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The "business case for diversity" theorizes that, in a global marketplace, a company that employs a diverse workforce (both men and women, people of many generations, people from ethnically and racially diverse backgrounds etc.) is better able to understand the demographics of the marketplace it serves and is thus better equipped to thrive in that marketplace than a company that has a more limited range of employee demographics.
An additional theory suggests that a company that supports the diversity of its workforce can also improve employee satisfaction, productivity, and retention. This portion of the business case, often referred to as inclusion, relates to how an organization utilizes its various relevant diversities.
To "diversify" is a risk-reduction strategy that involves adding product, services, location, customers and markets to your businesses' portfolio. As you grow larger, you'll find opportunities to add products, services, locations, customers and markets. Diversifying in this way can help your business weather tough times by providing alternate sources of revenue in the event that your original market dries up, stops growing or is hit by new competition.
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