What Are Civil Rights Audits, and Why Are Companies Doing Them?

Since protests erupted in 2020 over police violence against Black Americans, corporate America has come under pressure to do its part to address racism’s ills. One way shareholders are asking companies to contribute is by undergoing what’s called a civil rights audit. A number of them have resisted and then agreed to such reviews, albeit sometimes with a limited scope.

Also known as racial equity audits, they are independent examinations of whether, and how, a company causes or perpetuates discrimination on the basis of race. Results are usually made public. The studies are intended to root out discriminatory practices driven by both racism on the part of individuals as well as so-called systemic racism. The latter refers to the ways policies, procedures and institutions can perpetuate disadvantages for minorities even when administered by people who consider themselves colorblind.