When Firms Fail to Learn

Abstract

Scholarly and anecdotal evidence suggests that despite an increasing tolerance for diversity among many Americans, workplace discrimination is on the rise. This article addresses the role that learning, or more specifically barriers to learning, plays in the perpetuation of discrimination. The authors use several organizationally based learning theories to illustrate ways in which firms may fail to learn how to manage diversity challenges effectively, such as a discrimination lawsuit. They conclude the article with two relatively successful learning situations involving the Georgia Power Corporation and the Denny’s restaurant chain, both of which have faced discrimination lawsuits in recent years. They use this discussion to highlight reactive versus reflective learning strategies and how each may lead to successful discrimination lawsuit resolution.