Introduction

This case study is about the approach of one leading bank to diversity. The bank is Lloyds TSB. It is one of the largest UK banks. It believes that diversity should be positively welcomed and valued. It therefore has strategies in place to manage diversity in a positive way.

Diversity is the term used to describe the differences between people. When people talk about diversity in a business context, they often focus on a particular set of characteristics and these are:

• age

• gender

• religion

• ethnic group (e.g. colour, race)

• disability and

• sexual orientation.

These differences are protected by law. Diversity helps to make society varied and rich. For a business, employing a diverse workforce enables it to use a wider range of talents and skills. Businesses need to 'manage diversity' positively to get the best from staff and for customers.

The business case

Lloyds TSB's diversity programme helps it to improve its business performance. It focuses on four main areas:

• Employment. The bank needs to appeal to a wide number of people to ensure that it attracts the best staff. Employees who are valued and respected work more effectively and are more loyal. A diverse mix of employees encourages new thought and new ways of working.

• Customers. Customers are diverse, so a diverse staff will understand them better. Over half of all new accounts are for people new to the UK. This sector is therefore vital. By being able to offer products which meet the specific needs of the bank's diverse customers, Lloyds TSB has been able to grow its business.

• Compliance. Lloyds TSB must comply with the law.

• Corporate reputation. Having a good track record on managing diversity successfully has enabled the bank to create a positive and trusted brand image.

Employment law

The law sets the minimum standard for employers. Laws are designed to make sure that all have the same opportunities. It is against the law to discriminate. This means not making employment decisions based on things like age or gender. The law also covers training and other opportunities. Some laws are made at national level. For instance, there is the UK's 1975 Sex Discrimination Act. Others are made at European level, for instance the EU Equal Treatment Directive.

Sexual orientation

Lloyds TSB believes that diversity is a key issue in all areas. It has worked on a number of strands. The most recent of these is sexual orientation. It found that many lesbian, gay and bisexual (LGB) employees felt isolated. It wanted to make sure that they received support and were valued because research shows that people will perform better when they can be themselves and feel valued. The strand includes an active network for LGB staff called Spectrum. This helps them to meet others in similar circumstances. They can also find role models within Lloyds TSB.

Communication

Lloyds TSB has made sure that its treatment of LGB staff has a high profile. They are treated sensitively. New ideas are often presented by senior managers. In turn, this makes it the bank of choice for the LGB community. Staff are also made aware through a training package, which all have to complete.

Conclusion

Society is diverse. To be a success, a business needs to reflect this diversity. For Lloyds TSB, this is much more than just making sure it obeys the law. It means having an active policy in place. This makes the best use of its diverse staff to serve its diverse customers.