Meta (FACEBOOK, INC.) | Human Rights Impact Assessment

Status
23.76% votes in favour
AGM date
Resolution details
Company ticker
FB
Lead filer
-
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Social
ESG sub-theme
  • Digital rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
Shareholders direct the board of directors of Meta Platforms, Inc. (formerly known as Facebook, Inc) to publish an independent third-party Human
Rights Impact Assessment (HRIA), examining the actual and potential human rights impacts of Facebook’s targeted advertising policies and practices throughout
its business operations. This HRIA should be conducted at reasonable cost; omit proprietary and confidential information, as well as information relevant to
litigation or enforcement actions; and be published on the company’s website by June 1, 2023.
Whereas clause
Facebook’s business model relies almost entirely on ads, with 98% of Facebook’s global revenue in 2020 generated from advertising. Facebook ad
revenue stood at close to $86 billion in 2020, a new record for the company and a significant increase from previous years .
Algorithmic systems are deployed to enable the delivery of targeted advertisements, determining what users see, resulting in and exacerbating systemic
discrimination and other human rights violations. Data used to enable the targeting of such ads include personal and behavioral data of Facebook users, which
further exposes Facebook to user privacy violations. Facebook was fined $5 billion for such privacy violations by the U.S. Federal Trade Commission in 2019.
Targeted ads have been the subject of much controversy. Just this year, Frances Haugen revealed that Facebook had long known that targeted ads are
detrimental to mental health, body image, and political polarization . Facebook now faces a lawsuit from investors for allegedly violating federal securities laws
by presenting inaccurate statements about the harm its products, funded through targeted advertisements, can cause .
Facebook continues to mislead the public on its use of targeted ads. In July 2021 the company stated that “we’ll only allow advertisers to target ads to people
under 18 (or older in certain countries) based on their age, gender and location”. However, it was discovered that, outside of stated parameters, Facebook is still
using the vast amount of data it collects about young people to determine which children are most likely to be vulnerable to a given ad, opening them to
allegations of human rights violations . Additionally, Facebook does not publish data on alleged violations of the policies they do have, making it impossible to
know if they are effective .
There is growing global consensus among civil society experts, academics, and policymakers that targeted advertising can lead to the erosion of human rights .
Legislation in Europe and the United States is poised to severely restrict or even ban targeted ads.
Facebook’s business model relies on a single source of revenue – advertising. Targeted advertising, given concerns around the fairness, accountability, and
transparency of the underlying algorithmic system, has been heavily scrutinized for its adverse impacts on human rights, and is targeted for significant
regulation. This is a material risk to investors. A robust HRIA will enable the company to better identify, address, mitigate and prevent such adverse human rights
impacts that expose the company to reputational, legal, business and financial risks.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Universities Superannuation Scheme - USS For

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