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The term that describes the illegal practice of hiring or not hiring individuals based on attributes such as sex or race is discrimination. Discrimination refers to the unfair treatment of individuals based on specific characteristics that are not relevant to their ability to perform a job. This practice violates various laws and regulations designed to ensure equal employment opportunities and promote fairness in the workplace.

In contexts such as hiring, discrimination can manifest in various ways, such as biased hiring practices, lack of promotion opportunities, or unequal pay, all based on race, gender, or other protected characteristics. Understanding this term is essential for HR professionals, as it highlights the importance of implementing equitable policies and practices that promote diversity and inclusion within an organization.

Other options, like impact and treatment, do not specifically address the illegal and unethical aspect of making employment decisions based on personal attributes. Change is also unrelated, as it does not convey the concept of unfair or prejudiced actions within the hiring process. Thus, discrimination is clearly the most accurate term in this context.