<p>This paper models the trade-off between the creative generation of ideas in a team of managers with diverse religious backgrounds against their discomfort from dealing with colleagues with different religious identities. This is done by operationalizing the important concept of managerial engagement. The paper identifies the features of the optimal religious mix that a secular owner of a competitive firm would choose for the management team. Generally, this optimum entails a tendency towards firm segregation of management by religion. It is seen that competition—especially domestic—entrenches the tendency towards this segregation. Aspects of globalization that would encourage more diversification by religion are identified. The role played by anti-religious discrimination laws in promoting diversity is discussed. It is argued that such laws, by spurring profitable organizational innovation, can be more efficacious in generating religious diversity in private management teams.</p>