‘Is there a risk but still want to continue? Meta is crazy. ’
The U.S. Securities and Exchange Commission (SEC) rejected Meta Platforms Inc.’s request to quash Arjuna Capital LLC’s proposal seeking a 3rd party assessment of potential psychological, civil and human rights harms regarding the metaverse.
Earlier, Arjuna had asked Meta to attach evidence of any mitigable or avoidable harms inherent in the new technology.
Later, the proposal was included in the list of upcoming issues, where it will be voted on by shareholders at the annual general meeting (AGM).
Meta, meanwhile, acknowledged there was a risk of creating the virtual world had argued that the proposal should not be used for voting because it involved matters related to the company's 'normal business operations', but the SEC ruled otherwise, where the proposal 'goes beyond normal business dealings' .
Strong rumors say that the proposal may not be approved because the company’s Chief Executive Officer (CEO) Mark Zuckerberg controls the voting power of shares.
As a result, Natasha Lamb, managing partner of Arjuna Capital questioned the credibility of the company which injects US $ 10 billion a year into the project, but it is clear they cannot operate the platform.
It is common knowledge that Facebook’s former Meta plans to expand the business into the virtual world until it changes the company’s name, however, there are concerns about the risks inherent in the social media platform.
Among the issues that haunted Meta was related to an internal document shared by Frances Haugen, regarding the suggestion that Facebook prioritizes profit over content simplification.
Strengthening the evidence presented by Haugen, the issue of the harms of Instagram use among young people that Meta seems to turn a blind eye to.
However, Meta has slammed any issues regarding its plans to develop the metaverse.
According to a Meta statement, they have worked with policymakers, experts and industry partners, as well as invested $ 50 million in keeping the plan safe including a focus on privacy, security, equity and access.
In addition, Meta is not the only one facing problems with appeals to the SEC.
Amazon.com Inc., McDonalds Corp., Chevron Corp. and JPMorgan Chase & Co also failed to convince the SEC to block shareholder proposals for the upcoming proxy season.
