Posted by: managetheworld | July 10, 2011

Is paying money enough for solving discrimination?

There are many cases of discrimination at workplace that take place. One of the ones that I came across is Gonzalves v. Abercrombie & Fitch. This retail clothing giant had a lawsuit against it for racial, ethnic, and gender discrimination. The case was settled in December 2005 where the Judge of the Northern District of California settled the lawsuit. The company had to pay $50 million to Latino, Asian American, African American and female applicants as well as employees who charged the company for discrimination.  Along with this the company was required to have certain policies and programs that encourage diversity and thus eliminate discrimination based on race and gender nationwide. Also there was a monitor appointed to evaluate and report the findings on the compliance of Abercrombie & Fitch to these policies on a regular basis.


Abercrombie & Fitch paid $50 million to the class for discrimination by race and gender. Does that solve everything? I think paying money does not recover for the severe influence it had on those individuals. The self esteem of these individuals would have been lowered due to this discrimination. They might have had the qualifications but just because of the color of their skin they were not hired or promoted. Is that right? United States is all about equality what happens to equality there? If people continue to make such judgments about others based on one characteristic (race or gender) they are executing the halo effect. No doubt it allows one to make a perception quickly but is it legit?


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