Strategic Business Solutions to Address Structural Racism

2 credits · Owen Graduate School of Management

This course will examine the impact of business on minority communities - exploring the extent to which standard management practices are both part of the problem and the potential solution to structural racism. The class will start with a brief overview of racial discrimination in the U.S. and provide historical context for understanding how outright discrimination might have evolved into more subtle structural racism by institutions including business. In other words, structural racism might occur even in the absence of racial animus or intentional discrimination. Next, a framework will be developed to understand the economics behind organizational structures and business practices that foster disparate treatment of minorities - as well as those that foster equal treatment. Focused on economic incentives, organizational design, and corporate strategy, this framework will not only help explain the problem, it will allow for exploration of potential solutions. An important component of the course will be to explore the extent to which changes in business practices may result in profitability tradeoffs versus potential value creation. Case studies will include particular industries and business disciplines where structural racism has been found. Among potential topics: finance/lending markets, investment/venture capital, the gig economy, health care, corporate governance, diversity goals, product branding and pricing, supply chains, and firm location decisions. The class will incorporate guest lecturers, case write-ups, and a final group presentation. Note: This is not a course on ethics or moral values. Instead, it is designed to provide an objective analysis of the problem businesses face in navigating today's evolving environment. Regardless of their personal background or views, the goal is for students to learn new tools to guide their organizations toward effective and strategic decisions in today's world. [2]