"Racial equity audits engage companies in a process that may unlock value, uncover blind spots, and strengthen external relationships. Companies that have completed civil rights or racial equity audits have related organizational benefits from conducting these audits. Those benefits include:

•Identification of the gaps between a company’s self-perception and that of its key stakeholders,

•Development of new and additive partnerships and relationships within the community,

•Assessment of the needs of customers and employees, enabling proactive creation of support teams and committees,

•Guidance for diversity officers, human resources managers, and executives on appropriate next steps.

The best practices identified for completing these audits are:

•Select an independent person or firm with civil rights and racial justice expertise and adequate resources to complete the audit.

•Ensure that the audit comprehensively examines how policies, practices, and products ameliorate or exacerbate inequalities.

Proactively identify and engage in outreach to a wide range of stakeholders, such as civil rights organizations, employees, and customers.

•Publish summary audit findings, recommendations, and progress reports with action plans with timelines to address identified issues.1

Microsoft, Bank of America, Citigroup, and JP Morgan Chase, along with other companies, have conducted or have committed to conduct this type of audit.

In a review of racial equity initiatives conducted by the non-profit corporate accountability-focused organization, As You Sow, Mastercard was the lowest ranked credit card company. Visa, American Express, and Discover were identified as having stronger actions related to racial equity, diversity and inclusion disclosure, and environmental justice.2

Within the U.S., racial inequity poses macroeconomic risks that depress returns for long-term diversified investors. According to a 2020 Citigroup study, racism and discrimination have cost the U.S. GDP $16 trillion since 2000 and the U.S. economy could see a boost of $5 trillion over the next five years if the U.S. were to address racial discrimination against African Americans.3

In addition, Mastercard services customers across more than 210 countries and territories,4 and it is seeking growth in Asia Pacific, Middle East and Africa regions.5 It is essential that Mastercard be able to understand its societal impacts and relationships, or it risks losing access to key growth markets.

Quoting Mastercard’s Vice Chairman and President of Strategic Growth, “The question becomes how we get from point A to point B without leaving people behind and without the profit motive crowding out a sense of equality in the journey.”6 A racial equity audit would help Mastercard answer this important question."