The topic of diversity is of increasing interest to business, academics, and consultants. Diversity research tends to focus on the demographic characteristics of organisations and examines how managers might work with the ethnic, cultural, religious and gender differences of employees to maximise organisational performance. One strategy is to recognise and record the demographic diversity within the organisation (referred to as auditing) in order to use these diversity resources to strategically advance organisational goals. Based on a social psychological analysis of diversity, though, it is argued that auditing can be highly problematic. This practice can lead to an increase in prejudice and a decrease in performance on relevant organisational dimensions. In contrast, an AIRing (Ascertaining Identity Resources) process is outlined that is more likely to lead to organisational success.