'An effective audit holds up a mirror to an organization,' attorney says

More companies are looking to address racism in the workplace by conducting formal racial equity audits.

"We have seen an increase in companies considering racial equity and civil rights audits over the last couple of years. And we expect to continue to see interest in such audits in the coming years," said Jessica Soto, an attorney with Ropes and Gray in Boston. "Often driven by key shareholders, racial equity audits have emerged as a promising way to identify and address systemic bias and discrimination."

A racial equity audit is an evaluation— usually conducted by an external law firm— of an employer's policies, procedures and practices to identify and address systemic bias and discrimination. It shows where the employer might be falling short in efforts to build a more diverse, equitable and inclusive workplace. The auditors may analyze recruiting, hiring, promotions, retention, training, advertising, social media messages and algorithms used in operations. Recommendations could include, for example, training employees, adjusting corporate policies, analyzing pay equity or conducting a corporate culture survey.

"An effective audit holds up a mirror up to an organization to examine what its values are and whether it's living up to those values," Soto said.

In the last two years, attorneys have seen a significant increase in the number of companies, government entities, and nonprofits conducting...

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