In what way can discrimination impact a business?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Discrimination can significantly impact a business by potentially leading to lawsuits and reduced morale within the workplace. When discrimination occurs, whether based on race, gender, age, or any other characteristic, it can create a hostile and unwelcoming environment for employees. This can lead to increased employee turnover, lower productivity, and a general decline in workplace culture.

The potential for lawsuits represents a serious financial risk for businesses, as legal action can result in substantial costs related to settlements, legal fees, and damage to the company’s reputation. Additionally, discrimination can lead to feelings of disenfranchisement among affected employees, which can severely diminish morale and productivity. Employees who feel undervalued or discriminated against may ultimately disengage from their work, leading to a toxic work environment and further challenges for management.

In contrast, the other options emphasize positive outcomes that are not associated with discrimination. Increasing workforce diversity and ensuring equal opportunities are goals that can enhance a business rather than detract from it, while improving business reputation directly contrasts with the reputation damage that discrimination can inflict.

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