In: Economics
why discrimination practiced by employers can have a negative impact on profits
Answer--Discrimination practiced by employers can have a negative impacts on profits ,discrimination by employers can cause unstability among the employees of the company,and unstability always results into the negative impact on the profits and on the working environment of the workplace.
Discrimination by employers can take place on the basis of favorism ,age ,religion ,colour,etc.Discrimination on the basis of favorism is type of discrimination by the firm in which favorable employees gets more attention then the deserving candidate ,by which deserving candidate feels anger ,sadness ,depression by which his/her working capacity influence and it results into the impacts on profits of firm too.
Discrimination of employees on the basis of age can also impact the profits because employers want young age employees in the business whether young employees are efficient or not ,old age employees are not judged on the basis of experience ,so ineffiecient young candidates can impact the profits of the business.
Discrimination on the basis of religion and colour can result in chaos and can result into the government intervation or interference in business work,when there will be government interference then it will badly affect the production process of the company because in these situation labor union also calls shut down of the production process of the company which leads in the huge loss in the business profits.