Final answer:
Businesses have experienced positive outcomes from embracing DEI, through policies supporting work-family balance and efforts to reduce discrimination, which have resulted in increased employee satisfaction, cost savings, and a broader talent pool contributing to the financial success of the firm.
Step-by-step explanation:
Businesses have seen positive financial success with DEI (Diversity, Equity, and Inclusion) efforts in various instances. Corporations like IBM, Lucent Technologies, and SC Johnson have created policies to reduce work-family conflict, leading to improved job satisfaction and retention. For example, IBM offered three years of job-guaranteed leave after childbirth. Such policies not only positively affect employee morale but can also result in cost savings and increased profitability for businesses, as they can reduce turnover costs and foster a more diverse and capable workforce.
Analyzing the earnings gaps based on race and gender, as well as the impact of discrimination in a competitive market, has led some companies to act in a less discriminatory fashion to attract the best talent and cater to a diverse customer base. This shift is partly due to the recognition that racial and gender discrimination is counterproductive to a firm's success, robbing it of competent applicants and fostering a negative work environment. Market forces can drive businesses like a local flower delivery service or an assembly line to adopt less discriminatory practices when the success of their business depends on responding to diverse customer needs or labor demands.
Affirmative Action has also led to diversification within the workplace, despite the controversial discussions of reverse discrimination. Ultimately, the value brought by a diverse workforce, which includes new perspectives and innovative thinking, has been recognized as a competitive advantage for firms across various industries.