Does a Black President Help Minorities Advance in Business?

Introduction: The Color Line in a New Era

"Excuse me, sir. I'm looking for the Color Line. Would you know where I can find it?" (Miller)

The United States has made great strides in minority relations by electing its first Black president. By today's standard, the term minority encompasses many different things, including nationality, race, religious preference, physical disability, gender, and sexual orientation. Throughout history, there have been many great leaders who came from minority groups. For example, few people are aware that the Roman Empire had Black emperors, and even fewer know that one of them — Septimius Severus — through his legislative changes to military pay scales and community control laws, may not only have been the greatest Black emperor, but may actually have been the most influential Roman emperor of all.

"Severus brought many changes to the Roman military. Soldiers' pay was increased by half, they were allowed to be married while in service, and greater opportunities were provided for promotion into officer ranks and the civil service. The entire praetorian guard, discredited by the murder of Pertinax and the auctioning of their support to Julianus, was dismissed. The emperor created a new, larger praetorian guard out of provincial soldiers from the legions. Increases were also made to the two other security forces based in Rome: the urban cohorts, who maintained order; and the night watch, who fought fires and dealt with overnight disturbances, break-ins, and other petty crime. These military reforms proved expensive, but the measures may well have increased soldiers' performance and morale in an increasingly unsettled age." (Meckler)

Barack Obama may or may not be the modern-day equivalent of Septimius Severus, but one thing is certain: by having a minority leader in the White House, other minorities will face entirely new levels of scrutiny. Does having a new Black president make it easier for minorities to advance to leadership roles in the business world? This paper examines the evidence on all sides and reaches a conclusion supported by the data.

Employment Disparities and the Hiring Gap

With a new Black president and many new minority millionaires throughout the nation, one might think it has become more acceptable to be a minority in the United States. Something clearly has changed, because the nation now has a plethora of influential new power brokers who command the attention of both Black and white Americans alike. The recently deceased singer Michael Jackson; sports stars like Michael Jordan, LeBron James, Shaquille O'Neal, and Tiger Woods; film and television personalities like Halle Berry, Denzel Washington, Jennifer Lopez, Oprah Winfrey, Chris Rock, and George Lopez — as well as cultural figures like Snoop Dogg and Dr. Dre — have all crossed what was once considered an impenetrable color line. In one way or another, these minorities have contributed to our society in ways that have technically reduced the perceived level of racism. They have, in a sense, made it more acceptable to be a minority. But is this newfound acceptance carrying over into the worlds of business, finance, and politics? Are minorities obtaining and thriving in mid- to upper-level management positions?

Throughout the United States, statistics show that more minorities have been hired, but those minorities face barriers to advancement once the hiring process is complete. Any cure-all diversity training initiatives implemented by Human Resources departments have therefore failed to address the major issue of minorities being overlooked for regular promotions. Before one can address mid- to upper-level opportunities, however, the employment picture as a whole must be considered. "In October, employers took 2,127 mass layoff actions involving 217,182 workers. Mass layoff events decreased by 434 and associated initial claims by 30,824 from September. Over the month, the number of manufacturing events, at 619, decreased by 237, and associated initial claims, at 70,572, decreased by 26,494." (Bureau of Labor Statistics) There are vast differences between white and minority perspectives on employment.

A 2006 Gallup Annual Minority Rights and Relations Poll found that "Blacks are much more likely than whites or Hispanics to agree with the notion that society is divided into the 'haves' and 'have-nots.' Roughly two in three Blacks (67%) say American society is divided into these two classifications, while only 42% of whites and 31% of Hispanics feel this way. Most whites (57%) and Hispanics (64%) say American society is not divided. Hispanics are the least likely of the three groups to acknowledge such a division." (Carroll) Unemployment statistics give a more accurate picture of these poll numbers, because some groups are affected far more than others.

Whites and minorities clearly perceive the business and political worlds — and their relationship to unemployment and underemployment — very differently. Whites are far more likely to consider themselves on equal footing with minorities in terms of job opportunities. Hispanics and the vast majority of Blacks strongly disagree. As CNN reported, the unemployment rate among whites stood at 3.9%, among Hispanics at 5.8%, and among Blacks at 8.5%. This problem is not unique to the United States. Cities across Canada are also attempting to diversify mid- to upper-level management in business, finance, and politics. A highly multicultural city like Toronto can often be compared to cities such as Indianapolis, Detroit, or Minneapolis, where the majority of the population may consist of minorities but the management spectrum remains predominantly white. "In the most diverse GTA municipalities, visible minorities make up nearly 50 per cent of the population. But just 13 per cent of the top leaders in the public, non-profit and corporate sectors belong to visible minorities, according to a study earlier this year. Corporations fared the worst, with minorities accounting for just 5 per cent of senior executive positions in the firms studied." (Toronto Star)

Toronto has been working to add more diversity to corporate, financial, and governmental management. "The initiative, called DiverseCity, has met or exceeded its targets, the organizers announced last night. More than 300 people from minority groups have made it on to public, private and non-profit boards, and 140 have become spokespersons helping to ensure a broader range of media voices. This is good news not just for minorities but for everyone. When all our citizens are able to contribute their utmost, society as a whole benefits. Studies have linked diversity in leadership to better corporate performance and more creative thinking." (Toronto Star)

Glass Ceilings and Blocked Promotions

Far too often, qualified minorities are prevented from advancing through the corporate ladder. Many believe this is only a temporary setback, but the evidence suggests it is a long-term phenomenon. "Nor does the evidence indicate that the glass ceiling is a temporary phenomenon. In fact, the research cited here finds relatively few women and minorities in the positions most likely to lead to the top — the 'pipeline.' The critical career path for senior management positions requires taking on responsibilities most directly related to the corporate bottom line." (Dol.gov) Promotions to the next job level are consistently difficult to attain.

This issue has become a major concern that Human Resources professionals will need to address more frequently as globalization demands a more diverse labor force. The NAACP and the Equal Employment Opportunity Commission (EEOC) each point out that Blacks and other minorities who are properly educated and qualified are finding it somewhat easier to obtain well-paying white-collar positions, but quickly discover that those jobs are burdened with "glass ceilings." Diversity training initiatives by Human Resources departments have not succeeded in addressing the underlying racial discrimination. Ironically, racial discrimination claims filed by minorities have statistically declined over the past few decades. However, claims specifically related to racial discrimination in promotions have grown during that same period. Although diversity initiatives address racial sensitivity, they do not in most cases address racial discrimination regarding promotion or advancement.

These are not new problems. W.E.B. Du Bois wrote in 1903 that "the problem of the Twentieth Century is the problem of the Color Line." (Ashton) Throughout the nineteenth century, slavery and assertions of racial superiority were significant enough problems to produce the bloodiest war ever fought on American soil — a legal attempt to correct a blatant wrong. Many subsequent legal efforts have sought to manage the color line: the Three-Fifths Compromise in the Constitution, slave trade bans, limits on the expansion of slavery, the Fugitive Slave Act, Emancipation, Reconstruction, Jim Crow, and the civil rights revolution. Apparently, all have proven insufficient. Although the United States now has its first Black president, the number of Blacks on the boards of Fortune 500 companies is a clear indicator that the nation still has a long way to go. "African-American, American Indian, and Hispanic-American men believe that within their groups not enough individuals are earning the degrees that business needs. On the other hand, they also perceive that even those who have these credentials face brick, opaque, and thick glass ceilings that block their advancement to senior-level decision-making positions. A survey of senior-level male managers in Fortune 1000 industrial and Fortune 500 service industries shows that almost 97% are white, 0.6% are African-American, 0.3% are Asian, and 0.4% are Hispanic." (Dol.gov)

As demonstrated by the new generation of minority power brokers, there are many examples of African-Americans and other minorities who have crossed the barrier known as the color line. However, the majority of Black Americans and other minorities may never come close to that boundary. Society has changed and will continue to change. "Demographic experts say recent population shifts indicate that by the year 2030 whites will be a minority in the United States. Concomitant with this alteration of racial dominion is the matter of spatial density… 'urban areas will hold half of all people by the year 2000,' and that by 2020, '3.6 billion people will inhabit urban areas while 3 billion will remain in rural areas.'" (Smith)

When discussing minority advancement, however, the conversation should not be limited to Black and Hispanic Americans. Anti-immigrant racism is equally significant in limiting national diversity and representation by minorities at the mid and upper levels of corporate and political organizational hierarchies. "Fortune 500 companies are white; 95 to 97% are male. In Fortune 2000 industrial and service companies, 5% of senior managers are women — and of that 5%, virtually all are white." (Dol.gov)

Whether in the workplace or in general social settings, white America continues to discriminate. "The color line concludes that, nearly 120 years after the Chinese Exclusion Act, immigration policy continues to reflect racial bias. The report points to a disturbing pattern of racism visible in the application of U.S. immigration laws, and concludes that those who are African, Asian, Latino, or Caribbean are more often detained, deported, and denied legal status and protections. In particular, the U.S. government has implemented a program of anti-immigrant legislation that justifies racial discrimination against immigrants, both by law enforcement officials and civilians. The climate of racial hostility towards immigrants is fostered by laws and practices that effectively tolerate racial discrimination in the workplace, in civil society, in schools, in access to social services, and in access to legal protections." (Duke)

Education as a Path Forward: The Obama Administration's Approach

It appears that the white community demonstrated xenophobic motivations after 9/11, and electing a Black president has not redirected national leadership in regard to racist policies. The color line has historically promoted racism, and new immigrants of color may now understand the plight of African-Americans more clearly. "Immigrants, and those perceived as immigrants due to their race, continue to suffer from employment discrimination. Legislative provisions written to safeguard workers who appear 'foreign' from discrimination remain unenforced. Immigrant workers also remain vulnerable to workplace abuse and exploitation, and often face greater challenges in attempting to fight for fair working conditions." (Smith) The Latino population became the nation's largest minority group as of the most recent complete census. "Heightened military and law enforcement along the U.S.-Mexico border have escalated human rights abuses of migrants and people of color in the Southwest and other regions of the United States." (Smith) Those considered immigrants or refugees will continue to endure unfair treatment within our legal and criminal systems.

Except for the first family, being a minority carries significant disadvantages, including social marginalization. "This social dynamic results in events being in chaos, with those excluded lacking information about correct means and channels unless they make extraordinary efforts to overcome these barriers. The logic of this 'Whiteness versus lesser-than' practice is used to control who gets what and who is automatically overlooked or denigrated. Given that the Whiteness-or-lesser-than logic is so ingrained in the social cognitions driving behavior, promoting equal opportunity for being included is at the core of the emerging discourse on inclusion. Racism is perniciously perpetuated through discourse practices that include formal and informal policies, verbal, nonverbal, and written practices — what is said, and especially what is not said or practiced." (Lee)

Throughout history, education has been one of the primary means by which marginalized groups have overcome social stigma. The process of educating particular groups within a society has served as one successful solution for lifting groups out of poverty and creating new economic opportunities. A viable solution for diminishing the color line is to better educate minority groups that fall below it, while simultaneously teaching the majority group a deeper understanding of diversity. A good example of education creating opportunity is how, in the late 1990s, college-educated Black women began to close the income gap with their white counterparts, according to U.S. Census Bureau reports. Gaps remain, however. "Considerable gaps remain between whites and Blacks, the report showed. The differences sometimes narrow as education and family stability increase. The median income of all Black families ($25,970) was only 58% of that of all white families ($45,020). But married-couple Black families in which both husband and wife were wage earners took in 84% of the income of similar white families ($49,752 vs. $59,025). Nearly 83% of white families are built around married couples, compared with 46% of Black families." (USA Today)

President Obama's commitment to education is evident. Both he and his wife are graduates of Ivy League institutions. His Harvard education gave him a unique understanding of the policies, philosophies, and beliefs imparted to a majority of the white students at those institutions — and ultimately took him to the White House. He stated: "At this defining moment in our history, preparing our children to compete in the global economy is one of the most urgent challenges we face. We need to stop paying lip service to public education, and start holding communities, administrators, teachers, parents and students accountable. We will prepare the next generation for success in college and the workforce, ensuring that American children lead the world once again in creativity and achievement." (Organizing for America)

His message to every child, regardless of race, is that dedication can yield greater achievement. When polled, over forty percent of Black respondents also believed improving the educational system was the most important priority — a figure close to the number who identified greater job opportunities as essential. The Obama administration outlined the following commitments for the nation's children:

Improve K–12 schooling: "We will recruit an army of new teachers and develop innovative ways to reward teachers who are doing a great job, and we will reform No Child Left Behind so that we are supporting schools that need improvement, rather than punishing them."

Conclusion

President Obama's intentions and message are admirable, but the question remains: how many children in Black communities across the nation have even a remote chance of applying to an Ivy League school? The educational system has deeply entrenched rules, and only a very select few will be able to navigate the very real social and discriminatory hurdles it presents. Dedication alone will simply not be enough when the race begins in a lane designated for minorities only.

There is a substantial body of data demonstrating that the United States still treats minorities unfairly. There is some evidence that modest advances in the educational attainment of certain minority groups have translated into a few higher-paying, higher-responsibility positions being obtained by Blacks, Hispanics, and other minority groups. The problem is that once those positions are filled, future promotions for the new hire become difficult to attain. More often than not, those jobs exist beneath a glass ceiling that cannot be broken — meaning no future promotions are ever available. Additionally, the definition of minority has expanded because the category now includes new groups, such as those of Middle Eastern descent and Muslims, who became targets of discrimination following September 11, 2001.

The research shows that education can, in some cases, address certain challenges faced by minority members of society, but even the educational system itself contains barriers to entry. Given all of this overwhelming evidence, it appears that having a new Black president does not, in practice, make it substantially easier for minorities to advance to leadership roles in business or politics. There are always exceptions, but the majority of the minority population appears to face continued and significant obstacles on the road ahead.