Managing racial diversity: The context of state legal and political cultures

Abstract

We draw on institutional theory to examine the connection between state-level regulation of equal employment and political cultures and race/ethnic minority presence in managerial positions in private U.S. workplaces. Analyses examining managerial diversity at upper- and lower-levels show that expanded state EEO posting requirements are associated with a greater presence of nonwhite managers at both levels, while weak state EEO compliance penalties are related to fewer nonwhite lower-level managers. State-level EEO recordkeeping requirements that exceed federal law are unassociated with nonwhite managerial presence at either lower- or upper-levels. Early adoption of fair employment practices agencies (FEPA) is positively associated with only lower-level managerial diversity, whereas progressive state government ideology is negatively related to top managerial diversity. Our findings highlight the complexity of state government regulation, oversight, and culture in shaping managerial racial/ethnic diversity. We discuss the implications of our results for future research and policy aimed at diversifying private workplaces.