[PX14A6G] Microsoft Corp SEC Filing
Context: Investor Advocates for Social Justice has filed a PX14A6G notice supporting a shareholder proposal led by the Religious of the Sacred Heart of Mary and co-filed by at least 60 investors holding more than $80 million of MSFT stock. The resolution will be put to a vote at Microsoft鈥檚 2025 AGM and asks the company to publish a report assessing the effectiveness of its human-rights due-diligence processes, focusing on whether Azure cloud and AI products are being used to commit human-rights abuses or violate international humanitarian law.
Key claims:
- A new UN report lists Microsoft within the 鈥渆conomy of genocide鈥� in Gaza; leaked data show Israeli-military Azure usage up 155 % between Jun-23 and Apr-24.
- Microsoft鈥檚 own blog states it lacks visibility into how customers deploy its on-prem software, revealing an oversight gap.
- Filers warn of material legal, operational and reputational risks (boycotts, employee unrest, potential complicity charges) if governance is not strengthened.
The unprecedented number of co-filers underscores growing investor concern that inadequate controls could erode long-term shareholder value and expose the company to litigation and regulatory action.
Contesto: Investor Advocates for Social Justice ha presentato un avviso PX14A6G a sostegno di una proposta degli azionisti guidata dalle Religious of the Sacred Heart of Mary e co-presentata da almeno 60 investitori che detengono pi霉 di 80 milioni di dollari in azioni MSFT. La risoluzione sar脿 sottoposta a voto all'assemblea generale annuale di Microsoft nel 2025 e chiede all'azienda di pubblicare un rapporto che valuti l'efficacia dei suoi processi di due diligence sui diritti umani, concentrandosi sull'eventuale uso dei prodotti cloud Azure e AI per commettere violazioni dei diritti umani o violare il diritto umanitario internazionale.
Principali affermazioni:
- Un nuovo rapporto ONU include Microsoft nell'鈥渆conomia del genocidio鈥� a Gaza; dati trapelati mostrano un aumento del 155% nell'uso di Azure da parte dell'esercito israeliano tra giugno 2023 e aprile 2024.
- Il blog ufficiale di Microsoft ammette la mancanza di visibilit脿 su come i clienti utilizzano il suo software on-premises, evidenziando una lacuna di controllo.
- I promotori avvertono di rischi materiali legali, operativi e reputazionali (boicottaggi, malcontento tra i dipendenti, possibili accuse di complicit脿) se la governance non verr脿 rafforzata.
Il numero senza precedenti di co-presentatori sottolinea la crescente preoccupazione degli investitori che controlli inadeguati possano erodere il valore azionario a lungo termine ed esporre l'azienda a cause legali e azioni regolatorie.
Contexto: Investor Advocates for Social Justice ha presentado un aviso PX14A6G en apoyo a una propuesta de accionistas liderada por las Religious of the Sacred Heart of Mary y co-presentada por al menos 60 inversores que poseen m谩s de 80 millones de d贸lares en acciones de MSFT. La resoluci贸n se someter谩 a votaci贸n en la junta general anual de Microsoft en 2025 y solicita a la empresa publicar un informe que eval煤e la eficacia de sus procesos de debida diligencia en derechos humanos, enfoc谩ndose en si los productos de nube Azure y de IA se est谩n utilizando para cometer abusos de derechos humanos o violar el derecho internacional humanitario.
Reclamaciones clave:
- Un nuevo informe de la ONU incluye a Microsoft dentro de la 鈥渆conom铆a del genocidio鈥� en Gaza; datos filtrados muestran un aumento del 155% en el uso de Azure por parte del ej茅rcito israel铆 entre junio de 2023 y abril de 2024.
- El propio blog de Microsoft indica que carece de visibilidad sobre c贸mo los clientes despliegan su software on-premises, revelando una brecha de supervisi贸n.
- Los presentadores advierten sobre riesgos materiales legales, operativos y reputacionales (boicots, malestar entre empleados, posibles cargos de complicidad) si no se fortalece la gobernanza.
El n煤mero sin precedentes de co-presentadores subraya la creciente preocupaci贸n de los inversores de que controles inadecuados podr铆an erosionar el valor accionarial a largo plazo y exponer a la empresa a litigios y acciones regulatorias.
氚瓣步: Investor Advocates for Social Justice電� Religious of the Sacred Heart of Mary臧� 欤茧弰頃橁碃 斓滌唽 60氇呾潣 韴瀽鞛愱皜 瓿惦彊 鞝滌稖頃� 欤检＜ 鞝滌晥鞚� 歆�歆�頃橂姅 PX14A6G 瓿奠毳� 鞝滌稖頄堨姷雼堧嫟. 鞚� 韴瀽鞛愲摛鞚� MSFT 欤检嫕鞚� 8觳滊 雼煬 鞚挫儊 氤挫湢頃橁碃 鞛堨姷雼堧嫟. 鞚� 瓴办潣鞎堨潃 2025雲� 毵堨澊韥靻岉攧韸� 鞝曣赴 欤检＜齑濏殞鞐愳劀 響滉舶鞐� 攵�斐愳 鞓堨爼鞚措┌, Azure 韥措澕鞖半摐 氚� AI 鞝滍拡鞚� 鞚戈秾 旃暣雮� 甑牅 鞚鸽弰氩� 鞙勲皹鞐� 靷毄霅橂姅歆�毳� 欷戩嫭鞙茧 鞚戈秾 鞁れ偓 頂勲靹胳姢鞚� 須臣靹� 韽夑皜 氤搓碃靹�毳� 須岇偓鞐� 鞝滌稖頃� 瓴冹潉 鞖旉惮頃╇媹雼�.
欤检殧 欤检灔:
- 靸堧鞖� 鞙犾棓 氤搓碃靹滊姅 臧�鞛愳甑� 雮挫棎靹� 毵堨澊韥靻岉攧韸鸽ゼ 鈥滌雼暀靷� 瓴届牅鈥濎棎 韽暔鞁滍偆氅�, 鞙犾稖霅� 雿办澊韯办棎 霐半ゴ氅� 2023雲� 6鞗旊秬韯� 2024雲� 4鞗旉箤歆� 鞚挫姢霛检棙 甑办潣 Azure 靷毄鞚� 155% 歃濌皜頄堨姷雼堧嫟.
- 毵堨澊韥靻岉攧韸� 瓿奠嫕 敫旊攴鸽姅 瓿犼皾鞚� 鞓攧霠堧鞀� 靻岉攧韸胳洦鞏措ゼ 鞏措柣瓴� 靷毄頃橂姅歆�鞐� 雽�頃� 臧�鞁滌劚鞚� 攵�臁表晿雼り碃 氚濏榾 臧愲弲 瓿惦氨鞚� 霌滊煬雰堨姷雼堧嫟.
- 鞝滌晥鞛愲摛鞚� 瓯半矂雱岇姢臧� 臧曧檾霅橃 鞎婌潉 瓴届毎 氩曥爜, 鞖挫榿鞝�, 韽夗寪靸侅潣 欷戨寑頃� 鞙勴棙(氤挫澊旖�, 歆侅洂 攵堧, 鞛犾灛鞝� 瓿惦矓 順愳潣)鞚� 氚滌儩頃� 靾� 鞛堧嫟瓿� 瓴疥碃頃╇媹雼�.
鞝勲 鞐嗠姅 瓿惦彊 鞝滌稖鞛� 靾橂姅 攵�鞝侅爤頃� 韱奠牅臧� 鞛リ赴 欤检＜ 臧�旃橂ゼ 頉检啇頃橁碃 須岇偓臧� 靻岇啞 氚� 攴滌牅 臁办箻鞐� 雲胳稖霅� 靾� 鞛堧嫟電� 韴瀽鞛愲摛鞚� 鞖半牑臧� 旎れ瓿� 鞛堨潓鞚� 氤挫棳欷嶋媹雼�.
Contexte : Investor Advocates for Social Justice a d茅pos茅 un avis PX14A6G en soutien 脿 une proposition d'actionnaires men茅e par les Religious of the Sacred Heart of Mary et co-sign茅e par au moins 60 investisseurs d茅tenant plus de 80 millions de dollars d'actions MSFT. La r茅solution sera soumise au vote lors de l'assembl茅e g茅n茅rale annuelle de Microsoft en 2025 et demande 脿 l'entreprise de publier un rapport 茅valuant l'efficacit茅 de ses processus de diligence raisonnable en mati猫re de droits humains, en se concentrant sur l'utilisation 茅ventuelle des produits cloud Azure et d'IA pour commettre des violations des droits humains ou enfreindre le droit international humanitaire.
Principaux points :
- Un nouveau rapport de l'ONU classe Microsoft dans 芦 l'茅conomie du g茅nocide 禄 脿 Gaza ; des donn茅es fuit茅es montrent une augmentation de 155 % de l'utilisation d'Azure par l'arm茅e isra茅lienne entre juin 2023 et avril 2024.
- Le blog officiel de Microsoft indique un manque de visibilit茅 sur la mani猫re dont les clients d茅ploient son logiciel on-premises, r茅v茅lant une lacune en mati猫re de contr么le.
- Les d茅posants avertissent des risques mat茅riels juridiques, op茅rationnels et r茅putationnels (boycotts, m茅contentement des employ茅s, possibles accusations de complicit茅) si la gouvernance n'est pas renforc茅e.
Le nombre sans pr茅c茅dent de co-d茅p么ts souligne l'inqui茅tude croissante des investisseurs quant au fait que des contr么les inad茅quats pourraient 茅roder la valeur actionnariale 脿 long terme et exposer l'entreprise 脿 des litiges et des actions r茅glementaires.
Kontext: Investor Advocates for Social Justice hat eine PX14A6G-Mitteilung eingereicht, die einen Aktion盲rsvorschlag unterst眉tzt, der von den Religious of the Sacred Heart of Mary angef眉hrt und von mindestens 60 Investoren mit mehr als 80 Millionen US-Dollar MSFT-Aktien mitunterzeichnet wurde. Der Beschluss wird auf der Hauptversammlung von Microsoft 2025 zur Abstimmung gestellt und fordert das Unternehmen auf, einen Bericht zu ver枚ffentlichen, der die Wirksamkeit seiner menschenrechtlichen Sorgfaltsprozesse bewertet, insbesondere ob Azure-Cloud- und KI-Produkte zur Begehung von Menschenrechtsverletzungen oder Verst枚脽en gegen das humanit盲re V枚lkerrecht verwendet werden.
Wichtige Behauptungen:
- Ein neuer UN-Bericht f眉hrt Microsoft in die 鈥灻杒onomie des Genozids鈥� in Gaza ein; durchgesickerte Daten zeigen eine 155 %-Steigerung der Azure-Nutzung durch das israelische Milit盲r zwischen Juni 2023 und April 2024.
- Microsofts eigener Blog gibt an, dass keine Einsicht dar眉ber besteht, wie Kunden die On-Premise-Software einsetzen, was eine Aufsichtsl眉cke offenbart.
- Die Einreicher warnen vor erheblichen rechtlichen, operativen und reputativen Risiken (Boykotte, Unruhe unter Mitarbeitern, m枚gliche Mitt盲terschaftsvorw眉rfe), falls die Governance nicht gest盲rkt wird.
Die beispiellos hohe Zahl an Mitunterzeichnern unterstreicht die wachsende Sorge der Investoren, dass unzureichende Kontrollen den langfristigen Aktion盲rswert mindern und das Unternehmen rechtlichen und regulatorischen Risiken aussetzen k枚nnten.
- None.
- None.
Insights
TL;DR: Large investor bloc demands human-rights risk report; failure to comply could raise cost of capital and hurt brand.
The filing itself does not alter Microsoft鈥檚 fundamentals, but it signals elevated stakeholder pressure around Gaza-related allegations. If management resists disclosure, the issue could dominate the 2025 AGM, attract negative media and intensify employee activism鈥攁ll of which threaten talent retention and government-cloud contract pipelines. Conversely, a robust report and tighter AI/customer vetting could mitigate downside while demonstrating ESG leadership. The probability of near-term revenue loss is low, yet the potential magnitude of legal or reputational damage is high enough to warrant investor attention.
TL;DR: Alleged link to war crimes creates outsized litigation, regulatory and boycott risk; disclosure request is governance best practice.
Microsoft鈥檚 admission that it lacks visibility over customer use contravenes UNGP expectations and heightens exposure to aiding-and-abetting claims. The UN characterization of an 鈥渆conomy of genocide鈥� adds reputational toxicity that could trigger exclusion by sovereign wealth funds and ESG indices. Voting support from 60+ shareholders sets a precedent that may spread to other tech firms. Management should quantify exposure, enhance end-use screening and publish a remediation framework to contain risk. Failure could result in class actions or procurement bans, materially impacting future cloud growth.
Contesto: Investor Advocates for Social Justice ha presentato un avviso PX14A6G a sostegno di una proposta degli azionisti guidata dalle Religious of the Sacred Heart of Mary e co-presentata da almeno 60 investitori che detengono pi霉 di 80 milioni di dollari in azioni MSFT. La risoluzione sar脿 sottoposta a voto all'assemblea generale annuale di Microsoft nel 2025 e chiede all'azienda di pubblicare un rapporto che valuti l'efficacia dei suoi processi di due diligence sui diritti umani, concentrandosi sull'eventuale uso dei prodotti cloud Azure e AI per commettere violazioni dei diritti umani o violare il diritto umanitario internazionale.
Principali affermazioni:
- Un nuovo rapporto ONU include Microsoft nell'鈥渆conomia del genocidio鈥� a Gaza; dati trapelati mostrano un aumento del 155% nell'uso di Azure da parte dell'esercito israeliano tra giugno 2023 e aprile 2024.
- Il blog ufficiale di Microsoft ammette la mancanza di visibilit脿 su come i clienti utilizzano il suo software on-premises, evidenziando una lacuna di controllo.
- I promotori avvertono di rischi materiali legali, operativi e reputazionali (boicottaggi, malcontento tra i dipendenti, possibili accuse di complicit脿) se la governance non verr脿 rafforzata.
Il numero senza precedenti di co-presentatori sottolinea la crescente preoccupazione degli investitori che controlli inadeguati possano erodere il valore azionario a lungo termine ed esporre l'azienda a cause legali e azioni regolatorie.
Contexto: Investor Advocates for Social Justice ha presentado un aviso PX14A6G en apoyo a una propuesta de accionistas liderada por las Religious of the Sacred Heart of Mary y co-presentada por al menos 60 inversores que poseen m谩s de 80 millones de d贸lares en acciones de MSFT. La resoluci贸n se someter谩 a votaci贸n en la junta general anual de Microsoft en 2025 y solicita a la empresa publicar un informe que eval煤e la eficacia de sus procesos de debida diligencia en derechos humanos, enfoc谩ndose en si los productos de nube Azure y de IA se est谩n utilizando para cometer abusos de derechos humanos o violar el derecho internacional humanitario.
Reclamaciones clave:
- Un nuevo informe de la ONU incluye a Microsoft dentro de la 鈥渆conom铆a del genocidio鈥� en Gaza; datos filtrados muestran un aumento del 155% en el uso de Azure por parte del ej茅rcito israel铆 entre junio de 2023 y abril de 2024.
- El propio blog de Microsoft indica que carece de visibilidad sobre c贸mo los clientes despliegan su software on-premises, revelando una brecha de supervisi贸n.
- Los presentadores advierten sobre riesgos materiales legales, operativos y reputacionales (boicots, malestar entre empleados, posibles cargos de complicidad) si no se fortalece la gobernanza.
El n煤mero sin precedentes de co-presentadores subraya la creciente preocupaci贸n de los inversores de que controles inadecuados podr铆an erosionar el valor accionarial a largo plazo y exponer a la empresa a litigios y acciones regulatorias.
氚瓣步: Investor Advocates for Social Justice電� Religious of the Sacred Heart of Mary臧� 欤茧弰頃橁碃 斓滌唽 60氇呾潣 韴瀽鞛愱皜 瓿惦彊 鞝滌稖頃� 欤检＜ 鞝滌晥鞚� 歆�歆�頃橂姅 PX14A6G 瓿奠毳� 鞝滌稖頄堨姷雼堧嫟. 鞚� 韴瀽鞛愲摛鞚� MSFT 欤检嫕鞚� 8觳滊 雼煬 鞚挫儊 氤挫湢頃橁碃 鞛堨姷雼堧嫟. 鞚� 瓴办潣鞎堨潃 2025雲� 毵堨澊韥靻岉攧韸� 鞝曣赴 欤检＜齑濏殞鞐愳劀 響滉舶鞐� 攵�斐愳 鞓堨爼鞚措┌, Azure 韥措澕鞖半摐 氚� AI 鞝滍拡鞚� 鞚戈秾 旃暣雮� 甑牅 鞚鸽弰氩� 鞙勲皹鞐� 靷毄霅橂姅歆�毳� 欷戩嫭鞙茧 鞚戈秾 鞁れ偓 頂勲靹胳姢鞚� 須臣靹� 韽夑皜 氤搓碃靹�毳� 須岇偓鞐� 鞝滌稖頃� 瓴冹潉 鞖旉惮頃╇媹雼�.
欤检殧 欤检灔:
- 靸堧鞖� 鞙犾棓 氤搓碃靹滊姅 臧�鞛愳甑� 雮挫棎靹� 毵堨澊韥靻岉攧韸鸽ゼ 鈥滌雼暀靷� 瓴届牅鈥濎棎 韽暔鞁滍偆氅�, 鞙犾稖霅� 雿办澊韯办棎 霐半ゴ氅� 2023雲� 6鞗旊秬韯� 2024雲� 4鞗旉箤歆� 鞚挫姢霛检棙 甑办潣 Azure 靷毄鞚� 155% 歃濌皜頄堨姷雼堧嫟.
- 毵堨澊韥靻岉攧韸� 瓿奠嫕 敫旊攴鸽姅 瓿犼皾鞚� 鞓攧霠堧鞀� 靻岉攧韸胳洦鞏措ゼ 鞏措柣瓴� 靷毄頃橂姅歆�鞐� 雽�頃� 臧�鞁滌劚鞚� 攵�臁表晿雼り碃 氚濏榾 臧愲弲 瓿惦氨鞚� 霌滊煬雰堨姷雼堧嫟.
- 鞝滌晥鞛愲摛鞚� 瓯半矂雱岇姢臧� 臧曧檾霅橃 鞎婌潉 瓴届毎 氩曥爜, 鞖挫榿鞝�, 韽夗寪靸侅潣 欷戨寑頃� 鞙勴棙(氤挫澊旖�, 歆侅洂 攵堧, 鞛犾灛鞝� 瓿惦矓 順愳潣)鞚� 氚滌儩頃� 靾� 鞛堧嫟瓿� 瓴疥碃頃╇媹雼�.
鞝勲 鞐嗠姅 瓿惦彊 鞝滌稖鞛� 靾橂姅 攵�鞝侅爤頃� 韱奠牅臧� 鞛リ赴 欤检＜ 臧�旃橂ゼ 頉检啇頃橁碃 須岇偓臧� 靻岇啞 氚� 攴滌牅 臁办箻鞐� 雲胳稖霅� 靾� 鞛堧嫟電� 韴瀽鞛愲摛鞚� 鞖半牑臧� 旎れ瓿� 鞛堨潓鞚� 氤挫棳欷嶋媹雼�.
Contexte : Investor Advocates for Social Justice a d茅pos茅 un avis PX14A6G en soutien 脿 une proposition d'actionnaires men茅e par les Religious of the Sacred Heart of Mary et co-sign茅e par au moins 60 investisseurs d茅tenant plus de 80 millions de dollars d'actions MSFT. La r茅solution sera soumise au vote lors de l'assembl茅e g茅n茅rale annuelle de Microsoft en 2025 et demande 脿 l'entreprise de publier un rapport 茅valuant l'efficacit茅 de ses processus de diligence raisonnable en mati猫re de droits humains, en se concentrant sur l'utilisation 茅ventuelle des produits cloud Azure et d'IA pour commettre des violations des droits humains ou enfreindre le droit international humanitaire.
Principaux points :
- Un nouveau rapport de l'ONU classe Microsoft dans 芦 l'茅conomie du g茅nocide 禄 脿 Gaza ; des donn茅es fuit茅es montrent une augmentation de 155 % de l'utilisation d'Azure par l'arm茅e isra茅lienne entre juin 2023 et avril 2024.
- Le blog officiel de Microsoft indique un manque de visibilit茅 sur la mani猫re dont les clients d茅ploient son logiciel on-premises, r茅v茅lant une lacune en mati猫re de contr么le.
- Les d茅posants avertissent des risques mat茅riels juridiques, op茅rationnels et r茅putationnels (boycotts, m茅contentement des employ茅s, possibles accusations de complicit茅) si la gouvernance n'est pas renforc茅e.
Le nombre sans pr茅c茅dent de co-d茅p么ts souligne l'inqui茅tude croissante des investisseurs quant au fait que des contr么les inad茅quats pourraient 茅roder la valeur actionnariale 脿 long terme et exposer l'entreprise 脿 des litiges et des actions r茅glementaires.
Kontext: Investor Advocates for Social Justice hat eine PX14A6G-Mitteilung eingereicht, die einen Aktion盲rsvorschlag unterst眉tzt, der von den Religious of the Sacred Heart of Mary angef眉hrt und von mindestens 60 Investoren mit mehr als 80 Millionen US-Dollar MSFT-Aktien mitunterzeichnet wurde. Der Beschluss wird auf der Hauptversammlung von Microsoft 2025 zur Abstimmung gestellt und fordert das Unternehmen auf, einen Bericht zu ver枚ffentlichen, der die Wirksamkeit seiner menschenrechtlichen Sorgfaltsprozesse bewertet, insbesondere ob Azure-Cloud- und KI-Produkte zur Begehung von Menschenrechtsverletzungen oder Verst枚脽en gegen das humanit盲re V枚lkerrecht verwendet werden.
Wichtige Behauptungen:
- Ein neuer UN-Bericht f眉hrt Microsoft in die 鈥灻杒onomie des Genozids鈥� in Gaza ein; durchgesickerte Daten zeigen eine 155 %-Steigerung der Azure-Nutzung durch das israelische Milit盲r zwischen Juni 2023 und April 2024.
- Microsofts eigener Blog gibt an, dass keine Einsicht dar眉ber besteht, wie Kunden die On-Premise-Software einsetzen, was eine Aufsichtsl眉cke offenbart.
- Die Einreicher warnen vor erheblichen rechtlichen, operativen und reputativen Risiken (Boykotte, Unruhe unter Mitarbeitern, m枚gliche Mitt盲terschaftsvorw眉rfe), falls die Governance nicht gest盲rkt wird.
Die beispiellos hohe Zahl an Mitunterzeichnern unterstreicht die wachsende Sorge der Investoren, dass unzureichende Kontrollen den langfristigen Aktion盲rswert mindern und das Unternehmen rechtlichen und regulatorischen Risiken aussetzen k枚nnten.
United States Securities and Exchange Commission
Washington, D.C. 20549
Notice of Exempt Solicitation
Pursuant to Rule Rule 14a-6(g)
Name of the Registrant: Microsoft Corporation
Name of persons relying on exemption: Investor Advocates for Social Justice
Address of persons relying on exemption: Investor Advocates for Social Justice, 40 S Fullerton Ave. Montclair, NJ 07042
Written materials are submitted pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. In accordance with Rule 14a-6(g)(1)m, submission is required of this filer under the terms of the Rule because the filers of the shareholder resolution own beneficially securities of the class which is the subject of the solicitation with a market value of over $5 million. This is not a solicitation of authority to vote your proxy, nor does the information contained within constitute investment advice. Please DO NOT send your proxy card; the filer is not able to vote your proxies, nor does this communication contemplate such an event.
Attachment (below): Press statement in support of a shareholder resolution filed by the Religious of the Sacred Heart of Mary and other co-filers.
- July 23, 2025
Unprecedented Investor Action Demands Microsoft Answer for Reported Involvement in Gaza Genocide
| ● | Shareholder resolution calls for an assessment of the effectiveness of its human rights due diligence processes after reports of Microsoft technologies being used to target and kill Palestinians; |
| ● | At least sixty shareholders have co-filed the resolution, representing more than 80 million in Microsoft shares, slated to go to a vote at the company’s Annual General Meeting later this year; |
| ● | A new UN report names Microsoft as part of the “economy of genocide” in Gaza. |
On July 1, 2025, at least 60 Microsoft shareholders, collectively representing more than $80 million in MSFT shares, filed a shareholder proposal at Microsoft Corporation. The proposal was brought by the Religious of the Sacred Heart of Mary and calls on Microsoft to publish a report assessing the effectiveness of its human rights due diligence processes. Specifically, it requests that Microsoft evaluate whether its AI and cloud technologies are being misused by customers, such as military entities, to commit human rights abuses or violations of international humanitarian law.
The lead filer, the Religious of the Sacred Heart of Mary, said ““From our founding in 1849, the Religious of the Sacred Heart of Mary, an international congregation of Catholic women religious, have been committed to our mission ‘that all may have life.’ As shareholders, we are deeply disturbed by Microsoft’s apparent ineffective due diligence with regard to human rights violations by its customers against the Palestinian people and others.”
The shareholder resolution marks an unprecedented level of participation in a single shareholder filing and reflects urgent and mounting concern over Microsoft’s alleged role in attacks against Palestinians. "The large number of co-filers on this resolution, far more than is typically seen, demonstrates the importance that many shareholders place on companies addressing their human rights risks, to ensure that investors are not benefiting from violations of international humanitarian and human rights law” said ICCR President Josh Zinner.” Anandi Somasundaram, Program Lead for the Racial Justice Investing Coalition, emphasized that the unprecedented investor action “signals a growing consensus across the investment community that systemic exposure to human rights abuses, particularly in conflict zones under international investigation, cannot be ignored.”
Several reports have alleged Israel’s use of Microsoft’s AI and cloud services technologies in its attacks against Palestinian civilians and civilian objects, which have been labeled war crimes and crimes against humanity. There is broad agreement among prominent international organizations, scholars, and the international community that these attacks constitute genocide.
The shareholder proposal comes on the heels of a recent Microsoft blog post, in which Microsoft attempted to absolve itself of any complicity in international crimes in Gaza, while admitting it “does not have visibility into how customers use our software on their own servers or other devices.” This admission is deeply concerning for shareholders, as it underscores a lack of oversight and due diligence that could expose Microsoft to serious material risks. Without a robust human rights due diligence process, the company is failing to meet investor expectations for responsible business conduct, which may negatively impact long-term shareholder value.
Lead filer, Religious of the Sacred Heart of Mary, said “Over the years, we have had constructive discussions with Microsoft. However, in this case, we are disappointed that Microsoft’s recent statements responding to allegations of complicity in war crimes lack both specificity and detail. Microsoft is a leader in the industry and we expect greater transparency and accountability from them.”
These concerns are heightened by Microsoft’s role as Israel’s second-largest military cloud provider. Leaked documents show Microsoft’s Azure usage by the Israeli military surged over 155% between June 2023 and April 2024, supporting combat, intelligence, and surveillance systems—including to elite units tied to grave human rights abuses. Microsoft’s increasing involvement with military actors, such as Israel, in high-risk conflict zones leaves investors concerned and highlights a lack of due diligence and accountability. “Legal experts have already cautioned companies that continued military support to Israel could lead to charges of complicity”, said Marcela I. Pinilla, Director of Sustainable Investing at Zevin Asset Management.
According to the UN Guiding Principles on Business and Human Rights, companies are expected to take all reasonable steps to ensure their products and services - including the deployment of such technologies by customers - are not used to violate human rights. The UN Special Rapporteur on the occupied Palestinian territories recently issued a new report describing how corporate technology, arms, and cloud providers are deeply entangled in what the report calls an “economy of genocide.” The report highlights how Microsoft’s Azure cloud and AI infrastructure have enhanced Israel’s military decision-making, surveillance, and data processing, with one Israeli colonel describing cloud technology as “a weapon in every sense of the word.” Rewan Haddad, the Campaign Director at Ekō, noted that “Microsoft is no longer just a tech company claiming to ‘empower every person and organization on the planet’ — it’s now acting as a weapons company, empowering a military state currently under investigation for genocide.”
Dov Baum, Director of the Action Center for Corporate Accountability for the American Friends Service Committee (AFSC) shared a similar sentiment. “The genocide in Gaza is facilitated by a surge of supply of U.S.-made weapons and technologies to the Israeli military. Microsoft shareholders are joining courageous actions by its own workers, asking the company to step away from its ties to these crimes against humanity.”
The collection of filers of this proposal represents a broad cross-section of the investor community, including faith-based institutional investors, asset managers, individual shareholders, and former Microsoft employees, all unified by serious concerns about the company’s potential complicity in human rights and international humanitarian law violations, as well as the risks to shareholders. Sharon H. Chen, former Microsoft employee and shareholder, stated, “As a former employee and longtime shareholder, I speak up to help make sure Microsoft's role in this world is consistent with its stated values. It is the least I could do for a company that has given me so much.”
Inadequate human rights due diligence exposes Microsoft to significant material legal, operational, and reputational risks. For example, Microsoft’s potential complicity in international crimes in Gaza has sparked outspoken opposition from its own employees, as well as calls for a boycott of the Company, and other severe reputational damage — all of which could harm long-term shareholder value. “By co-filing this resolution, we are confronting the harsh reality that big tech companies including Microsoft - long hailed as a symbol for climate stewardship and global prosperity - are at risk of becoming instruments of war through advancements in A.I.” said Maggie Kulyk, CEO, Chicory Wealth and an individual co-filer on the resolution.
Investors, Microsoft workers, and concerned members of the public are calling on Microsoft to take meaningful action to ensure that its technology and services are not being used to enable human rights abuses in Gaza and elsewhere.
“At such a time as this, with increasing calls for accountability for the atrocities taking place in Gaza, Microsoft has a choice: to prioritize profit or human life. We urge Microsoft to acknowledge its critical role in ensuring that its services truly benefit society and provide allowance for the common good and all life,” said Ruthly Cadestin, Executive Director of Investor Advocates for Social Justice.
For press inquiries or additional questions, please reach out to: Maen Hammad ([email protected] or +12484448806) and Aaron Acosta ([email protected]).
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