Yahoo Holders Reject Human Rights, Censorship Proposals
Yahoo stockholders Tues. voted down proposals to oppose Internet censorship and to set up a corporate board committee on human rights, despite pleas by Amnesty International and other advocates. Other companies including Google have rejected similar policy proposals.
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Presented during the company’s annual meeting in San Jose, one resolution would have created “minimum standards” to protect freedom of Internet access. It said personally- identifying data shouldn’t be hosted in “Internet- restricting” countries. It would have barred the company from engaging in “pro-active censorship,” and required “clear” notice to users of content filtering, blocking or altering or data retention.
“Companies such as Yahoo that operate in countries with oppressive regimes… must take special care to avoid being seen as complicit… and Yahoo to date has failed to do this,” said proposal author Patrick Dougherty, a representative of the N.Y.C. Pension Funds: “Data that can identify individuals shouldn’t be hosted in Internet- restricting countries.” A Chinese shareholder argued passionately for the proposal. He read a statement by the mother of a Chinese Yahoo Mail account holder imprisoned for 10 years for contacting a Chinese democracy publication, saying Yahoo handed over information about him to authorities.
Yahoo’s board opposed the proposal, saying in proxy materials that existing company policies suffice: “Yahoo believes certain of the standards suggested by the proponent would give the company insufficient flexibility in responding to applicable legal requirements.” The proposal lost 39-71%.
Another proposal would have created a “Board Committee on Human Rights” to recommend policy on rights issues raised by company activities. “The management of this company is out of control,” said proposal author and stockholder John Harrington, a portfolio manager from Napa, Cal.: “Yahoo has been acting with the terrorist government of the People’s Republic of China… and thanks to Yahoo” users are arrested, tortured and imprisoned. China “not only spies on its own citizens but works hand in glove with Yahoo and others to control the Internet,” he said: “It’s no different than IBM working with Nazis or the South African govt. to control people in their countries. Let’s restore some credibility to this company.”
Yahoo’s board opposed that measure, saying its management team is developing an Internet code of conduct with Business for Social Responsibility and the Center for Democracy & Technology. Yahoo co-founder Jerry Yang told stockholders the company is meeting with State Dept. officials because “agencies have the most leverage through trade, diplomatic and other tools” and their participation is “vital.” Yahoo is “dismayed and distressed” at imprisonment of cyberdissidents and others expressing themselves on the Internet, but “any company doing business in any country must respect laws,” he said, calling its relationship with police “more complex than commonly understood.” The measure got 20% of shareholder votes.