Final answer:
A lack of workplace diversity correlates with reduced revenue because it limits innovation, reflects poorly on a business's customer understanding, and results in lost opportunities to competitors who embrace inclusivity.
Step-by-step explanation:
A lack of diversity in the workplace can significantly correlate with reduced revenue. When businesses fail to employ a diverse workforce, they may unintentionally foster an environment that is less innovative and less reflective of a diverse customer base. Not only does this hinder the development of products and services that cater to a wider audience, but it can also lead to lost opportunities in generating sales and capturing market share.
For instance, if a company located in a diverse area fails to engage with minority populations, it's likely to lose potential revenue to competitors who are more inclusive. Furthermore, businesses that do not offer equitable wages to women and minorities may see cost savings initially, but at the expense of long-term profitability and growth—competitors who compensate fairly can scoop up talented individuals, driving innovation and economic gains in their favor.