Yedavalli: Amazon has opportunity to showcase diversity with new headquarters

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Interested candidates for summer jobs should contact Amber Mohmand at [email protected] for more details. Those interested in applying to work during the fall/spring term should contact Katherine Kealey at [email protected]

Ashwin Yedavalli

Need some notebooks and pens for school? How does a new Iowa State hat sound? How about buying some snacks for those midnight study sessions?

Amazon has it all.

The universally-recognized electronic commerce company, currently based in Seattle, is the largest online retailer in the world by revenue. From 2010 through 2016, Amazon estimated that its investments in Seattle added an astounding $38 billion to the city’s economy.

I bet you could buy some nice headphones off their website with that kind of money.

However, one headquarters is not enough for the tech giant. Amazon is slated to announce a location for its second headquarters sometime this year; in January, it narrowed the choices down to 20 metropolitan cities.

In particular, Amazon is looking for a location “with strong local and regional talent … as well as a stable and business-friendly environment” for their $5 billion second headquarters, which Amazon says will bring in 50,000 new employees.

Therefore, as they choose the location of the new facility, they will also need to consider the area’s protection of their workers, families, and customers. With this in mind, it becomes more than strictly business.

In March, an airplane flew over the Seattle headquarters with the banner “No Gays, No Way!”, using the publicity of Amazon’s search to press lawmakers for increased LGBTQIA+ rights. Diversity is very significant for CEO Jeff Bezos, the proud recipient of the Human Rights Campaign’s 2017 National Equality Award.

If Bezos makes a point to adhere to these values, 11 of those 20 finalist cities must be removed from consideration, as they do not currently provide comprehensive legal protections for LGBTQ workers.

Regarding Amazon’s other diversity factors, its demographics (as of July 2017) report a 60 percent male and 40 percent female workforce globally, although 74 percent of managers are male, and breakdown of genders in technical jobs are not public. In addition, 42 percent of its workers in the United States are white and Amazon reports equal pay among all genders and ethnicities.

Most anybody, including Alexa, knows about the positive relationship between business and diversity; a study by McKinsey and Company shows that there is a positive correlation between companies with diverse leadership teams, and higher sales and financial returns.

However, changing workforce demographics in a large business may take years, even for the companies that are most passionate about diversity.

However, as Amazon prepares to employ thousands of new workers, the company could drastically alter its demographic in a much shorter time frame. By pledging to assure an equally male and female workforce and ensuring that the minority employment represents the local population, Amazon will reaffirm that it is a company defined by their continuous innovation.

If more diversity generates a more powerful, prosperous and creative Amazon, good luck to its competitors.

The 20 finalist cities have also been experiencing a common effect; just being named on this prestigious list has sparked a new level of interest in these municipalities, which has led to an influx of economic development inquiries. Mayor Ras Baraka of Newark told NBC News “We’re seeing this halo effect, and we’re excited. It has provided renewed interest in the city of Newark.”

Businesses’ renewed interest in these finalist cities showcase the magnitude of power and influence Amazon’s decisions can have on the tech industry. With this influence, as well as their new location, Bezos and Amazon can utilize the diversity that these cities provide to set an example for corporate America, with regards to the ever-changing racial demographic of American consumers.

At the Human Rights Campaign’s annual dinner, Bezos told the audience “[e]quality is a core value for us, and it’s simply right.” Although Amazon has been very secretive about their decision, Bezos has continually expressed his passion for equality and diversity.

The location for Amazon’s new headquarters is a rare chance to highlight the importance of diversity in our companies. Once the company chooses their second home, the city is sure to prosper. Keeping all of these vital factors in mind, Bezos is sure to select an “Amazon Prime” location.