Artificial intelligence is increasingly used to screen job applicants, yet empirical studies show that algorithmic hiring systems can reproduce racial, gender, and intersectional disparities. Existing mitigation strategies frequently treat these disparities as technical problems—addressed through data adjustments, model tuning, or compliance metrics—while insufficiently engaging with the broader ethical implications of discriminatory outcomes. This paper examines algorithmic bias in hiring through established ethical concepts of justice, capability development, and recognition to explain why technical and regulatory approaches alone prove inadequate. The analysis synthesizes empirical evidence of algorithmic discrimination with normative frameworks to identify structural limitations in prevailing fairness interventions. Findings reveal that while technical methods can reduce measurable disparities, they often fail to address deeper concerns: restricted access to meaningful opportunities, the devaluation of marginalized groups, and violations of procedural fairness. Regulatory frameworks similarly prioritize compliance over substantive commitments, contributing to “bias washing” where organizations meet formal requirements without achieving genuine equity. To address these limitations, the paper proposes an “ethical by design” governance model that integrates normative principles with technical implementation, guiding organizations toward hiring systems that promote equitable opportunity distribution and uphold candidate dignity.