Room For Improvement?
Responsible investors continue to advocate for positive change at Amazon, and shareholders have filed 35 proxy proposals in recent years on topics ranging from sustainability reporting, gender board diversity, pay parity and criminal background checks to human rights risk assessment, free speech, privacy and data security, to corporate political activity and supplier labor standards. Some shareholder proposals have triggered corporate dialogue, but most have been opposed by management.
Amazon remains a formidable force but relies on a business model that externalizes enormous costs onto its workers, communities, the wider economy and the environment. That’s a damaging tradeoff that undercuts whatever benefits it brings consumers and the greater good. That’s why we give it a failing grade. But we’d be inclined to give Amazon higher marks if the company did the following:
1. Improve working conditions for fulfillment-center employees, allow time for more regular breaks, enact pay equity, relax productivity targets and guarantee full workers’ compensation.
2. Allow collective bargaining among its workforce, like it did for Italian workers in May.
3. Address the high carbon and waste footprint inherent in its instantaneous shipping offers.
In the meantime, we will focus our efforts on other firms. Over the years, we have built investor coalitions to successfully engage companies in the apparel, toys and auto industries to end sweatshops and dangerous working conditions in supply chains. Maybe someday soon, Amazon will be among those leaders.
Steven Heim is a managing director at Boston Common Asset Management.