Final answer:
A firm is usually not seen as truly diverse if it only features diversity at the entry level, with increasing uniformity higher up the ranks. Market forces can encourage businesses to be less discriminatory, but societal norms can perpetuate discrimination despite economic incentives.
Step-by-step explanation:
A firm is less likely to be considered truly diverse when diversity is only at the entry level. This scenario suggests that as employees climb the corporate ladder, the diversity diminishes, especially in leadership roles. Research indicates that organizations benefit from diversity at all levels, as teams with varying perspectives and backgrounds tend to foster innovation and growth. A company that restricts diversity to the lower echelons may maintain status quo and miss out on these advantages.
Market forces provide incentives for businesses to adopt less discriminatory practices. For example, a flower delivery business may need to cater to a diverse customer base to maximize sales. Similarly, a company that is unable to find enough qualified workers from its traditional hiring pool may be compelled to hire from a more diverse set of candidates to meet its labor needs, including hiring more women and minorities. Yet, despite these market forces, discrimination can persist due to societal norms and prejudiced attitudes among managers, workers, and customers, as explained by economist Gary Becker.