# What Is Affirmative Action? How It Works and Example

![Affirmative Action](https://www.investopedia.com/thmb/cNYfhyU9NvC0vjmgEc1lC1BrqYw=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Affirmative-action_final-cc15733bda0a4cb7988db70b4e180ad1.png)

*— Investopedia / Michela Buttignol*

## What Is Affirmative Action?

Affirmative action refers to a policy aimed at increasing workplace and educational opportunities for people who are underrepresented in various areas of our society. It focuses on [demographics](https://www.investopedia.com/terms/d/demographics.asp) with historically low representation in leadership and professional roles. It is often considered a means of countering discrimination against particular groups.

Businesses and governments commonly [implement affirmative action programs](https://www.investopedia.com/articles/investing/021215/guide-affirmative-action-and-business.asp) by taking individuals' race, sex, religion, or national origin into account when hiring. It has been widely used in education settings in the United States, particularly in college admissions. However, in the 2023 ruling of _Students for Fair Admissions v. Harvard_, the Supreme Court said colleges and universities could no longer take race into consideration as a specific basis for granting admission.

### Key Takeaways

*   Affirmative action seeks to reverse historical trends of discrimination against individuals with certain identities.
*   Policies often implement hiring quotas, provide grants and scholarships, and may also deny government funding and contracts to institutions that fail to follow policy guidelines.
*   Affirmative action includes assistance for gender representation, people with disabilities, and covered veterans.
*   The U.S. Supreme Court has held that race-based affirmative action programs in college admissions violate the Equal Protection Clause of the 14th Amendment.

## How Affirmative Action Works

The main purpose of affirmative action is to diversify various parts of society. The government-backed policy was developed to provide inadequately represented groups of people with access to opportunities in academia, the private workforce, and government jobs.

These opportunities have included admission to schools, jobs in professional positions, and access to housing and financing.

### History and Implementation

The affirmative action policy rose to prominence in the United States in the 1960s as a way to promote equal opportunity for various segments of society. The policy was developed to enforce the [Civil Rights Act of 1964](https://www.investopedia.com/terms/c/civil-rights-act-1964.asp), which sought to eliminate discrimination.

Early implementations of affirmative action largely focused on halting the continued social segregation of minorities and other disadvantaged individuals from institutions and opportunities.

Despite legislation that outlawed discrimination practices in the U.S., tangible change in the status quo was not immediate.

In more recent years, campaigns have expanded to make organizations and institutions even more inclusive by pushing for greater gender diversity. Newer policies are also aimed at providing more access to opportunities for covered veterans and people with disabilities.

In 2023, however, the U.S. Supreme Court issued a landmark decision in _[Students for Fair Admissions v. Harvard](https://www.investopedia.com/supreme-court-affirmative-action-decision-2023-7555848)_ that held that race-based affirmative action programs in college admissions violate the 14th Amendment's Equal Protection Clause. And in the ruling for _Students for Fair Admissions v. the University of North Carolina_ companion case, the court overruled the previous precedent set in _Grutter v. Bollinger_ and _Regents of the University of California v. Bakke_ that had previously validated some affirmative action in college admissions allowed for race to hold a limited role in decision making by college administrators.

> **Fast Fact**
>
> Covered veterans are veterans who are disabled, who served on active duty in a war or other campaign and have a campaign badge or a service medal, or who are recently separated from the Armed Forces.

## Elements of Affirmative Action

Efforts to stimulate change have taken the form of financial assistance such as [grants](https://www.investopedia.com/terms/g/grant.asp), scholarships, and other support earmarked to help with access to higher education opportunities.

In addition, hiring practices may be structured to require the inclusion of diverse candidates for consideration for job openings. Government agencies may mandate that companies and institutions populate their ranks with a minimum percentage of qualified [professionals from varying ethnicities, genders, and cultures](https://www.investopedia.com/terms/m/multicultural-organization.asp).

Failure to meet such requirements could disqualify institutions from receiving [government funding](https://www.investopedia.com/terms/g/government-grant.asp) or being able to compete for public contracts.  

> **Important**
>
> People confuse employment equity with affirmative action. There's a distinct difference between the two. Employment equity attempts to ensure that all individuals are treated equally while affirmative action actually supports those people in particular who historically have been denied opportunities.

## Examples of Affirmative Action

Affirmative action has been put to work since the 1960s, despite a lack of progress at times and rulings by legal authorities such as the Supreme Court that have hindered it. Here are some examples of the policy in action.

*   In 1965, President Lyndon B. Johnson issued Executive Order 11246. It required that all government contractors and subcontractors expand job opportunities for minorities. It also established the Office of Federal Contract Compliance (OFCC) to enforce the order.
*   In 1970, the [Labor Department](https://www.investopedia.com/terms/d/dol.asp) ordered and authorized flexible goals and timetables to address the underutilization of minorities by federal contractors. In 1971, women were included in the order.
*   In 1973, President Richard M. Nixon signed the Rehabilitation Act of 1973. It required agencies to submit an affirmative action plan to the [EEOC](https://www.investopedia.com/terms/e/equal-employment-opportunity-commission-eeoc.asp) that detailed the hiring, placement, and advancement of individuals with disabilities.
*   In 1983, President Ronald Reagan issued Executive Order 12432. It required every federal agency with substantial procurement or grant-making authority to develop a Minority Business Enterprise development plan.
*   In 1990, President George H.W. Bush signed the [Americans with Disabilities Act](https://www.investopedia.com/terms/a/americans-with-disabilities-act-ada.asp). A year later, he signed the Civil Rights Act of 1991.
*   In 1998, the U. S. House of Representatives and the U. S. Senate stopped attempts to eliminate specific affirmative action programs. Both houses of Congress prohibited the abolishment of the Disadvantaged Business Enterprise program. In addition, the House refused to allow the elimination of affirmative action in admissions in higher education programs funded through the Higher Education Act.
*   In 2022, the Wall Street Journal reported that dozens of major U.S. companies including Apple, Alphabet, American Airlines, and General Motors were urging the Supreme Court to uphold the continued use of affirmative action policies in college admissions. They asserted that greater diversity on college campuses contributed to ongoing innovation in commerce and successful business endeavors.

## Advantages and Disadvantages of Affirmative Action

The implementation and continued use of affirmative action policies have drawn strong support as well as staunch criticism.

### Advantages

An obvious benefit of affirmative action is the opportunities it provides to people who otherwise might not have them. These opportunities include access to education for students who may be disadvantaged and career advancement for employees who may be blocked from rising up the corporate ladder.

Proponents of affirmative action say that the effort must continue because of the low percentages of diversity in positions of authority and in the media, as well as limited acknowledgment of the achievements of marginalized or unrepresented groups.

### Disadvantages

Opponents of affirmative action frequently call these efforts a collective failure. They cite as evidence the tiny changes to the status quo after decades of effort. The cost of such programs, coupled with a belief that affirmative action forces the populace to make unwarranted accommodations, drives a significant part of the opposition.

Certain individuals believe that there is little or no bias in society. They argue that affirmative action results in reverse discrimination, which can often lead to qualified candidates being overlooked in academics and the workplace in favor of less qualified candidates who meet policy standards.

Pros

*   Provides opportunities for minorities and people from disadvantaged groups
    
*   Diversifies society
    

Cons

*   Costs to implement policies can be too high
    
*   Draws focus from a person's merits or achievements
    

## Affirmative Action Statistics

Affirmative action is a very controversial topic and often leads to heated debates between those who support it and people who feel it doesn't benefit society. Is there a way to quantify how people feel and how it's working?

According to a 2024 Gallup poll, about two out of every three Americans (68%) had positive views of the Supreme Court ruling that eliminated affirmative action in university admissions. Black Americans are the most divided on the subject, while white, Asian, and Hispanic adults viewed the decision more favorably. Previous Gallup polls had found that about 70% of Americans believe that colleges should only consider merit in academic admissions.

There is some division when it comes to identifying race and ethnicity for purposes of hiring. In fact, about 74% of individuals feel that a candidate's racial or ethnic background shouldn't be considered when hiring or promoting them. They believe these activities should only be based on someone's merit and qualifications.

## What Is the Goal of Affirmative Action?

The goal of affirmative action is to increase opportunities for individuals and groups that historically have been underrepresented, or in some cases barred, from certain areas of academia, the government, and the [private sector](https://www.investopedia.com/terms/p/private-sector.asp) workforce. Affirmative action policies provide funding in the form of grants and scholarships to these communities.

Policies were adopted to help those with different racial backgrounds and national origins. They have expanded to address gender, [sexual orientation](https://www.investopedia.com/lgbtq-representation-in-the-workforce-5184133), and various disabilities.

## How Did Regents v. Bakke Change Affirmative Action Policies?

The _Regents v. Bakke_ case changed affirmative action policies by striking down the use of racial quotas. The case was presented by Allan Bakke, who claimed he was denied admission to medical school at the University of California on two separate occasions because he was white. The Supreme Court upheld affirmative action but ruled in Bakke's favor, saying racial quotas were unconstitutional. The 2023 case _Students for Fair Admissions v. the University of North Carolina_ overturned the ruling.

## Which U.S. President First Defined and Used the Term Affirmative Action?

That was President John F. Kennedy. He did so in 1961, telling federal contractors to take "affirmative action to ensure that applicants are treated equally without regard to race, color, religion, sex, or national origin."  

## The Bottom Line

Though affirmative action continues to be a source of controversy for some, such programs are a reality for all government-contracted businesses. What's more, many other employers choose to implement affirmative action programs as a helpful way to foster transparency in hiring and promotions, and diversity in the workplace.  

> **Article Sources**
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>      
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>      
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