Amazon | Firm to finally conduct racial equity audit after shareholder urging

Firm to finally conduct racial equity audit after shareholder urging

E-commerce monolith Amazon.com, Inc. has announced in a recent securities filing ahead of its May 25th board meeting that it has appointed a firm to conduct an independent audit into how its policies and procedures impact its nearly US $1m hourly employees.

Former US Attorney-General Loretta Lynch will lead the audit, alongside other members of the law firm she belongs to, Paul, Weiss, Rifkind, Wharton & Garrison.

The move comes after the retail giant was pressured by shareholders to commission an independent review on how its policies, procedures and practices might contribute to racial inequalities – both within the company and in society, as the world’s largest retailer.

The proposed audit is also after the New York State Comptroller (NYSC), Thomas DiNapoli, refiled the initial proposal that garnered 44% of shareholder votes (the highest of any shareholder vote in favour of reviewing racial inequality so far). If Jeff Bezos’ 14% shareholding in the company is disregarded, then the vote would have secured a majority, which the Office of the NYSC calls an “immense success for a first-time proposal.”

More money, more problems

According to the FT, the New York State Common Retirement Fund (one of the largest public pension funds in the US), published a shareholder proposal that called for an independent audit into safety data by race, gender and ethnicity.

“Given its racially and ethnically diverse warehouse workforce, Amazon’s higher illness and injury rates may have a more pronounced impact on workers of colour,” the group stated.

Echoing these sentiments, the shareholder proposal, according to CNBC and Reuters, says: “Amazon has taken some measures to address racial justice and equity, including committing financial resources and publishing workforce diversity data.

“However, Amazon faces controversies, some significant, that pose various risks and raise questions related to the company’s overall strategy and the company’s alignment with its public statements.”

DiNapoli went in the strongest with his views, saying on his office’s website: “Shareholders sent a loud message to Amazon that they want the company to do more to address racial diversity, equity and inclusion. It's time for Amazon to listen to its investors and take steps to address these issues. Amazon needs to ensure that it is effectively addressing inequality and protecting the company’s long-term success.

“The call for racial equity is not going away and neither are Amazon's shareholders. We will continue to press Amazon to take an independent look at how it is addressing racial justice and equity, just as other major corporations have done.”

Amazon and race

The retailer has been hit by a number of lawsuits alleging unfair working practices, with the world aghast as alleged details of workers forced to urinate in bottles, go without sleep and suffer inhumane working conditions came to light. As most of the Black and Latinx staff members employed by the company are hourly workers, that means that these apparent working practices are putting them at worse risks, proportionally, than their White colleagues.

In May of last year, to boot, Amazon was hit with five more female employees joining together in a lawsuit about alleged gender and racial discrimination, according to Vox.

In addition, the health and safety of minority workers has been raised by many as a concern, after it was revealed earlier this month that Amazon employees suffer serious injuries at a rate of 2x that of its competitors. The report, entitled The Injury Machine: How Amazon’s production system hurts workers was published by the Strategic Organizing Center, a democratic coalition of four separate labour unions.

As if that weren’t enough, in January, DeNapoli’s office (which manages the states’s pension fund) issued a letter to Amazon warning the company to not interfere with attempts to unionise, or in union activities.

“Amazon is a profitable investment,” DiNapoli told The NY Post. “We want to stay invested in them, but we want them to be a good corporate citizen.”

Be the first to comment.

Sign up for a FREE myGrapevine account to have your say.