Impact of Affirmative Action on Corporate Entities
Down-to-earth Guide to Affirmative Action in the Workplace:
Affirmative action, in a nutshell, is all about creating an equal opportunity in the workforce for every individual, regardless of their race, gender, national origin, sexual orientation, and other factors. This policy was born in the 60s as the aftermath of anti-discrimination laws failing to undo past discrimination against historically disadvantaged groups.
Businesses follow affirmative action programs to assure underrepresented groups in the workplace have equal chances. Until 2025, businesses contracting with the federal government were compelled to have affirmative action plans, but that requirement was lifted for race and gender-based affirmative action. However, some obligations related to veterans and disabled individuals remain.
The Supreme Court ruled in June 2023 to put an end to affirmative action in college admissions, facing many challenges in the court system in the past and significant repercussions in the higher education sector, specifically.
Affirmative action policies received their first mention in 1961 in President John F. Kennedy's Executive Order 10925. Subsequent presidential actions, like the Civil Rights Act of 1964, followed to eliminate discrimination. Executive Order 11246, signed by President Lyndon B. Johnson, gave Cabinet-level authority for implementing affirmative action and non-discrimination provisions. Over the years, the order has been amended to include gender, people with disabilities, and sexual orientation & gender identity.
In light of recent Supreme Court decisions, affirmative action's impact and legitimacy have been under scrutiny. Some argue that guidelines for hiring minorities and women place undue pressure on employers to base hiring decisions on numbers, leading to negative psychological ramifications for affected employees. Supporters of affirmative action, however, stress the need to correct past discrimination and improve workforce diversity for a company's prosperity. Numerous studies show that an increased number of women and racial and ethnic minorities in leadership roles positively impacts a company's bottom line.
Though controversial, affirmative action programs enable companies to promote transparency and enhance diversity in the workplace, voluntarily. If you are a federal contractor, remember that only race- and gender-based affirmative action requirements have been revoked. The obligations related to veterans and those with disabilities remain in force. Stay informed about equal opportunity and fairness laws, and embrace affirmative action in your recruitment and hiring procedures to unlock your company's full potential.
- The general news highlights debates about affirmative action's legitimacy in the industry, especially after recent Supreme Court decisions regarding its implementation in college admissions.
- Regulations concerning affirmative action in the finance sector have evolved significantly over the years, with President Kennedy's Executive Order 10925 being the first mention of such policies in 1961.
- Political discussions about affirmative action often center around concerns of policy-and-legislation, as changes in government policies can impact the way businesses approach workforce diversity through affirmative action.
- Despite the removal of race- and gender-based affirmative action requirements for federal contractors, it is crucial for businesses to understand and adhere to policies regarding veterans and individuals with disabilities.
- The Defi industry and other businesses should consider the potential positive impact on their bottom line by implementing affirmative action programs, as numerous studies suggest that increased representation of women and racial and ethnic minorities in leadership roles contributes to company prosperity.
