How the end of affirmative action could hurt financial advice
The Supreme Court’s bombshell ruling Thursday striking down race-conscious college admissions programs will likely hurt diversity within the financial advice profession — but the degree to which it will do so is unclear, observers said.
In a 6-3 vote, the high court’s conservative majority found that the affirmative action programs at two schools — Harvard and the University of North Carolina — are unconstitutional. Beyond the effects on education, the decision could have wider-ranging effects on diversity, equity and inclusion considerations that companies use in their hiring practices.
While even proponents of affirmative action acknowledge significant problems with the system as it exists today, dismantling it won’t help diversity within higher education, and consequently in the financial services world, which recruits from colleges and universities, sources said.
“The decision itself is a double-edged sword. It will have a negative impact, but in the long run maybe there is some light behind it,” said Nandita Das, associate professor of finance and director of the financial planning program at Delaware State University.
“What I personally find is many times the students are not ready for this,” she said of college-level financial planning courses. “What we need to do is start [promoting diversity] at a much lower level. Affirmative action is needed at high schools where the equality is not there.”
The decision is certain to be a shock for the educational system. And although pushing students to do their best can lead to more success, “this is not the right time” to scrap affirmative action, Das said.
Companies might also eventually reconsider some of their diversity practices, Morgan Lewis partner Grace Speights said
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