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Microsoft shareholders offer rare resolutions By Michael J. Martinez The Associated Press SEATTLE � Shareholders of Microsoft Corp., who have solidly backed the company throughout its highs and lows, will be proposing the first two shareholder resolutions in company history at their annual meeting Thursday. The proposals, sponsored by a political activist group and a socially conscious investment house, would have Microsoft disclose its individual political contributions to shareholders and would require it to abide by the China Labor and Human Rights Principles, designed to link investment in China to its human rights record. In its proxy statements, the company�s board of directors asked shareholders to vote against both proposals, and neither was expected to pass. The political contributions proposal was put forth by a Boston-based group called Responsible Wealth, which says it represents wealthy business people and philanthropists who want to use their wealth to enact social change. Since the company was successfully sued in 1998 by the U.S. Justice Department for violating antitrust laws, Microsoft has quickly ramped up its lobbying operations. The resolution notes that Microsoft is the fourth-largest corporate contributor of "soft-money" � money given to political parties rather than candidates to sidestep federal contribution restrictions. If the resolution passed, it would require Microsoft to provide a report on all of its contributions, the guidelines it uses to donate to political causes and its position on campaign finance reform. Since the company was successfully sued in 1998 by the U.S. Justice Department for violating antitrust laws, Microsoft has quickly ramped up its lobbying operations. "Is our company succeeding solely on the basis of its ability to innovate and to serve customers better or because of its access to political leaders that can provide a host of tax breaks, subsidies, and regulations that treat our company advantageously?" said Lois Canright, a Microsoft shareholder who will present the resolution at Thursday�s meeting. Microsoft spokeswoman Caroline Boren said Microsoft�s contributions are all publicly reported as required by state and federal law, and called the proposal unnecessary. The other proposal, sponsored by Harrington Investments, would require Microsoft to ensure that its activities in China do not promote child labor, union suppression, prison labor or environmental damage. Other companies, such as Reebok and Mattel, have already signed on. Microsoft does not have any manufacturing plants in China, though it recently opened a 150-person research center there. Chief Executive Officer Steve Ballmer recently went to China to meet with government officials and improve ties between the company and the nation. Microsoft was one of many U.S. companies that lobbied Congress heavily to gain permanent normal trade relations status for China. Boren said the company adopted a policy in 1991 that requires its employees to be treated equally, no matter where they work, and that adopting the proposal would not be necessary. "This policy has proven effective in all of our international operations," Boren said. "We feel that we treat our workers above and beyond what is required by law." Harrington Investments, which invests in companies that it deems socially responsible, could not be reached for comment. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.