Managing diverse employees in a multicultural environment proves to be a challenge for managers; Yet, increasing diversity in the workplace is very beneficial to an organization. Diverse employees will offer a wider range of talents and interact better with diverse customers. Since managers have more influence than rank-and-file employees, it is imperative that they commit to workforce diversity. Dissimilarities between people due to differences in characteristics can erode businesses. First, inequality of opportunity and unfair treatment of a race or sect is immoral and may be illegal. But more than that, diversity can help an organization maintain a competitive advantage by using a wider range of creative ideas. Nonetheless, there is ample evidence that there is discrimination within the labor market resulting from bias, prejudice, and stereotyping. There is a gender pay gap and the “glass ceiling” prevents the promotion of minorities. At the same time, however, data from the U.S. Census Bureau proves that the problem isn't going away anytime soon; the American workforce has become more diverse over the decades. First, the median age of a person in the United States is the highest it has ever been and is expected to rise further; thus, managers must treat everyone fairly, regardless of age. Second, the racial and ethnic diversity of the U.S. population is increasing at exponential levels; managers must be vigilant to ensure that employees are not discriminated against because of the color of their skin or their national origin. Third, as the world becomes more tolerant of sexual orientation, leaders should not denigrate or unfairly discriminate against employees based on their marital preferences. offered to minorities. Sexual harassment is a harmful phenomenon that is both unethical and illegal; managers have an ethical obligation to ensure that this is not tolerated in the workplace. Sexual harassment can take the form of quid pro quo – when a harasser demands or forces an employee to perform sexual favors, or a hostile work environment which occurs when members face an intimidating work environment because of their gender. Since these nuisances can interfere with their job performance, managers should eradicate such behavior by clearly communicating a sexual harassment policy to staff, establishing a fair complaints procedure to investigate accusations of sexual harassment and promptly take action. corrective measures depending on the severity of the harassment. Additionally, education on sexual harassment should be provided to all members of the organization..