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Executive SummaryAlthough most U.S. multinational corporations have substantial workforce diversity management programs in their U.S. operations, they are only beginning to consider parallel efforts in their overseas subsidiaries and affiliates. The internationalization issue is particularly prominent in the European Union, where competitive, demographic, legal, and political developments make workforce diversity issues unavoidable within the next few years. Instead of simply replicating U.S. programs, however, diversity initiatives in Europe need to adapt to each employer's strategic objectives, degree of organizational integration, and local needs. The experiences of Lucent Technologies Inc. and The Royal Dutch/Shell Group of Companies illustrate two contrasting approaches. The former has adopted a strongly multidomestic strategy, while the latter has a more global approach.

The typical "business case" for workforce diversity management in the USA implies that matching the demographic characteristics of sellers to buyers increases firms' productivity and profitability. This paper explores the consequences for both employers and employees of following that guidance. Design/Methodology/Approach-The paper statistically analyzes employment data on African Americans from one large US retailer and from the US advertising industry. Findings-In both cases analyzed, a badly conceived business case for diversity perversely translated into discriminatory employment practices, starting with stereotypebased segregation in work assignments and spreading to consequent inequality in other employment outcomes such as earnings and promotions. Such patterns illegally limit employment opportunities for women and race/ethnic minorities. Simultaneously, they fail to promote customer relationships and sales. Practical Implications-To avoid negative effects on both business and societal objectives, employers need to be guided by a business case promoting workplace inclusion, not "diversity without inclusion," which buyer-seller matching represents. Originality/Value-The business case for diversity is often considered unimportant "boilerplate." This paper alerts employers to the importance of articulating, and then following, a correct business case.

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Government programs in Britain and France allow the unemployed to receive transfer payments while they attempt to create their own employment through new small businesses. This study finds that businesses formed under those programs, even more than most small enterprises, generate only limited incomes and unstable employment for their proprietors. Also, program participants most in need of help in finding stable employment-those with the sparsest qualifications and resources-are precisely those whose businesses are most likely to fail. The authors therefore conclude that policy makers should not expect this approach, now under consideration by Congress, to provide major assistance to the disadvantaged or long-term unemployed. M OST government efforts to reduce structural unemployment seek to promote the absorption of the unemployed into established enterprises. Many employers, however, prove reluctant to hire disadvantaged job seekers even when encouraged with subsidies. Also, economically lagging localities are short of firms hiring anyone, and many of the newly employed in all localities enter low-wage positions with little employment stability and few opportunities for advancement.In the 1980s, renewed emphasis on self-help among the unemployed and disadvantaged (Murray 1984) and praise for the role of private entrepreneurs in economic growth (Wanniski 1978) have