The claim that the US has the most diversified system of education stems primarily from the system's organizational variety and not from variety at the level of basic values. Institutions of higher education are now being challenged to extend their narrow regard for diversity into complex social realities and individual actions, and to enrich this new concept of diversity by combining existing organizational structures with a variety of fundamental values. In recognition of this challenge, a research project was conducted to determine how administrators, faculty, and students defined institutional character in the present climate of social and educational change. Findings reveal that the institutions are characterized by conformity at the level of basic values and institutional goals, that diversity has been constricted and superficial rather than substantive. Current dissatisfaction with what is called the Standard (a unidimensional value orientation set by academic professionalism and expressed in superinstitutional conventional criteria of excellence) and other factors will eventually make more substantive diversity possible, such as changes in grading practices, classes, and institutional governance. The report presents case studies of 4 liberal arts colleges, 2 private and 2 state universities, with highlights of data from students, faculty, and administrators. These are followed by comparative institutional data on faculty, and general conclusions and implications for higher education. (WM)