DEFINITION of 'Multicultural Organization'

An organization whose work force not only includes people from diverse racial, religious and gender backgrounds, but is one in which minorities are well integrated across all levels of the company, including management and executive positions. A multicultural organization also displays an absence of discrimination and prejudice, with skills and talent being the primary criteria for climbing the corporate ladder.

BREAKING DOWN 'Multicultural Organization'

The benefits of a multicultural organization are many; they include a higher level of innovation, greater success in marketing to minorities and export markets, and better distribution of opportunity. These benefits generally outweigh the negative factors such as a higher degree of cultural conflict and the potential for resentment among some employees, which could lead to higher employee turnover rates.

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