Lead filer Arjuna capital provided an exempt solicitation letter to the SEC in response to Meta’s opposition statement, further clarifying the purpose of the proposed annual report, and the need for additional transparency and oversight related to gAI misinformation.
The rise of generative AI (gAI) over the last 18 months has raised numerous questions about how to regulate these powerful new technologies so that they do not compromise people’s ability to exercise their human rights. Generative AI poses a particular threat to the right to freedom of expression, including the right to access information, because it makes it so easy to create and spread deceptive, yet believable content. False content threatens people’s ability to make informed decisions, a prerequisite for healthy democracies.
Shareholders at Alphabet and Meta, following on the success of a similar resolution at Microsoft last month, have filed shareholder proposals recommending that the companies issue annual reports on the risks of misinformation and disinformation produced and amplified by their deployment of generative artificial intelligence (gAI). All three companies have made multibillion dollar investments in gAI.
At Microsoft’s annual general meeting on Thursday, shareholders will vote on a resolution recommending that the company issue an annual report on the material risks of generative AI-powered mis- and disinformation to its business operations. The proposed report would include Microsoft’s plans to mitigate those risks, as well as the effectiveness of its efforts. The resolution, which appears as Proposal 13 on the company’s proxy statement, was submitted by Arjuna Capital (lead filer), Azzad Asset Management, Eko, and Open MIC.
“Finance-focused strategies promise to be a game-changer in advancing human rights in the digital age,” said Jessica Dheere. “I’m thrilled to have the opportunity to build on Open MIC’s pioneering work in this field and to explore new frontiers, by broadening the base of people who are adept at challenging corporate power to ensure that information technologies do not compromise—and ideally reinforce—social justice and people’s expression, privacy, and labor rights.”
“Finance-focused strategies promise to be a game-changer in advancing human rights in the digital age,” said Jessica Dheere. “I’m thrilled to have the opportunity to build on Open MIC’s pioneering work in this field and to explore new frontiers, by broadening the base of people who are adept at challenging corporate power to ensure that information technologies do not compromise—and ideally reinforce—social justice and people’s expression, privacy, and labor rights.”
As the outlook for artificial intelligence (AI) continues to dominate headlines globally, Open MIC filed a joint public comment recommending that the U.S. National Telecommunications and Information Administration (NTIA) develop critical guardrails on AI development and use in order for the potential benefits of AI technology to be realized.
Open MIC calls on Microsoft to provide a prompt explanation for the delays and a clear timeline for the release of the independent human rights report, one that allows investors sufficient time to refile if the report fails to meet expectations. Stakeholders and shareholders deserve transparency and accountability, and the timely publication of this report is crucial in evaluating Microsoft's commitment to upholding human rights principles.
This year, Amazon is facing an astonishing eighteen proposals from its own shareholders at its annual general meeting—a record number for any single company in a given year. The proposals—all of which the company opposes—call on Amazon to answer tough questions on a variety of technology impacts, labor practices, and corporate governance concerns.
Open MIC has submitted a shareholder proposal at Axon calling on the company to abandon its dangerous proposal to deploy AI-assisted drones equipped with TASERs in schools and other public environments. The proposal highlights a series of stunning governance failures from Axon’s leadership, exposing investors to unprecedented risks in flagrant disregard of the company’s own safeguards.
Open MIC has successfully withdrawn a shareholder proposal this month after extensive engagement with the Interpublic Group of Companies (IPG) regarding its data broker subsidiary Acxiom, and specifically the company’s policies and practices regarding reproductive health data. The proposal was an attempt by shareholders to press IPG to release a report regarding Acxiom’s data privacy policies. In response to shareholder and Open MIC efforts, IPG has released a public statement that meets shareholder demands for greater public transparency.
Acxiom's data practices are a matter of public concern, especially in the wake of the Roe vs. Wade decision," said Michael Connor, Executive Director of Open MIC. "Access to reproductive healthcare is an internationally-recognized human right, and companies that help law enforcement to infringe on that right risk severe financial and reputational damage. We hope that Acxiom will work with us to ensure its data collection practices are aligned with the values and expectations of its shareholders."
A coalition of investor advocates led by Azzad Asset Management withdrew a shareholder proposal this month after reaching an agreement with Apple Inc. regarding the company’s plan to improve its transparency reports and specifically add clarity around the removal of applications from its app store in response to government requests.
Open MIC filed a public comment urging the Federal Trade Commission (FTC) to prescribe new trade regulation rules concerning harmful commercial surveillance and data security practices. The comments come in response to the agency’s proposed rulemaking regarding commercial surveillance and lax data security practices.
Investor advocates have reached an agreement with Microsoft Corporation to withdraw a shareholder proposal requesting evaluation of the company’s lobbying activities, in consideration of a new commitment from Microsoft to advance its disclosures and value-alignment practices surrounding political engagement.
Open MIC, Heartland Initiative, and Access Now submitted comments urging the U.S. Securities and Exchange Commission (SEC), which is weighing rules and forming amendments on ESG practices, to help investors access accurate data about the ESG performance of the companies they back, in turn making more informed decisions.
“The Supreme Court’s decision in Dobbs v. Jackson is a devastating blow to human and civil rights. It will be vitally important to support organizations and networks working to protect pregnant people and those who may become pregnant, especially in states where abortion healthcare is criminalized.
For technology companies, the decision raises immediate and essential concerns regarding data privacy, collection, retention, and sharing practices.
According to final voting numbers for Alphabet’s 2022 annual general meeting, approximately 64.3 percent of independent shareholders voted in favor of a third-party racial equity audit analyzing the company’s impacts on Black, Indigenous, and People of Color (BIPOC) communities. However the proposal failed to earn an overall majority due to the outsized voting power of Alphabet founders Sergey Brin and Larry Page.
Salesforce, a leading provider of cloud-based software, announced today that it plans to adopt the principles of a shareholder proposal filed by Whistle Stop Capital regarding the company’s use of concealment clauses in employment agreements and will extend the protections of California’s Silenced No More Act to all U.S. employees. In light of this news, shareholders have successfully withdrawn their proposal.
In a major victory for investors, the Securities and Exchange Commission (SEC) has ruled that Meta - the parent company of Facebook and Instagram - must give investors an opportunity to consider and vote on a shareholder proposal that questions Meta’s ”social license to operate an emerging technology like the metaverse” without fully understanding the potential risks and negative impacts.
Earlier this week, the Nathan Cummings Foundation filed a shareholder proposal asking Alphabet, the parent company of Google and YouTube, to commission an independent racial equity audit “analyzing Alphabet Inc.’s adverse impacts on Black, Indigenous and People of Color (BIPOC) communities.”
In response to shareholder requests, Microsoft Corp. will commission an independent, third-party assessment to “identify, understand, assess, and address actual or potential adverse human rights impacts” of the company’s products, services and business relationships with regard to law enforcement, immigration enforcement, and other government contracts. The report will be made public in 2022.
Investors have filed three shareholder proposals with Microsoft Corp. seeking accountability for the ways in which the company’s lobbying practices, surveillance technologies, and contracts with ICE and other government agencies contradict the company’s own statements and values around racial justice and human rights. The shareholder proposals highlight an apparent gap between Microsoft’s stated principles and policies, and the actual impact of its business and lobbying practices, particularly on communities of color.
