The resolution’s supporting statement quotes Facebook whistleblower Frances Haugen, who testified in the US Senate last October that the company had “prioritised profits over the wellbeing of its users” and also accuses the company of spreading climate denialism and body image problems among girls.
Hesta’s resolution claims online misinformation can negatively affect the global economy which creates broader financial costs for large investors, and took aim at founder Mark Zuckerberg’s personal wealth being concentrated in Meta shares.
“While the company may profit by inflicting social costs, its diversified shareholders pay the bill,” the resolution states. “In contrast, our CEO is not diversified. His wealth is concentrated in company shares: unlike most shareholders, his investments do not absorb the social costs the company creates.”
Ms Blakey would not comment on the suitability of Mr Zuckerberg’s leadership but explained Facebook could create economic harm for developing economies.
“There was an example out of India where there were false rumours around causes of COVID, for example, that eating chicken and non-vegetarian food caused COVID. It created a huge loss for the poultry industry and loss of livelihood for farmers.
“The impact in terms of health, in terms of spreading concern and breaking down confidence in society is very important. What I would love to do is have an opportunity to understand how the company is assessing that. It’s why we’re interested in them producing a report.”
The Australian Competition and Consumer Commission on Friday launched legal action against Meta over posts promoting cryptocurrency scams. Australasian Centre for Corporate Responsibility researcher Dan Gocher said the regulator’s lawsuit provides an example of why Meta’s approach to monitoring online information creates financial risks for investors.
“You could get a situation where regulators in every country are taking legal action against Facebook. It could come in the form of imposing regulations or fines,” he said. “They operate in every country, imagine how big their compliance regime would have to be.”
Australian investment firm Munro Partners fully divested its longstanding holding in Facebook last year and chief risk officer Nick Griffin said rising red tape to curb misinformation would continue to hurt the company’s bottom line.
“The more sterile Facebook becomes, from an investor point of view, the less popular it is for people to use and the less it can monetise its users,” Mr Griffin said. “You end up with falling engagement, and falling users, or continually fighting battles around the world about what content should or should not be on the platform. It’s a circular problem.”
Meta was contacted for comment.
