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Shareholders Pressure Internet Companies on Rights

whamett writes "A group of investment firms is putting their shareholder weight behind asking high-tech companies that deal with repressive regimes to pay more attention to rights violations. Meanwhile, two of the firms have drafted a separate resolution for Cisco shareholders that's up for vote on Tuesday. All this comes not long after Yahoo's involvement in the jailing of a Chinese journalist left a bad taste in everyone's mouth." This isn't the first time that investment firms have stepped up to the plate on human rights violations.

15 of 227 comments (clear)

  1. The comedy of capital by dada21 · · Score: 5, Interesting

    It is funny when I believe in voting only with your dollars (political voting is evil always), and get slammed for it. Yet here is proof that money is the only non-force mechanism for change. Unfortunately, no one external to a corrupt government can really stick to the capital solution for long. The problems in our own lives eventually take precedence.

    Even if Cisco stops dealing with Badmanistan, the Badmanistanians can still import from other countries. How do you stop the use? Maybe DRM restricting what country an item works in? I don't think so. Yet funny if the thought crossed your mind.

    Maybe we can make a more concerted effort. Get the U.N. involved and completely stop technology from getting there. I'm sure the hospitals and schools can get by without technology.

    Here's a solution. Smuggle guns and ammo into countries with no respect for private property. Let the inner hope of revolution make real change. Rights won't be protected with sanctions. Only by blood do we truly stop those who dare to take our lives, our properties and our natural right to both.

    Maybe after we've brought true freedom to everyone else, someone will kindly help us find it, too.

    1. Re:The comedy of capital by ScrewMaster · · Score: 5, Interesting

      Maybe DRM restricting what country an item works in?

      You mean like DVD Region Codes?

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:The comedy of capital by aussie_a · · Score: 3, Interesting


      Even if Cisco stops dealing with Badmanistan, the Badmanistanians can still import from other countries. How do you stop the use?


      I think the primary problem for the shareholders is to stop people taking advantage of poor working conditions in foreign countries (which would be illegal in the USA) and to not aid overtly foreign governments to repress it's citizens (an example would be google and China).

    3. Re:The comedy of capital by Grishnakh · · Score: 3, Interesting

      You're not too bright, are you?

      Lots of people in this country don't own any land, and they live in places called "apartments". Before the rise of the middle class, back in feudal times, this was pretty much normal: everyone rented their land from some Lord or Duke or whatever. You don't need to own land to live, have sewers, or even protect your living space from people trying to shit in it (try taking a shit in someone's apartment and see if they don't call the police).

      What the parent poster was advocating, I believe, is something alone the lines of a communist/socialist government where all the land is owned by the State, and then leased out to various companies and people. Of course, being an ignorant American I would guess, you'll probably have something negative to say about this because of the "C" word, but the idea does have some merit (although, like anything, it also has problems). With government ownership of land, the gov't could put a quick stop to land investment and speculation, which seems to drive up prices, making it hard for poorer people to find affordable housing. Many realty markets in the US now are having problems because the value of property has risen so much (much faster than wages and salaries), so people are no longer able to afford the same level of housing as they were 5 years ago, unless they were smart/lucky and were investors/speculators themselves. For instance, if you owned 5 rental properties in a hot market, and they all doubled in value over the past 5 years, then you could sell them all now, take the profit, and buy yourself a very expensive residence. But if you only owned one house, it may have doubled in value, but so did everything else nearby, so you can't upgrade to a nicer house, and your pathetic 2% raise last year won't help either. With central control of realty leasing, this would be ended, and people would have to find other things to invest in.

      Also, it'd be a lot easier for the gov't to get things done if it owned everything. If they want to put in a new highway to stop congestion and accidents, they no longer need to spend exorbitant amounts of (taxpayer) money on over-valued land to get people to sell; they'd just give them eviction notices and help find comparable places to live, and then they could build the highway in just the correct spot. If a company is polluting too much and going through the court system is too slow, the gov't can just cancel their lease on their factory.

      Of course, the downside to all of this is that if you don't own the land, then you probably don't own the buildings on it either (what would be the point), and there's not much incentive to do more than the bare minimum with it. You might not going to get the gov't to build you a luxurious mansion on your leased property. Or if you're a large corporation looking for someplace to build a $3 billion semiconductor fab, why would you build it someplace where the gov't can decide next week that it needs the land back for a highway? And how exactly would you get the gov't to build a $3 billion fab?

      I don't think gov't ownership of land is the greatest idea either (unless someone can explain a better way in which it'd work), but your comments are totally nonsensical.

    4. Re:The comedy of capital by demachina · · Score: 4, Interesting

      "Hording doesn't make wealth, hard work does."

      Hard work can make wealth, but wealth does in fact also make wealth in the Capitalist system. Yes you can get some clueless heiress that will squander a fortune or tank a multigeneration family business.

      But, if you have extensive wealth you can with relative ease continue to generate ever greater wealth by investing it in relatively safe investment vehicles in perpetuity, by tapping a financial manager if necessary. It is simply vastly easier for the affluent to make money than it is the poor, people who are struggling to put food on the table and keep a roof over their heads, to pay for home heating and gas to get to work.

      It is a simple fact that without progressive taxation wealth rapidly accumulates in the hands of a tiny minority, while the vast majority get ever poorer. It was this way in the U.S. in the early twentieth century when progressives introduced progressive taxation and it is this way again today since the Republicans are dismantling progressive taxation, devastating wages for the lower and middle classes, cutting taxes for the rich while they bleed workers white with inescapable payroll taxes the surpluses from which they are squandering so their will be no money for workers benefits when they reach retirement though they paid 12.5% of their income most of their lives in to these bankrupt systems.

      You might trot out Bill Gates as a rags to riches example, well his family was relatively affluent and he never really had to worry about basic survival. He also acquired the lion's share of his wealth by essentially illegal economic activity, the same goes for the Walton family. Gates and the Walton's started out engaging in hard work and hard nosed business but there is a point that they transitioned in to acquiring their wealth by monopolistic and underhanded business practices, not so much "hard work". Ethicless monopolies are remarkably lucrative when done well.

      I think you will find many rags to riches stories where people engaged in economic activity that was either outright illegal or certainly unethical and that they screwed a large number of people to acquire their wealth, the didn't just "work hard".

      --
      @de_machina
  2. Just say "no" by Anonymous Coward · · Score: 2, Interesting

    Personally, I said no, and explained why. I was unsure of what would happen, but I'm still gainfully employed; my performance review noted a commitment to integrity, and I just got promoted.

  3. Does that include sanctions against CNN? by Nova+Express · · Score: 5, Interesting
    Given that "CNN's chief news executive Eason Jordan [admitted] that for the past decade the network [systematically] covered up stories of Iraqi atrocities" prior to the U.S. invasion of Iraq in order to maintain access to Saddam's government, it would seem that CNN and TimeWarner would be prime candidates for sanctions/and or boycotts. Of course, the question now is: What crimes are CNN and their MSM brethern covering up to maintain access in countries like Cuba, Syria and Communist China to "maintain access" even now?

    --
    Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)

    http://www.lawrenceperson.com/

  4. How is this Ciscos faule? by a_greer2005 · · Score: 4, Interesting
    Can any company control how the product is used after purchase? Cisco isnt liable here for the same reasons gun companies arent liable in murder cases, there is a huge amount of legal network activity that Cisco enables, china is the bad apple here.

    Yahoo handles content, the routers just pass bits

  5. Re:The Irony Is Projectile Vomiting Me In The Face by c0dedude · · Score: 5, Interesting

    We are just like you. We live in the same world, and have similar concerns. We want human rights just as much as you do. Not only that, a loss of goodwill can result from poor business practices. China has an emerging market we want access to, but we see better returns from a free market with free organization, thus leading to human rights concerns.

    --
    Since when has this country used intellectual elite as a pejorative term?
  6. I believe this is called 'Stakeholding' by QuantumG · · Score: 3, Interesting

    The idea being that democracy works better when voting is disproportionate based on the amount of self sacrifice that has been offered by the individual. For example, someone who works for a company and uses 90% of their salary to buy stock in the company has more say in the running of that company than someone who chooses to invest nothing in the company.

    --
    How we know is more important than what we know.
  7. Re:Color me cynical... by NevDull · · Score: 1, Interesting

    If ethics mattered, companies in what other country would be dealing with the US? You can't possibly be so deluded to imagine that we're ethical. Maybe in some cases we're "more ethical", but in absolute terms, we're far from the ideal.

    Compromise is necessary to get anything done, including some compromise of ideals. You do it with yourself every day.

  8. Re:It's all about profits by Ironsides · · Score: 3, Interesting

    I believe you are talking about a "Minority Shareholder Lawsuit". It doesn't matter how much stock you own, even if it is only a single share, you can sue a company/employees if it does something that damages the stock price for reparation. This can vary from monetary damages to giving the shareholder more stock.

    --
    Fly me to the moon Let me sing among those stars Let me see what spring is like On jupiter and mars
  9. Funny thing about totaletarian regimes by 808140 · · Score: 5, Interesting

    You know, lately I've been seeing a lot of fear-mongering Slashdotters talking about how we all have a moral responsibility to not to business with companies that do business with China, Iran, Syria, North Korea, etc.

    Now, last I checked it was illegal for US corps to do business with North Korea and Iran, so I'm never quite sure why those are brought up. But China is a popular target. I can only imagine this is because we are starting to get nervous about such a massive economic force. Sort of in the same way people in the eighties used to yell "Go Home, Jap!" to anyone who looked Asian on the street. But I digress.

    Well-meaning (and I do believe they are well meaning) people have said lots of things about how we ought to "not buy Chinese goods" because the Chinese government doesn't respect basic human rights, and the only way to make them see the light of day is to hit them where it hurts -- financially. We say the same thing about "sweat shops" in Vietnam or wherever operated by firms like Nike or Reebok. Not sure if it's still the rage to go off about these.

    Now, as a disclaimer, I actually live in China (I'm American, though). I want to advance a theory about totaletarian regimes: they are non-sustainable if the populace is becoming wealthy.

    Now obviously this doesn't apply to a place like North Korea where trading with the country (if it were even legal) really means trading with the government, and not with the people. But China and Vietnam are not like that, despite what you may have heard.

    In the 1970s, China was in the throes of the cultural revolution; people truly had no rights, they were expected to spend several hours of their day reciting "Wei Renmin Fuwu" and other works of Chairman and Poet Mao Ze Dong. But those days have been a thing of the past since Deng Xiao Ping's economic reforms in the late seventies and early eighties, reforms which continue to this day.

    As a direct result of these reforms, money paid into China not only makes the government richer (you can't avoid this, people pay taxes on income) but also, and this is important, it makes the people more wealthy.

    Chinese people are not living like beggars (unless you're in Guizhou or something). Especially people in the cities are beginning to do very well for themselves. And if you're in Beijing, Shanghai, or Guangzhou, well, you're essentially living at first world standards. Really.

    The problem is, as people get more wealthy, more prosperous, more educated, more connected to the outside world -- read, not isolated from it as they were during the cultural revolution -- they come into contact with a lot of ideas that had previously been considered non grata by the government. You know, like democracy. The other week I was in Beijing and there was a huge advertisement for a development site with Chinese characters as tall as me saying "Bringing a little more culture, a little more civility, and a little more democracy (!!!) to Beijing."

    This is the city that sent tanks against students demonstrating just 15 years ago.

    Why is this happening? Because the Chinese government too wants to get rich. Even back in the days when Mao had a swimming pool built for himself in Zhong Nan Hai while everyone else was starving, the best the government cronies could hope for was a lifestyle equivalent to a beverly hills hillbilly. Not shabby, certainly. But nothing (and I mean nothing) like what they enjoy now.

    Because they want to encourage more investment, they are continuously relaxing their controls. There are two reasons for this. One: certain technology, like the internet, is necessary for commerce. It can also be used by Chinese citizens to learn uncomfortable truths. Because they are addicted to wealth, they mostly ignore the second issue (the Chinese firewall is a joke -- it's there so they can say they're doing something: most of the stuff that's blocked is irrelevant and a surprising large amount of openly rebellious material in Chi

  10. Re: Your sig by demachina · · Score: 4, Interesting

    I'm a little unclear why someone posting under aussie_a is so much less anonymous than someone posting as an AC. People who have URL's, like you do, or an email address associated with their alias maybe are a little more identifiable but those URL's and email addresses may be aliases too. I think all in all your standard is a little arbitrary. If people are saying something controversial, but insightful, doing it as AC is A-OK with me, I've read some great AC posts, though most are garbage from people posting as AC because they have nothing intelligent to say. If someone posts flamage under a login, they could discard it in a heartbeat, create a new one and be pretty much as anonymous as an AC.

    If someone from China is posting here as an AC chances are China's government can watch the whole IP transaction and track down the person if they want to, same probably goes for an American thanks to extensive tapping of the Internet by various three letter agencies.

    Fact is American's, like the Brits and everyone else, have "free speech" only as long as their government lets them have it and within the bounds they set. The UK did let people have free speech to advocate fundamentalist Islamic causes, but it is now speech likely to lead to deportation or jail. You don't really have free speech when there are all kinds of arbitrary bounds on it, i.e. you can speak freely until you say something we've decided we don't like and then you don't.

    In reality free speech is a completely relative concept. The U.S. has free speech compared to China, so it does in relative terms, but in absolute terms there are countless bounds on it.

    In eras rich in fear mongering your free speech rights can be abridged in a heart beat. You need to look no further than McCarthyism in the U.S. in the 50's to appreciate how fleeting free speech is, or today when the Executive of the United States has bestowed upon its self the power to arrest people on a whim, detain them without due process, without access to a lawyer, family or court and even to whisk you away to various secret prisons to be tortured indefinitely up to the end of your life which they have often brought about in these secret prisons. The U.S. projects an image of being free, but in many respects it is carefully manufactured facade, again free in relative terms just because there are places worse, and it is less free with each passing day. Countries which espouse freedom don't make people disappear or torture people and the U.S. most certainly does these things now thanks to government by paranoid wackos who were given carte blanche to be paranoid wackos by 9/11.

    In most respects 9/11 WAS all about Al Qaeda attacking Freedom and Democracy in the West. The catch is they are destroying them, not by attacking the West, but by giving power mad governments of Western nations excuses to destroy Freedom and Democracy themselves.

    --
    @de_machina
  11. Re: Your sig by GamingFox · · Score: 4, Interesting

    Wonderful post.

    Plus, I like to add my comment. Of course there will always be someone saying something we don't like, but thats the whole point of free speech. The right to free speech is created to insures that someone will say something that some people will not like to hear. Got problem with your government? Speak out. Got problem with your neighborhood? Speak out. Got problem with your boss? Speak out (anonymous of course). Got problem with slashdot? Speak out (at your own website or blog).

    Don't get me wrong. I am not saying free speech is just for people who want to flame each other to death. Free speech is for solving or preventing problems in our society because the very first step to solving problems is to get aware of them. If no one aware of the problems, then no one will solve it. Plus, knowledge is power. Governments rely on our stupidity to successfully oppress us. "Don't worry, no one will hack the RFID in your passports..." Free speech allows the knowledge to come out. It doesn't matter if people like it or not, or whichever if it is true or false, the words must come out anyway.

    Basically, we have to accept the good with the bad.