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Liverpool John Moores University

[Document title]

Assessment 2:
Diversity Management at Ernst & Young UK
Word count: 2,748

Friday 1st May 2020

Contents
1

EXECUTIVE SUMMARY
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3

3

PERSPECTIVES OF DIVERSITY
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1

LEGAL CASE
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2

DEMOGRAPHICS
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3

ETHICAL CASE
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4

BUSINESS CASE
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5
4
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5

4
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6

4
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6

4
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6

4
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6

4
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7

SPECIFIC APPROACHES TO DIVERSITY MANAGEMENT
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1

THE PRACTITIONER/CONSULTANT APPROACH
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2

THE MAINSTREAM APPROACH
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3

CRITICAL APPROACHES
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8

7

MANAGEMENT ROLE IN ATTAINING DIVERSITY
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11

9

REFERENCES
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Today’s modern workplaces consist of various cultures, genders, ages and ethnicities
...
The concept of diversity has gained increasing
popularity in the UK since the start of the 1990’s as a new management approach
...

Whilst relating to diversity theories such as: the resource- based theory, the
Institutional theory, and similarity-attraction, this essay outlines the perspectives on
diversity, evaluating how these have informed diversity practices in Ernst and Young
UK
...
Diversity in the workplace is necessary
to create a competitive economy in a globalised workforce (Trailhead, 2020)
...
1 in 8 of the working age
population is from a black and minority ethnic background, this is expected to increase
to 1 in 4 by 2051 (BITC, 2018)
...
3% of GDP (McGregor-Smith, 2017)
...
Last year, 88% of women in employment were
working as employees as opposed to managers, in comparison to men at 80% (Devine
and Foley, 2020)
...

There are 7 million people of a working age in the UK with a disability or a long-term
health condition, however only half are at work (Gov UK, 2019)
...

A diverse collection of skills and experiences allows a company to provide service to
customers on a global basis, because the company is able to relate and understand
their clients better (Clarke, 2020)
...
Ernst & Young UK (EY) is one of the
‘big four accountancy firms in the UK
...
45
billion (EY, 2019)
...

EY are known in the finance industry for their diverse workforce and effective approach
to diversity (Donnelly, 2017)
...


3

PERSPECTIVES OF DIVERSITY

By increasing the amount of perspectives in a business, diversity and quality of ideas
both increase significantly (Rudowski, 2018)
...
g
...

There are differing perspectives of diversity:
3
...
The UK Equality Act 2010
addresses this simply, with the aim to eliminate discrimination in the workplace
...


Page 4 of 14

3
...
Demographic change
is an essential reason as to why businesses need to adapt their approach to expanding
diversity (Shore et al, 2009)
...
3 Ethical Case
The ethical case of diversity management claims “Diversity management is the right thing
to do”
...
An ethical approach to diversity enhances the overall effectiveness of any diversity
policy within a company due to the fact that employees appreciate fairness and care about
their employer’s ethical commitment to them (Jones et al, 2013)
...
4 Business Case
Diversity makes good business sense (Nishii, 2011)
...
A workplace that values diversity and is free of discrimination is more
productive due to greater employee satisfaction leading to improved productivity and
profitability, and reduced employee turnover (Marshall, 2015)
...


4

DIVERSITY MANAGEMENT CONCEPTS AND THEORIES
4
...
The institutional theory is backed up by both the legal
and ethical case
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Page 5 of 14

4
...
There are four categories of capital resources that organisations
possess: physical, financial, human, and corporate
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This theory is backed up by
business case; to achieve a competitive advantage, a firm needs to have the ability to
exploit the full potential of its resources, a diverse workforce assists with this (Barney &
Clark, 2007)
...
3 Unconscious Bias
According to Freud’s (1915) psychoanalytic theory of personality, the unconscious mind is
the primary source of human behaviour
...

Everyone holds unconscious beliefs about various social and identity groups, and these
biases stem from one’s tendency to organise social worlds by categorising (Cherry, 2020)
...
4 Cognitive Diversity Hypothesis
The cognitive diversity hypothesis links directly to the business driver of diversity
...
Problem
solving and innovation are essential for business growth and enable a boost in productivity,
adaptability and profitability
...
5 Similarity-Attraction Paradigm & Social Identity Theory
Berscheid et al
...
This can
result in negative treatment of others and impact diversity, effecting organisational
outcomes
...


4
...

Behaviour is learned through the process of observing one's environment
...


5

SPECIFIC APPROACHES TO DIVERSITY MANAGEMENT

Diverse organisations have several competitive advantages over organisations who
fail to implement diversity policies (Kundu, 2001)
...
1 The Practitioner/Consultant Approach
Increasing diversity in the workplace increases productivity
...

Diversity also boosts the image of the organisation, making them appear more attractive to
shareholders, allowing for greater flexibility in rapidly changing markets (CPID, 2018)
...
2 The Mainstream Approach
Supported by social-identity theory and social-learning theory, both suggesting how
diversity should be managed (Bairoh, 2008), an organisation's aim is to increase diversity
in the workforce in order to increase performance (Thomas and Ely, 1996)
...
In an attempt to eliminate negative stereotypes and discrimination,
organisations should provide regular training and management intervention when
necessary (CPID, 2019)
...
3 Critical Approaches
Prasad et al
...
Traditional approaches to diversity management
assign differences to individuals and group them together into socially constructed
demographic categories, there will never be any movement within or between diverse
groups (Lorbieki and Livintin, 1997)
...
The critical
approach suggests that the current methods and approaches to diversity are not the most
effective way to manage diversity because of the increasing shift in cultural identities
(Kundu, 2001)
...
’ They are business imperatives” (EY, 2020)
...
Currently, EY’s overall partnership in
the UK stands at 22% female and 11% BAME
...
In 2019, EY hired 918 graduates and apprentices: 37%
women and 41% BAME (EY, 2019)
...

At the beginning of 2019 EY set out a new strategy with aims to rapidly accelerate
their progress on diversity and inclusiveness
...

Diversity is associated with high levels of creativity and innovation (Wiersema and
Bantel, 1992)
...
The underpinning reasons
for their focus on maintaining a highly diverse workforce is that it will increase
organisational effectiveness and revenue, believing that increased diversity will lift
employee engagement and allow them to build relationships with clients more
successfully (EY, 2019)
...
The concept of EY’s diversity
management policy is highly based on the resource-based theory of diversity
management and the cognitive diversity hypothesis
...
Steve Varley, EY, UK chair, commented: “I’m proud of the steps we
are taking to build diverse and inclusive teams
...
We see this as a business imperative and
a key part of our future growth
...


7

MANAGEMENT ROLE IN ATTAINING DIVERSITY

Managing diversity begins by looking at the system within an organisation (Chemers
et al, 1995)
...

According to Thomas (1991) managing diversity is a comprehensive managerial
process for developing an environment that works for every employee
...
Diversity theory agrees that effective
management of diversity requires organisational change (Cox, 1993; Thomas, 1991)
...

Leaders within organisations are primarily responsible for the success of diversity
policies and must ensure that policies are effective (Bunton et al, 2000)
...
Diversity in leadership can enable team members to
feel that they are treated respectfully and fairly (Jana, 2018)
...

A diversity strategy should be developed in line with the organisation’s vision
...

EY have implemented an inclusive leadership programme (ILP) with the aim to assist
people in understanding the impact of their behaviours, and how to change in order to
enable individuals to achieve their potential (EY, 2020), this relates to social learning
theory i
...
witnessing behaviours encourages the following of those behaviours
...
Although having filled 60% of positions on the UK board with
women at EY, there is a lot more work to do in terms of sex, disability and LGBT
diversity (EY 2020)
Kulik and Roberson (2008) concluded that diversity training programs result in positive
learning effects in organisational settings
...
All employers should ensure
staff undertake unconscious bias training to address behaviours and attitudes that are
a barrier to a more inclusive workplace (McGregor-Smith, 2017)
...
By approaching diversity and diversity issues in a thoughtful way, managers
enhance the benefits a diverse workforce offers (Kundu, 2001)
...
Effective diversity efforts in
organisations require a multilevel approach to change that involves organisational
culture, structure, and behaviour (Chemers et al, 1995)
...

EY maintains a strong focus on increasing diversity with their organisation
...
Their diversity management is largely driven by
business case, with the company allocating a lot of time and resources on diversity
management with the aim that this will allow them to continue to perform well (EY,
2019)
...

Managers play a vital role in organisational diversity (Juneja, N
...
Ernst and Young’s approach to diversity management has clearly
assisted them in generating success
...
and Schadewitz, H
...
Gender Diversity and Firm Value: Evidence from UK Financial
Institutions
...
brunel
...
uk/bitstream/2438/17913/3/FullText
...

Arredondo, P
...
Successful Diversity Management Initiatives
...

Badal, S
...
The Business Benefits of Gender Diversity
...
com
...
gallup
...
aspx> [Last accessed
1 May 2020]
...
(2008)
...

BITC, 2020
...
[online] The Prince's Responsible Business
Networks
...
, Millington, A
...
, 2007
...
Corporate Governance: An International Review, 15(2), pp
...

Bridgstock, R
...
, Özbilgn, M
...
, 2010
...
Entrepreneurship & Regional Development, 22(6), pp
...

Carr-Ruffino, N
...
Managing diversity : people skills for a multicultural workplace
...
, Costanzo, M
...
, 2003
...
Thousand Oaks: Sage
...
, 2020
...
[online] Verywell Mind
...
verywellmind
...

CPID,
2018
...

[online]
Available
at:
...
co
...
pdf> [Last accessed 1 May
2020]
...

Diversity
Management
That
Works
...
cipd
...
uk/Images/7926-diversity-and-inclusion-report-revised_tcm18-65334
...

Davies, C
...
BAME Millennials Have Less Stable Working Lives Than Their White Peers
...
Available at: ...
com/money/2020/mar/02/bame-millennials-lessstable-work-lives-than-white-peers> [Last accessed 1 May 2020]
...
, 2017
...
[online]
Fortune
...
com/2017/02/10/ey-simple-effective-diversity-inclusivenessstrategy/> [Last accessed 1 May 2020]
...
and Thomas, D
...
Cultural Diversity At Work: The Effects Of Diversity Perspectives On
Work Group Processes And Outcomes
...

Ernst & Young, 2019
...
[online] Available at:
...
com/en_uk/news/2019/11/uk-annual-results-2019> [Last accessed 29 April 2020]
...
Pay Gap Report 2019
...
Available at:
...
com/content/dam/ey-sites/ey-com/en_uk/about-us/corporate-responsibility/diversityand-inclusiveness/ey-pay-gap-report-2019
...


Page 12 of 14

Ernst
&
Young,
2019
...

[online]
Available
at:
...
com/echannel/uk/en/results-2019/uk-annual-results-2019
...

Ey
...
n
...
Carmine-Di Sibio
...
ey
...

Ey
...
2020
...
[online] Available at: ...
com/en_uk/diversityinclusiveness> [Last accessed 30 April 2020]
...
2018
...
[online] Available
at: ...
com/content/70dab5dc-e28c-11e8-a6e5-792428919cee> [Last accessed 1 May
2020]
...
, 2019
...
[online]
Workplace Insight
...
net/discrimination-against-workers-highestin-uk/> [Last accessed 30 April 2020]
...
(2003), "Recruiting for diversity", Women in Management Review, Vol
...
1/2, pp
...

GOV
...

2019
...

[online]
Available
at:
...
service
...
uk/work-pay-and-benefits/employment/employment/latest> [Last accessed 29
April 2020]
...
R
...
F
...
, Sacramento, C
...
, Woods, S
...
, Higson, H
...
, Budhwar, P
...

and West, M
...
, 2014
...
European journal of work and organizational psychology, 23(5), pp
...

Harrison, D
...
, Price, K
...
, & Bell, M
...
(1998)
...
Academy of Management Journal, 41(1), 96107
...
(2011)
...

Kgs
...
DTU Management 2011, No
...
(2011)
...
Amsterdam, Pallas
Publications
...
and Manfredi, S
...
Managing Equality And Diversity
...

Kundu, S
...
Managing Cross-Cultural Diversity, 2
...
R
...
P
...
Diverse forms of difference
...
Roberson (Ed
...
13 – 31)
...

Lorbiecki, A
...
, 2000
...
British Journal
of Management, 11(1), pp
...

Manstead A
...
The psychology of social class: How socioeconomic status impacts thought,
feelings, and behaviour
...

https://doi
...
1111/bjso
...
2015
...
[online] Available at: ...


Page 13 of 14

Moss-Racusin, C
...
, van der Toorn, J
...
F
...
L
...
J
...

(2014) Scientific diversity interventions
...
Vol 343, No 6171
...

Persio, S
...
Majority Of LGBT Britons Think Employers Lack Commitment To Diversity
...
Available at: ...
co
...

Randstad
...

The
Business
Case
For
Diversity
...
randstad
...
uk/market-insights/employment-trends/business-case-diversity/\>
[Last
accessed 30 April 2020]
...
, 2019
...
London: House of Commons
Library
...
, & Dechant, K
...
Building a business case for diversity
...

Shore, L
...
, Chung, B
...
, Holcombe Ehrhart, K
...
, 2011
...
Journal of Management, [online]
37(4),
pp
...

Available
at:
...
org/0fbc/3af1b981429f54d811d50363a052b794f1d2
...

SHRM
...

Understanding
Organisational
Structures
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...
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...
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The McGregor-Smith Review, 2017
...
[online] GOV
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Available at:
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service
...
uk/government/uploads/system/uploads/attachment_data/file/5
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...

Villanova University
...
Leadership And The Contingency Theory
...
villanovau
...


Page 14 of 14



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Title: Diversity at Ernst & Young UK
Description: Third Year University Module Diversity Management 1st Class Grade Attained

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