Democrats Seek To Impose “Racial Equity Audits” On American Companies

Democrats are pushing for contracts to be granted to their corporate cronies to conduct “racial equity audits” of American companies. Critics say the effort is a further move by Democrats to control Big Tech and Silicon Valley.

The industry for the proposed audits is dominated by a collection of organizations closely related to Democratic politicians. The proponents also include radical progressive donors and fundraisers, who claim that the audits would promote racial justice in the American economy. The actual impact of such audits is increased pressure on companies to hire activists and officials connected to the Democratic Party.

In addition to creating positions the market would never require for a company to serve customers successfully, the audits also remove corporate executives’ merit-based decision-making.

The primary products offered by consultants in the field of “diversity, equity, and inclusion” are some form of audits performed by the consultants themselves. The industry has found lucrative returns in the government school domain, where districts have paid hefty fees to have auditors rework existing curricula and teaching methods. The next extension of the consulting industry is into private corporations.

Democrats have been strong supporters of racial equity audits for private firms. A proposal floated by House Democrats would fine covered companies thousands of dollars for not complying with proposed rules requiring “independent” audits repeatedly. Earlier this year, a group of Democratic senators pushed Google to conduct an audit and supported a left-wing organization, Color of Change, for the work.

Rashad Robinson is president of Color of Change and was invited to testify before Congress regarding audits last week. He called for new tech company products audits but did not mention that the “independent” auditors he suggested are affiliated with his organization.

Sen. Cory Booker (D-NJ) used that hearing to demand that Google’s parent company work with civil rights groups to impose racial equity audits and how they should be conducted. Booker’s comments were directed to Color of Change, which has released a “framework” for audits just as the senator described.

Color of Change’s “framework” includes ending objective definitions of merit so that companies can “attract Black talent.” The framework also would have every tech company create a position for a top executive who has veto power to stop the delivery of any corporate product that would have an unwanted impact on black users. The new executive would also control personnel decisions, including hiring, firing, and promotions.

Color of Change has previously been involved in pressuring Facebook into censoring and then banning President Trump while he was still in office. Color of Change is a central figure in the Democracy Alliance, a network funded by George Soros that partners with the powerful SEIU union.