Employee diversity networks: a multilevel framework of their functions, governance and dilemmas

Purpose: This paper aims to analyze diversity networks (also known as employee resource groups or affinity groups) through a functional lens as employee-driven diversity management practices, an expression of cosmopolitan business ethics that fulfill multiple functions in nested social systems. Design/methodology/approach: This conceptual paper puts forward a multilevel framework that integrates four key functions that diversity networks may aim to achieve: individual social support, positive social identity development, organizational lobbying and institutional entrepreneurship. This paper then reviews several requisites for these functions at the network, organizational and societal levels. Findings: Building on the idea that diversity networks are modern expressions of cosmopolitan business ethics practices, this paper describes the possible consequences of network requisites for network effectiveness. Three dilemmas of diversity networks (dynamic evolution, management ambivalence and false dualism) that hinder network effectiveness are also discussed. Directions for future research and practical implications for managing diversity networks are derived from these dilemmas. Social implications: This study explores the governance dilemmas faced by diversity networks as they transition from social support systems to ethical change agents advocating for inclusive organizations and societies. Therefore, they contribute to alleviating moral blindness and disengagement. Originality/value: This paper theorizes the dynamics of diversity networks in four key functions and, to the best of the authors’ knowledge, is among the first studies that aim to conceptually clarify why these networks are hindered in their strategy.