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Amazon to conduct racial equity audit led by former AG Loretta Lynch

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Andy Jassy was the chief executive of Amazon.Com Inc. at the GeekWire Summit, Seattle, Washington on Tuesday, October 5, 2021.

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AmazonAfter shareholders asked for more information about how the company’s policies affect diversity, equity, and inclusion, it will perform a racial audit of its hourly employees.

According to the company, in a recent securities filingAuditor Loretta Lynch will examine “any disparate and adverse racial effects on nearly 1 million U.S. hourly workers resulting from our programs, policies, and practices.” The audit will be led by former Attorney General Loretta Lynch, now a partner at Paul, Weiss, Rifkind, Wharton & Garrison, as well as other attorneys from the law firm.

Amazon stated that it would make public the audit results. It declined to give a timeframe for the completion of its audit.

Amazon shareholders have been pressuring it to conduct an independent review on how Amazon may be contributing to racial disparities. Thomas DiNapoli, New York State Comptroller refiled a proposalAmazon’s Annual Shareholder Meeting next week will be the venue for voting on a racial equity review.

According to the proposal, Amazon “has taken certain measures to address race justice and equity.” Amazon still faces significant controversies which pose many risks to its overall strategy as well as the alignment of the company with its public statements.

DiNapoli also submitted an identical measure to the last annual meeting. It won supportAbout 44% of Amazon shareholders were involved, but the investors rejected it.

Amazon recommended shareholders not vote for the resolution as it conducts its own audit. Amazon stated that it has also taken steps to improve diversity and equity in its workforce. This includes examining how it hires, develops, and promotes employees.

Amazon is following Tyson Foods CitigroupAmazon agreed to an audit to determine if its practices contributed to racial disparities. Amazon shares have refocused their attention on its workplace policies in the wake of the coronavirus pandemic, and the rise of activist worker groups among warehouse workers and delivery staff.

Amazon shareholders can also vote for an independent audit on its warehouse worker treatment next week. This proposal refers to reports of rising injury ratesAmazon Warehouses a recent citationWashington State’s Workplace Safety Regulator, to show evidence that workers are being “subjugated” to unsafe working conditions or unfair treatment.

Amazon appealed to shareholders to reject the resolution, noting its investment in safety at work.

WATCH: Watch CNBC’s full interview with Amazon CEO Andy Jassy on his first annual letter to shareholders

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