Andy Jassy, Chief Executive Officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S. on Tuesday, October 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon will conduct a racial justice audit of its hourly workers after shareholders called on the company to be more transparent about how its policies impact diversity, equity and inclusion in the workplace.
The company said in a recently filed securities filing that the audit will “assess any diverse racial impact on our nearly one million US hourly workers resulting from our policies, programs and practices.” The review will be led by former Attorney General Loretta Lynch, now a partner at Paul, Weiss, Rifkind, Wharton & Garrison, and other attorneys at the firm.
Amazon said it would release the results of the audit, but didn’t give an expected completion date.
Shareholders have urged Amazon to commission an independent review into how the company might be contributing to racial injustice. Meanwhile, New York State Comptroller Thomas DiNapoli has resubmitted a proposal for a racial justice audit to be voted on at Amazon’s annual shareholder meeting next month.
“Amazon has taken some actions to address racial equity and equity, including providing financial resources and publishing data on workforce diversity,” the shareholder proposal reads. “However, Amazon faces controversies, some significant, which pose various risks and raise questions about the company’s overall strategy and alignment with its public statements.”
DiNapoli presented a similar measure at last year’s annual meeting. It gained the support of about 44% of Amazon shareholders but was ultimately rejected.
The e-commerce giant has recommended shareholders vote against the decision for an independent review, arguing it is conducting its own review. The company said it has also launched initiatives to address diversity and equity concerns among its workforce, including examining the systems it uses to hire, develop and promote employees.
Amazon follows Tyson Foods and Citigroup in agreeing to conduct an audit on whether its practices contribute to racial injustice. Some Amazon shareholders have sharpened their focus on the company’s workplace policies amid the coronavirus pandemic and a wave of worker activism among its warehouse and delivery workers.
The company will also face a shareholders’ vote next month calling for an independent review of its treatment of warehouse workers. The proposal cites reports of rising injury rates in camps and a recent citation cited by the Washington State Occupational Safety and Health Administration as evidence that workers are “exposed to unsafe working conditions and unfair treatment.”
Amazon has urged shareholders to oppose the resolution, citing its investment in workplace safety.
WATCH: Watch CNBC’s full interview with Amazon CEO Andy Jassy in his first annual letter to shareholders