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Facebook can save itself by becoming a B Corporation

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facebook can save itself by becoming a b corporation
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As Facebook confronts outrage among its employees and the public for mishandling multiple decisions about its role in shaping public discourse, it is becoming clear that it cannot solve its conundrums without a major change in its business model. And a new model is readily available: for-benefit status.

For decades, a misguided ideology has warped companies, economies and societies: that the sole purpose of corporations is to maximize short-term returns to one set of stakeholders — those who have bought shares. Neither law nor history requires this to be true.

But shareholder value-maximization ideology has become cemented in far too much corporate practice at the expense of societal well-being. This is manifested in many ways: a slavish adherence to the judgment of the “market,” even when other social signals are more powerful; executives enriched by stock options; companies fearful of “activist investors” who attack whenever stock prices fail to meet quarterly “expectations” and often-frivolous shareholder lawsuits pushing for stock gains at all costs.

The pandemic, however, has accelerated an already-spreading recognition that shareholder value maximization is often a harmful choice — not by any means a moral imperative or even a fiduciary responsibility.

Major institutions of capitalism are converging on a new vision for it. The 2019 Business Roundtable CEO statement said that corporate strategy should benefit all stakeholders – including shareholders, yes, but equally customers, employees, suppliers, and the communities in which companies operate. BlackRock CEO Larry Fink’s recent annual letters assert new views of how that investment company, the world’s largest, should invest the trillions it oversees.

Fink’s 2019 letter spelled out a new vision for corporate purpose; the subsequent 2020 and 2021 letters focused on business’ responsibility around climate change, particularly in light of the pandemic. The B Corporation and conscious capitalism movements are growing. The World Economic Forum is championing a “Fourth Sector,” combining purpose with profit. Business schools, facing student rebellions against a purely profit-maximizing curriculum, are rapidly changing what they teach.

And with society under siege, many more businesses, including social media, are scrambling to seem like good corporate citizens. They have no choice.

Facebook, for example, has doubled down on philanthropy and new efforts to combat misinformation, even as usage and share price soar. Platforms like WhatsApp (owned by Facebook) have become essential services to connect people whose physical ties have been abruptly severed during the global pandemic. Shelter-in-place has become, in many ways, shelter-in-Facebook-properties.

But Facebook and its brethren remain fragile. Since the 2016 presidential election in the U.S., Facebook has faced governmental hearings and regulation, public uproar (#deleteFacebook), and huge fines for invading privacy and undermining democracy. These calls were amplified in the weeks following the January 6 Capitol riot. Separately, it faces allegations of bias, largely (though not entirely) from the political right. These have led to calls for the revocation or reform of Section 230 of the Communications Decency Act, which grants it immunity from the actions of its users.

A giant company that is simultaneously essential and pilloried is vulnerable. Just ask the ghosts of John D. Rockefeller and his fellow robber barons, whose huge monopolies industrialized America more than 100 years ago. Journalistic muckrakers and public outrage targeted them for their abusive practices until the government finally broke up their companies via antitrust legislation.

Because Mark Zuckerberg maintains complete majority control of Facebook, he could unilaterally quell public opprobrium and fend off heavy-handed regulation singlehandedly by transforming Facebook into a new kind of business: a for-benefit corporation.

Under the Public Benefit Corporation legal model, firms bind themselves to a public benefit mission statement and carry out required ongoing reporting on both the standard financials and on how the company is living up to its mission. That status protects the company against profit-demanding shareholder lawsuits, and also attracts employees and investors who want to combine profit with purpose.

Data.world is one of the thousands of certified B Corporations that have seen good returns on financial metrics. Allbirds, for example, launched in a few sustainable materials using a pro-sustainability process to manufacture comfortable shoes, quickly reaching revenues of $100 million and valuation of $1.7 billion in an industry fraught with sustainability and human rights concerns. Other household names that are B Corps include The Body ShopCourseraDanone, the Jamie Oliver GroupKing Arthur FlourNumi Tea and Patagonia.

Many companies that have not undergone formal B Certification from B Labs have nonetheless done well while transforming their business practices, such as the carpet and flooring company Interface. Some firms incorporate ESG principles into their management systems – the $24 billion (market cap) Dutch life sciences company DSM has for years had meaningful sustainability targets for its senior management that account for fully 50 percent of their annual bonuses. Both Interface and DSM attribute much of their commercial success to their attention to non-financial considerations.

A for-benefit Facebook could similarly relate to the world differently, avoiding many of the reputational shocks and regulatory responses that have led to huge stock dips and enormous fines. Its operations would align with Zuckerberg’s proclaimed purpose to enable the potential abundance that results from connecting everyone in the world.

Imagine a Facebook town hall as a true public square, not just another way to gather and sell people’s data without their explicit consent. Imagine a Facebook that put its users first and its advertisers second; that revealed where ads came from; that earned your attention in a way that you controlled rather than through machine-driven algorithms maximizing your attention for good or ill. Such a for-benefit Facebook could create true buy-in and transparency with its massive community around the world.

Of course, such steps as Facebook’s new Oversight Board, which may provide some meaningful review, don’t require a legal change. But if shareholders and employees continue to be rewarded primarily by the success of the problematic ad revenue model, a continuing conflict between private gain and public benefit makes it impossible to have confidence about what is happening behind the scenes. A shift to for-benefit incorporation and appropriate certification brings with it different performance metrics and accountability systems with public scores.

In changing Facebook into a for-benefit corporation, Zuckerberg could insulate himself against presidential rage while rehabilitating his reputation — and his company’s. It would likely create vast ripples both in Silicon Valley and beyond — and it might help transform capitalism itself.

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Christian family goes in hiding after being cleared of blasphemy

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Christian family goes in hiding after being cleared of blasphemy

LAHORE, Pakistan — A court in Pakistan granted bail to a Christian falsely charged with blasphemy, but he and his family have separated and gone into hiding amid threats to their lives, sources said.

Haroon Shahzad (right) with attorney Aneeqa Maria. | The Voice Society/Morning Star News

Haroon Shahzad, 45, was released from Sargodha District Jail on Nov. 15, said his attorney, Aneeqa Maria. Shahzad was charged with blasphemy on June 30 after posting Bible verses on Facebook that infuriated Muslims, causing dozens of Christian families in Chak 49 Shumaali, near Sargodha in Punjab Province, to flee their homes.

Lahore High Court Judge Ali Baqir Najfi granted bail on Nov. 6, but the decision and his release on Nov. 15 were not made public until now due to security fears for his life, Maria said.

Shahzad told Morning Star News by telephone from an undisclosed location that the false accusation has changed his family’s lives forever.

“My family has been on the run from the time I was implicated in this false charge and arrested by the police under mob pressure,” Shahzad told Morning Star News. “My eldest daughter had just started her second year in college, but it’s been more than four months now that she hasn’t been able to return to her institution. My other children are also unable to resume their education as my family is compelled to change their location after 15-20 days as a security precaution.”

Though he was not tortured during incarceration, he said, the pain of being away from his family and thinking about their well-being and safety gave him countless sleepless nights.

“All of this is due to the fact that the complainant, Imran Ladhar, has widely shared my photo on social media and declared me liable for death for alleged blasphemy,” he said in a choked voice. “As soon as Ladhar heard about my bail, he and his accomplices started gathering people in the village and incited them against me and my family. He’s trying his best to ensure that we are never able to go back to the village.”

Shahzad has met with his family only once since his release on bail, and they are unable to return to their village in the foreseeable future, he said.

“We are not together,” he told Morning Star News. “They are living at a relative’s house while I’m taking refuge elsewhere. I don’t know when this agonizing situation will come to an end.”

The Christian said the complainant, said to be a member of Islamist extremist party Tehreek-e-Labbaik Pakistan and also allegedly connected with banned terrorist group Lashkar-e-Jhangvi, filed the charge because of a grudge. Shahzad said he and his family had obtained valuable government land and allotted it for construction of a church building, and Ladhar and others had filed multiple cases against the allotment and lost all of them after a four-year legal battle.

“Another probable reason for Ladhar’s jealousy could be that we were financially better off than most Christian families of the village,” he said. “I was running a successful paint business in Sargodha city, but that too has shut down due to this case.”

Regarding the social media post, Shahzad said he had no intention of hurting Muslim sentiments by sharing the biblical verse on his Facebook page.

“I posted the verse a week before Eid Al Adha [Feast of the Sacrifice] but I had no idea that it would be used to target me and my family,” he said. “In fact, when I came to know that Ladhar was provoking the villagers against me, I deleted the post and decided to meet the village elders to explain my position.”

The village elders were already influenced by Ladhar and refused to listen to him, Shahzad said.

“I was left with no option but to flee the village when I heard that Ladhar was amassing a mob to attack me,” he said.

Shahzad pleaded with government authorities for justice, saying he should not be punished for sharing a verse from the Bible that in no way constituted blasphemy.

Similar to other cases

Shahzad’s attorney, Maria, told Morning Star News that events in Shahzad’s case were similar to other blasphemy cases filed against Christians.

“Defective investigation, mala fide on the part of the police and complainant, violent protests against the accused persons and threats to them and their families, forcing their displacement from their ancestral areas, have become hallmarks of all blasphemy allegations in Pakistan,” said Maria, head of The Voice Society, a Christian paralegal organization.

She said that the case filed against Shahzad was gross violation of Section 196 of the Criminal Procedure Code (CrPC), which states that police cannot register a case under the Section 295-A blasphemy statute against a private citizen without the approval of the provincial government or federal agencies.

Maria added that Shahzad and his family have continued to suffer even though there was no evidence of blasphemy.

“The social stigma attached with a blasphemy accusation will likely have a long-lasting impact on their lives, whereas his accuser, Imran Ladhar, would not have to face any consequence of his false accusation,” she said.

The judge who granted bail noted that Shahzad was charged with blasphemy under Section 295-A, which is a non-cognizable offense, and Section 298, which is bailable. The judge also noted that police had not submitted the forensic report of Shahzad’s cell phone and said evidence was required to prove that the social media was blasphemous, according to Maria.

Bail was set at 100,000 Pakistani rupees (US $350) and two personal sureties, and the judge ordered police to further investigate, she said.

Shahzad, a paint contractor, on June 29 posted on his Facebook page 1 Cor. 10:18-21 regarding food sacrificed to idols, as Muslims were beginning the four-day festival of Eid al-Adha, which involves slaughtering an animal and sharing the meat.

A Muslim villager took a screenshot of the post, sent it to local social media groups and accused Shahzad of likening Muslims to pagans and disrespecting the Abrahamic tradition of animal sacrifice.

Though Shahzad made no comment in the post, inflammatory or otherwise, the situation became tense after Friday prayers when announcements were made from mosque loudspeakers telling people to gather for a protest, family sources previously told Morning Star News.

Fearing violence as mobs grew in the village, most Christian families fled their homes, leaving everything behind.

In a bid to restore order, the police registered a case against Shahzad under Sections 295-A and 298. Section 295-A relates to “deliberate and malicious acts intended to outrage religious feelings of any class by insulting its religion or religious beliefs” and is punishable with imprisonment of up to 10 years and fine, or both. Section 298 prescribes up to one year in prison and a fine, or both, for hurting religious sentiments.

Pakistan ranked seventh on Open Doors’ 2023 World Watch List of the most difficult places to be a Christian, up from eighth the previous year.

Morning Star News is the only independent news service focusing exclusively on the persecution of Christians. The nonprofit’s mission is to provide complete, reliable, even-handed news in order to empower those in the free world to help persecuted Christians, and to encourage persecuted Christians by informing them that they are not alone in their suffering.

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Individual + Team Stats: Hornets vs. Timberwolves

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CHARLOTTE HORNETS MINNESOTA TIMBERWOLVES You can follow us for future coverage by liking us on Facebook & following us on X: Facebook – All Hornets X – …

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What went wrong with ‘the Metaverse’? An insider’s postmortem

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What went wrong with 'the Metaverse'? An insider's postmortem


It’s now two years since Facebook changed its name to Meta, ushering in a brief but blazing enthusiasm over “the Metaverse”, a concept from science fiction that suddenly seemed to be the next inevitable leap in technology. For most people in tech, however, the term has since lost its luster, seemingly supplanted by any product with “artificial intelligence” attached to its description. 

But the true story of the Metaverse’s rise and fall in public awareness is much more complicated and interesting than simply being the short life cycle of a buzzword — it also reflects a collective failure of both imagination and understanding.  

Consider:

The forgotten novel

Ironically, many tech reporters discounted or even ignored the profound influence of Snow Crash on actual working technologists. The founders of Roblox and Epic (creator of Fortnite) among many other developers were directly inspired by the novel. Despite that, Neal Stephenson’s classic cyberpunk tale has often been depicted as if it were an obscure dystopian tome which merely coined the term. As opposed to what it actually did: describe the concept with a biblical specificity that thousands of developers have referenced in their virtual world projects — many of which have already become extremely popular.

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Snow Crash.

You can see this lack of clarity in many of the mass tech headlines attempting to describe the Metaverse in the wake of Facebook’s name change: 

In a widely shared “obituary” to the Metaverse, Business Insider’s Ed Zitron even compounded the confusion still further by inexplicably misattributing the concept to TRON, the original Disney movie from the 80s.

Had the media referenced Snow Crash far more accurately when the buzz began, they’d come away with a much better understanding of why so many technologists are excited by the Metaverse concept — and realize its early incarnation is already gaining strong user traction.  

Because in the book, the Metaverse is a vast, immersive virtual world that’s simultaneously accessible by millions of people through highly customizable avatars and powerful experience creation tools that are integrated with the offline world through its virtual economy and external technology. In other words, it’s more or less like Roblox and Fortnite — platforms with many tens of millions of active users. 

But then again, the tech media can’t be fully blamed for following Mark Zuckerberg’s lead.

Rather than create a vision for its Metaverse iterating on already successful platforms — Roblox’s 2020 IPO filing even describes itself as the metaverse — Meta’s executive leadership cobbled together a mishmash of disparate products. Most of which, such as remotely working in VR headsets, remain far from proven. According to an internal Blind survey, a majority of Zuckerberg’s own employees say he has not adequately explained what he means by the Metaverse even to them.

Grievous of all, Zuckerberg and his CTO Andrew Bosworth promoted a conception of the Metaverse in which the Quest headset was central. To do so, they had to overlook compelling evidence — raised by senior Microsoft researcher danah boyd at the time of the company acquiring Oculus in 2014 — that females have a high propensity to get nauseous using VR.

Meta Quest 3 comes out on October 10 for $500.
Meta Quest 3.

Contacted in late 2022 while writing Making a Metaverse That Matters, danah told me no one at Oculus or Meta followed up with her about the research questions she raised. Over the years, I have asked several senior Meta staffers (past and present) about this and have yet to receive an adequate reply. Unsurprisingly, Meta’s Quest 2 VR headset has an estimated install base of only about 20 million units, significantly smaller than the customer count of leading video game consoles. A product that tends to make half the population puke is not exactly destined for the mass market — let alone a reliable base for building the Metaverse. 

Ironically, Neal Stephenson himself has frequently insisted that virtual reality is absolutely not a prerequisite for the Metaverse, since flat screens display immersive virtual worlds just fine. But here again, the tech media instead ratified Meta’s flawed VR-centric vision by constantly illustrating articles about the Metaverse with photos of people happily donning headsets to access it — inadvertently setting up a straw man destined to soon go ablaze.

Duct-taped to yet another buzzword

Further sealing the Metaverse hype wave’s fate, it crested around the same time that Web3 and crypto were still enjoying their own euphoria period. This inevitably spawned the “cryptoverse” with platforms like Decentraland and The Sandbox. When the crypto crash came, it was easy to assume the Metaverse was also part of that fall.

But the cryptoverse platforms failed in the same way that other crypto schemes have gone awry: By offering a virtual world as a speculative opportunity, it primarily attracted crypto speculators, not virtual world enthusiasts. By October of 2022, Decentraland was only tracking 7,000 daily active users, game industry analyst Lars Doucet informed me

“Everybody who is still playing is basically just playing poker,” as Lars put it. “This seems to be a kind of recurring trend in dead-end crypto projects. Kind of an eerie rhyme with left-behind American cities where drugs come in and anyone who is left is strung out at a slot machine parlor or liquor store.”

All this occurred as the rise of generative AI birthed another, shinier buzzword — one that people not well-versed in immersive virtual worlds could better understand.

But as “the Metaverse” receded as a hype totem, a hilarious thing happened: Actual metaverse platforms continued growing. Roblox now counts over 300 million monthly active users, making its population nearly the size of the entire United States; Fortnite had its best usage day in 6 years. Meta continues plodding along but seems to finally be learning from its mistakes — for instance, launching a mobile version of its metaverse platform Horizon Worlds.  

Roblox leads the rise of user-generated content.
Roblox.

Into this mix, a new wave of metaverse platforms is preparing to launch, refreshingly led by seasoned, successful game developers: Raph Koster with Playable Worlds, Jenova Chen with his early, successful forays into metaverse experiences, and Everywhere, a metaverse platform lead developed by a veteran of the Grand Theft Auto franchise.

At some point, everyone in tech who co-signed the “death” of the Metaverse may notice this sustained growth. By then however, the term may no longer require much usage, just as the term “information superhighway” fell away as broadband Internet went mainstream.  

Wagner James Au is author of Making a Metaverse That Matters: From Snow Crash & Second Life to A Virtual World Worth Fighting For 

GamesBeat’s creed when covering the game industry is “where passion meets business.” What does this mean? We want to tell you how the news matters to you — not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Discover our Briefings.

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