Equal Opportunities
and Diversity
FOCUS
This session covers the following content from the ACCA Study Guide.
Session 18 Guidance
Note that discrimination and equal opportunities are important topics for managers in real life.
The implications of getting it wrong or doing it incorrectly can have legal and financial implications.
Understand the difference between equal employment opportunities (legally required) and workplace
diversity (ethically, morally and financial desirable) (s.1).
Know the forms of discrimination (s.2.1).
DIVERSITY
Development
Research
DISCRIMINATION
Forms of Discrimination
Equal Opportunities
Equal Pay
Sex Discrimination
Sexual Harassment
Orientation and Religion
Disability
Age
Session 18 Guidance
Recognise best practices in managing diversity and equal opportunities (s.3).
Be aware if equal opportunities and diversity are of lesser relevance in your country, make sure
you understand what is standard in Europe. You cannot use the excuse that "we do not do it that
way in my country".
1 Diversity
1.1 Development
1.2 Research
Research has found that culturally diverse teams were more
creative than homogenous teams and contributed more
effectively to meeting organisational goals. Thus, there is
a business case (as well as the moral and ethical case) for
diversity, although coping with it would be much harder than
simply managing equal opportunities to meet legal requirements.
2 Discrimination
The areas of discrimination covered in this session are:
equal opportunities;
equal pay; and
gender, colour, race, disability, sexual orientation, religion
and age.
The examiner does not expect you to know the detail of the UK
legislation on work-based discrimination, equal opportunities and
diversity. Every jurisdiction will have varying laws on these topics.
You will, however, be expected to know the general principles and
good practice, using the UK as an example.
2.2.2 Circumvention
Enshrining equal opportunities in law (or codes of best
practice), however, does not necessarily mean the spirit of the
law will be followed. Some organisations (even some listed
firms and unlisted firms in the public eye) may only pay "lip
service" to the requirements and do the absolute minimum
necessary. For example:
Publish extensive equal opportunity policy documents
(e.g. in CSR and sustainability reports) in order to be seen
to be good, but in practice do very little.
Deliberately establish or create reasons and situations to
ensure discrimination "via the backdoor" (e.g. creating
reasons in a job interview, which may or may not be
justifiable, for not hiring a particular individual).
Create a work environment which forces an individual to
resign (e.g. work colleagues take a dislike and refuse to
work with or talk to the individual).
Apply a policy selectively (e.g. to workers and low-grade
managers, but not to middle managers or executives) so
there is no representation of certain groups at higher levels.
Illustration 1 Discriminatory
Selection
Job Job
Job Job
2.5.1 Verbal
Comments about appearance, body or clothes.
Indecent remarks.
Sexually explicit jokes.
Questions or comments about one's sex life.
Requests for sexual favours.
Sexual demands made by someone of the opposite or the
same sex.
Promises or threats concerning a person's employment
conditions in return for sexual favours.
2.5.2 Non-verbal
Looking or staring at a person's body.
Display of male or female sexually explicit material, such as
calendars, pin-ups or magazines.
2.5.3 Physical
Physically touching, pinching, hugging, caressing or kissing.
Sexual assault.
Rape.
2.7 Disability
UK legislation makes it illegal for employers to discriminate
against disabled individuals:
in deciding whom to interview, whom to employ or in terms
of an employment offer;
in the terms of employment and the opportunities for
promotion, transfer, training or other benefits, or by
refusing the same;
by dismissal or other disadvantages.
2.8 Age
2.8.1 Impacts
Age discrimination occurs when someone treats a person less
favourably because of that person's age and uses this as a basis
for prejudice against, and unfair treatment of, that person.
Age discrimination in employment can:
affect anybody regardless of how old they are;
reduce employment prospects for older people, younger
people and parents returning to work after a period of
full-time child care;
favour people ages 25 to 35; or
prevent the full consideration of abilities, potential and
experience of employees.
3.2.3 Communication
Develop an open culture with good communication channels
based on open dialogue and active listening.
Use different and accessible methods such as newsletters,
in-house magazines, notice boards and intranets to keep
people up to date about diversity policies and practices.
Consult people for ideas.
3.2.4 Training
Build diversity concepts and practices into management and
other training and team-building programmes to increase
awareness of the need to handle different views, perceptions
and ideas in positive ways.
Consider skills-training and awareness-raising programmes
about diversity to help people work together better in a
diverse environment.
Include diversity issues in induction programmes so that all new
employees know about the organisation's values and policies.
Train line managers about diversity, aiming to help them
understand the issues and drive them into organisational and
operational policies and practices.
3.3.2 Review
Audit all the organisation's current policies, practices and
procedures, even those not labelled "personnel", to identify all
areas which relate to equal opportunities.
Establish areas which meet, exceed or fail to meet current
legislation requirements. Update as necessary to ensure that
all functions meet or exceed legal requirements.
Produce a policy statement and codes of best practice for
all employees.
3.3.3 Policy
Implement policy as part of an approach to diversity
and inclusion.
Use only objective criteria essential for satisfactory performance
and ensure that these can be objectively justified.
Communicate policy to all managers and employees and offer
training where necessary.
Solution
Summary
Equal employment opportunities were established under law in the 1960s. These laws refer
to discrimination based on race, sex, national origin, disability, age and sexual orientation.
Forms of discrimination include direct and indirect discrimination, victimisation
and harassment.
Discrimination may be in relation to access to jobs, employment terms and conditions,
promotion prospects, training opportunities, remuneration or termination of employment.
Discrimination with regard to pay may occur when workers performing similar functions, or
judged to be of similar value, do not receive the same pay and terms.
Firms should perform a job evaluation in order to establish the pay and terms for
each position.
Workers who feel discriminated against based on pay and benefits may request a tribunal
to intervene, and the tribunal may require a job evaluation, and may re-grade jobs and
increase wages for the position.
Even jobs with different content may be considered similar if they require the same skills,
etc required to undertake them.
Although an organisation's policies do not overtly discriminate, the firm may be found to
discriminate if the effect of its policies is discriminatory.
Sexual harassment can take many forms, broadly categorised as verbal, non-verbal
and physical.
Workplace diversity refers to the acknowledgement of and tolerance for differences within
and between groups of people in the workplace. Although not yet required by law, a body
of research indicates a business case for a diverse workplace.
Session 18 Quiz
Estimated time: 15 minutes