Two stockholder proposals listed in Google's proxy statement address the uncomfortable issue of the company's presence in China and other countries with less than sparkling records in the human rights area. Google's board recommended shareholders vote against each proposal.
"Technology companies in the United States such as Google, that operate in countries controlled by authoritarian governments have an obligation to comply with the principles of the United Nations Declaration of Human Rights," reads part of Proposal 4.
The Office of the Comptroller of New York City and St. Scholastica Monastery submitted that one. They want Google to not engage in pro-active censorship, as they do as a condition of operating in China.
Proposal 5 requests the establishment of a Board Committee on Human Rights. Harrington Investments thinks this Board "could be an effective mechanism for addressing the human rights implications of the company’s activities and policies as they emerge anywhere in the world."
Google recommended voting against each proposal, and have set the default proxy vote to Against. Also, Google's insiders control the more powerful block of voting shares, which means both proposals will end up as symbolic gestures.
It's all about China, home to 210 million Internet users and growing. Several US-based technology companies held their noses and dived into Beijing, seeking profits from a rapidly growing base of people going online.
Google is not going to turn its back on such a lucrative market. If that means putting up with the government shutting off YouTube when videos of protests in Tibet start appearing, that's how it has to be. Beijing has the board's ear, and Eric Schmidt and company listen.
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