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Identify and analyse causes of discrimination in the workplace.

Based on your findings, make recommendations about how discrimination
in the workplace can be reduced.

Module: Academic and Professional Skills

Student ID : 2233686/2
Trimester of study: Trimester 2, 2022/2023.
Date of submission: 24/03/2023
Word count: 2007

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Executive Summary
This report aimed to identify and analyse causes of discrimination in the workplace and make
recommendations about how discrimination can be reduced. It began by providing a general definition
of discrimination, continued with focus on workplace discrimination and provided statistics to
understand how much workers suffered from discrimination and what are most common groups
targeted that faced different treatment at work.

Findings section first focused on discrimination at the workplace in the finance sector. It discussed the
idea of a persistent issue that disproportionately affected women and employees from minority
backgrounds. Women face underrepresentation in leadership roles and are often denied access to
networking opportunities, mentorship, and career development. The Chartered Financial Analyst
(CFA) Institute Research Foundation found that women occupy only ten per cent of crucial leadership
positions. (CFA, no date). This lack of female leadership representation contributed to the gender pay
gap in accounting, where women often receive lower pay for equivalent work. Forwards,
discrimination based on race or background, especially black women. Minority employees often
encounter obstacles to entering the field, and experience slower career progression compared to their
white counterparts. Two out of three finance workers in the UK from black and minority ethnic
backgrounds have experienced workplace discrimination, according to The Guardian. (2021) .

The Findings then discussed unconscious biases at workplace. Defined as views and opinions that we
are unaware of and automatically activated, which can affect our behaviour and decision-making. This
can cause discrimination in the workplace, such as favouring candidates who share the employer's
demographic background, leading to unequal treatment and exclusion from opportunities.
Unconscious bias can also lead to negative attitudes and behaviours toward individuals who are
perceived as different, undermining employee morale and motivation. Next, it focused on the practice
of giving preferential treatment to friends or family members. Nepotism can lead to discrimination
against other employees or potential employees, limit opportunities for advancement, create a toxic
work environment and lead to a lack of diversity in the workplace. Although it is not illegal in the
private sector, it can cause legal issues if it oversteps the protected characteristics of other employees.

The last of Findings discussed discrimination against disabled employees being still common in the
workplace, and it can take many forms, such as failing to provide reasonable accommodations,
harassment, unequal treatment, and stereotyping. This discrimination can limit opportunities for
disabled employees and create a hostile work environment.

The Conclusion summarised the key points of the Findings. In the Recommendations section, three
suggestions were made about how the issues raised in the Findings should be addressed. Firstly, the
use of unconscious bias training should be widely encouraged. Secondly, increasing awareness and
understanding of disabilities and thirdly, implement clear policies and guidelines at the workplace.

Contents page

Title Page

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1. Cover Page 1

2. Executive Summary 2

3. Introduction 4

4. Findings 4-6

5. Conclusion 7

6. Recommendations 7-8

7. Reference List 9

Introduction
Discrimination includes both actions and consequences. When someone discriminates, they are
treating others differently based on certain characteristics such as race, gender, ethnicity, or sexual
orientation. Economic experts make a distinction between taste-based (or prejudice-based)
discrimination and statistical discrimination. (Lang and Kahn-Lang Spitzer, 2020, p. 167).
Discrimination at the workplace causes a lot of issues for employees such stress and anxiety.

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According to the UK Government's Equality and Human Rights Commission's (EHRC) 2019 report,
around a quarter of ethnic minority employees reported experiencing discrimination in the workplace,
with the most common type of discrimination being racial harassment. The report also found that
disabled employees were more likely to experience discrimination and unfair treatment in the
workplace compared to non-disabled employees. Furthermore, in the report held one year before, in
2018, 34% of workers reported experiencing discrimination in the workplace, with 15% saying it
happened frequently or regularly. It’s true that these numbers are from 2018 and may have changed
since then, but it is sure that discrimination at the workplace still happens and affects both employers
and employees. Additionally, discrimination in the workplace can be difficult to measure and may be
underreported, but everyone should consider The Equality Act. Under the Equality Act, it is illegal to
discriminate against someone because of their protected characteristic. This includes direct
discrimination, indirect discrimination, harassment, and victimisation. Overall, the Equality Act seeks
to promote equal opportunities and prevent discrimination, ensuring that everyone is treated fairly and
with respect.
This report aims to identify and analyse the main causes of discrimination in the workplace, with a
particular focus on financial sector, as well as impacts on recruitment process, pay and promotion
opportunities and continuing with understanding the unconscious bias, the favouritism and the
challenges that disabled employees are facing. Recommendations will then be made about how
discrimination in the workplace can best be challenged.

Findings
Discrimination in the Finance Industry
Discrimination at the workplace in the finance industry is a persistent issue, particularly when it
comes to gender. Women are underrepresented in leadership roles and tend to have less access to
networking opportunities, mentorship, and career development. Chartered Financial Analyst (CFA)
Institute Research Foundation (no date), has discovered, using self-reported survey data for more than
9.000 CFA members, that women make up just ten per cent of individuals occupying the crucial
leadership positions of CEO, chief investment officer and chief financial officer. Although,
occupations such as performance analyst, compliance analyst/officer and account manager, have
relatively higher representation of women. Despite these occupations being occupied most of women,
less than one in three workers are women. Furthermore, the lack of women in leadership positions
represents also one of the factors that contributes to the gender pay gap in accounting. The gender pay
gap is a continuing problem in the field of finance, as women frequently receive lower pay than their
male co-workers for performing equivalent work. According to an analysis conducted by the BBC,
the sectors with the highest gender pay gaps on average are education (26%), finance and insurance
(24%), and construction (23.8%). (BBC News, 2021).
Discrimination based on race or background is another frequent issue in the finance industry that
women are facing. Employees from minority backgrounds frequently encounter obstacles to entering
the field, receive lower pay, and experience a slower career progression when compared to their white
counterparts. As The Guardian stated in one of his financial articles conducted by the network of
senior professionals, two out of three finance workers in the UK from black and minority ethnic
backgrounds have experienced workplace discrimination. (The Guardian , 2021 ). A contributing
factor is the unconscious bias present in recruitment and promotion decisions, which often leads to
individuals of colour being undervalued and underrepresented.

Unconscious bias

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‘Unconscious (or implicit) biases, unlike conscious biases, are the views and opinions that we are
unaware of; they are automatically activated and frequently operate outside conscious awareness and
affect our everyday behaviour and decision making. Our unconscious biases are influenced by our
background, culture, context and personal experiences.’ ( Atewologun, Cornish and Tresh, 2018 , p.
4-5)
Employers may be unaware of their own prejudice due to various reasons, such as cultural
conditioning, implicit biases, lack of exposure to diverse groups, and stereotyping. This unconscious
bias can cause discrimination in the workplace, which can have negative effects on employee’s well-
being, job satisfaction, and career opportunities. For instance, an employer may unintentionally
favour candidates who share their demographic background, educational qualifications, or personality
traits. They may also assume that certain employees are less competent, less committed, or less
deserving of promotions based on their race, gender, age, sexual orientation, or religion. These biases
can lead to unequal treatment, unfair performance evaluations, exclusion from opportunities, and even
harassment or retaliation. Moreover, employers may not recognize the subtle forms of discrimination
that occur in the workplace, such as microaggressions, subtle put-downs, or dismissive remarks, that
can have a cumulative impact on the targeted employees. These behaviours can create a hostile work
environment and destabilize the company's efforts to foster diversity, equity, and inclusion.
Unconscious bias can lead to discriminatory practices in recruitment, hiring, promotion, and other
areas, which can limit opportunities for individuals who are not part of the majority or dominant
group. This can result in a less diverse workforce, which can impact innovation, creativity, and overall
organizational performance. Additionally, unconscious bias can lead to negative attitudes and
behaviours toward individuals who are perceived as different, which can create a hostile work
environment and contribute to feelings of isolation and exclusion. Unconscious bias can also
undermine employee morale and motivation, leading to decreased job satisfaction and increased
turnover.

Nepotism
When employers or managers give preferential treatment to friends or family members, it can cause
discrimination against other employees or potential employees. (SafeWorkers, 2022). Giving special
treatment to friends or family members, may limit opportunities for other employees or potential
employees. For example, managers may give the best projects, promotions, or pay raises to friends or
family members, leaving other employees with fewer opportunities to advance or earn more.
Moreover, if friends or family members receive preferential treatment in hiring or promotion
decisions, it can give them an unfair advantage over other qualified candidates. This can lead to
discrimination against other employees or potential employees who may be just as qualified, but do
not have the same connections. When employers or managers show favouritism towards their friends
or family members, it can create the perception of bias in the workplace. Other employees may feel
that they are not being judged on their merit or abilities, but rather on their relationship with the
employer or manager. This can create a toxic work environment, and lead to resentment and lower
morale among employees. Furthermore, nepotism can lead into lack of diversity because of the
preferential treatment that relatives may receive unconsciously, excluding a diverse range of
candidates from consideration. This can result in a lack of diversity in the workplace, which can limit
the perspectives and experiences represented in the organization. Although, nepotism it is not against
law in the private sector (The Law Dictionary, no date) it can cause legal issues if oversteps the
protected characteristics of another employees. Overall, giving preferential treatment to friends or
family members can create a negative work environment and limit opportunities for other employees
or potential employees. It is important to prioritize merit and qualifications when making decisions
that affect the workplace.

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Challenges of disabled employees

Disabled employees have the same rights as other workers, and it is illegal for employers to treat
different a person because of disability. Unfortunately, discrimination against disabled employees is
still a prevalent issue in many workplaces. Such discrimination can take many forms and can affect
disabled employees. Most common issue is the failure of employers to provide reasonable
accommodations. Employers are required to provide reasonable accommodations to employees with
disabilities to help them perform their jobs. These accommodations can include things like assistive
technology, modified work schedules, and physical changes to the workplace. If an employer fails to
provide these accommodations, it may be considered discrimination. Another form of discrimination
is harassment. Disabled employees may be subject to harassment, including derogatory comments or
actions related to their disability. Also, such behaviour can create a hostile work environment, making
it difficult for the employee to do their job.
Unequal treatment: Disabled employees may be treated differently than other employees in terms of
job assignments, promotions, or compensation. This unequal treatment can create barriers to career
advancement and limit opportunities for the employee along with stereotyping. Disabled employees
may be subject to unfair and inaccurate stereotypes, such as assumptions that they are less capable or
less committed to their jobs. These stereotypes can lead to discrimination in hiring, job assignments,
and promotions. (Citizen Advise, no date).

Conclusion
The preceding section demonstrated that discrimination in the workplace has multiple causes, all of
which are important, with major effects and worthy of future investigation. Women facing gender
discrimination in the financial industry being underrepresented in leadership positions with resulted
effects also in gender pay gap where men are receiving more money for the same job as women do.
Another key cause of discrimination in the workplace include unconscious bias , where employers or
managers may unintentionally favour some employees because of personal beliefs. Furthermore,
nepotism it is another consequence of discrimination in the workplace, with employers or managers
conscious offering opportunities, such as promotion or bigger pay rate, to family members or friends.
In addition, important cause of discrimination is represented by the disabled employees and the
challenges that overcome at workplace, for example failure of employers to provide reasonable
accommodations or harassment along with stereotyping.

Recommendations
In order to avoid the previously discussed causes leading to discrimination in the workplace, the
following recommendations can be made:

 Unconscious Bias Training

Unconscious bias training (UBT) in the workplace is a type of training designed to help
employees recognize and overcome their unconscious biases that may impact their decision-
making and interactions with others. UBT in the workplace can be beneficial in a variety of

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ways, including promoting diversity and inclusion: UBT can help employees recognize their
unconscious biases and how these biases can impact the diversity and inclusivity of the
workplace, by understanding and mitigating these biases, employees can create a more
inclusive work environment that values diversity and welcomes different perspectives.
Example of UBT is PwC’s (2016) online mandatory Open Mind e-learning tool, designed to
make employees aware of the impact of their unconscious biases and to be more open-
minded. Evaluation of the training, based on participant self-report feedback, showed the
training increased participants’ awareness of their own biases. Further, PwC reported a
significant increase in the diversity of their graduate hires in 2016: female and Black, Asian
and Minority Ethnic (BAME) representation reached 43 per cent and 34 per cent of hires
respectively (compared with 37 per cent and 25 per cent in 2012). ( Atewologun, Cornish and
Tresh, 2018 , p. 26)

 Disability awareness

Disability awareness can be a powerful tool in reducing discrimination in the workplace. By

increasing awareness and understanding of disabilities, employers can create a more inclusive
workplace culture that supports the needs and abilities of all employees. Disability awareness
can play an important role by promoting a more inclusive and supportive workplace culture.
Employers who invest in disability awareness training and initiatives can benefit from a more
diverse and talented workforce, improved employee morale and retention,
and enhanced reputation and public image.

 Implement clear policies and guidelines.

Developing and enforcing policies and guidelines that specifically address nepotism in the
workplace can be effective. These policies should outline what constitutes nepotism, what
behaviours are prohibited, and what consequences will be imposed for violations. It is
important that these policies are communicated clearly to all employees, and that they are
applied consistently. Organizations can implement conflict of interest policies that require
employees and managers to disclose personal relationships that could create a conflict of
interest, and to recuse themselves from any decisions that involve those relationships.

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REFERENCE LIST

BBC News. (2022, March 24). Pay gap between men and women fails to improve.
https://www.bbc.com/news/business-60810035

Catalyst - Wilson-Taylor Associates, Inc. (2019). Women in Accounting (Quick Take). Retrieved
from https://www.catalyst.org/research/women-in-accounting/

CFA Institute. (2021). Gender Diversity in Investment Management. Retrieved from

https://www.cfainstitute.org/-/media/documents/survey/gender-diversity-report.pdf

Ciphr. (2021). Workplace Discrimination in 2021 - UK Statistics and Figures. Retrieved from
https://www.ciphr.com/advice-and-guides/workplace-discrimination-uk-statistics/
Citizens Advice. (no date). What counts as disability discrimination. Retrieved March 20, 2023, from
https://www.citizensadvice.org.uk/law-and-courts/discrimination/what-counts-as-discrimination/
check-if-its-discrimination-because-of-disability/

Equality and Human Rights Commission. (2010). Unconscious bias training: An assessment of the
evidence for effectiveness. Retrieved from
https://www.equalityhumanrights.com/sites/default/files/research-report-113-unconcious-bais-
training-an-assessment-of-the-evidence-for-effectiveness-pdf.pdf

Financial sector. (2021). Most ethnic minority finance workers suffer discrimination, finds UK report.
The Guardian. Retrieved from https://www.theguardian.com/business/2021/jan/21/most-ethnic-
minority-finance-workers-suffer-discrimination-finds-uk-report

GOV.UK. (2010). Employment, fairness at work, and enterprise. Retrieved from

https://www.gov.uk/government/publications/employment-fairness-at-work-and-enterprise
Gov.uk. (2011). Equality Act 2010: guidance. Retrieved from https://www.gov.uk/guidance/equality-
act-2010-guidance

Jain, V. (2020). Disability discrimination at workplace: Understanding the issue and challenges.
Journal of Family Medicine and Primary Care, 9(5), 2095–2099.
Lang, K. and Kahn-Lang Spitzer, A. (2020) ‘How Discrimination and Bias Shape Outcomes’, The
Future of Children, 30(1), pp. 165–186.

SafeWorkers. (2022). Nepotism in the Workplace | Is it Legal & Avoiding Favouritism. Retrieved
March 20, 2023, from https://www.safeworkers.co.uk/nepotism-workplace-legal-avoiding-
favouritism/