Mandating Change

Abstract

Although complying with and monitoring court-mandated changes in organizations’ policies following employment discrimination lawsuits can be costly to both employers and taxpayers, little is known about the impact of such mandates on increasing sex and race managerial diversity in organizations. Using data on approximately 500 high-profile employment discrimination lawsuits resolved in U.S. federal courts between 1996 and 2008, the authors estimate the impact of court-mandated policy changes on shifts in the presence of white women, black women, and black men in managerial positions. Policies designed to reduce bias expand opportunities for white women but not for other demographic groups. By contrast, opportunities in management for all groups expand when policies are designed to increase organizational accountability by establishing specific recruitment, hiring, or promotion plans and monitoring arrangements. Policies designed to increase rights’ awareness are associated with declines in managerial diversity. Notably, compared with verdicts and settlements with modest penalties, those with the most costly monetary payouts do not expand managerial diversity; and in fact, they can backfire.

Under the Radar: Visibility and the Effects of Discrimination Lawsuits in Small and Large Firms

“…Second, in addition to facing greater regulatory scrutiny, large firms may be more exposed to attention from investors (Carroll and McCombs 2003; Hirsh and Cha 2018). For example, Hirsh and Cha (2016) find that in a sample of 107 large, publicly traded companies, share price dipped in response to discrimination lawsuits, indicating investor concern about long-term reputational damage. Heightened investor attention to lawsuits against large firms has been found in other realms as well.…”

“…At the same time, recent organizational studies—mostly quantitative analyses of high-profile cases against large firms—paint a very different picture of the potential for litigation to bring about change. These studies generally find that lawsuit filings and resolutions generate positive effects on workforce diversity, effects that can extend beyond the target employer to others in the industry (Hirsh and Cha 2016, 2018; Kalev and Dobbin 2006; Skaggs 2008, 2009). The focus in this research on large firms and major cases corresponds with the EEOC’s own legal strategy of targeting highly visible companies, where legal action is thought to serve as an example that influences the broader corporate community.…”

Improving sex and gender identity equity and inclusion at conservation and ecology conferences

“…Equity is an approach to ensure that everyone can access the same opportunities, regardless of their personal and cultural characteristics, whilst inclusion ensures equality of opportunity by removing barriers or obstacles that might previously have prevented access 7 . More and more academic workplaces have implemented structural or regulatory fixes focused on increasing diversity and widening social acceptance 7,8 . Workplace gender equity, specifically women's rights, has been the focus of such fixes for more than 50 years, from policies on equal employment opportunities and pay for women 9 , to certification programmes such as the Athena Swan Charter for Women in Science 7,[10][11][12] .…”

Any port in a storm : how African American men use relationships to navigate corporate America

“…When members of a protected class are turning over at higher rates, there is a danger of litigation. In fact, there seems to be an association between turnover and discrimination lawsuits (Hirsch & Cha, 2016). The issue of wage inequality as discussed above may play into this issue of high turnover; however, other factors such as relationship with a supervisor or prospects for promotion likely also play a role.…”

“…The fact that there seems to be this association between turnover and litigation suggests that the turnover is not necessarily because minorities and women are finding other jobs. Hirsch and Cha (2016) do not differentiate between voluntary and involuntary turnover in their discussion of African American male joblessness because their study was quantitative, looking specifically at unemployment numbers and wage gaps. However, understanding whether the turnover was voluntary or involuntary would help to better understand the link between turnover and litigation.…”