Investor Advocates for Social Justice

Investors Signal Urgent Need for Microsoft to Strengthen Human Rights Due Diligence

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December 9, 2025

Today, over 26% of Microsoft shareholders supported a resolution calling on the Company to evaluate the effectiveness of its human rights due diligence processes. The proposal was filed by the Religious of the Sacred Heart of Mary Charitable Trust and the Sisters of the Sacred Heart of Mary, Eastern American Area and was accompanied by an unprecedented 57 co-filers representing more than $80 million in Microsoft shares. This level of participation reflects a growing recognition among investors that Microsoft must take responsibility for how its technologies are used, particularly in high-risk environments where failures in oversight can contribute to human rights abuses.

Notably, this 26% support also represents one of the highest levels of shareholder backing to date for a proposal that touches on Palestinian human rights, underscoring growing investor concern about how corporate practices and technologies may contribute to or exacerbate harm to Palestinians.

“Through this strong showing, Microsoft shareholders have expressed that a company’s human rights due diligence should actually be effective in practice, not just on paper. Given Microsoft’s historic leadership on human rights, we are hopeful the Company will course correct and, once again, prioritize human life over profit,” said Aaron Acosta, Program Director at Investor Advocates for Social Justice. 

The vote comes after a year of extraordinary scrutiny of Microsoft’s human rights record. The United Nations Special Rapporteur on business and human rights, Francesca Albanese, highlighted in her report that Microsoft has contributed to what she describes as an “economy of genocide” by providing cloud and AI infrastructure that facilitates surveillance, decision-making, and data control.

In 2025, The Guardian published two investigations showing Microsoft technologies were being used by the Israeli military in its operations against Palestinians, including mass surveillance. Microsoft launched an internal review and in May stated it had found “no evidence to date” of misuse, while acknowledging that it lacks visibility into how customers use its software, a limitation that raises serious questions about the Company’s ability to prevent or identify harm. By September, Microsoft reversed its position, confirming that the reporting was correct and terminated one of the contracts, noting the Guardian’s reporting.

These events have coincided with growing pressure from within Microsoft. Employee-led protests and internal dissent throughout the year focused on the Company’s contracts with the Israeli military and the risk that its technologies are enabling surveillance and human rights abuses.

This vote reflects escalating investor concern over Microsoft’s repeated due diligence failures. The Company restricted only one Israeli military contract after sustained public pressure and investigative reporting, despite an earlier internal review claiming no violations. Meanwhile, allegations of complicity in abuses in China, Saudi Arabia, and the United States point to systemic weaknesses.

Today’s strong showing demonstrates that shareholders are no longer willing to accept opaque or ineffective human rights governance. Investors are calling on Microsoft to undertake a credible assessment of its human rights due diligence processes, address the failures that allow its technology to be misused, and demonstrate that the Company can manage the legal, financial, operational, and reputational risks linked to human rights violations. The human rights harms at stake, and the risks to people whose lives are directly affected by the Company’s technologies, are too serious for Microsoft to dismiss or delay.

Quotes from the field:

Sister Maria Timoney,  Religious of the Sacred Heart of Mary, Eastern American Area

“As religious women affected by the reality of a world wounded by war, violence and offenses against human dignity, we are committed to work for justice and to care for those on the margins of our societies. This commitment supports our networking, our partnering with others and our advocacy efforts to change unjust structures.”

Joshua Brockwell, Azzad Asset Management

“Azzad Asset Management was proud to co-file this shareholder resolution with Religious of the Sacred Heart of Mary calling for greater transparency around Microsoft’s human rights due diligence processes. As a faith-forward investment advisory firm focused on halal investing, we believe that companies have a fundamental obligation to ensure their products and technologies are not used to facilitate harm, especially against civilian populations in conflict zones. Our clients expect us to engage actively with portfolio companies in accordance with values that honor human dignity and justice. Bringing this shareholder resolution to a vote today was a meaningful example of that engagement.

Our resolution reflects the conviction that human rights due diligence is both a moral imperative and a material risk factor. Companies operating in occupied territories and conflict-affected areas face heightened responsibilities under the UN Guiding Principles on Business and Human Rights. This resolution sought accountability, transparency, and action to prevent Microsoft’s technologies from being weaponized against vulnerable populations. Filing it, regardless of outcome, was essential to both our ethical commitments and our fiduciary duty to preserve long-term shareholder value.”

Marcella Pinilla, Zevin Asset Management

Shareholders expect Microsoft to lead—not lag—on human rights. When its cloud and AI tools are deployed in high-risk environments, lapses in oversight can put people in real danger and create material risks for the company. This proposal and today’s vote reflect a growing recognition among investors that the decisions Microsoft makes directly affect people’s lives.

Sharon Chen, Individual Investor and Former Microsoft Employee

“As someone who is a proud member of the Microsoft employee alumni community, I am invested in its legacy.  In the same way that true patriotism requires citizens to be clear-thinking critics of their country, my role here is to push a Company that has given me so much, to be the best version of itself as possible.  Shareholders of companies have the right and responsibility to vote on resolutions for a reason and addressing situations like this seems like what this mechanism was designed for.”


Contact: Caitlin Seznec cseznec@iasj.org and Aaron Acosta aacosta@iasj.org