There's a comforting-to-white-people fiction about racism and racial inequality in the United States today: They're caused by a small, recalcitrant group who cling to their egregiously inaccurate beliefs in the moral, intellectual and economic superiority of white people.
The reality: racism and racial inequality aren't just supported by old ideas, unfounded group esteem or intentional efforts to mistreat others, said Nancy DiTomaso, author of the new book, The American Non-Dilemma: Racial Inequality Without Racism. They're also based on privilege, she said -- how it is shared, how opportunities are hoarded and how most white Americans think their career and economic advantages have been entirely earned, not passed down or parceled out.
Getting a job is increasingly about who you know — and that’s making the playing field less even for African-Americans. In a new study published by the Russell Sage Foundation, Nancy DiTomaso, a professor of organization management at Rutgers University, says “hidden” forms of racial inequality tied to seemingly innocuous things like networking are holding black job-seekers back. In a 21st century workplace where hiring is increasingly based on personal connections and internal employee referrals, African-Americans are at a disadvantage — since they don’t have as much “social capital” and aren’t as connected to networks that can help them land good jobs.
Much progress has been made on racism and its economic effects. A recent paper by economists Betsey Stevenson and Justin Wolfers found that gaps in subjective “well-being” between blacks and whites have shrunk over the past three decades.
There’s nothing illegal about giving a hand to a friend or family member who’s looking for a job. But when whites do it for other whites, blacks get stuck on the outside looking in. Most blacks still lack the networks to boost them into the kind of good jobs that whites take for granted.
That, in a nutshell, is the conclusion of a forthcoming (April 2013) book called The American Non-Dilemma: Racial Inequality Without Racism. It’s by Nancy DiTomaso, a professor of organization management at Rutgers University in New Jersey.
Today DiTomaso spoke on a conference call with reporters that was sponsored by the Russell Sage Foundation, the book’s publisher. Three other experts joined her.
Nearly half a century after the Civil Rights Act of 1964, which banned discrimination on the basis of race, ethnicity, national origin, religion, and gender, straight-out racism has become rare in the U.S., DiTomaso says in American Non-Dilemma.
The question is, why does the racial divide in employment remain stark? To find out why, DiTomasso conducted 246 interviews with working-class and middle-class whites in New Jersey, Ohio, and Tennessee. The vast majority believed in civil rights and equal opportunity. But they also believed in helping out their friends and family members—who for the most part were also white. DiTomaso’s conclusion, she said today, was that in hiring, “the favoritism of whites towards other whites may be more important than the discrimination of whites towards racial minorities.”
It’s a common workplace practice: Recommend a friend or former colleague for a job and collect a handsome bonus.
But a Rutgers University management professor finds that such referral programs actually cut off opportunities for minority candidates. Nancy Di Tomaso says that corporate America could actually be undoing gains in workplace diversity.
The problem is access and information, and cronyism raising barriers to employment for US Latinos and African Americans, Di Tomaso says. Her new book—called The American Non-Dilemma: Racial Inequality Without Racism—relies on almost 300 in-depth conversations with individuals about their careers. (DiTomaso did not research company referral programs, though she has looked at corporate policies and practices on promotions in the past.)
Some 99% of the 270 whites interviewed relied on information, influence or direct hiring by family, friends or acquaintances to help land a job—men more often than women. Interviews with blacks showed they tried their networks too, but were more likely to land jobs through public programs or equal employment opportunity initiatives, Di Tomaso says in an interview with Quartz.
Rutgers business school professor Nancy DiTomaso, author of the new book The American Non-Dilemma: Racial Inequality Without Racism, told The Hollywood Reporter that the project-based and who-knows-who nature of the entertainment industry accentuates the difficulty that diverse writers have in breaking into established networks.
“It is not just a friendship network, but one that is often based on neighborhood, race/ethnic or religious groups, people who went to the same school, attend the same church, who are associated with the same institutions and so on,” she said. “The impact of networking in this field and others is the perpetuation of inequality and often the opportunity for some people to build skills that others are denied.”
Rutgers Institute for Ethical Leadership (IEL) at Rutgers Business School has been awarded a $2.6 million donation from Prudential Financial, Inc. and The Prudential Foundation. The support allows the IEL to continue serving nonprofit organizations, students, and business leaders with programs that reinforce the importance of ethical leadership.
Last year, more than 3,000 students and business and nonprofit leaders benefited from IEL programs, events, and resources. The IEL combines academic research with practical training to strengthen current leaders and to prepare tomorrow's leaders for the complex ethical challenges they will encounter. The IEL also continues its ongoing capacity building and training with the leaders of nonprofit organizations in Newark and the surrounding areas contributing to the health and vitality of the community.
The $2.6 million contribution includes a $850,000 three-year challenge grant from The Prudential Foundation. Each dollar of new and increased money the IEL raises will be matched by the Foundation with two dollars of support. The Prudential Foundation has made more than $1.5 million in grants to IEL since 2004 when it provided startup funding to create the Center for Nonprofit and Philanthropic Leadership at Rutgers University. IEL was created from that organization in 2008 with funding that was included in a $5 million Prudential contribution to Rutgers University.
From The New York Times:
A study of New York State’s tax from 1932 to 1981 by Anna Pomeranets and Daniel G. Weaver found that it increased the cost of capital for investors and reduced trading volume. Most important, they found the tax actually increased trading volatility by as much as 10 percent.
Increasing volatility is exactly what advocates of the tax don’t want. They want volatility reduced to prevent market disruptions, but the decline in traders in the markets mean fewer buyers and sellers and more price jumps. This finding of increased volatility is in general accord with nine other major papers to study this issue, including studies of the tax in 23 countries, among them Britain, Sweden and Japan. Only one of these papers found that a financial transaction tax reduced volatility.
The New York State tax experience raises a bigger issue — that of traders just going elsewhere. This problem was mirrored in Sweden.
George Amick’s NJ.com article of February 11, 2013, captioned “No help from state for ethics oversight” concludes that Hamilton Mayor Kelly Yaede’s heart was in the right place in trying to obtain state assistance in overseeing the city’s ethics program. I agree that having an “independent” ethics oversight function is important, with the emphasis on “independent.” However the overall state of government ethics programs, to the extent they aspire to foster an ethical culture, is significantly wanting. Let me explain and propose a solution.
Government ethics programs are centered around a body of rules geared to prevent conflicts arising from personal financial interests and official duties. Indeed the mantra of the United States Office of Government Ethics is: Preventing Conflicts of Interest in the Executive Branch. Employees are encouraged to comply with the various ethics requirements mostly through the threat of administrative sanctions. Official oversight bodies, public interest groups and the news media also play a vital role in this process.
Published by Amtrak for the Acela train line, the magazine for Northeast business & leisure travelers. Also at ARRIVEMAGAZINE.com.
Professor Farrokh Langdana was featured in Arrive, Amtrak's magazine for the Acela northeast train corridor. "Once the economy gets traction, because never in history have we printed so much money without inflation, we will need to suck the money back in, or we will see inflation. It's like toothpaste - once out of the tube, it's hard to get back in," says Langdana in interview. See article.
The Provident Bank Foundation recently donated $2,500 to the Rutgers University Foundation to support the Institute for Ethical Leadership at Rutgers Business School and its “Leaders Common Ground” program. The grant will cover two scholarships for the program as well as general expenses.
“We are most grateful for The Provident Bank Foundation’s support and look forward to using the Leaders Common Ground program to positively affect the long-term development of nonprofit leaders,” said Sandro Tejada, development director, Rutgers Institute for Ethical Leadership.
The Leaders Common Ground Program brings 10-12 nonprofit senior executives together for monthly peer group sessions to mutually explore challenges they face as leaders of nonprofit organizations. The sessions are moderated by an Institute for Ethical Leadership facilitator, who leads participants through a discussion of real life issues of governance, board and staff relations, ethical leadership, strategic planning, fundraising skills, financial management skills and program development and management. In the seven years of the program’s history, more than 50 participants have benefited from the program, many of whom have participated for two or more years.
Nancy DiTomaso, a professor and vice dean for faculty and research and professor of management and global business at Rutgers Business School of Newark and New Brunswick and author, says that equality in the workplace is often obstructed by Whites’ favoritism for other Whites during the hiring process — even by those who claim to support equal opportunities.
As a result, minorities are boxed out of the job market, which is a major reason for the unyielding unemployment rate among Blacks.
According to DiTomaso, the aforementioned racial bias calls in to question whether there is a meritocratic, skill-based job market in the United States.
DiTomaso’s conclusion is based on her book, “The American Non-Dilemma: Racial Inequality Without Racism,” where she interviewed 246 randomly selected middle-class White people in Tennessee, New Jersey, and Ohio.
“Without Racism” revealed that economic racial disparities are fostered by explicit racism that plays out in everyday events, such as networking and institutionalized racial bias, which is endemic in the jobs market.
Transaction taxes result in more volatile markets, wider bid-ask spreads, greater market impact, and a decrease in volume. Those are key findings of a recent study conducted jointly by the Bank of Canada and Rutgers University into the impact of a transaction tax administered by the State of New York until 1981.
Anna Pomeranets, an analyst with the Bank of Canada, and Dan Weaver, a professor at Rutgers, conducted the study, “Security Transaction Taxes and Market Quality,” in light of movement on both sides of the Atlantic to adopt trading taxes. Both European and U.S. politicians have pushed for trading taxes, arguing they would raise revenue and dampen speculative trading activity.
Groupon’s board of directors fired the company’s CEO yesterday. Andrew Mason founded the daily deal site. This is, in many ways, a familiar story. An ideas man builds up a business, takes it public, and then…
“Some kind of infrastructure is needed,” says James Abruzzo, co-founder of the Institute for Ethical Leadership at Rutgers Business School. “And clearly that was the case here."
From The Wall Street Journal:
Trading in dark pools and other off-exchange venues has been rising in recent years. About 14% of all stock trades in the U.S. now take place on dark pools, up from 3% in 2007, according to Tabb Group, which tracks electronic trading. Total trading away from exchanges hit a record of 37% of all trading volume in January, according to NYSE Euronext NYX -0.65%.
A rise in off-exchange trading could hurt investors, some said. A 2010 study by Rutgers Business School professor Daniel Weaver found that a NYSE-listed stock with 40% of its volume trading in the dark costs investors about $4 million per stock a year.
The reason: With more investors trading in the dark, fewer buy and sell orders are being placed on exchanges. That can translate into worse prices for stocks, because prices for stocks are set on exchanges.
Exchanges have been scrambling to turn the tide. One tactic in recent years has been to cater to high-frequency firms in order to capture the rivers of buy and sell orders they provide. With more orders on the exchanges' books, investors might get better prices and find it easier to trade, they hoped.
Read full article.
The Civil Rights movement of the 1960s seemed to mark a historical turning point in advancing the American dream of equal opportunity for all citizens, regardless of race. Yet 50 years on, racial inequality remains a troubling fact of life in American society and its causes are highly contested. In The American Non-Dilemma, sociologist Nancy DiTomaso convincingly argues that America's enduring racial divide is sustained more by whites' preferential treatment of members of their own social networks than by overt racial discrimination. Drawing on research from sociology, political science, history, and psychology, as well as her own interviews with a cross-section of non-Hispanic whites, DiTomaso provides a comprehensive examination of the persistence of racial inequality in the post-Civil Rights era and how it plays out in today's economic and political context.
Taking Gunnar Myrdal's classic work on America's racial divide, The American Dilemma, as her departure point, DiTomaso focuses on "the white side of the race line." To do so, she interviewed a sample of working, middle, and upper-class whites about their life histories, political views, and general outlook on racial inequality in America. While the vast majority of whites profess strong support for civil rights and equal opportunity regardless of race, they continue to pursue their own group-based advantage, especially in the labor market where whites tend to favor other whites in securing jobs protected from market competition. This "opportunity hoarding" leads to substantially improved life outcomes for whites due to their greater access to social resources from family, schools, churches, and other institutions with which they are engaged.
DiTomaso also examines how whites understand the persistence of racial inequality in a society where whites are, on average, the advantaged racial group. Most whites see themselves as part of the solution rather than part of the problem with regard to racial inequality. Yet they continue to harbor strong reservations about public policies—such as affirmative action—intended to ameliorate racial inequality. In effect, they accept the principles of civil rights but not the implementation of policies that would bring about greater racial equality. DiTomaso shows that the political engagement of different groups of whites is affected by their views of how civil rights policies impact their ability to provide advantages to family and friends. This tension between civil and labor rights is evident in Republicans' use of anti-civil rights platforms to attract white voters, and in the efforts of Democrats to bridge race and class issues, or civil and labor rights broadly defined. As a result, DiTomaso finds that whites are, at best, uncertain allies in the fight for racial equality.
Weaving together research on both race and class, along with the life experiences of DiTomaso's interview subjects, The American Non-Dilemma provides a compelling exploration of how racial inequality is reproduced in today's society, how people come to terms with the issue in their day-to-day experiences, and what these trends may signify in the contemporary political landscape.
NANCY DiTOMASO is professor of organization management at Rutgers University.
From the “Big Apple” to the “Brick City”: after a 20-minutes train ride from New York Penn Station, Newark welcomed us with sunshine and spring-like warmth. Even warmer, we were welcomed at the NJPAC by Dana Bochna and Joanne Hsu from the Center for Ethical Leadership at Rutgers Business School who kindly had set up this trip for us, and Joan (the incarnation of civil society), a NJPAC volunteer who had already given tours when NJPAC was still under construction. During the tour around the performing arts center, we learned about its history, its program and above all what the NJPAC meant and still means to the city of Newark that suffered from social upheavals and urban demolition since the riots in 1967.
The Bloomberg article took stock of Rutgers Business School in particular, which just established a $3 million endowed chair for real estate in anticipation of creating a full-on real estate concentration next year. In an era where many graduate schools are trimming down their programs, and prospective MBA applicants are questioning the market value of a degree, this is no small gesture.
The North Carolina Museum of Natural Sciences announced its new director Monday morning after a six-month search of more than 200 candidates.
Emlyn Koster is a geologist, educated in England and Canada, who has been at the helm of several premier museums in the United States and Canada, leading landmark expansions of their facilities, exhibitions, programming and outreach.
"Emlyn brings to this role the precise mix of leadership qualities we need," said Mike Murphy, president of the Friends of the N.C. Museum of Natural Sciences and chair of the search committee. "He is an engaging advocate for the museum to the public and a collaborative manager who can unite the staff, stakeholders and supporters in order to guide this world-class museum in expanding its reach and taking its mission to new heights."
BEDMINSTER — The school district's website was changed early Friday morning to edit a letter from Superintendent Carolyn R. Koos that, until then, appeared to be plagiarized from another school system.
According to Standard Five of the New Jersey Standards for Teachers and School Leaders, "School administrators shall be educational leaders who promote the success of all students by acting with integrity, fairness and in an ethical manner."
"Plagiarizing is not acting with integrity, and it certainly isn't ethical," Ann Buchholtz, a professor of Leadership and Ethics and director of the Institute for Ethical Leadership at the Rutgers Business School, told NJ.com last week.
In this issue of NRBP, Rutgers Institute for Ethical Leadership is featured for honoring Newark Museum Director, Mary Sue Sweeney Price.
A two-day international conference on ‘Global Strategies for an Emergent India’ has begun on the Indian Institute of Management Kozhikode (IIMK) campus at Kunnamangalam here on Thursday. Radhakrishna Pillai, Dean, Academic Administration of IIMK, inaugurated the event.
As many as 38 papers selected from over 100 entries received from academics and doctoral students from India and abroad on the subject are being presented during the conference, which is being organised by the IIMK in association with the University of Sydney Business School.
Scholars from top business schools, including Farok J. Contractor, Professor, Department of Management and Global Business, Rutgers Business School, Rutgers; Sumit K. Kundu, Professor, Department of Management and International Business, College of Business Administration, Florida International University; Rajaram Veliyath, Professor, Department of Management and Entrepreneurship, Coles College of Business, Kennesaw State University; Sougata Ray, Professor of Strategic Management and Dean (Programme Initiatives), Indian Institute of Management Calcutta; Somnath Lahiri, Assistant Professor, Illinois State University, and Raveendra Chittoor, Assistant Professor, Indian School of Business, would be chairing different sessions, the press release said.
School cheating has been a particular concern, as it’s reported at all levels and among students, teachers and administrators. Those involved include such institutions as the Air Force Academy (where cadets were accused of cheating on an online test in April) and Harvard University.
Donald McCabe, a professor of management at Rutgers University-Newark, says the Internet has created new opportunities to blur ethical bounds. “People have redefined what constitutes cheating in line with the technologies available now,” says McCabe, co-author of Cheating in College, published in September.
NEW YORK-Known as “charm prices,” prices ending in 9, 99 or 95 make items appear cheaper than they really are. Since people read from left to right, they are more likely to register the first number and make an immediate conclusion as to whether the price is reasonable.
When professor Robert Schindler of the Rutgers Business School studied prices at a women’s clothing store, he found the one-cent difference between prices ending in .99 and .00 had “a considerable effect on sales,” with prices ending with .99 far outselling those ending with .00.
TRENTON - State business leaders are facing a stark and chilling reality: Hundreds of companies remain perilously close to losing their battle against Hurricane Sandy’s devastation.
This is a critical point in officials’ efforts to resuscitate ailing businesses in the Garden State. They have to rapidly turn the rounded numbers and estimates from the early days of the hurricane’s aftermath into hard figures that will help them cut a clear path to recovery.
Jeffrey Robinson, assistant professor at Rutgers Business School in Newark, has studied data collected from companies after other U.S. disasters.
In academic terms, Robinson said, New Jersey’s survey would need to generate at least 4,000 responses before it could claim represent a signficant cross-section of the estimated 40,000 businesses impacted by the storm.
"The only way to get that is by going door to door, getting people to go out and collect this information," he said. "Anyone can go online to fill out that form right now, for better or for worse."
Stores, restaurants, factories and offices across the Northeast were damaged or destroyed by the Oct. 29 storm. So far, almost all the recovery money that's being offered to small businesses by government agencies is in the form of loans, but taking on debt is one of the last things owners want to do as they try to recover from the storm in an already challenging economy.
Making small business depend on loans is a mistake, says Jeffrey Robinson, a professor of entrepreneurship at Rutgers University in New Jersey. "A loan is not going to be good for a business that's already deeply in debt," Robinson says.
Graduate students looking to go global now have one more option thanks to SMU’s newly announced master’s degree in international arts management.
In conjunction with HEC Montreal and the Bocconi University Graduate School of Management, SMU has announced an international advisory committee with the two institutions to launch the 12-month program that will have its students spending one four-month session at each of the three partnering schools.
The advisory committee is a who’s who among the arts world and includes names such James Abruzzo of DHR International, Maxwell L. Anderson, the director of the Dallas Museum of Art as well as many more notable advisors.
DALLAS (SMU) — HEC Montréal, Bocconi University Graduate School of Management and SMU announce the appointment of an international advisory committee in conjunction with the launch of their new 12-month International Arts Management Master of Management degree (M.M.). To begin in fall 2013, the new M.M. degree will be the first to focus on issues unique to international arts management and to approach arts management from a global perspective. The program will include one four-month session at each of the three partner institutions and will prepare students to manage and lead international arts and cultural organizations.
“The international advisory committee members will provide input on program content and help make key strategic decisions,” said Zannie Voss, chair of the Division of Arts Management and Arts Entrepreneurship at the SMU Meadows School of the Arts. “They will also provide connections to the field for our students and serve as worldwide ambassadors for the program.”
The committee members are James Abruzzo, executive vice president, DHR International, New York; Maxwell L. Anderson, director, Dallas Museum of Art; Victoria Bailey, executive director, Theatre Development Fund, New York; Jean-Paul Cluzel, president of the Réunion des musées nationaux et du Grand Palais, Paris; Sergio Escobar, director, Piccolo Teatro, Milan; Piers Handling, CEO, Toronto International Film Festival; Peter Herrndorf, CEO, Canada’s National Arts Center, Ottawa; Sylvain Lafrance, former executive vice president, Radio-Canada, Montréal; Daniel Lamarre, CEO, Cirque du Soleil, Montréal; Glenn D. Lowry, director, The Museum of Modern Art, New York; Zarin Mehta, former president, New York Philharmonic; Charlotte Nors, executive director, Singapore Repertory Theatre; Mikhail Piotrovsky, director, the State Hermitage Museum, St. Petersburg, Russia; Anamarta de Pizarro, director, Iberoamerican Theatre Festival of Bogota (FITB), Colombia; David Resnicow, president, Resnicow Schroeder Associates, New York; Xiaohong Sun, former vice chairwoman, China Arts and Entertainment Group, Beijing; and Gorgun Taner, general director, Istanbul Foundation for Culture and Arts, Istanbul, Turkey.
Though the country is “predominantly a service economy,” Professor Farok J. Contractor of Rutgers Business School writes, “The nation is still the world’s biggest manufacturer,” he adds, with “unrivaled productivity in terms of manufacturing value-added per employee or per hour worked.”
Teams from 11 business schools, including Georgetown and Columbia, have signed up to compete in the school's first biopharmaceutical case competition.
The day-long competition will be held Nov. 10 at Rutgers Business School's $83 million facility in Newark, NJ.
The teams will be competing for cash prizes as well as the recognition of some of the industry's leading companies.
"It brings another layer of national exposure to the school,'' says Chris Parker, a Rutgers MBA student who competed at Kellogg School of Management earlier this year. As co-president of the pharmaceutical club, Parker helped to organize the competition being hosted by Rutgers.
Parker says Rutgers will follow what has become "the gold standard'' for pharmaceutical case competitions: Each team will have a week to prepare after receiving a case study that reflects a current, real-life marketing or operational issue faced by the industry.