Affirmative Action (AA)

What is it? –“The aim of affirmative action is to remedy past and current discrimination.” Is it legally mandated? –Only in some cases –Mandatory for all federal government contractors (Executive Order 11246, issued by Lyndon Johnson) –When court ordered as part of a settlement in a discrimination case Most firms are under no obligation to implement AA programs

Affirmative Action— Voluntary Implementation Why voluntarily implement affirmative action? –Attract and retain a larger and better pool of applicants –Create a more diverse work force –Avoid discrimination lawsuits –Improve the firm’s reputation within the community and its consumer base

Affirmative Action—How is it Implemented? Consists of two primary steps: –Conduct a utilization analysis –Develop an affirmative action plan

Affirmative Action— Utilization Analysis Statistical procedure that compares the percentage of each protected group for each job category within the organization to that in the available labor market If the organizational percentage is lower than that of the labor market, that group is classified as “underutilized”

Affirmative Action— Affirmative Action Plan (AAP) Targets the underutilized protected groups Written statement that specifies how the organization plans to increase the utilization of targeted groups Good faith effort must be documented

Preferential Treatment—When Is it legal? Serves a remedial purpose Necessary to meet goals & timetables targeted in AAP Must consider more than protected group status Temporary in nature Numerical hiring goals must be “reasonable” Must not “unjustly burden” the rights of non-minorities Applicant must meet minimum qualifications for job