Meaning ● Disparate Impact, within the purview of SMB operations, particularly during growth phases, automation projects, and technology implementation, refers to unintentional discriminatory effects of seemingly neutral policies or practices. Analyzing hiring algorithms, marketing automation funnels, or even customer service protocols, it’s crucial for SMBs to ensure these systems don’t systematically disadvantage protected groups, potentially resulting in legal and reputational risks. Automation, for instance, if trained on biased data, can perpetuate and even amplify historical inequalities. Compliance evaluations are critical.
