Walking the talk in diversity management: Exploring links between strategic statements, management practices, and external recognition

Abstract

Despite a link between external recognition for diversity management and important financial outcomes, very little research has examined the organizational efforts that can lead to such external recognition. To address this gap, this study examines the links between strategic diversity statements, diversity management practices, and external recognition of diversity using the theoretical lenses of the resource-based view (RBV) and institutional theory. Data on diversity statements and practices were collected from 27 Fortune 1000 companies, and, using a time-lag approach, external recognition data were collected from professional organizations one year later. Results show that organizations that “walk the talk” and institute both diversity statements and practices were more likely to gain external recognition. This study provides timely and practical recommendations for hospitality firms to integrate diversity statements with diversity practices, a process that may lead to external recognition and thus to favorable outcomes.