Events over the past several years—including the murder of George Floyd and the COVID-19 pandemic, as well as incidents of racial and gender discrimination at companies that have garnered media scrutiny—have drawn greater attention to longstanding issues of inequality in the workplace and society at large. As a result, organizations are facing greater scrutiny from shareholders, activists and other stakeholders about the data used to measure how well they are living up to their values.

One tool companies can turn to is the racial equity audit.