Forthcoming
Article
Production and Operations Management

Differentiating on Diversity: How Disclosing Workforce Diversity Influences Consumer Choice

By: Maya Balakrishnan, Jimin Nam and Ryan W. Buell

Format:Print

Abstract

Companies are facing increased pressure to “walk the talk” on diversity, equity, and inclusion (DEI) in their operations. One specific call-to-action from stakeholders is the public disclosure of EEO-1s. Companies with 100+ employees are federally mandated to annually report the intersectional diversity data of their workforce in the EEO-1. We examine how consumers perceive the strategic decision companies make regarding whether to disclose workforce diversity information. We find no evidence that a company’s disclosure of its workforce diversity data negatively affects attitudes or perceived company commitment to diversity, even when it reveals racial disparities across job categories. Instead, we find that consumers perceive firms that disclose their workforce data more positively and to be more committed to DEI initiatives, relative to firms that choose not to disclose, particularly when these disclosures reveal diversity within the workforce.

Keywords

Consumer Behavior; Corporate Disclosure; Diversity; Employees; Perception

Citation

Balakrishnan, Maya, Jimin Nam, and Ryan W. Buell. "Differentiating on Diversity: How Disclosing Workforce Diversity Influences Consumer Choice." Production and Operations Management (forthcoming). (Pre-published online March 7, 2024.)