As the boundaries that once divided the world's citizens continually blur, it is essential that business leaders recognize the importance of diversity management. Gone are the days when business leaders talked about diversity without putting much into it. Parks (2008) explained that diversity management has become more than just tracking the number of minorities reflected in your workforce and has evolved into creating an inclusive work environment that embraces the different perspectives used for the benefit of organizational objectives (p 1). These different perspectives may include standard protected classification such as religion, race, culture, disabilities and sexual orientation as well as other aesthetic factors. Manage diversity holistically as business necessity increases team collaboration, productivity and effectiveness. “Recent studies of the factors that moderate the relationship between cultural diversity and work group effectiveness have begun to make sense of these findings, suggesting that when group members share common goals and values, diversity cultural leads to more beneficial outcomes” (Ely and Thomas, 2001, p235). In a world where the slightest accusation of discrimination can cost an organization millions in terms of rehabilitating its public image, there are still organizations that have not understood the importance of properly maintaining a diverse and inclusive environment in the face of challenges. of Abercrombie & Fitch in terms of diversity. The clothing retailer's history of discrimination, centered on CEO Mike Jeffries and his controversial appearance policy, has resulted in multiple discrimination lawsuits, damaged brand image and plummeting profit margins . ...... middle of paper ......th problem Abercrombie & Fitch Employment discrimination. Retrieved from http://www.naacpldf.org/case-issue/abercrombie-fitch-employment-discriminationPark, A. (2008). Make diversity a business advantage. Harvard Management Update, 13(4). 1-4. Sacribey, O. (September 23, 2013). "Abercrombie & Fitch to change 'look policy' and allow hijabs. Religious News Service. Retrieved from http://www.religionnews.com/ on 09/28/13The Associated Press. (2004). Regulations shrink Abercrombie's 3rd Quarter Earnings. AP Online, Associated Press (2013). Abercrombie & Fitch CEO's Contract Restructured. Thomas, J. (1990). Affirming Diversity. Harvard Business Review, 68(2), 107-117. Retrieved from http. ://www.ada.gov/cguide.htm 9/28/2013