Corporate perspectives on diversity: Engagement, communication motives, and the Diversity-Washing Dilemma

Organizations face increasing pressure to reflect societal diversity in their workforce, prompting them to intensify both their diversity initiatives and related communication to strengthen public perception. However, many companies are accused of ‘diversity-washing’, meaning their stated commitments to diversity do not align with their actual practices. This study examines how companies approach diversity, exploring their motivations, communication approaches, and views on the challenges of diversity-washing. Findings from 18 semi-structured interviews with diversity managers in German joint-stock companies reveal that diversity initiatives are driven by both internal factors – such as increased creativity and productivity – and external pressures, including stakeholder expectations, societal norms, and job market competition. Companies employ a mix of internal and external communication strategies, often linked to key events, to highlight their diversity efforts. Respondents also acknowledged risks associated with diversity-washing, including potential credibility loss and reputational damage. To mitigate accusations of diversity-washing, companies emphasize authentic, credible communication that prioritizes transparency and closely aligns with their actual diversity practices.