To reduce the potential for litigation and generate longer-term impacts, McDermott Will & Emery’s “Reverse Discrimination Risks to Consider in Managing ESG Aspirations” recommends companies focus on process initiatives and enhancements (e.g., Rooney rule) rather than quotas to advance workforce and board diversity. The instructive article explains permissible vs. impermissible affirmative action in the context of recent lawsuits and case law and provides good examples of indirect quotas that pose risk, as well as suggested process-oriented strategies to support companies' objectives.
See our report in last week’s Society Alert: “Appeals Court: Shareholder Standing to Challenge CA Board Diversity Law” and additional resources on our Human Capital/Workforce Management, Racial Equality & Diversity, and Board Diversity pages. This post first appeared in the weekly Society Alert!