Glass Lewis, one of the two major proxy advising firms, has recommended that shareholders vote in favor of National Legal and Policy Center’s shareholder proposal at Microsoft‘s 2024 annual meeting. The proposal requests the Company increase its reporting of the risks “unethical or improper usage of external data in the development and training of its artificial intelligence offerings” and disclose what safeguards the Company has in place. According to Responsible Investor:
The second proposal Glass Lewis recommending shareholder support was filed by the National Legal and Policy Center (NLPC). It asks Microsoft to prepare a report assessing the risk to its operations and finances, and to public welfare, presented by the real or potential unethical or improper usage of external data in the development and training o its AI offerings.
NLPC is also calling on the company to disclose how it mitigates such risks and how it measures the effectiveness of such effort.
A Virginia-based conservative non-profit, NLPC has historically positioned itself as an anti-corruption campaigner, bringing legal challenges against Democratic officials and labour unions. It has engaged in shareholder activism since 2004 and has recently become known as a prolific filer of “anti-ESG” resolutions.
NLPC also filed a proxy memo with the SEC in support of its proposal. This is the second NLPC proposal to gain the support of the major proxy advisors in 2024, after both Glass Lewis and ISS supported NLPC’s independent chair proposal at Goldman Sachs.
