Diversity at Circuit City
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Circuit City is one of the nation's largest consumer electronics retailers with operations in major metropolitan areas which have large concentrations of minorities. The company's success is based on offering low prices on brand name items, but the company suffered a significant public relations problem in the mid1990s when it was sued for discrimination against minorities. The lawsuits were eventually decided in favor of some of the plaintiffs, and a judge eventually ordered the company to implement a diversity program. This research examines the environment surrounding the discrimination lawsuits at Circuit City and considers the future direction of the organization in regard to diversity programs and discriminations.The Washington Lawyers' Committee for Civil Rights and Urban Affairs filed suit on behalf of 11 workers in October 1995; other lawsuits were filed individually. Of the 11 original plaintiffs, the jury eventually find in favor of two, while finding for Circuit City in the case of a third. The lawsuit alleged that the company had discriminatory practices and procedures, and the jury agreed. A Circuit City management recruiter was awarded $225,000 in punitive damages and a former collections representative received $47,000 in punitive damages; both also received additional compensation with the total award reaching nearly $300,000 (Owens, 1996, p. 55). In mid-1996, while the lawsuits were in progress, the NAACP called for a "s
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licants. The argument (used by companies other than Circuit City in defending their promotional activities with regard to women and minorities) is that as additional minorities and women enter the workforce and learn the requisite skills, they will be promoted accordingly. However, according to the argument, the effects of affirmative action and aggressive minority recruiting at the entrance level are only beginning to be felt, so there remains a lack of qualified candidates for senior management. With time, according to these arguments, the situation will improve (Ramst & Lee, 1996, p. B1).
Reasons for Diversity Programs
According to analysts, 47.5 percent of the work force will be women by the year 2000, and 29 percent of the net additions to the work force will be non-whites (Flynn, 1995, p. 72). This means that managers and executives will be under increasing pressure to establish diversity programs which recognize that the American work force is no longer a homogeneous group of white males, but rather a diverse combination of gender and ethnicities. Employees who find companies which foster diversity are more likely to remain in those organizations than in companies which do not recognize the importance that diversity
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Approximate Word count = 1599
Approximate Pages = 6 (250 words per page)
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