Concrete versus Abstract Diversity Goals Enhance Organizational Image

Abstract: Although specific diversity goals drive better outcomes than abstract ones, organizations often hesitate to adopt concrete metrics due to reputational concerns. Through three experiments, we demonstrate that concrete diversity goals actually enhance organizational reputation and stakeholder trust, even when targets are not fully met. Drawing from signaling theory, we show concrete goals serve as more credible signals of diversity commitment through increased signal cost and verifiability. Study 1 (N=549) demonstrates concrete goals improve organizational reputation and investment intentions. Study 2 (N=475) shows these positive effects persist even when goals are unmet. Study 3 (N=939) reveals concrete goals lead to more positive word-of-mouth recommendations. Our findings advance signaling and accountability theories while providing practical guidance for organizations implementing diversity initiatives.

Keywords: diversity, goal, organizations