Increased globalization, changes in the composition of the workforce, and increased desire to match the demographics of their employee population to their customer base have collectively made diversity and inclusion a key HR activity of all organizations. Indeed, there is a strong belief that organizations that are able to better manage diversity and inclusion can increase performance, productivity and customer satisfaction. Yet, there is growing evidence that diversity “best practices”(e.g., targeted recruiting, diversity training, mentoring programs, evaluating distribution of performance ratings and pay decisions, etc.) alone are unlikely to cultivate inclusion in organizations because they are too narrowly focused on individuals and specific decision making moments rather than being focused on organizational climate and day-to-day interactions among employees. In this webcast, Cornell faculty member Lisa Nishii will share findings from her own research as well as from recent CAHRS working groups to outline how companies might better approach creating an inclusive workplace. Dr. Nishii will begin by outlining some of the key challenges that may limit the effectiveness of organizational diversity and inclusion practices and investments. Next, she will discuss recent research that has helped to outline the factors that organizations and their managers should focus on to help cultivate and reinforce an inclusive environment. Finally, she will discuss research findings on the positive impact on employee and business outcomes for units that have created an inclusive environment compared to business units that lack this inclusive environment. Lisa Nishii, is Associate Professor of Human Resources Studies and Chair of ILR International Programs at the ILR School, Cornell University.