Final answer:
The hiring decision is an example of racial discrimination, where an employer denies a job based on race rather than qualifications or abilities. Such discriminatory practices contradict the principle of hiring based on productivity and can negatively impact a business's profits and reputation.
Step-by-step explanation:
The hiring decision mentioned in the question is an example of racial discrimination. Racial discrimination occurs when individuals are treated unfavorably because of their race, skin color, national origin, or ethnic background. The scenario described reveals a form of workplace discrimination, where an African American person is denied a job opportunity due to the employer's biased assumptions about customer preferences.
This practice is not only ethically wrong but also unlawfully neglects the individual's qualifications and abilities. In today's market-driven society, businesses are encouraged to make decisions that are economically beneficial. However, when discrimination occurs, it contradicts the principle that companies should hire the most productive and capable individuals, regardless of their race.