Editors' pick: Originally published Feb. 2.

Sustainable investment fund Arjuna Capital and another fund on Thursday issued a proposal the firms hope will be approved by Facebook (FB) - Get Report shareholders urging the social media giant to produce a report reviewing the public policy and business issues it faces around the phenomenon of "fake news."

"We want Facebook to explain how many ads or content they are blocking, how much staff do they have evaluating fabricated content claims and how much are they outsourcing to third parties such as Politifact or ABC," said Arjuna Capital managing partner Natasha Lamb.

The proposal is nonbinding, so Facebook doesn't have to respond even if the shareholder vote is substantial. However, a significant vote of shareholders urging Facebook to follow through on the proposal's recommendation could be enough to embarrass the company into issuing a detailed study. At this stage, however, it is possible Facebook will seek to have the Securities and Exchange Commission remove the proposal from consideration. A Facebook spokesman did not return a request for comment.

The Arjuna-Baldwin measure comes as Facebook has come under fire following the 2016 U.S. presidential and congressional elections over fake news stories trending on the social media platform. One high-profile example involved the fake news phenomenon that became known as "Pizzagate," a false conspiracy that trended on social media sites claiming that a Washington D.C. area pizzeria hid a child sex ring in its basement set up by Hillary Clinton and her former campaign chairman, John Podesta.

The Arjuna-Baldwin proposal comes after a recent Pew Research Center survey reported that about two-in-three U.S. adults, about 64%, say fabricated news stories have caused lots of confusion about the basic facts of current issues and events.

In November, reports noted that Facebook had created an unofficial task force to examine the issue of fake news. In December, Facebook said it would start marking disputed articles, with the assistance of users and fact checkers.

On Tuesday, Facebook issued a statement noting that it had categorized pages to identify whether or not they were "posting spam or trying to game the feed by doing things like asking for likes, comments or shares." The social media platform said it had set up a system to better "rank authentic content."

Lamb said she wants Facebook to issue the report so observers can get a better sense of the scope and impact of the problem since many people get their news and information from the social media site. "Adding a new flagging system isn't enough," Lamb said, "Investors seek to understand the scope of the problem that is not going away and most likely gets worse before it gets better."

She argued that the fake news issue could have an impact on Facebook's business success in the years to come and needs to be addressed, especially since the British Parliament on Monday announced an inquiry into the fake news phenomenon and the German government considers legislation that would allow it to fine Facebook for stories it deems "fake news."

"What I've been hearing is that people are having Facebook fatigue," Lamb said. "This could have profound implications for the business model, particularly if governments get involved."

Editor's pick: This story was originally published on Feb. 2 at 5:16 pm ET.