Former Attorney General Loretta Lynch will spearhead an independent racial equity audit to determine whether Amazon perpetuates discrimination through its policies.
The Obama-era Cabinet member’s investigation will evaluate whether the company’s policies and practices produce “disparate racial impacts” against its hourly employees, Amazon said in a recent filing to the Securities and Exchange Commission. The Seattle-based company will publicly share the results, although it’s unclear when the audit is expected to be complete.
“Amazon has taken some measures to address racial justice and equity, including committing financial resources and publishing workforce diversity data,” the filing states. “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.”
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Amazon announced its decision ahead of its annual meeting May 25 at which it will consider a request from the New York State Common Retirement Fund to complete a racial equity audit after the company rejected a similar proposal in 2021. The company has suggested shareholders vote against the resolution next month due to the company’s independent audit.
The investigation is set to address allegations and controversies related to workplace diversity and discriminatory hiring practices within Amazon’s leadership.
The pension fund company first requested the audit in 2021 after receiving allegations of discrimination against the company’s black and Latino workers, pointing to low wages and dangerous working conditions. However, the company objected, arguing it has given funding to black colleges and universities, implemented leadership programs for minority workers, and invested in closing the racial wealth gap.
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Other companies have agreed to similar audits, with Airbnb becoming the first company to conduct a racial equity investigation in 2016, followed closely by Starbucks and Facebook shortly after.
Lynch, who is now a partner at Paul, Weiss, Rifkind, Wharton & Garrison LLP, oversaw several noteworthy investigations as attorney general, including the review of former Secretary of State Hillary Clinton’s private email server. She drew scrutiny when she met with former President Bill Clinton on a tarmac in Phoenix, Arizona, with critics arguing the visit gave the appearance of undue influence over the investigation. Lynch insisted the conversation was social in nature and had no bearing on her decision not to pursue charges against Clinton’s wife.
