TOP TEN REASONS STEREOTYPES ARE BAD FOR BUSINESS

A N A S TA C I A K U RY L O , P H . D .

P R E S I D E N T

F O R T I F I E D C O M M U N I C AT I O N C O N S U LT I N G

STEREOTYPES

Stereotypes = Group + Characteristic

Stereotypes and generalizations are different.

Generalizations are qualified. Qualifiers include “many” and “in my personal experience.”

Communicated Stereotypes are said in conversation, often casually.

CUSTOMERS

In today’s economic environment there is a lot of talk about jobs. Henry Ford said,

“It is not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages.”

All efforts in business involve driving sales, even the most altruistic.

Customers are a company’s biggest priority. Organizations like the National Diversity Council exist to help companies

build business through a sincere commitment to diversity. More diverse employees spread a variety of perspectives, create outside-of-the-box

ideas, and produce more competitive products.

Diversity and Inclusion efforts are customer focused.

EMPLOYEES AS CUSTOMERS

Companies want to competitively recruit, keep, and promote diverse talent.

Employees are customers of Diversity and Inclusion initiatives.

Despite best efforts, a 2006 study by three sociologists found that diversity training may have little effect on the demographics of

a company's executives.* According to a 2010 report** by Senator Robert Menendez,

3 out of 4 people seated in a board room at a

Fortune 500 company are Caucasian males.

*Kalev, A., Dobbin, F., and Kelly, E. (2006). “Best Practices or Best Guesses? Diversity Management and the Remediation of Inequality.” American Sociological Review, 71, 589–617.

**Corporate Diversity Report (2010) available at http://www.menendez.senate.gov/imo/media/doc/CorporateDiversityReport2.pdf

DIVERSITY

*U.S. Equal Employment Opportunity Commission (2007) adapted by Robert Benincasa and Alyson Hurt / NPR available at http://www.npr.org/templates/story/story.php?storyId=122329851

U.S. Equal Employment Opportunity Commission 2007 Report

Diversity efforts are often based on improving demographics through

number crunching.

So how can companies change these

statistics?

INCLUSION

Inclusion initiatives help. According to Lilly Benjamin, Director of Global Inclusion at Avon,

“Inclusion drives diversity and not the other way around.” “Diversity doesn’t translate globally.”

‘Inclusion’ translates across cultures.*On August 18th an Executive Order (EO) was signed by President Obama

requiring each government agency to issue its own Diversity and Inclusion Strategic Plan.

Clearly, inclusion should be considered important.

The problem with these initiatives is

SHOULD

*Full Lilly Benjamin interview available at http://thedagobagroup.com/2011/12/interview-with-lily-benjamin/

STEREOTYPES

Businesses should engage in diversity and inclusion efforts

because of their customers.

But why? • Two points are recommended as important for business. •

Diversity and Inclusion• But, there is a third point that is often missing from these

initiatives. •

Understanding Communicated Stereotypes

GOALS

A persuasive case for Diversity and Inclusion

• Focusing on why stereotypes are bad for business

• Providing research-based explanations

• Arguing for a self-serving investment in diversity and inclusion

• Speaking the language of brand reputation, sales, and customer relations

STEREOTYPES SLIP INTO CONVERSATION

Information Processing*Humans categorize data from the environment in order to exist.

This categorization involves mental shortcuts.

Stereotypes are a shortcut that provide efficiency and allow for inference.

Mental Processes Extend Into CommunicationBecause stereotypes are so useful mentally, they slip into conversation.

People don’t even notice saying them.

Sometimes communicated with seemingly the best intentions.

Communication with customers should be strategic.

Reason #1*Fiske, S. T., & Taylor, S. E. (1984). Social cognition. Reading, MA: Addison-Wesley.

COMMUNICATED STEREOTYPES ARE UBIQUITOUS

Communicated Stereotypes are FunctionalStereotypes are just as functional as any form of communication.*

By communicating stereotypes people make jokes, give advice, bond, gain control, communicate efficiently, manage impressions, reduce uncertainty, and relax.

Because they are useful for people, they are communicated casually and often.

People Use What is UsefulThe communication of a single stereotype often has little to do with diversity

issues.

Thwarting communicated stereotypes requires overt training specifically in this area.

Those who communicate stereotypes do not think diversity initiatives apply to them.

Stereotypes are not useful for customer relations.

Reason #2*Rubin, R. B., Perse, E. M., & Barbato, C. A. (1988). Conceptualization and measurement of interpersonal communication motives. Human Communication Research, 14, 602-628.

STEREOTYPES ARE IMPERSONAL

Personal vs. Impersonal MessagesStereotypes generalize characteristics to all members of the targeted

group.

Stereotypes are impersonal one-size-fits-all messages.

Impersonal messages treat customers as interchangeable and unimportant.

Impersonal messages are easier and quicker to create than personalized messages.

The Easy Option is Not Always the Best OptionCustomer retention can hinge on whether a customer feels sincerely valued.

Customer service adds to a company’s ability to be competitive.

Customers want to feel special.

Sales strategies work best when personalized.

Reason #3

YOUR EMPLOYEE COULD BE WRONG

Expectancy Effects*People’s expectations can lead to biased behavior.

Stereotypes provide expectations for how to act and how others will act.

Self-fulfilling prophecies and hypothesis confirming questions can cause targets of stereotypes to behave in ways that confirm those stereotypes.

Knowledge is Powerful, Stereotypes are NotPeople can think they are right, even in the absence of evidence.

People can think stereotypes are accurate, even in the absence of evidence.

Customers are unique individuals

not generic stereotypes.

Reason #4*Hamilton, D. L., Sherman, S. J., & Ruvolo, C. M. (1990). Stereotype-based expectancies: Effects on information processing and social behavior. Journal of Social Issues, 46, 35-60.

STEREOTYPES ARE A POOR WAY TO COMMUNICATE

Stereotypes are Noisy* Stereotypes interfere with the ability to hear a message.

Noise can cause miscommunication.

Messages filtered through stereotypes can be altered in unrecognizable ways.

Stereotypes make even valid points difficult to hear.

Messages Need Help to be Crystal ClearPeople recall only about 10% of the actual content of a conversation.**

Peoples recollection is more aligned with expectations than with actual behavior.**

There is a better way to say what you want to say so the message is clear.

Sales pitches require precision.

Reason #5*Shannon, C.E., & Weaver, W. (1949). The mathematical theory of communication. Urbana: University of Illinois Press.**Stafford, L., & Daly, J. A. (1984). Conversational memory: The effects of recall mode and memory expectancies on remembrances of natural conversations. Human Communication Research, 10, 379-402.***Nisbett, R., & Wilson, T. (1977). Telling more than we can know: Verbal reports on mental processes. Psychological Review, 84, 231-259.

STEREOTYPES ARE CONTROVERSIAL

Political Correctness*We know we ‘shouldn’t’ stereotype.

Celebrities are vilified in the media for communicating stereotypes.

We don’t like it when people stereotype the groups we belong to.

Avoid - Not Incite - Conflict With CustomersNo matter how they are communicated, stereotypes are hot button topics.

Stereotypes open debate and encourage taking sides.

Stereotypes are deeply connected to historical roots and personal experience.

Brand reputation should be far removed from stereotypes.

Reason #6*Thibodaux, D. (1994). Beyond political correctness: Are there limits to this lunacy? Lafayette, LA: Huntington House Publishers.

STEREOTYPES IMPLY AN AGENDA

Prejudice and Discrimination*Stereotypes imply social, economic, and political agendas.

Communicating a stereotype suggests belief in the accuracy of that stereotype.

Communicating a stereotypes suggests you are prejudicial against the targeted group.

Prejudice and Discrimination is Not Your Agenda, Is it?

With other appropriate ways to communicate, why associate with this agenda?

This agenda is not what the company represents.

An employee’s agenda should not be a part of the company’s sales pitch.

Reason #7*Allport, G. W. (1954/1979). The nature of prejudice. Cambridge, MA: Addison-Wesley.

COMMUNICATED STEREOTYPES MISREPRESENT THE COMPANY’S

PERSPECTIVEIngroups and Outgroups*

Communicated stereotypes promote differences between groups (us vs. them).

Diversity and inclusion initiatives seem superficial and hypocritical.

People assume employees speak for the company.

Communication Messages are Company ProductsProducts and services are part of what is produced by a company.

Employees are also products of the company.

Employee behavior reflects on the company.

Employee stereotype use reflects on the company brand.

Reason #8* Tajfel, H. & Turner, J. C. (1979). An integrative theory of intergroup conflict. In W. G. Austin & S. Worchel (Eds.), The social psychology of intergroup relations. Monterey, CA: Brooks-Cole.

THE IMPACT OF STEREOTYPES ON A CUSTOMER CAN NEVER BE KNOWN

Cognitive Processes Cannot Be Directly Observed*We assume because people look a certain way people will think a certain way

We assume people who look like us think like us **

People often keep their real opinions to themselves.

People can say they think one way an actually think an entirely different way.

You Can’t Predict How Customers Will Respond Being offended once is enough to make you never go back to that company.

States, traits, and circumstances all impact how people interpret what you say.

Customers will not risk having a conflict just to stay with your company.

Customers maintain relationships over company loyalty.

Reason #9

*Shotter, J. (1981). Telling and Reporting: Prospective and Retrospective Uses of Self-Ascriptions. In C. Anataki (Ed.), The psychology of ordinary explanations of social behaviour (pp. 157-181). London: Academic Press.**Hilton, J. L., & von Hippel, W. (1996). Stereotypes. Annual Review of Psychology, 47, 237-272.

CUSTOMERS CAN LOSE TRUSTMaslow’s Hierarchy of Human Needs*

People need to feel a sense of security and safety.

This security need must be met before meeting other life needs.

Stereotypes can make people feel uncomfortable and anxious threatening trust and security.

Years to Build, Seconds to DestroyLack of trust can hurt customer retention.

Trust is difficult to earn back once lost.

One communicated stereotype can damage a reputation.

Customer relations, sales, and brand reputation rely on trust.

Reason #10*Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, 50, 370-396.

THREE POINTS

Crunching numbers for diversity scorecard is persuasive.

Fostering large scale inclusion initiatives is invaluable.

Diversity and Inclusion initiatives miss one point

that is integral to carrying these out effectively:

Understanding Communicated Stereotypes

Communicated stereotypes can undermine these initiatives and

hurt customer relations, sales, and a company’s brand reputation.

ANASTACIA KURYLO, PH.D.• Taught 15 years at New York University, Rutgers,

University, Pace, University, and St. John’s University among other schools.

• Founded the blog The Communicated Stereotype. (www.TheCommunicatedStereotype.com)

• Owns Fortified Communication Consulting. (www.FortifiedCommunication.com)

• Published over 25 articles on related topics.

• Edited a textbook on intercultural communication with over 40 contributors talking about representation and construction. (http://www.sagepub.com/books/Book234817)

• Publishing The Communicated Stereotype: From Celebrity Vilification to Everyday Talk this June (https://rowman.com/ISBN/9780739167533)