Adverse Impact

Adverse Impact refers to a situation where a seemingly neutral policy or practice unintentionally leads to discriminatory effects on a particular group of people. For example, if a company implements a hiring test that most applicants from a certain ethnic background fail, even if the test is fair, it may still create a disadvantage for that group. This concept is important in fields like employment and education because it highlights the need to ensure that policies do not unintentionally harm specific demographics while aiming for fairness and equality.