The Relationship between Firm Attributes and Attitudes towards Diversity

Abstract

The attitudes of creative firms towards issues of equality, diversity and inclusiveness ("EDI") can significantly affect their willingness to sponsor and implement effective measures in the domain. It is, therefore, essential to examine the readily measurable firm attributes that influence these attitudes. We have collected a wide range of data on almost 330 creative businesses. Our empirical investigation establishes a robust and unequivocal pattern. It indicates that more established companies tend not to view the underrepresentation or the discrimination of people with various protected characteristics as problematic. Young, innovative and efficient firms on the other hand are systematically more likely to consider these same issues as prevalent. These findings are in line with the conclusions from the previous literature which relied predominantly on anecdotal evidence. The patterns that we document suggest that EDI policies and recommendations must be tailored to the precise characteristics of the firm implementing them.