Praxis withdraws resolution at Amazon on ethical labor recruitment

Shareholder advocacy |

Company agrees to dialogue with shareholders

Praxis Mutual Funds® and Mercy Investment Services have withdrawn the resolution they filed with Amazon on ethical recruitment practices in exchange for Amazon’s commitment to participating in several dialogues.

There is growing awareness among investors and the public of the role of labor recruiters in the exploitation of workers and job seekers through charging fees, withholding personal papers/passports, and failing to provide written contracts spelling out the terms of employment. Amazon is the largest online retailer in the world, and is dependent upon extended supply chains in many countries. Failure to put proactive policies and procedures in place exposes the company to significant risks, including legal action and media reports that negatively impact its reputation.

Praxis and Mercy have already held their first conversation with Amazon, which included sharing best recruitment practices and calling out specific points in policies for improvement regarding the company’s approach to labor recruitment. The long term goal is to ensure Amazon’s global supply chains are free of forced or bonded labor.

 

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Chris Meyer, Stewardship Investing Research and Advocacy Manager | Praxis Mutual Funds

Author

Chris Meyer
Manager of Stewardship Investing Advocacy and Research

Disclosure

As of June 30, 2018, the Praxis Growth Index Fund has invested 5.58 percent of its assets in Amazon. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.