Chapter 3: Traversing the Societal-Organizational Cultural Divide: Social Capital and Organizational Diversity in the United States and the European Union

One of the key challenges facing organizations in the United States and the European Union (EU) is the issue of social unity among diverse citizens and workers. As both U.S. and EU societies become more culturally diverse, one important human resource management (HRM) challenge will be the effective management of diversity. In both societies, the management of organizational diversity has been accepted, at least rhetorically, as one way to enhance business performance. This “business case” for diversity suggests that organizations need a diverse workforce to capitalize upon new market opportunities stemming from diverse consumer demographics, and to enhance competitiveness and value creation.