Climate and Sustainability Shareholder Resolutions Database | Ceres

Adopt/expand supplier human rights policy (AMZN, 2015 Resolution)

Industry Internet & Direct Marketing Retail
Sector Consumer Discretionary
Filed By SumOfUS
Votes 5.05%
Status Vote
View Memo

Organization: Amazon.com Inc.

Year: 2015

Resolved: Resolved: That shareholders of Amazon.com, Inc. ('Amazon') urge the Board of Directors to report to shareholders, at reasonable cost and omitting proprietary information, on Amazon's process for comprehensively identifying and analyzing potential and actual human rights risks of Amazon's entire operations and supply chain (a 'human rights risk assessment') addressing the following: * Human rights principles used to frame the assessment; * Methodology used to track and measure performance; * Nature and extent of consultation with relevant stakeholders in connection with the assessment; and * Actual and/or potential human rights risks identified in the course of the human rights risk assessment related to (a) Amazon's use of labor contractors/subcontractors, temporary staffing agencies or similar employment arrangements (or a statement that no such risks have been identified). The report should be made available to shareholders on Amazon's website no later than August 31, 2015.

Supporting Statement:Supporting Statement: As long-term stockholders, we favor policies and practices that protect and enhance the value of our investments. There is increasing recognition that company risks related to human rights violations, such as reputational damage, project delays and disruptions, and litigation, can adversely affect shareholder value. To manage such risks effectively, we believe companies must assess the risks to shareholder value posed by human rights practices in their operations and supply chain, as well as by the use of their products. The importance of such assessment is reflected in the United Nations Guiding Principles on Business and Human Rights (the 'Ruggie Principles') approved by the UN Human Rights Council in 2011. The Ruggie Principles urge that 'business enterprises should carry out human rights due diligence [including] assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed.' (http://www.business-humanrights.org/media/documents/ruggie/ruggie-guiding-prinicples-21-mar-2011.pdf) Amazon's business model exposes the company to significant human rights risks. Amazon's focus on ever increasing targets and efficiency in its fulfillment centers has reportedly caused significant medical problems for its employees including heat stroke and heat exhaustion. (See http://www.salon.com/2014/02/23/ worse_than_wal_mart_amazons_sick_brutality_and_secret_history_of_ruthlessly_intimidating_workers/) In Germany, Amazon hired a contractor to manage temporary employment agency staff. The contractor allegedly reneged on promised wages, kept migrant employees under surveillance and in cramped and unsuitable accommodation and supervised employees using guards whose uniforms had neo-Nazi connotations. (See http://www.businessweek.com/articles/2013-02-19/amazon-under-fire-over-alleged-worker-abuse-in-germany) Amazon received a grade of D in a recent report about supply chain abuses, which alleges that the company does not pay a local living wage and is unable to trace the source of many component materials for products like its Kindle. (See https://www.baptistworldaid.org.au assets/BehindtheBarcode/Electronics-Industry-Trends-Report-Australia.pdf) Human rights risk assessment and reporting would help Amazon to identify and mitigate human rights risks and would allow shareholders to understand their potential impact on shareholder value. We urge shareholders to vote for this proposal.

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