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Dobbin, Frank; Kalev, Alexandra
Harvard business review, 2016, Letnik: 94, Številka: 7/8Magazine Article
Businesses started caring a lot more about diversity after a series of high-profile lawsuits rocked the financial industry. In the late 1990s and early 2000s, Morgan Stanley shelled out $54 million -- and Smith Barney and Merrill Lynch more than $100 million each -- to settle sex discrimination claims. In 2007, Morgan was back at the table, facing a new class action, which cost the company $46 million. It's no wonder that Wall Street firms now require new hires to sign arbitration contracts agreeing not to join class actions. They have also expanded training and other diversity programs. But on balance, equality isn't improving in financial services or elsewhere. It shouldn't be surprising that most diversity programs aren't increasing diversity. Despite a few new bells and whistles, courtesy of big data, companies are basically doubling down on the same approaches they've used since the 1960s -- which often make things worse, not better.
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