Majority Support for Human Rights Proposals at Microsoft Shareholder Meeting

During Microsoft’s annual shareholder meeting, two human rights proposals garnered significant support, surpassing other proposals put forth. These results, revealed in a recent regulatory filing, reflect a heightened focus on the company’s involvement in geopolitical issues, particularly following criticism over the utilization of Microsoft technology by the Israeli military.

The filing disclosed the voting outcomes for six external shareholder proposals considered at the meeting held on December 5. Despite Microsoft’s announcement that all external proposals were rejected, the disclosed numbers painted a different picture.

Of particular note were Proposal 8 and Proposal 9, which received substantial backing:

• Proposal 8, which demanded a report on Microsoft’s data center expansion in Saudi Arabia and other nations with questionable human rights records, garnered over 27% support. The proposal aimed to assess the potential risks associated with the use of Microsoft technology for state surveillance or repression.
• Proposal 9, seeking an evaluation of Microsoft’s human rights due diligence efforts, received more than 26% of the votes. It called for an examination of the effectiveness of Microsoft’s processes in preventing customer misuse of AI and cloud products in ways that breach human rights or international humanitarian law.

Proxy advisor Institutional Shareholder Services endorsed Proposal 9, a rare occurrence for a first-time proposal, while Glass Lewis advised against it. The proposal attracted 58 co-filers and sparked conflicting campaigns from various groups.

In September, Microsoft took action by cutting off access to certain Azure services for an Israeli military intelligence unit following reports of technology misuse for surveillance of Palestinian civilians.

Microsoft’s board recommended shareholders vote against all external proposals at the annual meeting. Here’s how the other four proposals fared:

• Proposals 5 and 6, addressing censorship risks from European security partnerships and AI content moderation, received less than 1% support.
• Proposal 7, calling for enhanced transparency and oversight on Microsoft’s use of customer data for AI systems, garnered over 13% support.
• Proposal 10, which requested a report on climate and transition risks related to AI and machine-learning tools used by oil and gas companies, received 8.75% support.

For further details, refer to Microsoft’s proxy statement and previous coverage on the subject.