Developing Diversity in SMEs: collaboration between a city, a business school and employers

Abstract

This paper explores the question of whether there is an ethical business case for SMEs employing a more diverse workforce. Regan and Stanley (2003: p. v) have argued that employers should look beyond their legal obligations in respect of disadvantaged groups. What attitudes do SME employers have to such proposals, what are their current practices and how can they be supported to meet skills shortages through employing a more diverse workforce? The primary data has been derived from focus group sessions with local SMEs and interviews with the procurement managers of large employers in Southampton. Examples of good practice in employment policies of SMEs, methods of engagement, attitudes to diversity and business benefits are discussed in relation to the literature on inclusion strategies for disadvantaged groups in employment. The feasibility of using supply chains to encourage employment diversity in SMEs is evaluated. Looking to future research, the paper considers how research, evaluation, benchmarking and analysis might support the exchange of ideas, knowledge, information and experience between local organisations. In concluding it reflects on how Southampton's labour market intelligence capability and the capacity of local organisations to deliver effective support services to businesses and individuals could be built. Finally, the paper initiates discussion on the feasibility of addressing low economic activity and participation rates among women and disadvantaged individuals and communities, while increasing the supply of skills and entrepreneurs to expand the small business and social economies.

Citation

Palmer, A. and Bradley, N. (2006), "Developing Diversity in SMEs: collaboration between a city, a business school and employers", Social Responsibility Journal, Vol. 2 No. 2, pp. 194-200. https://doi.org/10.1108/eb059268