees. As described in Company D, those responsible for human resources had to identify and control behaviors that could potentially compromise diversity management policies. Many respondents stated that cultural differences were the major barrier to diversity management. Discriminatory events, such as those described by Companies N and K, made the companies develop diversity programs seeking not only to include minority groups, but also to retain them in the company while making other employees aware of that issue. The need for awareness is clear in the responses from Companies C and H. It is interesting to note that if the human resources department cannot deal with the diversity management practices, the inclusion activities can have the opposite effect on the individuals, who, unfortunately, can become uninterested. According to the human resources managers, the companies that are most prepared to adopt diversity management approaches have the following characteristics (Table VII):

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Case Company A Company B

Major diversity problems found in the companies studied Some conicts were identied due to the mixing of very different people in terms of culture, ideas, and gender views. The major problems found were provocations and jokes related to religion and race, but we, from the human resources department, have already taken corrective actions because provocations and jokes have no place at the workplace. We noticed that some workers did not respect diversity or differences, causing discomfort to employees who could not agree with those people. The company intervened to promote more consciousness and better integration with the group. A section leader tried to prevent the promotion of an employee because he was a member of a minority group, but I found out just in time to avoid this negative intervention and the employee got the promotion. The company still faces problems with salary equality because many of the employees who are members of minority groups have poor education and are not willing to go back to school. This is due to difculties related to transportation and distance. The company is trying to nd a way to help them with it. No problems have been reported so far. Discrimination is still a major problem faced by the company. When this company decided to hire disabled individuals and those who have capacity decits, some of them complained about difculties with integration and acceptance in the group. At present, we promote actions to boost acceptance and integration. Some employees feel inferior, which prevent them from developing in the company. Some employees who are members of minority groups have very different cultures, which creates conict due to opinions regarding diversity, religion, race, or sex. I believe that prejudice against diversity is a major problem we face in this company. Some employees have difculty accepting diverse people. Many employees still doubt the capacity of people who are members of minority groups. Most employees who are members of minority groups occupy lower-ranking positions due to poor education and lack of opportunities in their personal and professional trajectories. Offensive jokes and remarks, as well as discrimination, are problems that are not only in our company, but in many others companies as well. The lack of companionship with a diverse group of people is a problem found in this company. Some leaders ignore this problem, resulting in poor interpersonal relationships. Prejudice is very strong among some employees.

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Company C

Company D Company E

Company F Company G Company H

Company I Company J Company K Company L Company M Table VI. Major problems associated with diversity practices found in the companies that were studied Company N Company O

managers and employees who are prepared to understand and support diversity management; companies that are prepared to select employees from diverse backgrounds, but also to retain and develop those employees (e.g. Company N); and companies that are committed to diversity management policies not only because of legal obligations, but also because they believe in the social and organizational benets of this policy (e.g. Companies C, D, I, and O).

Case Company A

Ideal qualities of companies that adopt diversity management policies The company that adopts diversity management should be mature and have many clear and well-dened human resources policies. It should not be worried with just image, but also with the welfare of its employees. More updated and modern companies, with managers and employees prepared and involved with the changes that diversity management can bring to the company and its organizational climate. Companies that focus on their employees, such as this company, and whose director is a very collaborative person who wants its employees to feel proud to work here. Companies such as ours that imported their culture model from its place of origin and used diversity management as its differential and not as personal marketing, as is the case in several companies. Companies that have managers like us, who follow market trends and formulate policies to assure opportunities for minority groups in the company and to make sure they can occupy positions that make them feel part of the company while growing professionally. Companies like ours, which value their employees and see diversity as a competitive factor since it can provide exchanges regarding cultural experiences, race, religion, and age with others. This favors the organizational climate and provides a market differential status for having multicultural employees. Mainly companies that see diversity management as a tool for social inclusion, i.e. a way to include individuals in the job market, especially those that are disabled. Companies with well-structured human resources, with qualied managers and policies regarding people of diverse backgrounds. Companies that hire employees who are members of minority groups because they can be a market differential and not because it is an obligation, but an insertion into its organizational culture. Companies that are not prejudicial and see diverse employees as people that can help with motivation and respect with themselves. Intelligent companies and those that seek a standard of excellence in their interpersonal relationships; we gained a lot by hiring professionals who are members of minority groups. Now, there is more respect, care, and especially improved production. More updated companies that are aware of the importance of diversity and have the know-how to manage a diverse group of people. Companies with motivated employees who are skilled and prepared to receive diverse people. Companies that will adopt diversity management and have solid policies to keep their employees because it is very common for companies to hire members of minority groups, such as disabled individuals, only to lose them later. Most often, this occurs due to infrastructure deciencies or a lack of punishment against prejudicial employees; the managers cannot follow their own policies. Companies whose managers are compromised with afrmative action policies and receive support from all areas of the company.

Diversity management

Company B Company C Company D

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Company E

Company F

Company G Company H Company I Company J Company K

Company L Company M Company N

Company O

Table VII. Types of companies that adopt diversity management policies

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The interviews with the administrators and human resources managers provided a clear view of each company. Diversity management can contribute to the following benets (Table VIII): . productivity increases because minority individuals value job opportunities and work with motivation (Companies B and J);

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Case Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Company K Advantages that a company can gain from diversity management We noticed an improvement in the areas of creativity and innovation, which is due to the cultural diversity in the company. Productivity improved a lot with the employees who are members of minority groups. In general, they were more motivated because they view their job as a sole opportunity. We noticed that clients are more faithful, especially those who identify themselves with the employees who are members of minority groups. We were recognized by external investors, who supported and promoted the company image and reputation because of our social inclusion policies. We discovered some advantages by managing diversity, such as experience exchanges, cultural exchanges, and respect among the employees. By adopting diversity policies, we created opportunities for disadvantageous groups to strengthen our social cohesion. By managing diversity, the company improved its social marketing and became better recognized in the market. The interpersonal relationships among the employees improved considerably because there is respect for the adversity. The compromising notions, moralization, and discretionary efforts were strengthened towards the employees. Improved productivity of the employees who are not members of minority groups because they see that the minority group members are happy, serious, and competent; non-minority employees ask, so why cant I also do my best? Through afrmative action, it was possible to introduce in the job market people who used to be socially discriminated and had no chance of getting a job due to their disability, race, sex, or age. Today, we are proud to be able to rescue those people and have them as our employees. By understanding the differences among our employees, we can create value and competitive advantages for the company, leading to a more favorable organizational climate and more willing and trusting employees. Since we started to meet the legal requirements, we noticed an increase in the productivity as a result of employee diversity in the company. The variety of proles provided a more creative and innovative organizational climate, which is closer to the overall quality of excellence pursued by companies worldwide. From the policies formulated with the adoption of diversity management policies, we could see a market differential. By implementing socially responsible efforts, some doors opened up since some of our clients already valued diversity and had strong afrmative action policies. In our company, the policies formulated to manage diversity are supported by the high-ranking management of the company and employees in general, who are open to new ideas, cultures, race, sex, age differences, etc. Hence, the employees work together, which aggregates value to the organizational climate. Another important advantage was turnover reduction, which was previously considered to be excessive but is close to zero today.

Company L Company M

Company N Table VIII. Advantages that a company can gain through diversity management policies and the inclusion of employees who are members of minority groups

Company O

organizational creativity and innovation can both increase based on the reports from Company A; loyalty from clients who identify with the minority employees who work for the company, as in Company C; improvement in the company image regarding social responsibility, as reported by Companies G and N; and improvement in the organizational climate by making it more inclusive of differences and innovation, as reported by respondents from Companies E, F, H, I, K, and O.

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By analyzing the results discussed (Table IX), it was determined that only four companies had clear diversity management policies (Companies C, D, I, and O). It was also observed that these same companies focused on several groups that could benet from diversity management and had an intense involvement of human resources in diversity management. Coincidentally, these are the companies that believe that diversity management can improve competitiveness by strengthening relationships with clients and suppliers while enhancing integration between employees, promoting innovation, and reducing turnover. Companies C, D, I, and O were the only companies that considered support from top management and organizational culture as essential characteristics that foster diversity management. These four companies also identied specic barriers to diversity management, such as the lack of empathy and the persecution of certain professionals. Hence, the data indicate that among the 15 companies studied, only four manage diversity effectively. One major factor is the personal involvement of top administration members. These four companies were opposed to negative discourse on diversity management challenges and opportunities. 6. Discussions and conclusions The objective of this study was to analyze the major difculties, challenges, and benets of diversity as well as the role of human resources in the management of diversity in companies located in Brazil. Brazil was chosen because it has an extraordinarily diverse population that consists of several different races and religions. The case study approach was chosen for the richness of information it can offer regarding diversity management, which has rarely been studied in Brazil. In general, it can be said that all of the companies studied were interested in diversity management, though only a few of had formal diversity management policies. Although all 15 organizations analyzed can depend on the human resources department to attain their diversity management objectives (as suggested by Jabbour and Santos, 2008; Fleury, 1999), the level of involvement and the focus of diversity management varied from company to company. Some companies focused on specic groups (e.g. gender), whereas only a few focused on a variety of groups. Hence, the suggestion that diversity management should target several groups simultaneously (Loden and Rosener, 1991) was not veried in all companies studied. The advantages gained from diversity management include increased productivity, increased creativity, and more integration among employees, as indicated by OMara (1994). On the other hand, diversity management challenges include cultural conicts and discriminatory actions, such as joking and harassment toward minority group employees.

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Adoption of a diversity Target Case management policy public Race Medium High High Medium Medium Medium Medium High Medium Medium Medium Medium Medium High Diversity culture Follow market trends Employee appreciation Top management support Medium Innovation and creativity

Table IX. Case study results

Involvement of HR department Dominant characteristics of Major objectives of diversity companies that value diversity management management Major challenges to diversity management Cultural conicts Discrimination Image and employee appreciation Organization climate Disabled individuals Various Various Minorities are more productive Improve client satisfaction Disabled individuals Various Race Race Various Cultural conicts and discrimination Cultural conicts and professional restriction Lack of capacity and company facilities None Discrimination Discrimination Culture of diversity Respect for employees Follow market trends Follow market trends Employee appreciation Self-discrimination Cultural conicts Discrimination Discrimination Lack of capacity Discrimination Integration among employees, innovation, and turnover reduction Discrimination, lack of companionship, and lack of empathy Improve investor satisfaction Integration among employees Integration among employees Company image Social responsibility commitment Well-structured HR area Integration among employees Renew organizational values Integration among employees Minorities are more productive Social responsibility Improve competitiveness Minorities are more productive Company image Competence decit Gender Disabled individuals Disabled individuals Disabled individuals Various Implement policies to maintain minority groups Top management support diversity culture

No

No

Yes

Yes

No

No

No

No

Yes

No

K L

No No

No

No

Yes

OMara (1994) indicated that diversity management practices can reduce these discriminatory actions, although such actions tend to be present in the majority of Brazilian companies. Furthermore, this study showed that four companies (C, D, I, and O) presented strong diversity management practices with clear policies and signicant involvement from human resources. These practices go beyond the required laws. The interviewees from these companies stated that their companies differed from others and opposed rhetoric and negative discourse. They stated that the differences in their diversity management were top management support and an organizational culture with incentives for diversity, as indicated by Cox and Blake (1991). Therefore, it can be concluded that Brazilian companies that are focused on diversity management should include diversity as an organizational value, present a clear indication from the top administration showing that diversity management is indeed relevant, and identify specic challenges that may make diversity management difcult within a contingency perspective. These ndings can be useful for countries that are as diverse as Brazil and for administrators from countries that conduct business with Brazil. Nonetheless, the applications of these ndings should take into account the limitations of this study, as it was only based on 15 case studies and may not necessarily represent all Brazilian companies.
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