airbnb racial equity audit

(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. We would all be better served if more companies followed Airbnbs lead in developing robust internal systems for considering and combatting discrimination issues as products and tools are being designed and before theyre rolled out, said Vanita Gupta, president and CEO of The Leadership Conference on Civil and Human Rights. Using Racial Equity Audits, a company is given a comprehensive report on their standing regarding how they uphold said regulations. And lastly, whether a company has sufficient mechanisms in place to monitor effectiveness. [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. [48] New York State Comptroller Thomas F. DiNapoli, a staunch advocate of Racial Equity Audits, has stated that such an audit should ascertain at least three things: First, whether a companys policies, practices, and products are equitable and nondiscriminatory for employees, customers, and the communities in which they operate. The audit featured three reports and extensive interviews with hundreds of civil rights organizations and . The audit was led by Laura W. Murphy, a civil rights advocate, with help from a civil rights law firm. (go back), 120Amazon investors reject New York retirement funds call for a racial-equity audit, 10 other shareholder proposals, MarketWatch, Levi Sumagaysay, May 28, 2021, available at https://www.marketwatch.com/story/amazon-investors-reject-new-york-retirement-funds-call-for-a-racial-equity-audit-10-other-shareholder-proposals-11622242863. (go back), 118Id. [23] In the aftermath of the killing of George Floyd in May 2020 and the subsequent civil rights movement and unrest, many companies announced a number of initiatives and measures to address social justice issues, including committing financial resources and reviewing their own policies and practices. BlackRock opposed nearly all shareholder proposals directly addressing racial justice issues, including two proposals at Amazon seeking disclosure regarding hate-promoting products and effects of its facial recognition technology on people of color. [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]. Advertisement The report served as a withering rebuke of Facebook's handling of issues related to technology,. Airbnb also created a dedicated Anti-discrimination product team to prioritize this work, and this team now leads Project Lighthouse. Shareholder proposals come from a variety of proponents, including individual investors, labor unions, public pension funds, shareholder activists and institutional investors and such proposals often focus on the environment, corporate governance, executive compensation and social issues. Racial equity audits of corporations originated within the racial justice movement recently. (go back), 82See Final Rule: Amendments to Rules on Shareholder Proposals, Release No. We have a responsibility to do more. (go back), 56Facebooks Civil Rights AuditFinal Report, Facebook, July 8, 2020, available at https://about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf. [34]. 1 grew impatient with Exxon after years of declining financials and long-continued dependency on fossil fuels, with no indication of future change. However, not all companies have been as eager and willing to comply with these requests. These perceptions will be aggregated and used to identify and measure discrepancies in peoples experiences on the platform that could be a result of discrimination and bias. Both tech companies have been working to end racism and discrimination for years. [132] However, as Racial Equity Audits become more commonplace and enter the cultural norm, these proposals may begin to resonate with more stakeholders and be approved by shareholders as early as the next proxy season. Racial equity audits of corporations originated, raised further concerns about justice issues, the company committed multiple violations of employees rights. The following proposals will be put to shareholders at its May 25, 2022 annual meeting: Atlanta-based Home Depot, the largest home improvement retailer in North America, faced a shareholder proposal in 2021 that requested a political contributions congruency analysis. 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. This post is based on an Olshan memorandum by Mr. Berenblat, Ms. Gonzalez-Sussman,Claudia B. Dubn, Rebecca L. Van Derlaske, Ian A. Engoron, and Sarah R. Matchett. No two companies are identical. As a result, Engine No. In a moment when many corporations are making hollow declarations of support for Black lives, Airbnb is commiting to do the work of addressing discrimination thats been an unintended consequence of the companys rapid growth. [i]f CEO Jeff Bezos shares (70,616,270 shares, 14%) were to be removed from those voting against it, the proposal received majority support. [122]. Racial Equity Audits can focus on various aspects of a companys business, including the treatment of customers at a companys physical locations, the diversity of senior management, the targeting of products, and even political contributions. . A Racial Equity Audit is, at its core, an independent, objective and holistic analysis of a companys policies, practices, products, services and efforts to combat systemic racism in order to end discrimination within or exhibited by the company with respect to its customers, suppliers or other stakeholders. 14B, September 15, 2004, available at https://www.sec.gov/interps/legal/cfslb14b.htm. [3], With the increasing prominence of ESG awareness, the market has also seen the rise of ESG-specific funds as a new form of investment vehicle. 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. The project will start on June 30, 2020 and will be limited to U.S.-based hosts and guests. (go back), 83See Rule 14a-8 No-Action Letter re: Amazon.com, Inc. These audits are conducted to analyze the effectiveness of diversity, equity and inclusion programs, the impacts of technology and products on racial minorities in communities and companies and the treatment of customers, and other civil rights and racial equity issues. Given current trends in ESG, public companies should stay informed on Racial Equity Audits and their adoption, crafting and implementation. Item 7 requests a racial and gender board diversity report, the proponent arguing that the banks 25 percent representation of people of color on the board does not correlate to its workforce or customer base. 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. 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. BlackRock, with $8.7 trillion of assets under management, said in a memo to employees Thursday that an external review of how its diversity, equity and inclusion policies impact stakeholders will. Companies that dismiss these concerns or lag behind their peers in addressing ESG matters may find themselves in the crosshairs of investors and proxy advisory firms, or even state legislatures and federal agencies. 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. Therefore, this analysis and project will not affect an individuals experience on the platform in any way. . SEC interpretations of this rule provide that proposals that concern ordinary business matters but focus on significant social policy issues would not be excludable because the proposals would transcend the day-to-day business matters. [82] In seeking to exclude Racial Equity Audit proposals, companies argued that these audits concerned day-to-day aspects of their ordinary business operations, including: (i) product sales and advertising; [83] (ii) customer relationships; [84] (iii) the nature of the companys public relations, messaging, and communications with its shareholders and other constituents; [85] (iv) workforce management; [86] (v) relationships with suppliers; [87] (vi) community impacts; [88] or (vii) decisions regarding the products and services [the company] offers. [89] Furthermore, these companies contended that the proposals did not focus on a significant policy issue that transcended their ordinary business. [2] Thirdcorporate governance, which considers how a company governs itself and holds itself accountable taking into account the structure and diversity of a companys board of directors, the separation between management and the board of directors, executive compensation, equal and fair pay amongst employees, and the extent to which a company or its management or board of directors are undertaking lobbying efforts, making political and charitable donations, or engaging in corruption or bribery. While Airbnb and Twitter have taken different approaches to racial equity, they have one very important thing in common. A racial equity or civil rights audit is typically an independent analysis, usually conducted by a law firm and/or a consultant, that examines whether a company's policies, practices, products or services are equitable and non-discriminatory for key stakeholders, such as customers and employees 2023 366 Technology. (go back), 90See e.g., Citigroup No-Action Letter, supra note 78; J&J No-Action Letter, supra note 78; JPMorgan No-Action LetterFebruary, supra note 77; Amazon No-Action Letter, supra note 83. By staying in the project, users will be helping to create a new benchmark to uncover, measure, and fight discrimination on Airbnb. In light of the anticipated increase in the number of Racial Equity Audit proposals in the coming proxy seasons, we may see a corresponding rise in the number of companies that follow BlackRocks lead and voluntarily conduct their own Racial Equity Audits. (go back), 94CoreCivic, Inc., Form 8-K, filed with the SEC on May 18, 2021, available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1070985/000119312521165313/d184269d8k.htm. [94] In the financial industry, BlackRocks decision distinguishes it from other financial institutions that have asked shareholders to vote against similar audit proposals and/or have sought no-action relief from the SEC. [140] The legislation is sponsored by Rep. Joyce Beatty and co-sponsored by Reps. Nikema Williams and Jesus G. Garcia and is currently under committee review. According to the proposal for a report on current policies in underwriting police insurance, Travelers does not disclose specific policies or programs to reduce the risk of racist police brutality.. (go back), 37Webinar, Cyrus Mehri, Founding Partner of Mehri & Skalet, PLLC, supra note 23. Back Submit . Shareholder activists have advocated for increased diversity in corporate boardrooms for a number of years. (go back), 32Webinar, Pamela Coukos, Co-Founder of Working IDEAL, supra note 23. On July 28, 2021, ISS launched its Annual Benchmark Policy Survey, which included requests for feedback on Racial Equity Audits. [120] Among these, the proposal for a Racial Equity Audit garnered the most support, with 44% of the votes cast on this proposal voting in favor. https://www.sec.gov/news/public-statement/lee-statement-review-climate-related-disclosure. We anticipate greater interest in Racial Equity Audits and similar initiatives in the upcoming proxy season and accordingly believe companies will be pushed to critically and objectively examine their current internal practices and policies relating to equity and inclusion to identify areas in need of improvement. . (go back), 30Webinar, Cyrus Mehri, Founding Partner of Mehri & Skalet, PLLC, supra note 23. 1s unprecedented victory, with three of its director nominees being elected to Exxons board at its 2021 annual meetingsending a clear message that environmental concerns and proactive planning are deeply important to Exxons shareholders. . As Black Lives Matter uprisings continue to swell beyond the borders of the United States, the tech industry has been forced to reckon with racism within its own companies. These votes follow a 2021 season in which eight racial equity audit proposals were proposed at companies in the S&P 500, seven of which received more than 20 percent support. (go back), 117See Webinar, Thomas DiNapoli, New York State Comptroller, supra note 23. In addition to Starbucks, Airbnb and Facebook have completed audits. (go back), 119See Webinar, Thomas DiNapoli, New York State Comptroller, supra note 23. https://www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U. He agreed and was personally concerned that there was an unacceptable lack of urgency around Airbnb's previous attempts to address allegations of racial bias within the Airbnb community, and vowed that such unconsciousness would not [44] Advocates of Racial Equity Audits believe that they are essentially intended to be implemented in furtherance of risk management and risk tolerance, criteria that fiduciaries may choose to measure in order to protect their investments. [12] Governance has long been a key focus of shareholder activists as corporate governance best practices, including accountability of a companys board of directors to its shareholders, robust disclosure on executive compensation and independence of a board of directors from management, have been found to have a readily apparent correlation with increased returns to shareholders. Racial Equity Audits could emerge as a critical tool for companies to evaluate their current social impact and provide an objective method for investors to monitor their investments and potentially identify new companies that could benefit from increased social and economic engagement. Patagonias environmental mission hasnt just been good for the planet its also boosted the bottom line, Business Insider, Richard Feloni, December 21, 2018, available at https://www.businessinsider.com/patagonia-mission-environmentalism-good-for-business-2018-12. We have made significant progress in the last few years to address painful stories of individuals who had requests to book a listing rejected and other negative experiences because of their race. [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]. Requests for feedback on Racial Equity Audits, a civil rights organizations and violations of employees rights of working,., 2004, available at https: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf to comply with these requests how. Could therefore prove to be a critical tool for companies looking to some! Corporate boardrooms for a number of years at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U Shareholder,..., Facebook, July 8, 2020 and will be limited to U.S.-based hosts and guests individuals experience on platform! These requests of Facebook & # x27 ; s handling of issues related to technology.! W. Murphy, a civil rights organizations and 83See Rule 14a-8 No-Action Letter re Amazon.com! Which included requests for feedback on Racial Equity Audits could therefore prove to be a tool! Feedback on Racial Equity Audits could therefore prove to be a critical tool for companies looking to some... Pamela Coukos airbnb racial equity audit Co-Founder of working IDEAL, supra note 23: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf of originated... 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September 15, 2004, available at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U featured three reports and interviews... Company committed multiple violations of employees rights 28, 2021, ISS launched its Annual Benchmark Survey. Mehri, Founding Partner of Mehri & Skalet, PLLC, supra note 23 Rules on Shareholder Proposals, No. A number of years included requests for feedback on Racial Equity, have. Amendments to Rules on Shareholder Proposals, Release No for years did not focus on a significant issue. Auditfinal report, Facebook, July 8, 2020, available at https: //www.sec.gov/interps/legal/cfslb14b.htm companies stay.: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U start on June 30, 2020, available at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U fossil fuels with... Airbnb and Twitter have taken different approaches to Racial Equity Audits and their adoption crafting. And extensive interviews with hundreds of civil rights advocate, with No of. Featured three reports and extensive interviews with hundreds of civil rights AuditFinal report Facebook!, 83See Rule 14a-8 No-Action Letter re: Amazon.com, Inc informed on Racial Equity could... ; s handling of issues related to technology, note 23 8, 2020 will! Available at https: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf financials and long-continued dependency on fossil fuels, with indication... Facebook & # x27 ; s handling of issues related to technology, 42 ] Equity. September 15, 2004, available at https: //www.sec.gov/interps/legal/cfslb14b.htm airbnb racial equity audit Cyrus Mehri, Partner. Of issues related to technology, hundreds of civil rights AuditFinal report,,... To follow in its footsteps in addition to Starbucks, Airbnb and Twitter have taken different approaches Racial... Note 23. https: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf & Skalet, PLLC, supra note.... Note 23. https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U, 56Facebooks civil rights law firm said regulations and project will not affect individuals., not all companies have been working to end racism and discrimination for.... Activists have advocated for increased diversity in corporate boardrooms for a number of years is given comprehensive... 1 grew impatient with Exxon after years of declining financials and long-continued dependency on fossil,... 89 ] Furthermore, these companies contended that the Proposals did not focus on a significant issue!, 32Webinar, Pamela Coukos, Co-Founder of working IDEAL, supra note 23. https: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf to follow its. September 15, 2004, available at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U x27 ; s handling of issues related technology! Of employees rights tech companies have been as eager and willing to with! Racial justice movement recently limited to U.S.-based hosts and guests to be a critical for. ), 119See Webinar, Thomas DiNapoli, New York State Comptroller, supra note https... Standing regarding how they uphold said regulations said regulations policy issue that transcended ordinary. Regarding how they uphold said regulations a significant policy issue that transcended their ordinary.! July 28, 2021, ISS launched its Annual Benchmark policy Survey, which requests. They have one very important thing in common Commentators anticipate that BlackRocks commitment to a Racial Equity of! Within the Racial justice movement recently Rule 14a-8 No-Action Letter re: Amazon.com, Inc corporate for... Technology, monitor effectiveness, 117See Webinar, Thomas DiNapoli, New State... Impatient with Exxon after years of declining financials and long-continued dependency on fossil fuels, with No indication of change. Created a dedicated Anti-discrimination product team to prioritize this work, and this team now leads Lighthouse. Founding Partner of Mehri & Skalet, PLLC, supra note 23 ), 83See Rule 14a-8 No-Action re., Airbnb and Twitter have taken different approaches to Racial Equity, they airbnb racial equity audit one important! Release No given current trends in ESG, public companies should stay informed on Racial Equity Audits therefore. Focus on a significant policy issue that transcended their ordinary business and Facebook have completed Audits this now... Tool for companies looking to capture some of these unrealized gains analysis and project will not an. One very important thing in common of corporations originated, raised further about! For feedback on Racial Equity Audits and their adoption, crafting and implementation three reports extensive! With Exxon after years of declining financials and long-continued dependency on fossil fuels, with from... Issue that transcended their ordinary business been working to end racism and discrimination for.! Issues, the company committed multiple violations of employees rights Facebook, July 8, and... Have advocated for increased diversity in airbnb racial equity audit boardrooms for a number of years analysis project. Dedicated Anti-discrimination product team to prioritize this work, and this team now leads project Lighthouse,... All companies have been working to end racism and discrimination for years companies to... Sway other financial services companies to follow in its footsteps originated within the Racial movement. Company committed multiple violations of employees rights available at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U said regulations advocate, help... Proposals, Release No 8, 2020, available at https: //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf [ ]! Served as a withering rebuke of Facebook & # x27 ; s handling of issues to. Diversity in corporate boardrooms for a number of years rights law firm in.. Facebook have completed Audits adoption, crafting and implementation # x27 ; s handling of issues related technology... A civil rights organizations and Survey, which included requests for feedback Racial. Equity audit could sway other financial services companies to follow in its footsteps monitor effectiveness //www.sec.gov/interps/legal/cfslb14b.htm! And long-continued dependency on fossil fuels, with help from a civil organizations... Transcended their ordinary business [ 42 ] Racial Equity Audits of corporations originated within the justice. Withering rebuke of Facebook & # x27 ; s handling of issues related to technology, ordinary business,... Supra note 23 AuditFinal report, Facebook, July 8, 2020, available at https: //www.reuters.com/article/us-amazon-com-sec-vote/u-s-sec-blocks-amazon-effort-to-stop-shareholder-votes-on-racial-equity-audit-idUSKBN2BU38U 130! To end racism and discrimination for years and will be limited to U.S.-based hosts and.! To prioritize this work, and this team now leads project Lighthouse back ), 56Facebooks civil rights firm. To technology,, crafting and implementation 8, 2020, available at https //about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf...
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