Activists Urge Meta Shareholders for Transparency in Hate Speech Policies

A group of shareholder activists contends that Meta's efforts to tackle hate speech fall short of what is necessary.

The Anti-Defamation League (ADL) alongside the Jewish investor network JLens are rallying Meta investors to endorse a fresh proposal. The intention is to gain clarity on how Meta manages issues related to antisemitism, anti-LGBTQ+, and anti-disability hate speech.

This initiative emerges against a backdrop of increasing concerns regarding recent changes in Meta's moderation policies and indicates heightened investor attention towards the company’s safety strategies.

Termed Proposal 8, this shareholder initiative demands Meta to issue a detailed public report. This report should elucidate the methods through which the company detects, regulates, and addresses hate speech across its platforms. The decision on this proposal will occur in Meta’s annual meeting slated for May 28.

Included in the report should be statistics reflecting the frequency of hate speech identified on Meta platforms, classified by the targeted communities. Furthermore, it will assess whether such content trends have changed under the revised policy framework. The report should also reveal new strategies or product adjustments introduced by Meta to mitigate hate against marginalized groups.

Nevertheless, as Meta's CEO Mark Zuckerberg holds dominion over the company's voting shares due to a dual-class stock structure, he wields substantial influence over the fate of any shareholder vote. Thus, even if broad investor support is present, the proposal stands little chance without Zuckerberg's endorsement.

Meta has opted not to provide a statement.

Meta's board has recommended shareholders oppose the proposal, arguing that the company’s current content moderation mechanisms and transparency initiatives are comprehensive, and an additional report would scarcely furnish new insights.

ADL and JLens assert that bringing this matter to public awareness and allowing a vote is a crucial step towards holding Meta to account for its actions.

"This initiative isn't just a one-off but part of a continuing effort to ensure Meta assumes real accountability for the objectionable material on its platforms," remarked Ari Hoffnung, managing director at JLens, to Business Insider. "Transparency is fundamental. Both investors and the general public need clarity on Meta's current strategies to tackle hate."

The ADL and JLens critique that Meta's present levels of disclosure are insufficient and emphasize the importance of independent, group-specific data to grasp the associated risks adequately.

Beyond safety concerns for users, JLens labels hate speech as a fiscal hazard for Meta's investors. Hoffnung indicates harmful content could subject the company to legal liabilities, regulatory scrutiny, and damage to its reputation, potentially jeopardizing relationships with advertisers.

"Meta is pinpointed as a major contributor to antisemitic and other derogatory content, which underscores the necessity of investor dialogues," stated Jonathan Greenblatt, CEO of ADL, to Business Insider. "Being a public enterprise, Meta allows shareholders to formally advocate for transparency and responsibility through initiatives like Proposal 8, which we consider the most productive approach for internal reform."

Established in 1913, the ADL is one of the foremost civil rights bodies in the United States, dedicated to battling antisemitism and discrimination. In 2022, it incorporated JLens, a network for Jewish values-based investors, thereby obtaining a strategic position in shareholder advocacy. JLens steers investments in leading public firms, such as Meta, with pacifist funds aligned with Jewish values, overseeing stakes within numerous large corporations, including Apple, Microsoft, and Nvidia.

Despite the ADL not holding Meta stock directly, acquiring JLens enables it to sway corporate conduct through shareholder proposals.

"Our earlier attempts to converse directly with the firm were unfruitful," Hoffnung stated. "This year felt appropriate to amplify our concerns via a shareholder proposal."

Shareholder proposals serve as a typical mechanism during "proxy season," a period in the spring where public corporations convene annual meetings for voting on varied issues, from executive pay to corporate social accountability.

The scrutiny on Meta escalates concurrently as the company's Oversight Board, although independently funded by Meta, recently expressed concerns regarding the firm's stance on hate speech regulation. In a recent statement, this board criticized Meta’s rollback of moderation protocols, cautioning these alterations might compromise user safety and erode brand trust.

Greenblatt iterated the ADL's staunch support for free expression but argues it shouldn’t come at the cost of public safety.

"Freedom of expression is paramount, yet not at the risk of safety," he noted. "Antisemitic narratives and hateful rhetoric can incite real-world violence — as often witnessed — pushing protected speech into dangerous territory."

Greenblatt also cited Reddit's transparency report as an ideal model, tracking instances of Holocaust denial and similar hate speech against particular groups. This is what they hope Meta will adopt should Proposal 8 prevail.

Proposal 8 represents one among several issues on the agenda for Meta's annual meeting. Shareholders will also address other topics like heightened transparency regarding child safety concerns, supervising Meta's AI usage, and improving assessments related to the company's data acquisition practices relative to user privacy.

Beyond Meta, JLens has shown activism this year by submitting shareholder communications at corporations like Intel, General Dynamics, and Lockheed Martin, resisting proposals they consider anti-Israel. During the 2024 proxy season, both JLens and the ADL mobilized at numerous firms advocating more vigorously against antisemitism and other hateful expressions.