During Amazon’s annual meeting, shareholders voted against all 18 proposals put forth by shareholders, marking a new record for rejected proposals. The proposals tackled various issues including workers’ rights, union rights, pay disparities, and animal welfare standards. These proposals were driven by investors focused on environmental, social, and governance (ESG) concerns.

For a proposal to be successful, it needs to receive over 50% of shareholder votes. However, Amazon is not obligated to adopt these proposals. The final results will be disclosed in a future filing with the U.S. Securities and Exchange Commission.

One of the activist investors, Tulipshare, proposed an independent audit of Amazon’s warehouses following citations from the U.S. Occupational Safety and Health Administration for violations. The firm, holding around $7,000 worth of Amazon shares, expressed their intention to continue seeking meetings with the company.

Amazon’s proxy statement reveals that the company has engaged with a significant portion of its largest unaffiliated investors as well as other shareholders. Despite the rejection of these proposals, Amazon has made efforts to communicate and engage with its investors.

While the outcome may disappoint those advocating for change within Amazon, it is crucial to understand that shareholder proposals are not legally binding. Even if a proposal garners majority support, the company is under no obligation to implement the suggested changes. Nevertheless, the increasing number of rejected proposals highlights the mounting pressure Amazon faces to address ESG concerns.

The upcoming response from Amazon to these shareholder concerns, and whether they will take voluntary action to address the issues raised, will be intriguing to observe. With ongoing scrutiny of their business practices, Amazon can anticipate continued pressure to enhance its environmental, social, and governance practices.

Useful Links:
1. Occupational Safety and Health Administration (OSHA)
2. U.S. Securities and Exchange Commission (SEC)