1 Should companies adopt diversity policies because they are ‘the right thing to do’ or because they can be used to enhance the company’s reputation on performance? Brazil recently surpassed the UK to become the world’s sixth biggest economy. However, the disparity between rich and poor is among the largest in the world, with strong correlations to race (Pollitt, 2012). The Brazilian government issued several directives to encourage firms to incorporate diversity management practices. Jabbour et al. (2011) examined how Brazilian companies responded and the role of HR in the process. Fifteen Brazilian companies, with 500 or more employees, were interviewed about their approach to and treatment of diversity.