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As we mentioned in our recent strategic plan update, we aim to combine all of the organization’s assets — people, relationships, knowledge, voice, and money — to support racial, economic, and environmental justice.

One way we do this is by leveraging our standing as an investor to shift markets and change corporate behavior by filing shareholder resolutions on issues at the intersection of our grantmaking interests and long-term shareholder value. As part of that work, we are among a growing number of investors filing racial equity and civil rights resolutions with companies. 

One such resolution, led by NCF in consultation with our grantee partners at Open MIC, helped prompt the release of a report on an independent civil right rights audit at tech giant Google.  The development follows ongoing pressure from members of Congress, civil rights organizations like NCF grantee partner Color of Change, and investors. 

Civil rights audits, also referred to as racial equity audits, are important tools to help companies uncover and begin to remedy harmful impacts experienced by people because of their race, ethnicity, sex, and other protected characteristics.  The Foundation’s 2022 proposal calling for a racial equity audit received the support of roughly 64 percent of shares not controlled by the company’s officers or directors. Our 2023 proposal was withdrawn last week contingent on the publication of a report on the audit, which covered the company’s products, practices, and policies. 

The report shared key insights regarding racial equity in Google’s workplace practices, key products, economic opportunity programs, and philanthropic efforts. Recommendations included the development of a civil rights infrastructure to review and provide expertise on policies, processes, and product changes across the business and mandating the use of best practices for inclusive hiring. These and other recommendations in the report are an important first step, but companies must view these audits as the beginning of a process of improvement and growth, not the end. 

As Rashad Robinson, President of Color of Change, stated, “We will ultimately assess Google’s commitment to racial justice by its willingness to implement the recommendations set forth in the civil rights review.”

Racial equity audits can yield benefits for society and enhance long-term shareholder value. We hope that more investors are encouraged to call on companies to conduct racial equity audits. Please reach out to me at laura.campos@nathancummings.org to learn more about our approach.