Comment by SilverElfin

I wouldn’t say it’s people ‘preferring’ it. The fact is, finding people that are competent enough to be hired is easier through referrals than other ways. And if you are receiving referrals, why wouldn’t you put them through the hiring process to see if they’re talented enough to hire? Rejecting those because they share the same race as the hiring manager is itself racist (since it would be taking race/ethnicity as a factor). In most big companies the hiring process has enough checks and balances to prevent nepotistic hires anyways (for example hiring panels or bar raisers or whatever).