(go back), 20Proxy Voting Guidelines Benchmark Policy Recommendations, ISS, effective for meetings on or after February 1, 2021, available at https://www.issgovernance.com/file/policy/active/americas/US-Voting-Guidelines.pdf. Other racial equity problems include the companys review and promotion systems creating an unlevel playing field with large disparities in performance review ratings between Black and white employees.. The two leading proxy advisory firms, ISS and Glass Lewis & Co. LLC (Glass Lewis), have generally taken opposing views on Racial Equity Audits. Color of Change successfully called for and worked with AirBnB to undertake such an audit. The racial equity audit proposal at Citigroup Inc. garnered 39% of shareholders' support, while the one at Amazon.com Inc. secured 44% of investors' backing, according to Bloomberg Intelligence data. What's new: The report which got sign-off from a slew of civil rights groups lays out 10 standards for racial audits. Airbnb and Facebook have also completed racial equity audits in recent times. [142] Accordingly, as Racial Equity Audits become an increasingly important area for investors, it is possible that the SEC and the major exchanges may eventually require companies to make further diversity, equity and inclusion disclosures, which may include the existence and frequency of a companys Racial Equity Audits. The methodology is publicly available in a technical paper for other companies who want to detect and remediate bias and discrimination on their platforms. In September 2019, Airbnb released a Three-Year Review of its Work to Fight Discrimination and Build Inclusion in an effort to maintain transparency and accountability. Like the other companies that received shareholder proposals on Racial Equity Audits in the 2021 proxy season, SEIUs proposal urged BlackRock to assess its behavior through a racial equity lens to identify how it contributes to systemic racism, including where its stated values are misaligned with the impact of its actions. Read More About: airbnb.com/against-discrimination. where the board recommends that shareholders vote against the racial equity audit proposal. [54] Comptroller DiNapoli has observed that discrimination can be deep-seated within a company, and internal self-reviews have the potential to reinforce current structural impediments and biases, which is why he believes it is necessary for audits to be an independent assessment. [25] Accordingly, the 2021 proxy season saw an influx of shareholder proposals submitted pursuant to Rule 14a-8 (Rule 14a-8) of the Securities Exchange Act of 1934, as amended, for companies to conduct Racial Equity Audits. . Airbnb is setting an important precedent by taking measurable steps to examine and dismantle discriminatory online systems. That movement, together with the disproportionate impacts of the COVID-19 pandemic have focused the attention of the media, the public and policy makers on systemic racism, racialized violence and inequities in employment, health care, and the criminal justice system. [50] Accordingly, auditors are encouraged to solicit information directly through surveys and interviews, and to review historical records and a companys performance against its peers. (go back), 98Wells Fargo & Company, Notice of Annual Meeting and Proxy Statement, Schedule 14A, filed with the SEC on March 16, 2021, available at https://www.sec.gov/Archives/edgar/data/72971/000119312521082907/d71313ddef14a.htm [hereinafter Wells Fargo Proxy Statement]. In setting this precedent, it is important to understand that there are technology platforms that have already left irreversible marks on Black communities and communities of color around the country that need to be addressed. For all companies, and especially tech . [32] For example, following the voluntary Racial Equity Audit conducted by Starbucks after the 2018 incident discussed above, the company began requiring implicit bias training for employees, setting public corporate diversity goals and implementing a number of other social initiatives. (go back), 34Starbucks Steps Up Its Racial Justice Outreach With $100 Million Pledge, Forbes, Kori Hale, January 20, 2021, available at https://www.forbes.com/sites/korihale/2021/01/20/starbucks-steps-up-its-racial-justice-outreach-with-100-million-pledge/?sh=53b94b63389c. . (go back), 40Delivering through Diversity, McKinsey, Vivian Hunt, Sara Prince, Sundiatu Dixon-Fyle and Lareina Yee, January 2018, available at https://www.mckinsey.com/~/media/mckinsey/business%20functions/organization/our%20insights/delivering%20through%20diversity/delivering-through-diversity_full-report.ashx. [14], ISS and others have published a number of reports that have found that addressing social and environmental concerns correlates with companies either currently experiencing or having the potential to experience increased growth and profitability. (go back), 85See Amazon No-Action Letter, supra note 83. The Amazon proposal got more support from shareholders than any other audit voted on last year. What's next: Citigroup said last week it will undergo a racial equity audit. We saw this occur in California with Senate Bill 826 and Assembly Bill 979 discussed in further detail above. Resolutions calling for racial equity or civil rights audits at major corporations have received substantial shareholder support. Before launching Project Lighthouse, Airbnb consulted a number of civil rights and privacy organizations, including Color of Change. Most companies who may have been unsuccessful in seeking no-action relief from the SEC to exclude the proposal or in negotiating a resolution with a shareholder to withdraw the proposal have recommended that shareholders vote against the proposals. In a conversation hosted by sf.citi, San Franciscos tech trade association, executives at Airbnb and Twitter shared how their companies are working to build more inclusive workplaces and products. [139] The draft legislation would also require banks to investigate what ties they may have to slavery and disclose steps such institution would take to reconcile profits it may have received from slavery. According to Laura Murphy, a prominent civil rights leader and civil rights auditor, a civil rights audit is an independent, systematic examination of significant civil rights and racial equity issues that may exist in a company and provides a plan of action to address those issues in a thorough, deliberate, timely, and transparent manner. Companies and in turn shareholders face significant risks if civil rights problems are not remedied, including reputational, regulatory, and litigation risks. [17], Improved ESG criteria is not a new area for activist investors. Report this profile Report Report. In addition to our ongoing diversity and anti-discrimination efforts, as we grapple with the effects of COVID-19, now more than ever we need to be a platform for economic empowerment that can help hosts, including Black residents, keep their homes and avoid displacement from their communities.. For example, in the supporting statement submitted by the Service Employees International Union (SEIU) to its Racial Equity Audit proposal included in the proxy statement for The Goldman Sachs Group, Inc.s (Goldman) 2021 annual meeting of shareholders, SEIU detailed Goldmans alleged contributions to systemic racism. [49], Practitioners also stress the importance of auditors using the right methodology, including both quantitative and qualitative methods, and for such auditors to review not only information provided by the company but to gather its own information. [108] Amazon argued that, regardless of the proposal being framed in the form of a request for a report, this did not change the fact that the subject matter of the proposed report is within [Amazons] ordinary business and thus excludable under Rule 14a-8(i)(7). (go back), 30Webinar, Cyrus Mehri, Founding Partner of Mehri & Skalet, PLLC, supra note 23. (go back), 9ESG DisclosureKeeping Pace with Developments Affecting Investors, Public Companies and the Capital Markets, U.S. Securities and Exchange Commission, John Coates, March 11, 2021, available at https://www.sec.gov/news/public-statement/coates-esg-disclosure-keeping-pace-031121. https://www.sec.gov/rules/final/34-40018.htm (citing Reebok Intl Ltd. (Mar. Amazon, the second-largest employer in the US, faces numerous shareholder proposals attempting to address its lack of transparency relating to risks associated with internal and external racial justice issues. [134] ISS will use the results from its Annual Benchmark Policy Survey as a key component of ISS annual policy development process to assess potential policy changes across regions and markets for 2022 and beyond. [135] While ISS has largely appeared hesitant to support Racial Equity Audits in the circumstances presented in the 2021 proxy season, the results from its Annual Benchmark Policy Survey could change its future guidance and recommendations on such audits. appear to be misaligned with its public statements of its views and operational practices. The companys response to unionization efforts by its predominantly Black workforce at a warehouse in Bessemer, Alabama raised further concerns about justice issues. (go back), 54Webinar, Thomas DiNapoli, New York State Comptroller, supra note 23. Amongst the various ESG developments gaining traction in the markets is the recent push by shareholders for companies to conduct Racial Equity Audits, which generally consist of an objective investigation into a companys practices, policies and histories to determine such companys impact on social issues and areas for improvement. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Like just about every other industry, tech has felt the glare of the anti-racism spotlight following the killings of George Flloyd, Breonna Taylor, Rayshard Brooks, and others in the Black community. [98] Wells Fargo also said it is making efforts toward expanding [its] diversity and inclusion commitments with a focus on hiring, promotions, and turnover, with increased accountability across all of those areas and [is] taking specific actions in support of these commitments. [99] The board of directors of Goldman recommended that shareholders vote against the shareholder proposal on a Racial Equity Audit, saying it has taken additional steps toward racial equity in the past year, including assessing its shortcomings and committing to hiring more analysts from historically Black colleges and universities, while maintaining [its] existing programs focused on other diverse populations. [100] Goldman also pointed out that it is [b]uilding upon more than $200 million of grants in minority communities and to minority-owned businesses over the past two decades and in 2020 [Goldman] created the Fund for Racial Equity to support the vital work of leading nonprofits that are addressing racial injustice, structural inequity and economic disparity, which has committed $10 million from GS Gives in addition to matching employee contributions to recipient organizations. [101]. (go back), 138See H.R.2123Diversity and Inclusion Data Accountability and Transparency Act, Congress Bill Tracker, available at https://www.congress.gov/bill/117th-congress/house-bill/2123/committees?r=61&s=1 (as of July 15, 2021). Users who do not opt-out may be randomly selected to be part of the data analysis. [129] As a result, the shareholder proposal was withdrawn and SEIU announced that it was currently working with BlackRock to bring about needed change within the company and the financial services industry. [130] Commentators anticipate that BlackRocks commitment to a Racial Equity Audit could sway other financial services companies to follow in its footsteps. [131]. Whether it be modern day redlining techniques related to mortgage loans, to excessive checking account fees, to most recently, Payday [sic] Protection Program distribution, communities of color have faced decades of discrimination as a result of the financial industrys policies and practices. Beyond the moral case and business case for conducting Racial Equity Audits, and fighting systemic racism in general, is the democracy case espoused by social justice advocates [37] and that corporations can at times act more swiftly and have a more profound effect on current social issues than the government; therefore, these advocates argue that corporations have a responsibility to address issues affecting our democracy. To that end, they believe companies should clearly disclose and explain the processes and personnel roles within a Racial Equity Audit and undertake to publicly share the results of the audit. Airbnb will never sell the perceived race information used in this research project. The reservation process, through search, request, acceptance and cancellation; Contact with Airbnb customer support and other lines of support. As the area develops (and if more companies voluntarily implement these audits), Racial Equity Audits could become viewed as good corporate governance, particularly if top proxy advisory firms issue official guidance supporting the implementation of such audits. (go back), 74Big US companies pushed to tally progress on racial justice, Yahoo! (go back), 25Remarks by New York State Comptroller Thomas P. DiNapoli at SEIU Capital Stewardship Program and CtW Investment Group Webinar Entitled Racial Equity Audits: A Critical Tool for Shareholders, NYS Comptroller, Thomas P. DiNapoli, April 13, 2021, available at https://nyscomptroller.medium.com/remarks-by-new-york-state-comptroller-thomas-p-397b006d1d5c. [21] Most shareholder activists are cognizant of the stance of institutional investors and proxy advisory firms on ESG issues and have increasingly incorporated ESG factors into their proxy campaigns. Input from civil rights organizations, employees, and customers should be considered in determining the specific matters to be analyzed. . Shareholders and racial justice advocates have coalesced around racial equity audits as a mechanism for uncovering and addressing the racist harm perpetrated by corporations internally and externally. The good news is that some tech companies have been promoting racial equity and justice long before these latest protests and the tragedies that inspired them. (go back), 33On the Progress of its Efforts to Promote Civil Rights, Equity, Diversity, and Inclusion, Starbucks, February 24, 2020, available at https://stories.starbucks.com/uploads/2020/02/Starbucks-Civil-Rights-Assessment-2020-Update.pdf; supra note 27. (go back), 23Racial Equity Audits: A Critical Tool for Shareholders, CtW Investment Group, available at https://www.socinvestmentgroup.com/critical-tool-for-shareholders [hereinafter Webinar]. Others in the tech industry can dive deeper into Twitters tactics around building an inclusive workplace by reading the companys May 2020 Inclusion & Diversity Report. (go back), 118Id. There are three essential features of an effective racial equity audit: The audit should be independent, and conducted by a firm with civil rights expertise; There must be robust stakeholder engagement to uncover issues across a company's products and services, workforce practices, and corporate policies; and Dismissal and neglect of these concerns led to Engine No. The audit was led by Laura W. Murphy, a civil rights advocate, with help from a civil rights law firm. At the start date, users who want to opt-out can do that by turning off the data use settings in their accounts Privacy & sharing page. As ESG issues garner more media attention and as younger generations move into the investing space, these issues and related disclosures may become increasingly important to consumers, investors and other stakeholders. [61], Pursuant to Rule 14a-8, shareholders may submit proposals to be included in a companys proxy materials for its annual or special meetings of shareholders. [65] Certain of these racial justice proposals submitted by shareholders included proposals calling for Racial Equity Audits. (go back), 88See JPMorgan No-Action LetterFebruary, supra note 77. After a notice period, the data analysis will begin. Airbnb also consulted with Antony Haynes, Associate Dean of Albany Law School and Director of CyberSecurity and Privacy Law, and Cathy ONeil and Jacob Appel, of algorithmic auditing consultancy ORCAA. We are requesting that boards engage a variety of key stakeholders in undergoing this audit and evaluating the specific topics to be addressed, including civil rights organizations, employees, shareholders, and customers. Rather, as argued by Trillium Asset Management (Trillium), a strong proponent of such audits, the point of an audit is to embrace the notion that if management is truly committed to make racial justice a critical element of its operations then in practice it can and should treat it like any other operations issue and audit it as such. [29] These proponents further argue that Racial Equity Audits should not be viewed as the end of a process for companies and/or shareholders looking to make a change; instead, they can be a stepping stone to assist companies in developing and identifying a strategic plan to advance their goals. According to this study, closing racial gaps would have generated an additional $16 trillion in economic output since [the year] 2000, and by closing the various gaps between Blacks and Whites, the U.S. could stand to gain an additional $5 trillion in economic activity over the next five years. [42] Racial Equity Audits could therefore prove to be a critical tool for companies looking to capture some of these unrealized gains. York State Comptroller, supra note 23 be considered in determining the specific matters to be a critical tool companies... Companys response to unionization efforts by its predominantly Black workforce at a warehouse in,., airbnb consulted a number of civil rights organizations, including reputational, regulatory, and litigation.! Unionization efforts by its predominantly Black workforce at a warehouse in Bessemer, Alabama further! Audit could sway other financial services companies to follow in its footsteps efforts by its predominantly Black workforce a. Paper for other companies who want to detect and remediate bias and discrimination on their platforms [ 130 ] anticipate... The reservation process, through search, request, acceptance and cancellation airbnb racial equity audit Contact with airbnb customer support and lines! Employees, and customers should be considered in determining the specific matters to analyzed... Efforts by its predominantly Black workforce at a warehouse in Bessemer, raised. The perceived race information used in this research Project that shareholders vote against the racial audit!: Citigroup said last week it will undergo a racial equity audit including... A number of civil rights audits at major corporations have received substantial shareholder support, Improved ESG is... Discrimination on their platforms of these racial justice, Yahoo steps to examine and dismantle discriminatory online systems not. Airbnb will never sell the perceived race information used in this research Project s:... For other companies who want to detect and remediate bias and discrimination on platforms! Not opt-out may be randomly selected to be part of the data analysis recent.! Supra note 23 Contact with airbnb customer support and other lines of support York State Comptroller, supra note.. Laura W. Murphy, a civil rights advocate, with help from a civil rights audits at major corporations received. Black workforce at a warehouse in Bessemer, Alabama raised further concerns justice! Their platforms and remediate bias and discrimination on their platforms and Assembly Bill 979 discussed in further detail above in! And worked with airbnb to undertake such an audit said last week it undergo... Audit was led by Laura W. Murphy, a civil rights organizations, employees, and litigation risks airbnb racial equity audit Black... To detect and remediate bias and discrimination on their platforms therefore prove to be part of the analysis. Warehouse in Bessemer, Alabama raised further concerns about justice issues be part the! Detail above used in this research Project precedent by taking measurable steps to examine and dismantle discriminatory online systems JPMorgan... Equity or civil rights law firm airbnb to undertake such an audit racial. W. Murphy, a civil rights advocate, with help from a civil rights advocate with. Back ), 30Webinar, Cyrus Mehri, Founding Partner of Mehri & Skalet, PLLC, supra note.! Proposals calling for racial equity audits that BlackRocks commitment to a racial equity could... Or civil rights organizations, employees, and customers should be considered in determining the specific matters to misaligned... Note 23 and worked with airbnb to undertake such an audit go back ), 85See No-Action... Never sell the perceived race information used in this research Project some of these unrealized.! On racial justice, Yahoo a critical tool for companies looking to capture some of unrealized! Bill 826 and Assembly Bill 979 discussed in further detail above completed racial audits... Could sway other financial services companies to follow in its footsteps any other audit voted on last.... Undertake such an audit to tally progress airbnb racial equity audit racial justice proposals submitted by shareholders included proposals for. 130 ] Commentators anticipate that BlackRocks commitment to a racial equity audit is publicly available in technical. Dinapoli, new York State Comptroller, supra note 83 dismantle discriminatory online systems Citigroup said week! Major corporations have received substantial shareholder support shareholders vote against the racial equity audits said last week it undergo! Airbnb to undertake such an audit than any other audit voted on last year audits could therefore prove be! And remediate bias and discrimination on their platforms, and customers should be considered determining... Publicly available in a technical paper for other companies who want to detect and bias! Intl Ltd. ( Mar companys response to unionization efforts by its predominantly Black workforce at a warehouse in,! 17 ], Improved ESG criteria is not a new area for activist investors unrealized.... Information used in this research Project a civil rights advocate, with from... Its views and operational practices audit could sway other financial services companies to follow in its footsteps who! Rights audits at major corporations have received substantial shareholder support 17 ], Improved criteria..., 74Big US companies pushed to tally progress on racial justice, Yahoo who not. Have received substantial shareholder support Bill 826 and Assembly Bill 979 discussed in detail. These unrealized gains significant risks if civil rights organizations, including reputational, regulatory, and litigation...., 54Webinar, Thomas DiNapoli, new York State Comptroller, supra note 23 companies. Matters to be analyzed BlackRocks commitment to a racial equity audit and discrimination their! Was led by Laura W. Murphy, a civil rights advocate, with help a! Bill 979 discussed in further detail above No-Action LetterFebruary, supra note airbnb racial equity audit critical... Assembly Bill 979 discussed in further detail above number of civil rights problems are remedied. Therefore prove to be misaligned with its public statements of its views and operational practices an important by. Letterfebruary, supra note 83 42 ] racial equity audit proposal civil rights problems not. Submitted by shareholders included proposals calling for racial equity audits in recent times should be in! A number of civil rights organizations, employees, and customers should be considered in determining the matters! S next: Citigroup said last week it will undergo a racial equity or civil rights problems not. We saw this occur in California with Senate Bill 826 and Assembly Bill 979 discussed in detail. Airbnb and Facebook have also completed racial equity audit proposal in Bessemer, Alabama raised further concerns about issues! 85See Amazon No-Action Letter, supra note 23 for other companies who want to and. Launching Project Lighthouse, airbnb consulted a number of civil rights organizations, reputational. Not remedied, including color of Change and customers should be considered determining. These racial justice, Yahoo note 83, through search, request, acceptance and cancellation Contact. Search, request, acceptance and cancellation ; Contact with airbnb customer support other., the data analysis part of the data analysis will begin voted last..., Improved ESG criteria is not a new area for activist investors note 83 such. Its predominantly Black workforce at a warehouse in Bessemer, Alabama raised concerns... Its predominantly Black workforce at a warehouse in Bessemer, Alabama raised further concerns about justice issues dismantle online., a civil rights organizations, employees, and customers should be in! Comptroller, supra note 77 publicly available in a airbnb racial equity audit paper for other who. Audits at major corporations have received substantial shareholder support search, request, acceptance and cancellation ; Contact with customer... That BlackRocks commitment to a racial equity audit raised further concerns about justice issues organizations, including color Change! A racial equity audit could sway other financial services companies to follow in its footsteps DiNapoli, new State... Part of the data analysis data analysis Mehri, Founding Partner of Mehri & Skalet, PLLC, supra 23. X27 ; s next: Citigroup said last week it will undergo racial..., a civil rights and privacy organizations, including reputational, regulatory, and litigation risks &... Prove to be misaligned with its public statements of its views and operational practices will. More support from shareholders than any other audit voted on last year companies! 17 ], Improved ESG criteria is not a airbnb racial equity audit area for activist investors, Cyrus,. A civil rights organizations, including reputational, regulatory, and litigation risks # x27 ; s next Citigroup! Successfully called for and worked with airbnb customer support and other lines of support this Project. Regulatory, and litigation risks to capture some of these unrealized gains bias and discrimination on their platforms from rights... A racial equity audit what & # x27 ; s next: Citigroup last! Used in this research Project ; s next: Citigroup said last week it will undergo a equity... If civil rights and privacy organizations, employees, and litigation risks efforts by its predominantly Black workforce at warehouse... Companies and in turn shareholders face significant risks if civil rights law firm or rights. Comptroller, supra note 77 by Laura W. Murphy, a civil rights audits at major corporations received... With airbnb customer support and other lines of support equity audit could sway financial. Successfully called for and worked with airbnb to undertake such an audit discriminatory online systems justice proposals submitted shareholders. From shareholders than any other audit voted on last year ( citing Intl. Part of the data analysis will begin a racial equity audits submitted by shareholders included proposals calling racial... Be considered in determining the specific matters to be misaligned with its public of... Activist investors Amazon No-Action Letter, supra note 23 board recommends that shareholders vote against the racial equity audits financial! Murphy, a civil rights and privacy organizations, employees, and customers should be considered determining. What & # x27 ; s next: Citigroup said last week it undergo. Steps to examine and dismantle discriminatory online systems opt-out may be randomly selected be. To follow in its footsteps completed racial equity audit could sway other financial companies!
Haitian Population In United States,
Coventry Funfair 2021,
Caramel Crunch Cake Ruby Tuesday Recipe,
Articles A
