Racial Equity Audits Gain Traction with BlackRock Seal of Approval
Apr 07, 2021
The murder of George Floyd last May forced a reckoning among leading U.S. companies that claim to support racial justice and equality. For all the talk of diversity and inclusion, institutional racism is baked into American society. Now the global money management firm BlackRock is raising the bar. The company has taken the rare step of committing to a third-party racial equity audit, with the aim of exposing its own role in systematic exclusion and division.
BlackRock and the Biden connection
Due to its size, BlackRock plays an influential role in the corporate social responsibility and ESG investing fields. The company is estimated to have $7.8 trillion in assets on its ledgers, making it the largest money management firm in the world.
Fink acknowledged that BlackRock, the world s largest asset manager, is embroiled in some broader cultural problems, and highlighted measures it is taking to try to improve. Our strategy includes: mitigating bias in our hiring and talent management practices; providing professional development, sponsorship and executive coaching opportunities; raising awareness of DEI [diversity, equity, inclusion] matters; and resetting behavioral expectations across the organization, Fink wrote.
Earlier this year, a former employee published a Medium post saying she faced discrimination and harassment at BlackRock.
After that story hit headlines across the globe, BlackRock said it would enlist Paul, Weiss, Rifkind, Wharton & Garrison to review diversity and inclusion matters.
Ramin Talaie/Getty Images
Shareholders representing $1.2 trillion in assets want big banks to conduct a racial equity audit.
The audit would be completed by a third-party law firm and the results would be public.
Bank leaders at Citi, BofA, and others are urging shareholders to vote against the proposal.
In the wake of George Floyd s death, a number of major banks and financial institutions announced billions in sweeping investments and donations to combat racial inequity along with internal plans to promote diversity.
Now, a group of investors representing over $1.2 trillion in assets, the Service Employees International Union (SEIU) s Capital Stewardship Program and CtW Investment Group, is asking some of those banks to have their plans, proposals, and policies audited by a third party, preferably a civil rights law firm. The group of investors say the firm would judge if companies go far enough to promote racial justice. They did not off
BlackRock pledges to conduct racial-equity audit
Signage is displayed at the entrance to BlackRock Inc. headquarters in New York.
BlackRock plans to undergo an external review of how its diversity, equity and inclusion policies impact stakeholders, the firm said in an employee memo sent April 1.
Saying it must lead by example, the memo from Global Head of Human Resources Manish Mehta and Global Head of DEI Michelle Gadsden-Williams referenced the firm s enhanced diversity, equity and inclusion strategy. The goal, it said, is for BlackRock to be a leader in integrating diversity, equity and inclusion into every aspect of our business ranging from our own people and culture, to how we serve our clients, to how we use our voice in broader society.