Importantly, the initial negative effect, whereby diversity was associated with reduced trust, was fully cancelled out by the positive effect of mixing with members of different groups. At first glance, protecting our own group seems to be at odds with approaching unknown groups, who might be friends or foes. After distinguishing between low and high-skilled workers, the authors find a negative impact of low-skilled workers on patents; a 1-percentage point increase of low skilled immigrants leads to 0.2 percent decrease in innovation (Bratti and Conti, 2014[7]). We intervene in court proceedings that involve human rights issues; we examine laws relating to certain rights and often propose improvements to those laws; (eg: We conduct research and propose new policy and standards which would promote the enjoyment of human rights (eg: Age discrimination research reports; sexual abuse in the Australian Defence Force). But the potential benefits can only be realised if organisations foster a conducive atmosphere for their diverse workforce. This index accounts both for the heterogeneity of a population as well as the size of different population groups. 33/6, pp. 2-17. Desmond Tutu once stated; Differences are not intended to separate, to alienate. In 2012, the Federal Government launched the National Anti-Racism Strategy, an initiative of its multicultural policy, The People of Australia. 37/3, pp. 30, pp. [7] Zierscha, A.M., Gallahera, G., Bauma, F., Bentleya, M., (2011).Responding to racism: Insights on how racism can damage health from an urban study of Australian Aboriginal people. [12] Parrotta,P., D.Pozzoli and M.Pytlikova (2014), Labor diversity and firm productivity, European Economic Review, Vol. through instrumental variables (IV) estimation, is limited. [42] Alesina,A., J.Harnoss and H.Rapoport (2014), Immigration, Diversity and Attitudes to Redistribution: A European Perspective. Striking 'Hike' In Productivity 2. [46] Kemeny,T. and A.Cooke (2017), Urban Immigrant Diversity and Inclusive Institutions, Economic Geography, Vol. [22] Joshi,A. and H.Roh (2009), The role of context in work team diversity research: A meta-analytic review. Racism prevents fellow Australians from being able to participate in our society. This chapter examines the evidence on the economic impact of diversity, which yields a rather complicated picture. [7] Bratti,M. and C.Conti (2014), The effect of (mostly unskilled) immigration on the innovation of Italian regions, IZA Discussion Paper No. Findings are somewhat mixed, but impacts of gender, ethnicity or age diversity are found to be either very small or insignificant. The authors argue that this may be linked to too much board monitoring. Similarly, if the gender gap in labour force participation across the OECD were to be reduced by 25% by 2025, this could add one percentage point to projected baseline GDP growth across the OECD over the period 2013-25, and almost 2.5percentage points if gaps were halved (OECD, 2017[48]). 89, pp. 2015/1. This document, as well as any data and map included herein, are without prejudice tothe status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The Effect of Employee Diversity on Innovation. AT http://www.scanlonfoundation.org.au/research.html (viewed 23 June 2014).Demireva, N. (2014). 2018/09, OECD Publishing, Paris, https://dx.doi.org/10.1787/89bae654-en. Multiculturalism has been an important element in the making of modern Australia, and has been critical to fostering social cohesion and inclusion. The Australian Human Rights Commission was established as an independent statutory authority in 1986 through legislation that is now called the Australian Human Rights Commission Act 1986 (Cth). Other terms such as, 'plurality', 'multiculturalism', 'social differentiation' etc. (2011), Getting Specific about Demographic Diversity Variable and Team Performance Relationships: A Meta-Analysis, Journal of Management, Vol. Recent Commission priorities lie in responding to racial vilification, especially online and also bullying in schools and the workplace. Overall, these findings from meta-analyses seem to suggest that team diversity in terms of gender, ethnicity or age do not matter much for team performance. Social Science & Medicine, 73 (7): 10451053. 22. The Effect of Employee Diversity on Innovation, Research Policy, Vol. [27] Cooke,A. and T.Kemeny (2017), Cities, immigrant diversity, and complex problem solving, [28] Docquier,F. etal. The Commission is Australias national human rights institution accredited with an A status under the Paris Principles. Some examples of how multiculturalism has affected the social and political spheres are found in revisions of curricula, particularly in Europe and North America, and the expansion of the Western literary and other canons that began during the last quarter of the 20th century.Curricula from the elementary to the university levels were revised and . There is a large literature that goes beyond the economic impact of diversity and seeks to assess how ethnic and immigrant diversity affects social cohesion and preferences for redistribution. These groups aim to support underrepresented employees, promote diversity, and foster understanding among coworkers. Sue is also the manager of Diversity Leadership Directory. 709-743. [34] Alesina,A. and E.La Ferrara (2005). However the term of the Australian Multicultural Council came to an end on 30 June 2014, and the Government has not articulated what the future of the Australian Multicultural Council will be. Matthew Bennett received funding for the project discussed in this article from the Nuffield Foundation, but the views expressed are those of the authors and not necessarily the Foundation. This would prevent racist abuse offered up in the course of public discussion being permitted. They also show that, by focusing only on the short term, we may draw an inaccurate, pessimistic conclusion about the impact of diversity. The Social diversity Is a concept that defines and encompasses the great variety of different and similar characteristics that are shared between all human beings, both personally and at a group level. Also on the AFL field, Melbournes Neville Jetta was subjected to racial abuse during a game against the Western Bulldogs. At http://www.dss.gov.au/our-responsibilities/settlement-and-multicultural-affairs/publications/current-and-emerging-drivers-for-social-cohesion-social-division-and-conflict-in-multicultural-australia (viewed 23 June 2014). There is indeed evidence that diversity creates mistrust in communities. Holocaust deniers might be free to air their views, on the grounds that those views were part of public discussion of a political, social or academic matter. Despite some contradictory findings, evidence generally points to a negative relationship between diversity and these indicators of social cohesion, although findings vary strongly across countries, level of analysis and the inclusion of moderating factors. Another study including around 200 European regions suggests that the impact of migrant diversity on innovation is positive and shows an inverse U-shape relationship. What you say matters. [12] Parrotta,P., D.Pozzoli and M.Pytlikova (2014), Labor diversity and firm productivity. In comparison with the previous reporting year, in 2012-13 we saw: Most complaints under the Racial Discrimination Act are about employment. Second, the institutional or systemic level, which involves organizations like governments and the education or justice system. Assessing the macro-economic impact of diversity is not straightforward. Although internationally we are often seen as a good example of multicultural society that welcomes diversity, racism does exist in Australian society. Our culturally diverse society is now made up of people with origins in over 200 nations. 291-309. Regarding attitudes towards social spending and redistribution, in EU countries, positive attitudes among native-born towards income redistribution decrease with higher immigrant diversity and a higher share of immigrants in the population (Alesina, Harnoss and Rapoport, 2014[42]). Such events have been labelled as casual racism.. In addition, Gonzalez and Denisi (2009[24]) show that in different branches of a large US company the diversity climate, i.e. [48] OECD (2017), The Pursuit of Gender Equality. [14] Pletzer,J. etal. Play video - https://www.youtube.com/watch?v=_mtw5ZAtbaY. It is generally accepted that these predispositions play a role in the formation of groups and the societal structures we live in. Table2.2 provides a snapshot of the studies discussed in the following. Lastly, how diversity influences social cohesion hinges on the quality of governance structures and institutions. The perpetrator was never identified however the Western Bulldogs made the following statement: It has been the club's initiative to make this matter public and to acknowledge the wrongdoing of one of our own supporters. Businesses or organizations achieve these goals through conscious and deliberate efforts or activities in their operations and administrations. [8] A study conducted by Dunn and colleagues in 2008 found that around one in five Australians say they have experienced race-hate talk, such as verbal abuse, racial slurs or name-calling, and more than one in 20 say they have been physically attacked because of their race. Particularly the last group is found to boost innovation considerably (Hunt and Gauthier-Loiselle, 2010[4]). For attitudes and behaviour to change we need a multifaceted response one that incorporates education, policy and legislation. Overall, however, the literature does not allow to make a strong business case; neither for nor against increasing the share of women in company boards. This chapter reviews studies that analyse the economic impact of diversity on the macro (country), meso (region) and micro (firm or team) levels, as diversity is likely to be relevant on all these levels but through different mechanisms and with different outcomes.1 In addition, it provides a short overview of the literature on how diversity may spill over and impact social cohesion and preferences for redistribution. [31] Bellini,E. etal. 76-97. These changes have had many positive effects such as filling important gaps in the labour market and challenging cultural insularity. Report prepared for: Joint Commonwealth, State and Territory Research Advisory Committee (RAC) March 2013. [20] Schneid,M. etal. [3] UN Department of Economic and Social Affairs (DESA). (2015), Does Gender Matter? Table2.3 shows that most studies on board diversity suggest that the relation between board diversity and performance is not significant or only very weakly positive (for meta-studies on gender board diversity, see Post and Byron (2015[13]) and Pletzer etal. This relationship is even stronger in more densely populated areas, pointing to possible agglomeration effects, i.e. your login credentials do not authorize you to access this content in the selected format. S18C makes it unlawful for a person to do a public act that is reasonably likely to offend, insult, humiliate or intimidate a person if done because of the race or national origin of the person. Social diversity is all of the ways that people within a single culture are set apart from each other. In doing so, they extract benefits from these interactions. [16] Adams,R. and D.Ferreira (2009), Women in the boardroom and their impact on governance and performance, Journal of financial economics, Vol. This rich, cultural diversity is one of our greatest strengths. [30] Bove,V. and L.Elia (2017), Migration, Diversity, and Economic Growth, World Development, Vol. Importantly there is strong level of support for multiculturalism from Australians themselves. Racism. Since 1945, almost seven million people have migrated to Australia. The Temple of All Religions (Universal Temple), Kazan, Russia, consists of several types of religious architecture (church, mosque, synagogue). Social Integration. What is social impact? The Attorney-General has talked of a multi-front war being waged against freedom of speech and proposes new provisions to strengthen this freedom. Thus, while there might not be a clear-cut business case for diversity, there is a strong social justice obligation, as well as a business case to prevent discrimination and non-inclusion. [24] Gonzalez,J. and A.Denisi (2009), Crosslevel effects of demography and diversity climate on organizational attachment and firm effectiveness. When everyone can actively take part in work life, we will immediately increase the number of productive workers contributing to our economy. In this report, we explored factors related to whether people thought an increasing number of people of many different races, ethnic groups and nationalities made their country a better place to live. 4. The use of this work, whether digital or print, is governed by the Terms and Conditions to be found at http://www.oecd.org/termsandconditions. The effects are major deepen and expansive then merely hurt feelings. Since post-war migration began, Australia has been taking in a million immigrants each decade from all regions of the world. Although it is important to have strategies and campaigns in place to build awareness, understanding and facilitate cultural change, we also need legislation that protects our human rights and fundamental freedoms. Through multiculturalism, the Australian experience has shown has that diversity can go hand in hand with a stronger social cohesion. Through an exposure draft the Government has outlined its intent to lift the ban on offending, insulting and humiliating someone over their race, colour or ethnicity. According to the Australian Multicultural Council social cohesion at the national level is strong; however there is not a trickle-down effect to the community level. The three main reasons for the Australia of today are the aboriginal (native) population, colonization by England, and immigration from many different countries and cultures. Panel data fixed effects models, which often help accounting for unobserved heterogeneity, do not work for firm-level studies due to the small within-firm variation. [9]http://www.theage.com.au/afl/afl-news/adam-goodes-again-targeted-as-clubs-condemn-racist-fans-20140520-zrib6.html#ixzz35RGME0UZ, Social cohesion in a multicultural Australia: The importance of human rights, Copyright Australian Human Rights Commission, Aboriginal and Torres Strait Islander Social Justice, https://www.youtube.com/watch?v=_mtw5ZAtbaY, http://www.scanlonfoundation.org.au/research.html, http://migrationobservatory.ox.ac.uk/briefings/immigration-diversity-and-social-cohesion, http://undesadspd.org/SocialIntegration/Definition.aspx, http://www.dss.gov.au/our-responsibilities/settlement-and-multicultural-affairs/publications/current-and-emerging-drivers-for-social-cohesion-social-division-and-conflict-in-multicultural-australia, www.uws.edu.au/social_sciences/soss/research/challenging_racism/findings_by_region, http://www.theage.com.au/afl/afl-news/adam-goodes-again-targeted-as-clubs-condemn-racist-fans-20140520-zrib6.html#ixzz35RGME0UZ, The concept of social cohesion, and its relationship to human rights in particular racial discrimination, The role of the Australian Human Rights Commission and how we contribute to social cohesion by addressing racial discrimination and vilification in Australia. Research by McGuirk and Jordan (2012[10]) is a notable exception, exploring the link between innovation and diversity of educational background, migrant diversity and age diversity in Ireland. 66, pp. . [8] Ozgen C, Nijkamp P and J.Poot (2013), The Impact of Cultural Diversity on Firm Innovation: Evidence from Dutch micro-data, IZA Journal of Migration, Vol. The literature shows that a number of factors have a strong mediating impact; social exclusion and disadvantage, inequality, inter-group contact and social interactions as well as the role of governance and institutions are important explanatory factors. When racist abuse rears its ugly head we will never as a club do what this person has done: disappear into anonymity. Research on the UnitedStates and Canada show that white people living in diverse neighbourhoods are more trusting when they regularly talk to their neighbours (Stolle, Soroka and Johnston, 2008[43]). The Scanlon Foundation Surveys National Report. [41] Delhey,J. and K.Newton (2005), Predicting Cross-National Levels of Social Trust: Global Pattern or Nordic Exceptionalism?. They find a positive impact in the order of 4.5 percent, 6.8 percent and 5.0 percent, respectively for a 10 percent increase in the foreign graduate students as a percentage of total graduate students. . Much of this literature therefore tests the underlying assumption that more diverse companies can make better decisions and products because women and minorities differ in their knowledge, experiences or management styles and therefore can bring new insights and perspectives. Why this is the case is difficult to determine. To answer that I think we need to define what it is. 396414. Parts of this chapter are based on a background report on the economic impact of diversity, provided by Ceren Ozgen (Marie Sklodowska-Curie Fellow at the Department of Economics and the Institute for Research into Superdiversity (IRiS) at the University of Birmingham). However, while the impact of diversity might be small, there is a strong economic argument against discrimination and non-inclusion based on the sizeable cost associated with it. 56/1, pp. We receive over 17,000 inquiries and complaints a year; 65% are conciliated, making a major contribution to the principle of equal access to justice. Demographic-based affinity groups are formed around shared characteristics such as gender, race, ethnicity, or sexual orientation. The underrepresentation of cultural and linguistic diversity in Australian politics . The research highlights that social cohesion in Australia is relatively strong; however racial discrimination is a barrier to and destroys social cohesion, peace and harmony. As I highlighted earlier prejudice and discrimination are barriers to fair treatment and equal opportunity. Elements of social diversity can include ethnicity, lifestyle, religion, language, tastes and preferences. 1219-1260. [21] Bell,S. etal. In Europe, research has also found a positive relationship between innovation and the share of the foreign-born population on a regional level (Ozgen, Nijkamp and Poot, 2012[5]). So why do we talk about social cohesion? By 2031, it is estimated that this number will exceed one million, with Aboriginal and Torres Strait Islander people comprising 3.9 per cent of the population. To understand the place of these laws in our society it is important to consider why they were introduced in the first place. Prosperity in diversity. The legislation provides for a Commission constituted by a President, and seven Commissioners that broadly reflect those human rights that have been the subject of federal legislation. It gives effect to Australias international human rights commitments and promotes equality between people of different backgrounds. Most studies discussed in this section discuss the impact of migrant diversity and gender, which reflects both the interest of the public debate as well as the focus of the literature. For the same reporting year we received 500 complaints under the Racial Discrimination Act, equating to nearly a quarter of all complaints received by the Commission. [47] Bon-Maury,G. etal. Most studies considered in these meta-analyses were conducted in the US. I commend the bipartisan support for this dinner and the commitment from both political parties in ensuring that this features on the annual calendar of Parliament House. Im often asked what are the types of situations that will be covered if the Exposure Draft is adopted in its current form? Its difficult to consider situations that would fall under the revisions; People of all religions, ethnic backgrounds, age and gender have so much to contribute, but this can only happen when there is a sense of inclusion and belonging, when people feel part of this country. in the workplace or at school, as such interactions can help reduce anxiety and increase empathy (for an overview, see Pettigrew et al., (2011[44])). (2011), Getting Specific about Demographic Diversity Variable and Team Performance Relationships: A Meta-Analysis. As a nation we recognise that the expansion of labour markets, skills and capital gives us the necessary competitive edge to compete in an increasingly globalised world. What is social impact? [33] Ager,P. and M.Brckner (2013), Cultural diversity and economic growth: Evidence from the US during the age of mass migration, European Economic Review, Vol. (2018), Trust and its determinants: Evidence from the Trustlab experiment, OECD Statistics Working Papers, No. While we must celebrate these important achievements this survey reminds us that racism is a pervasive issue in Australia, and is a significant impediment to social cohesion and low levels of social cohesion can have long term implication on a nations productivity and prosperity. [39] Laurence,J. (2016), Age diversity and team outcomes: a quantitative review. [44] Pettigrew,T. etal. But we will not let it pass. For example, studies on social cohesion in neighbourhoods show that the key element for weak social cohesion is the low socio-economic status of a neighbourhood rather than its ethnic diversity (Letki, 2008[37]; Tolsma, van der Meer and Gesthuizen, 2009[38]; Laurence, 2017[39]). At: http://migrationobservatory.ox.ac.uk/briefings/immigration-diversity-and-social-cohesion (viewed 23 June 2014). At http://undesadspd.org/SocialIntegration/Definition.aspx (viewed 23 June 2014). [2] Markus, P. (2013). : An assessment of their (in)effectiveness using administrative data., http://oxfordhandbooks.com/view/10.1093/oxfordhb/9780190274801.001.0001/oxfordhb-9780190274801-e-13, http://dx.doi.org/10.1787/9789264281318-en. Nearly a year after the infamous comments of a teenage girl, Goodes was again the target of racism at an Essendon game in May. Research shows that there is a clear correlation between discrimination and inequality. One study on the country-level impact is provided by Chellaraj, Maskus and Mattoo (2008[3]), analysing the impact of the share of foreign graduate students on patent applications, patent grants and non-university patent grants in the UnitedStates from 1963-2001. Diversity is important for several reasons, both in society and in various contexts such as the workplace, education, and communities. Today, Australia's population of about 23 million is one of the most interesting and diverse populations in the world. 93/3, pp. There are a lot of factors that affect a person's socioeconomic status. Feat. [44] Pettigrew,T. etal. This provision is so broad it is difficult to see any circumstances in public to which the protections would apply. 58/5, pp. Social and semantic contrasts prompted improper correspondence, which traded off validity, respectability, and group personality. [41] Delhey,J. and K.Newton (2005), Predicting Cross-National Levels of Social Trust: Global Pattern or Nordic Exceptionalism?, European Sociological Review, Vol. [40] Baldwin,K. and J.Huber (2010), Economic versus Cultural Differences: Forms of Ethnic Diversity and Public Goods Provision, American Political Science Review, Vol. Miguel R. Ramos received funding for the project discussed in this article from the Nuffield Foundation. For example, Post and Byron (2015[13]) assessed 140 studies in a meta-study and found that on average, having more female directors is positively related to returns on assets and returns on equity, but that the effect was very small. But over time, individuals adapted to changes in society and began to reap the benefits of diversity, with quality of life returning to initial levels. Contrary to the often assumed, direct positive impact of diversity on business performance, research shows that at the firm level, the business case for diversity is not particularly strong. Making Diversity Work for All, (stergaard, Timmermans and Kristinsson, 2011[11]), (Parrotta, Pozzoli and Pytlikova, 2014[12]), (Alesina, Harnoss and Rapoport, 2016[26]), Tolsma, van der Meer and Gesthuizen, 2009[38], (Alesina, Harnoss and Rapoport, 2014[42]), [2] Balestra,C. and L.Fleischer (2018), Diversity statistics in the OECD:How do OECD countries collect data on ethnic, racial and indigenous identity?. Examples include increased genetic diversity owing to intergroup mating, sharing of knowledge and information, and access to new resources. Moreover, much of the literature rests on the assumption that more diverse boards can make better decisions because women and minorities differ in their knowledge, experiences or management styles and therefore can bring new insights and perspectives. [17] Carter,D. etal. We are all diminished as a consequence. It is the position of the Commission that we need legislative protection across all human rights not just racial discrimination. With regards to the examination, these complexities incorporate high correspondence costs and the . 35, pp. (2016), Age diversity and team outcomes: a quantitative review, Journal of Managerial Psychology, Vol. In addition, this effect is even smaller when immigrants come from high-income countries and when native-born are highly educated. [24] Gonzalez,J. and A.Denisi (2009), Crosslevel effects of demography and diversity climate on organizational attachment and firm effectiveness, Journal of Organizational Behavior, Vol. [1] Ozgen,C. (2018), The economic impact of diversity: A literature review, Background Report for the OECD. Indeed, the link between all human rights based complaints and employment is very strong as people know almost instinctively, that if they are denied access to work, they will find it very hard to succeed in building their lives, educating their children and securing their futures. Heres what some of the respondents said: The ability to participate in society and to be free from discrimination is not only an ideal. Sections 18C and D of the Racial Hatred Bill 1995 were introduced at the request of the Australian Institute of Jewish affairs, and leaders of the Italian, Greek, Vietnamese and Chinese communities, following a National inquiry into Racist Violence conducted by Human Rights and Equal Opportunity Commission (now the AHRC), the Royal Commission into Aboriginal Deaths in Custody Report in 1991 and the Report of the Law Reform Commission on Multiculturalism and the Law, the following year. [20] Schneid,M. etal. Research into the Current and Emerging Drivers for Social Cohesion, Social Division and Conflict in Multicultural Australia. [18] Trax,M., S.Brunow and J.Suedekum (2015), Cultural diversity and plant-level productivity. I would also like to highlight that apart from our Aboriginal and Torres Strait Islander peoples, all of us came to this country as immigrants or are the descendants of immigrants.
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