- Meta Platforms, Inc. is likely to be subjected to a shareholder mandate.
- The SEC denied Meta’s request to halt an Arjuna Capital LLC deal.
- According to Arjuna Capital LLC, Meta is not the proper business to construct the metaverse.
A Meta Platforms Inc. is set to face a shareholder vote on whether or not its proposed metaverse virtual environment is beneficial to society.
The Securities and Exchange Commission (SEC) of the United States has denied Meta’s request to block a proposal from Arjuna Capital LLC. This proposal requested a third-party assessment of the metaverse’s possible psychological, civil, and human rights damages. Arjuna Capital is a wealth management business. Meanwhile, earlier in February, Arjuna Capital had submitted this shareholder proposal to the Securities and Exchange Commission.
Meta did not dismiss the possibility of the metaverse causing damage. However, it contended to the SEC that the idea should be exempt from current laws since it relates to the firm’s “regular business activities.” The SEC, on the other hand, found that the plan “exceeds routine business affairs.”
For the past few years, the metaverse has been a popular issue of debate, with individuals arguing its virtues and drawbacks. There is lots of evidence to show that the metaverse may have long-term and negative effects on humans.
In a Bloomberg piece, writer Naomi Nix correctly stated, “Everything uncomfortable and possibly destructive that happens on the internet may feel so much more powerful.”
“We’re not saying no one should be constructing a metaverse,” said Natasha Lamb, managing partner at Arjuna Capital.
What we mean is, is Meta the ideal firm to accomplish this when they are so badly managed and manifestly incapable of handling what they already have in front of them? Do they have the social licence to do so or not?
It’s worth noting that Facebook’s social conscience has been called into question throughout the years. It is still reeling from the fallout from the release of internal papers disclosed by whistleblower Frances Haugen in 2021. According to the released data, Facebook prioritised profit before content regulation.
Furthermore, the US government and law enforcement have spent many years attempting to hold Facebook responsible.