Two proposals on ethical finance have been filed in 2022 and both face SEC challenges. Several shareholder resolutions over the years have picked up on concerns about the amount of taxes companies pay, generally arguing that it is not enough. Many of these proposals have not made it past the SEC because companies have successfully argued taxes are an ordinary business issue.

The Missionary Oblates this year wants Amazon.com to “issue a tax transparency report to shareholders…prepared in consideration of the indicators and guidelines set forth in the Global Reporting Initiative’s (GRI) Tax Standard.” The resolution notes that when companies shift their profits offshore, it costs the U.S. government up to $100 billion a year, and that the Organization for Economic Cooperation and Development (OECD) estimates global costs may be $240 billion. The Oblates point out that one of the Global Reporting Initiative’s standards seeks to address the problem. The proposal says Amazon now does not report on its “revenues, profits or tax payments in non-US markets, challenging investors’ ability to evaluate the risks to our company of taxation reforms, or whether Amazon is engaged in responsible tax practices.” It also observes that Amazon paid no U.S. corporate income taxes in 2020.

The other proposal this year comes from individual investor James A. Heagy, who wants PayPal to compare its Code of Business Conduct And Ethics “with the actual operations of the company.” He says the codes states, “managing and moving money is a right for all citizens, not just the affluent,” but takes issue with how it freezes accounts “without explanation.”

SEC action: Amazon.com is arguing at the SEC that the tax proposal is ordinary business since it is about tax management. PayPal also says its resolution is ordinary business since it is about compliance with company policy and customer account management.