Question

Activity 3: Cause and Effect

List two causes of disparate-impact lawsuits and two effects on institutions.

Cause 1:

Cause 2:

Effect 1:

Effect 2:

Answer 1

Cause 1: A facially neutral policy or practice (e.g., a written hiring test, height/weight rule, blanket criminal-background or credit check) that, when applied, disproportionately excludes a protected group and lacks a validated business necessity.

Cause 2: Failure to monitor or validate employment decisions and selection tools (no statistical analysis of hiring/promotion data, no job-related validation), allowing disparate outcomes to persist unnoticed.

Effect 1: Legal and financial consequences — lawsuits, settlements or damages, injunctions or consent decrees, and attorney’s fees.

Effect 2: Operational and reputational changes — mandated policy/procedure revisions (revalidating or eliminating selection tools), increased compliance and HR costs, required training and monitoring, and potential damage to public reputation.