Hiring quotas aren't the only way to pursue the goal of affirmative action. They're illegal at the federal level as well as state law where I live, yet we do have a strong program of affirmative action that is largely based on other strategies, such as retraining HR and admissions staff in systemic behaviors, education of the young and increased access to training in desirable fields, research into the causes of systemic discrimination, and economic reform. To say that there are no options except either quotas or complete inaction is to paint a false dichotomy. And no, I don't think that simply declaring ourselves equal now and hoping for the best will somehow cause equality to magically appear without some kind of affirmative action to tear down racial barriers. The ERA was never even passed, so the only meaningful Constitutional protection in such cases is the 14th amendment. We're going on 154 years since its passing, and though its scope has expanded, its reach has decreased during that time. When is the legal magic supposed to start? How long are racial minorities supposed to wait for their alleged equal rights to kick in? 150 more years? 450? After the death of the nation sometime?
No, your company doesn't just get fined, or you as an individual pay a fine but you go to jail, period full stop.
While I approve of a legal approach to severe cases of individual discrimination, the law requires an
enormous burden of proof before it will send an upper-class white man to jail, and that burden of proof is nearly impossible to meet in most cases of racial discrimination in hiring or admissions. If the accused can show that there is any possible alternative explanation for their actions (up to and including hand-wavey things like "he seemed to be of good character"), they can generally avoid legal prosecution even if they work directly for the federal government, unless they were dumb enough to confess their racism openly in speech or writing somewhere. The idea of having only individual accountability would further hamstring the government in dealing with problem cases, since any prosecution at all is then contingent on making the above sort of cases stick. The legal challenge is even more impossible if you're trying to pinpoint a private business, which has considerabel latitude in hiring practices when it comes down to it.
There's also the fact that a large share of racial discrimination of this kind is unconscious - is it even fair or ethical to put someone in jail for a "crime" they didn't intend to commit and had no idea they were committing? The law says no, at least as things stand on the particular issue of racial discrimination in hiring.
The stigma thing is real, and my minority students routinely deal with racist assumptions about their status. So I do think the issue you're raising is valid. On the other hand, I also note that a strong majority of White Americans believe that Blacks have in unfair advantage in university admissions, despite the fact that quota systems of admission have been illegal since 1978, and university system remains strongly biased against Black students by any objective measure of differential admissions rates. You really think publically eshewing quotas
even more will somehow convince conservative Americans that everything is fair, now? Especially if there's a giant pogrom going on to send their friends and neighbors to jail for hiring the wrong person? They already have everything they want, a strong White advantage in hiring and admissions that is backed by the legal system itself, but they aren't happy. What will make them happy?