What key variable is illustrated by Allen customizing policies to maintain diversity?

The correct choice highlights the importance of the internal and external environment in organizational management. Customizing policies to maintain diversity demonstrates an understanding of both the internal dynamics—such as employee demographics and organizational culture—and the external factors, including societal norms and legal requirements regarding diversity and inclusion.

By ensuring that diversity policies are tailored to fit both the organizational context and the broader social environment, leadership can effectively foster an inclusive workplace that aligns with contemporary values and expectations. This approach reflects an awareness of how external factors influence organizational behavior and the necessity of adapting internal policies to be responsive to those influences. In doing so, Allen is not merely reacting to the current environment but proactively shaping the internal culture to align with diversity objectives, which is an essential part of creating a holistic and adaptive organizational strategy.