1.4(b) Costs of discrimination
Just as discrimination can be direct and indirect, the costs associated with such actions to the organisation can also be classified as direct and indirect.
Direct costs of discrimination
The Anti-Discrimination Board's home page provides links to areas such as statistics, annual reports, etc. Consider court costs, lost salary/wages of all parties and fines that may be imposed.
Indirect costs of discrimination
The cost to the organisation's public and private profile can often be even greater than the financial burden. Litigation related to discrimination and or sexual harassment cases that are reported in the public press have significant fall-out for the organisation concerned.
The poor publicity does little to instil a sense of loyalty or commitment on the part of existing employees and is certainly not a good advertisement for any potential employees. No-one wishes to work for an organisation that acts unlawfully in any aspect of their business, but particularly in the treatment of its employees.
In the marketplace, shareholders as well as suppliers and the general public are less than impressed by detailed press coverage that depicts the organisation as either unable or unwilling to take appropriate action to stop discriminatory practices. It begs the question as to how other aspects of the business are undertaken and what ethics prevail.
Activity – Benefits of EEO
In discussing EEO and discrimination, the emphasis is often on the negative and punitive aspects of the legislation rather than the positive intent of the philosophy that underpins its provisions. This time, identify the benefits -to organisations and individuals –which result from EEO and anti-discrimination policies and practices.