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April 22, 2014
Secretary
Apple
Inc.
1
InfiniteLoop, MS: 301-4GC
Cupertino,California95014
shareholderproposal@apple.com
Re: Shareholder Proposal on Public Policy Committee
Dear Secretary:
Enclosed please find my shareholder proposal for
inclusion in our proxy materials for the 2015 annual meeting of shareholders
and Scottrade letter of my shares ownership. I will continuously hold these shares until
the 2015 annual meeting of shareholders.
Yours
truly,
Jing
Zhao
Shareholder Proposal on Establishing a Public Policy Committee
Resolved:
shareholders recommend that Apple Inc. (the Company) establish a Public Policy Committee to assist
the Board of Directors in overseeing the Company's policies and practice that
relate to public issues including human rights, corporate social
responsibility, supplier chain management, charitable giving, political
activities and expenditures, government regulations, international relations,
and others that may affect the Company's operations, performance, reputation,
and shareholders’ value.
Supporting Statement
According
to the Form 10-K (ending September 2013), the Company’s international net sales
accounted for 61% of total net sales, and “substantially all of the Company’s
hardware products are currently manufactured by outsourcing partners that are
located primarily in Asia” (p.8); “The Company is subject to laws and
regulations worldwide,” “The Company’s business is subject to the risks of
international operations” (p.15); “The Company also could be significantly
affected by other risks associated with international activities including…
political instability” (p.16), especially, “The Company’s business may be impacted
by political events, war” (p.18). In the
dynamic Asia-Pacific region the Company has $2,943 million assets in Great
China (increased from $1,321 million in 2012), $2,932 million assets inJapan(increased from $1,698 million in 2012). The total assets $6,798 in Asia-Pacific million
are more than the assets in Americas ($5,653 million) and more than two times
assets in Europe ($3,134 million) (p.76). In addition, our Company has more long-lived
assets inChina($7,403
million0 than in theU.S.($7,399 million) (p.77).
However,
the Company currently has three standing board committees: Nominating
Committee, Compensation Committee, and Audit and Finance Committee, without a committee
to legitimately and ethically deal with the increasingly complicated public issues, especially international affairs,
affecting our business. We shareholders
encountered local union protestors every year at the front of annual meeting
buildings. The Company has been widely
condemned for the failure in supplier chain management and censorship issues inChina.
The Japanese government has utilized the
1989 Tiananmen Tragedy to abandon its peace constitution (the cornerstone of
Asia’s peace after WWII), towards rearmament, militarization and fascism to
mislead the U.S. under the U.S.-Japan Security Treaties to crash with the rising
power of a nationalistic China. Although
the Japanese government signed the G-7 Summit declaration in 1989 to protect
Chinese students, I, as a graduate student inOsakaUniversityorganizing Chinese
democratic and human rights activities inJapan, was persecuted because I
refused to collaborate with the Japanese government to betray my fellow Chinese
students. Please refer to Japan’s second
largest newspaper Asahi’s interviews with me on February 10, 1990, October 20,
1992 and June 8, 2009, and my article “The Betrayal of Democracy: Tiananmen's
Shadow over Japan,” Historia Actual Online, 2004, Issue 4 Volume 2.
Partly
to respond to my proposals, Microsoft established such a public policy committee
in 2012. With much more assets and
business weight outside of theU.S.than Microsoft and other big companies, it is time for our Company to establish
a Public Policy Committee.
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