Executive Summary: Race Discrimination

In the U.S., racial bias continues to be a serious problem despite the combination of laws and workplace policies designed to thwart it. And although the legal costs of such discrimination are high, they are dwarfed by the indirect costs to business in terms of underutilizing a growing segment of the workforce. Recognizing these costs, some businesses are honing strategies for reducing racism in the workplace.

The groundbreaking study by Rutgers University Law School professors Alfred W. and Ruth G. Blumrosen published in 2002 still stands as a major work of research in this field. It found that race discrimination still exists in the U.S. workplace "on a major scale." The Blumrosens found that black, Hispanic and Asian-Pacific workers who have education, skills and experience similar to that of their white male counterparts face intentional discrimination between one-quarter and one-third of the time - in hiring, promotions, assignments, layoffs, discharges and other employment-related events. Black Americans, in particular, bear a disproportionate brunt of discrimination in the workplace.

Rutgers University's Heldrich Center for Workforce Development reports that 28% of African Americans and 22% of Hispanics say they've endured unfair treatment at work because of race, compared with only 6% of Whites. Among workers who are members of minority groups, 28% say they've been passed over for promotions, 21% say they've been assigned undesirable tasks, and 16% say they've been subjected to racist remarks.

Race-based discrimination charges still top the list of filings with the EEOC, making up about 35% of all charges filed under Title VII. In fiscal year 2003, there were 28,526 race-based charge receipts, down somewhat from 2002, when there were 29,910 such receipts. In 2003, about 18% of race-based charges filed with EEOC offices resulted in a merit resolution with a favorable outcome for the charging party. Since 1995, the percentage of merit resolutions resulting from race discrimination charges filed with the EEOC has nearly doubled.

Increasingly, such charges focus on color. Hispanics from one country may have darker skin than those from another country, prompting discrimination. In addition to African Americans and Hispanics, some workers of Arab or other Middle Eastern or Asian extraction are harassed because of their darker skin. Experts say that as diversity in the workplace increases, employers must educate employees, including senior management, to the subtleties of race, national origin and skin color in order to avoid litigation, which can be costly and create negative publicity.

Race discrimination is costly. U.S. employers paid nearly $69.6 million in monetary benefits because of race-based Title VII charges filed with the EEOC in 2003, a number that doesn't even include monetary benefits obtained through litigation. Nonetheless, some positive changes are taking place. Most large companies now sponsor diversity programs that encourage an understanding of the value that ethnic and racial minorities contribute to the workplace.

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The Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most-experienced research teams and Executives-in-Residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and "next" practices on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, Florida.

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