Can Morgan Stanley avoid future discrimination lawsuits?

In a recent article, a former Morgan Stanley employee alleges that recent human resource policies result in continued racial discrimination. Title VII of the Civil Rights Act of 1964 safeguards individuals against employment discrimination based on race, color, national origin, sex, or religion. It is unlawful to discriminate against any employee or employment applicant due to race or color as it related to hiring, termination, promotion, compensation, job training, or any other term, condition, or privilege of employment. Title VII also safeguards against employment decisions based on stereotypes and assumptions about abilities, traits, or the performance of individuals of certain racial groups. Morgan Stanley can avoid the perception associated with racial discrimination by promoting positive racial relationships.

According to the article, a former Morgan Stanley African American financial advisor, Kathy Frazier, alleged that her former company has discriminated against her due to her race. Frazier has implied that Morgan Stanley institutes an alleged racially charged policy that inhibits employees from seeking relief to their racism claims outside the company. In particular, the lawsuit claims that Morgan Stanley has expanded its internal arbitration program, Convent Access to Resolutions for Employees (CARE) to ensure that employees “quietly institute mandatory arbitration and continue its rampant discrimination in private and challenge or accountability in the Court of notice by the investing public”, according to Frazier.

The primary goal for a human resource department is to maintain a supply of skilled and satisfied workforce. In response to this goal, Morgan Stanley human resources department advised it’s 16,000 employees that they are mandated to settle any employment disputes through their CARE program which would include accusations of racial discrimination. It appears that Morgan Stanley has made a critical error in keeping employees satisfied with their employment through a power over leadership style that has proven detrimental for many other companies and organizations.

What are the characteristics associated with the power over leadership that Morgan Stanley human resources has utilized?

Power over leadership is a associated with Theory X leadership characteristics. When individuals find little satisfaction in their work, management will normally utilize a Theory X leadership style. A Theory X leadership style results in micromanaging employees for which the Morgan Stanley human resource department has attempted to enforce when allegations of racism become prominent.

Theory X managers believe that employees:

  • Dislike work and attempt to avoid it
  • Lack ambition
  • Want no responsibility
  • Would rather follow than lead
  • Are self-centered
  • Do not care about organizational goals
  • Resists change
  • Act irresponsibly

Apparently, the Morgan Staley human resource department has a need to place organizational goals above the satisfaction of the employees.

What process should the Stanley Morgan human resource department used instead of implementing policies that are consistent with Theory X leadership?

Stanley Morgan human resource department must understand that the best way to solve racial problems is to empower their employees to solve the racial problems. Empowering employees enhances job satisfaction because for many employees, it’s frustrating to know what’s right, but feel powerless to do anything.  Giving employees some decision-making ability will decrease frustration and improve employee retention. Empowering employees raises expectations because when an employee is empowered, that employee has higher expectations. When employee expectations are raised, they will rise to extraordinary levels and can become the catalyst for growth. Empowering employees’ increases quality of work because in organizations that provide employees with the freedom and flexibility to make a difference, employees feel empowered to deliver high quality work. Companies that provide employees with the freedom and flexibility to be empowered will deliver higher levels of quality work.

Morgan Stanley should have recruited the correct connectors to pilot a project that will eliminate the perception of racism. The next step is for the recruited team to develop a shared vision and strategic plan that will promote positive racial relationships at Morgan Stanley.

Related Articles

Morgan Stanley hit with racial discrimination suit

Morgan Stanley Faces a Class-Action Suit for Racial Bias

Former Morgan Stanley Broker Sues Over Arbitration Policy


Dr. Derrick L. Campbell, Ed.D. PO Box 1668 Blackwood, NJ 08012


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About Classroom Racism Management Specialist

Racism is a menace and so we’ve been taught for ages which is the primary need for a diversity expert. However, even in this modern society of today where we see a lot of colored celebrities performing on stage with huge fan followings and of course an Afro-America President for the USA, we are still in a phase where racism exists in all its brutal glory and has been eating away at the society like a plague. Classrooms, are one of the most affected areas where color differences and racism exists to its extremes. Even after decades of progress and a lot of communal efforts at bridging the gaps between colored students, white students and teachers, it is sad to say that the disparities still exist and are just as pronounced today as they were back in the 1950s. Colored students, even in the likes of New York City, are attending under resourced schools or have been significantly isolated and made to be unequal in regular schools. Even if the teachers are well-intentioned, perpetuating the structural racism that has taken deep roots into the fabric of our education system is a tough task and make the need for a diversity expert imperative. Teachers need to recognize the biases that exist within the classroom and also take conscious measures to address them and their own biases of course. James Baldwin once said, “it is your very own responsibility to change this society, if you think of yourself as an educated person.” Dr. Derrick L. Campbell took this quote very effectively and straight to the heart and thus this Classroom Racism Exterminator happened. Classroom Racism Exterminator is an initiative that will teach you about your duty and moral obligation towards eliminating racism from the classrooms. This is where and how you will learn about what you need to do to produce a better society that is free of biases and disparities amongst the blacks and the whites. Because we understand how classroom biases and conversations about racism are difficult and how teachers and students almost avoid the topics altogether, we have put together a range of effective methods and products to help address the problem at hand and talk meaningfully to counter issues related to race and racism in the classroom. Diversity expert Dr. Campbell understands that it takes a lot of courage to talk about race and racism and that racial issues need to be viewed through a very critical lens that can understand and attend to the pertaining aspects of racism in the classroom. And therefore through this website we have made a conscious effort to eliminate racism from the classroom and make the educational system equal and beneficial for all. We know and we understand that there are no words that can actually describe how racism feels. There are cases and everybody tends to deal with it in their own manner. Some might lash out verbally or others might just withdraw into shells. Whatever the case, people don’t talk about it openly and teachers don’t really make a conscious effort at addressing the issue. We don’t really know if our children or if the youth is learning to be educated or become racists in their classroom. Our program is focused on helping children of color and regardless of their race, their full potential. We want every student to be able to recognize and reach their full potential so that they think of themselves as responsible citizens of their country and not regard themselves as worthless human beings. Here you will find motivational books and flash card games, all of which have been designed focusing on eliminating racism completely from our classrooms. The books and the games have been consciously designed keeping in mind the American society and educational system. It is a small effort on our and Dr. Campbell’s part to help this society become a better place to live in. A little about diversity expert Dr. Campbell Dr. Derrick L. Campbell the driving force behind Classroom Racism Exterminator is a dynamic figure and a constant source of motivation for us. He has a Bachelors of Science in Electronics Engineering Technology, Math Education, a Masters in Education Administration and also holds a doctoral degree in Educational Leadership. Dr. Campbell is a well known personality throughout the nation. He has lectured at various events including the National Association for the Advancement of Colored People (NAACP), Iron Sharpens Iron Men’s Conference and a lot of local churches. He is a personality well dedicated towards eliminating the plague of racism from our classrooms and helping every child recognize his/her true potential not the color of their skin. He realizes how a child would feel if he/she was made to think they are worthless human beings. Diversity expert Dr. Campbell is compassionate and related to the experiences and therefore this initiative is a constant and continual effort to eliminate racism manifested in us, completely from the classroom and from our society.
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