Federal officials caution employers on using AI in hiring; FCW, May 12, 2022

Natalie Alms, FCW; Federal officials caution employers on using AI in hiring

"The growing use of artificial intelligence and other software tools for hiring, performance monitoring and pay determination in the workplace is compounding discriminiation against people with disabilities, federal civil rights officials say.

Artificial intelligence can be deployed to target job ads to certain potential applicants, hold online job interviews, assess the skills of job applicants and even decide if an applicant meets job requirements. But the technology can discriminate against applicants and employees with disabilities.

On Thursday, the Equal Employment Opportunity Commission and the Department of Justice put employers on alert that they're responsible for not using AI tools in ways that discriminate and inform employees of their rights, agency officials told reporters."

The Backlash to Larry Fink’s Letter Shows How Far Business Has to Go on Social Responsibility; Harvard Business Review (HBR), January 31, 2019

Mark R. Kramer, Harvard Business Review; The Backlash to Larry Fink’s Letter Shows How Far Business Has to Go on Social Responsibility

"Larry Fink, CEO of BlackRock, the world’s largest investor with $6 trillion under management, evoked heated controversy with his remarks last week that his company would change its hiring and potentially its compensation structure to advance diversity and ensure that five years from now the company is not just “a bunch of white men.” This follows on the heels of his annual letter to CEOs asserting that companies need to embrace a purpose beyond just profit maximization.

Critics, according to Fox Business, were swift to accuse Fink’s commitment to diversity as a form of “corporate socialism,” complaining about “the propriety of a public company executive using business resources and his perch as CEO to advance a personal agenda.” The Fox article went on to quote Charles Elson, a corporate governance expert at the University of Delaware, saying: “This is fundamentally not the role of a public company, and it’s unfair to investors who may not agree with his politics. A CEO shouldn’t use house money to further a goal that may not create economic returns.”

I couldn’t disagree more. Business leaders must finally, once and for all, let go of the outdated and erroneous notion that social factors — and not just diversity — are irrelevant to the economic success of our companies."