Breaking Barriers: Exploring the Efficacy of Virtual Reality in Reducing Stereotyping and Encouraging Business Renewal Through Diversity in Finland

Diversity training in workplaces tackles stereotyping, influencing how individuals interpret social cues, yet its lasting impact is limited. Consequently, practitioners are seeking ways to foster inclusive and equitable work environments. The issue is particularly relevant in light of current geopolitical challenges, where Europe is experiencing refugee crisis, with approximately 50,000 Ukrainians having settled in Finland. The successful integration of these and other migrants is essential for them to lead fulfilling lives and contribute to the host society and economy.

Virtual reality (VR) holds promise as an innovative tool for diversity training. VR devices create immersive and personalized virtual worlds enabling users to embody different perspectives. Yet, existing literature on VR's stereotype-reduction efficacy is limited and inconsistent. Research lacks long-term effects, primarily focusing on immediate impact. Thus, further study is essential to grasp user reactions, duration, and factors affecting sustained stereotyping reduction.

This project comprises three packages that merge inclusion and VR to explore a critical question: how can the use of VR decrease stereotyping in the Finnish workplace to create a more inclusive and equal society? To answer, we must uncover how VR shapes stereotyping and promotes diversity in Finnish organizations.

Data collection occurs in Finland. A pilot study, presented at the 2023 EMAC conference, examined VR's impact on empathy. WP1 encompasses a literature review and interviews with scholars, managers, and HR leads to explore VR's perceptions and workplace diversity. WP2 employs surveys and experiments to study factors affecting VR stereotyping. WP3 disseminates findings through workshops and seminars, aiming to extend VR's inclusive effects.

Through interviews, surveys, and controlled experiments, we will investigate how VR lessens psychological distance, fostering empathy towards refugees. We will blend Construal Level Theory with VR's immersion to understand its impact on attitudes and behaviors, enriching literature on consumer behavior, CLT, and VR.

The findings will impact businesses, helping them foster inclusion and adapt to geopolitical shifts. This project offers valuable insights into VR's role in diversity training, aiding Finnish organizations to enhance diversity and inclusivity. This proactive approach aligns with business renewal amid evolving geopolitical dynamics, ensuring long-term success. The insights will also benefit non-profits, authorities, and educational institutions using VR for social awareness. Additionally, the insights will be relevant for companies that wish to incorporate VR in their operations more broadly, as it could determine their future survival. This has become especially relevant, as propelled to the forefront by the pandemic, metaverse has begun to enter the mainstream, with major players such as Microsoft and Meta actively working on its development.