Challenges to Diversity Policies Pose Dilemmas for American Employers

Challenges to Diversity Policies Pose Dilemmas for American Employers



America’s bosses grapple with threats to diversity policies

On june 29th America’s Supreme Court‍ ended 45 years of affirmative action in university admissions. The decision ⁤did not change the⁤ laws⁤ which govern companies’ hiring and firing decisions. ⁣But it did ​put wind in⁤ the sails ‍of those‍ who think efforts by ‍firms ‍to increase ​the racial diversity of their workforces have already stepped beyond the rules. Bosses and their lawyers have since scrambled ​to⁣ make sense of the​ judgment’s implications. One big law firm, ⁤Morrison ⁢Foerster, ‌wrote a ⁢memo to clients after the ruling, counselling them to ensure their​ diversity policies do not create “unlawful preferences”.

The firm is now alleged to have ignored its own ⁣advice. In August American Alliance for Equal Rights (AAER), ‍an organisation run ⁢by Edward Blum, the activist who brought affirmative‌ action to the ⁢Supreme Court, sued Morrison ⁤Foerster. AAER ​alleges that one of the firm’s⁤ programmes for⁣ law students, a highly prized‍ fellowship ​open only to applicants from “underrepresented” groups, illegally discriminates ‍on the basis of⁤ race. Days later⁤ the law firm​ broadened the requirements‌ of its fellowship in online advertisements.

Morrison Foerster is not alone. ​In the ​most recent quarter chatter about diversity on big American firms’ earnings calls dropped by more than a ⁣third, compared with the same period last year, ⁣according⁢ to data from⁢ Bloomberg. Annual general meetings have lost their revolutionary zeal: support for proposals on social⁤ issues declined this year, and companies faced a⁢ record​ number of ​“anti-woke” proposals. Haranguing from progressives ⁢has eased ever since Joe Biden replaced the race-baiting Donald Trump in the White House⁢ in 2021. And bosses, confronted by higher⁣ interest ⁣rates, labour unrest and souring geopolitics, ‍hardly need a⁤ lawsuit over their‌ hiring practices.

2023-10-02 15:22:35
Article from www.economist.com
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