Introduction

Lloyds TSB is one of the biggest UK banks. It believes in creating an environment where diversity is positively welcomed and valued. Diversity is the term used to describe the differences between people. When people refer to diversity in a business context, they often focus a particular set of characteristics. These are age, gender, religion, ethnicity (colour and race), disability and sexual orientation. These differences are protected by law. Diversity helps to make society varied and rich and for businesses employing a diverse workforce enables it to use a wider range of talents and skills. Businesses need to 'manage diversity' in a positive way by valuing and respecting difference in order to get the best from staff and for customers.

The business case

Lloyds TSB's diversity programme helps it to stay ahead of competitors. 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 creativity and innovation.

• 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 important. By being able to offer products that 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. These laws are designed to make sure that everyone has the same opportunities. They make it illegal to discriminate against people in employment, training and other opportunities. Some laws are made at national level – for example the UK's 1975 Sex Discrimination Act. Others are made at European level, for example the EU Equal Treatment Directive.

Sexual orientation

Lloyds TSB believes that diversity is important in all areas. Its most recent diversity strand has been sexual orientation. It launched a strategy to help lesbian, gay and bisexual (LGB) employees to feel valued and supported. It includes an active network for LGB staff called Spectrum, which helps them to meet others in similar circumstances and to find role models within the business.

Communication

Lloyds TSB has made sure that its policy for LGB staff has a high profile and that they are treated sensitively. 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, so a successful business needs to reflect this diversity. For Lloyds TSB, this is much more than just complying with the law. It means having an active policy in place to make the best of their diverse staff to serve their diverse customers