Race/ethnic discrimination in hiring can be measured under controlled conditions using matched pairs of minority and nonminority research assistants posing as applicants for the same job. In 149 in-person job applications in the Washington, D.C., labor market, African American applicants were treated less favorably than equally qualified nonminorities more than one-fifth of the time. Employer behavior during these interactions suggest that, within continued public and private efforts against discrimination, particular attention should be accorded to the cognitive underpinnings of bias.

Executive SummaryAlthough most U.S. multinational corporations have substantial workforce diversity management programs in their U.S. operations, they are only beginning to consider parallel efforts in their overseas subsidiaries and affiliates. The internationalization issue is particularly prominent in the European Union, where competitive, demographic, legal, and political developments make workforce diversity issues unavoidable within the next few years. Instead of simply replicating U.S. programs, however, diversity initiatives in Europe need to adapt to each employer's strategic objectives, degree of organizational integration, and local needs. The experiences of Lucent Technologies Inc. and The Royal Dutch/Shell Group of Companies illustrate two contrasting approaches. The former has adopted a strongly multidomestic strategy, while the latter has a more global approach.

Discrimination based on race, ethnicity, national origin, gender, age, disability, gender

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The typical "business case" for workforce diversity management in the USA implies that matching the demographic characteristics of sellers to buyers increases firms' productivity and profitability. This paper explores the consequences for both employers and employees of following that guidance. Design/Methodology/Approach-The paper statistically analyzes employment data on African Americans from one large US retailer and from the US advertising industry. Findings-In both cases analyzed, a badly conceived business case for diversity perversely translated into discriminatory employment practices, starting with stereotypebased segregation in work assignments and spreading to consequent inequality in other employment outcomes such as earnings and promotions. Such patterns illegally limit employment opportunities for women and race/ethnic minorities. Simultaneously, they fail to promote customer relationships and sales. Practical Implications-To avoid negative effects on both business and societal objectives, employers need to be guided by a business case promoting workplace inclusion, not "diversity without inclusion," which buyer-seller matching represents. Originality/Value-The business case for diversity is often considered unimportant "boilerplate." This paper alerts employers to the importance of articulating, and then following, a correct business case.

Anglos and Latinos posing as job seekers applied for 468 job vacancies advertised in the Washington, D.C. area. Latino applicants received less favorable treatment than equally qualified Anglos more than 20% of the time. Discrimination was particularly prevalent for males and for jobs located in the center city, not requiring a college degree, and not widely advertised.

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Workplace diversity and inclusion (D & I) practices today are based to a great extent on unevaluated experience and intuition rather than empirical evidence. Would voluntary professional practice standards in this field help to raise the level of current and future practice? Or would they be premature? If developed under 4 principles we describe, we predict the former. However, this positive outcome will also require industrial and organizational (I–O) psychologists to join their D & I colleagues in expanding research on D & I practices, strengthening the skills of D & I practitioners, assisting employers to avoid self‐incrimination, and enhancing employer commitment to D & I itself. I–O psychologists should also be aware of other implications of D & I practice standards for their work.