CO: Why is it so hard to come up with the right balance of corporate carrots and sticks? Even companies like Yahoo that have a hip modern image (vulnerable to public pressure) are placed in an awkward position when faced with liability claims.

• The Alien Torts Claim Act mentioned in the following article, permits civil claims by "aliens", non-US citizens, for breaches of international law. It has been read to provide a remedy to victims of human rights abuses.
  
• See the transcript of Microsoft, Yahoo and Google's testimony before US House of Representatives Committee on Foreign Affairs
• Under pressure from the Chinese government, Yahoo disclosed some information about its users and their search patterns. Allegedly, this led to a human rights violation.
  
• What could Yahoo do?

1. China might have shut them down and they might have lost money. They might have been replaced by another search company (ie google).
2. They could have tried to negotiate an agreement that censored terms but did not disclose user searches.
3. They could have gone ahead as they did under protest.
   

• Arguably, they were screwed either way. But now they are faced with both a claim under the ACTA and a shareholder motion for the Board of Directors to form a human rights committee.
  

TAKEAWAY: Corporations are placed in an awkward position when they face competing incentives: wanting to appear green and clean, but wishing to avoid liability.

Q: Will you or anyone you know stop using yahoo or google? See Google's testimony before the US congress about this issue.