SHAREHOLDER PROPOSALS
policies and initiatives relating to corporate social responsibility, including human rights and ethical business practices, and related risks most relevant to the Companys operations and
engagement with customers, suppliers, and communities.
In light of our commitment to customer trust, privacy, and security; the material
benefits to both society and organizations of Amazon Rekognitions image and video analysis capabilities; and our ongoing efforts to address potential misuse of Amazon Rekognition, the Board recommends that shareholders vote against this
proposal.
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The Board of Directors recommends a vote AGAINST this proposal requesting a report on potential
customer
misuse of certain technologies.
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ITEM 7SHAREHOLDER PROPOSAL REQUESTING A REPORT ON EFFORTS TO RESTRICT CERTAIN PRODUCTS
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Beginning of Shareholder Proposal and Statement of Support:
On average, 250,000 hate crimes were perpetrated in America each year between 2004 and 2015 according to the Bureau of Justice Statistics, which
defines hate crimes as crimes that the victim perceived to be motivated by bias due to the victims race, ethnicity, disability, sexual orientation, or religion. (https://bit.ly/2vO6T0c) Hate crimes appear to be on the rise
(https://wapo.st/2zNrNM4), and some have suggested that online hate speech, which Merriam-Webster defines as speech expressing hatred of a particular group of people, can weaken inhibitions against harmful acts. (https://ti.me/2qtvdzh)
Amazon.com, Inc.s (Amazons) Offensive Products policies state that Amazon does not allow products that promote, incite
or glorify hatred, violence, racial, sexual or religious intolerance or promote organizations with such views. (https://amzn.to/2WZTa0q, accessed November 9, 2019)
Unfortunately, this policy appears to be applied inconsistently, which may indicate a lack of clear internal policies and effective controls. A 2018
report found racist, Islamophobic, homophobic and anti-Semitic items on Amazons platforms. (https://bit.ly/2NxgaRk) While Amazon removed some products after the reports publication, as of November 2019, searches on Amazon.com showed that
controversial products continue to be available. A search for Kek, a satirical religion associated with the white nationalist movement, returned results for multiple items. In December 2019, Huffpost reported that Holocaust-themed
items, including ornaments and mouse pads, were available on Amazon, some with a seller description reading Massacre Auschwitcz [sic] Birkenau Jewish Death. (https://bit.ly/2PuF1VX)
Amazons Offensive Products policies do not apply to books, music, video and DVD. According to a recent report, with respect to these products,
Amazons algorithm for product search proactively directs customers who search for white supremacist or other extremist content to additional extremist content. (https://bit.ly/332jgBy)
Facilitating the sale of offensive products could expose Amazon to reputational damage and impair relationships with key stakeholders. This is
particularly true as Amazon continues to pursue growth in diverse and culturally complex international markets.
Other companies,
including Ryanair and Waffle House, have faced boycotts for failing to address racism encountered by customers. Both Germany and the European Union have enacted laws restricting hate speech. For instance, a German law requires the removal of hate
speech within 24 hours and levies fines against companies that do not comply.
Amazons employees may feel uncomfortable aiding in
the dissemination of hateful materials and employees belonging to targeted groups may feel unsupported by Amazon. According to research published in the Harvard Business Review, disengaged employees have 37% higher absenteeism, 49% more
accidents, and 18% lower productivity. (https://bit.ly/37wmmRV)
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