Flagstar is the parent company of Dennys which faces problems dealing with diversity in our concerned case study.

As multiculturalism isnt to be ignored; to deal with diversity is the best aspect of the culture of an organization. Diversity means co existence of people of multiculturalism or of different backgrounds. Dennys found numerous allegations of racism by both customers & employees specifically on march 24, 1993: Black customers are forced to wait for food longer than the white. Black customers are denied service entirely. They are to pay cover charges & pre-payment. Dennys is engaged in black outs. It has discriminatory hiring practice. It prevents the minorities from reaching management & franchise positions

It means the company has Earnings gap which is one of the 3 racial & ethnic minority issues. To response to these Flagstar took the steps below: At first apologized sincerely admitting unawareness of cover charges & pre-payment. Dropped cover charges & pre-payment & also gave explanation.

It explained that their target was to prevent late night dine & dash theft. This dropping indicates Taylor Coxs System Flexibility Argument for managing cultural diversity which means that the system is to be less determinant, less standardized & therefore more fluid. The increased fluidity should create greater flexibility to react to environmental change. Here we also find practice of the Workforce 2000 report which says to maintain adaptability & flexibility of aging work force. Talks with civil rights groups such as National Association for the Advancement of Colored People (NAACP). Allows spot testing of Dennys restaurants. Starts anti-discrimination training program for all Dennys staffs.

But unfortunately on May 24, 1993 six black secret service agents again filed suit against Dennys for denied them service in Annapolis, Maryland. It set off a whirlwind change in Flagstar & the company took the following steps: Issued an internal memo that marked CEO Jerry Richardsons pledge: I am distressed that some people of our company havent gotten the message that we will not tolerate unfair treatment of customers. Then he stopped promising change & started creating it thus On July 1, 1993 Flagstar signed an agreement with NAACP which is a breakthrough in relations between minorities & business. Its target was to have at least 12% black Flagstars managers by 2000 ( while at that time it was only 4.4 %) , to have at least 53 black owned franchises by 1997( while at that time it was only1). It agreed to direct more marketing funds toward minority advertising & to begin purchasing more goods & services from them & to appoint at least 1 minority to its board of directors. Here we find practice of the Workforce 2000 report which says to 1. work to integrate minority workers more fully into the economy 2. stimulate balanced world economic growth Made a 60 second TV spot with the desire tom express support for the employees & to show people who the actual employees are where they also endorsed a solemn pledge to treat customers with respect, dignity& fairness. Set up a hot line for employees to report about discrimination. Made significant management changes.

Now Dennys is recognized as a national role model of diversity within the restaurant industry and corporate America. It believes that diversity is the key to its success. Diverse teams generate new ideas, produce better solutions, and help to drive innovation. It demonstrates diversity leadership in the following ways:

 Integrates diversity by supporting the employees, service the franchisees, serve guests, give back to communities, and generate returns for the shareholders. Constantly strives to identify minority and women-owned businesses to support the needs of the company. Encourages the employees to give back to their local communities. Strives to create franchise partnerships that will contribute to the growth and success of the brand. Its intentional efforts toward greater diversity have resulted into transformation of their internal culture. Progress of diversity initiatives at Flagstar/Denny's: Reciprocal Trade Partnerships -- A comprehensive Fair Share agreement between Flagstar Companies, Inc. and the NAACP provides African-Americans and other minorities with greater opportunities in the company's restaurant operations. Flagstar has a similar five-year agreement, specifically targeted to U.S. Hispanics, with the Hispanic Association on Corporate Responsibility. -- Board of Directors Vera King Farris (African-American), president of Richard Stockton College in Pomona, N.J., was named to the Flagstar board of directors in 1993. Michael Chu (Hispanic and AsianAmerican) has been a board member since 1992. Elizabeth A. Sanders, principal of The Sanders Partnership in Sutter Creek, Calif., joined the board in November 1995. The 13 members of Flagstar senior leadership are a diverse group that includes one Hispanic male and three women, one of whom is African-American. -- Purchasing Contracts New annualized minority purchasing contracts now exceed $50 million -- a fivefold increase since 1993. This represents 12 percent of total annual food and paper purchases, achieving a goal originally set for the year 2000.

--Management Positions One out of four of Flagstar's restaurant and multi-restaurant supervisory positions are held by minorities. Forty-two percent of its 94,000 employees are minorities; 25 percent are AfricanAmericans. Minorities represent 27 percent of Flagstar's management, up from 22 percent in 1993; AfricanAmericans account for 17 percent of Flagstar's management, up from 13 percent in 1993. Minorities represent 24 percent of Denny's management, with African-Americans representing 11 percent of Denny's management. Franchising -- Seventy-eight minority franchisees, collectively, own 154 Denny's restaurants, which represents 28 percent of all Denny's franchise restaurants. African-Americans own 26 Denny's restaurants. Plans call for this number to reach 65 by the end of 1997. In 1993, there was one African-American franchisee. In September 1995, 14 first-time franchise candidates were selected to participate in the Denny's Fast Track program designed to give eligible minority candidates an opportunity to own Denny's restaurants.

Evaluations: -- An independent, third party civil rights monitor investigates any Denny's customer discrimination complaint. In addition, under the supervision of the civil rights monitor, Denny's restaurants are randomly visited to ensure all customers are treated fairly. Philanthropic Contributions -- Youth & Education and Equity & Empowerment are the two principal areas of interest.

Other Initiatives -- Over 90% of Denny's management has already participated in diversity training workshops. All remaining managers will complete training by early 1996. In addition, all hourly employees will receive diversity training by the first half of 1996. Flagstar's other restaurant subsidiaries will begin a comprehensive diversity training program in 1996 for senior officers and restaurant support leaders. Denny's improving slowly on minority relations: September 20, 1994 Sun staff writer Ivan Penn contributed to this article. A year after a much-touted agreement between the corporate owners of Denny's and the NAACP, both sides agree that there has been slow but steady progress toward its goal of creating millions of dollars in business and job opportunities for blacks and other minorities.(abridged) But both groups cited the following improvements in Flagstar's minority picture: * Of 124 new minority hires in management and executive positions, 103 are blacks, according to the company. Of those, 34 are single-store managers. The NAACP says the black management hires represent a 56 percent increase in the past year. Flagstar also named its first black to its board of directors last year, a female college president. * New contracts with 19 minority suppliers represent $21.3 million worth of business a year -about 3.5 percent of corporate purchasing, according to Flagstar. The 14 black-owned firms include a crouton maker from Chicago, a paper cup manufacturer from South Carolina and a wax paper producer in Pennsylvania. * Beginning this fall, the Denny's chain is helping fund a management-training program for unemployed workers at a Seattle community college. Students will work at selected Denny's in the hopes of landing a job after graduation. Complaints: There are complaints too. For example: "What they are doing is spending money giving it to black consultants. But in terms of Denny's economic commitment to black people . . . that's a fake and a fraud," said Ron McPherson, president of the Santa Clara County Black Chamber of Commerce.

Annapolis Councilman Carl O. Snowden said Flagstar's pledge to find a minority owner for the Denny's where Secret Service agents allegedly were mistreated in 1993 didn't materialize. "The bottom line is, it was a great public relations campaign but it didn't really produce anything," said Mr. Snowden. "With Denny's, [there's been] absolutely zero outreach in the Annapolis community. It just hasn't happened." etc.(abridged) Claims of broken promises: In San Jose, Calif., the site of the first discrimination complaint against Denny's, the president of a black businessmen's group said the association was rebuffed in efforts to get work with Flagstar. Media complaint: Robert W. Bogle, publisher of the Philadelphia Tribune and president of a national black newspapers association, said Flagstar reneged on a June 1993 commitment to spend $1 million with his group, the National Newspaper Publishers Association. Mr. Bogle said he believes the commitment was a hollow promise intended to ward off criticism from the publishers' group as discrimination complaints against Denny's mounted. Thats all about how FLAGSTAR deals with diversity.