ACCA/CAT

Question：Which of the following is a potential business benefit of a corporate diversity policy?

A. Efficiency in managing human resources

B. Respect for individuals

C. Better understanding of target market segments

D. Compliance with equal opportunities legislation

The correct answer is: Better understanding of target market segments

Rationale: A business can better understand (and meet) the needs of market segments if it employs representatives of those segments: this is a business benefit, because it enhances customer loyalty, sales revenue, profitability etc.

'Compliance with equal opportunities legislation' is a legal/moral benefit (and addresses equal opportunities rather than diversity).

'Respect for individuals' is a benefit to employees in a diverse organisation.

'Efficiency in managing human resources' is not true of diversity, which requires significant management investment and less 'standardised' HR solutions.

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