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)