State-level culture and workplace diversity policies: Evidence from US firms

Sivathaasan Nadarajah, Muhammad Atif*, Ammar Ali Gull

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the effect of state-level culture in the US on the adoption of firms’ workplace diversity policies. Using firm-level panel data (1592 firm-year observations) over the period 2011–2014, we document that firms in highly individualistic states are less likely to adopt workplace diversity policies, which in turn negatively affects firm performance. Our results are robust to alternative variables and econometric specifications. Our findings provide insights into the contemporary debate on the economic aspects of workplace diversity policies for firms operating in different cultural backgrounds.
Original languageEnglish
Number of pages20
JournalJournal of Business Ethics
DOIs
Publication statusE-pub ahead of print - 15 Feb 2021

Keywords

  • Culture
  • Workplace diversity policies
  • Firm performance

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