The cited example was interns. Who doesn't favor employee referrals for interns? You can be encrusted in diamonds and you're going to get put in the back of the line behind the known quantities and get-in-so-and-so's-good-graces hires for an intern position. There's also the fact that people start to favor/discriminate schools based on history. Had a great intern from Stanford? Hire another Stanford kid. Had a terrib…
It's common practice, but that doesn't make it ok. In fact, afaik, those network-based hiring practices are a major obstacle to social mobility and to ending racial and gender inequality. Think of it this way: In the U.S. in 1950, white men[0] controlled access to resources like education and jobs, and shared them only with other white men, intentionally discriminating against non-white and non-male applicants. In th…
It's inevitable, and it happens from both ends of the hiring funnel. When I decided it was time to look for a new job, the first thing I did was to look at where people I'd worked with before had ended up. I knew those were places where I would be qualified to work, would be likely to advance my career, and where I would be happy on a daily basis. This is incredibly valuable information for me as I live my life.
(This is in addition the business's gain of being able to save dozens of engineer-hours discarding junk candidates from the hiring process, thousands of dollars in job advertising, and tens of thousands on recruiter fees.)
Asking everyone to destroy this information and waste resources on alternative sources in the service of a more valuable but vague, distant and nebulous goal is... impractical. Pursuing it any regulatory manner would either be a joke or carry a crushing burden on the ability of business to actually conduct business and might very well violate Constitutional protections on the freedom of speech. It would fuel backlash and resentment. It cannot possibly be the best way to do things.
If you want to fix this then we need to find a world where individual self-interest and the pursuit of this goal are at least roughly in alignment with each other. That means making hiring for minorities and the poorly-connected better, rather than making it worse for everyone else - and, from a human perspective, is about making connections between human beings rather than trying to sever them.