Facebook Controversy Rating Downgraded by Analysts

Morningstar ESG Rating partner Sustainalytics has downgraded Facebook following the Cambridge Analytica scandal

Sustainalytics 09.04.2018 | 12:45

Sustainalytics rating for Facebook controversy ESG sustainable responsible investing social governanceRecent news of Facebook’s deficient oversight of Cambridge Analytica’s unauthorised access to its user data has had an impact on multiple stakeholders, including users and investors. The controversy reinforces the mounting concern related to data privacy exposure from data-driven business models that also have monopolistic market share. Sustainalytics has noted these risks across multiple sectors and ESG issues.

We have downgraded this controversy rating to Category 4 because of Facebook’s ongoing involvement in violating the privacy rights of its users. The news surrounding Cambridge Analytica raises serious questions regarding Facebook’s management of its users’ data and whether it can balance its considerable privacy commitments and expectations with its commercial approach, which is key to its advertising-driven business model. Facebook’s failure to disclose knowledge of the unauthorised use of its data in a timely manner is a key consideration in our overall assessment of this controversy.

Our outlook for this rating is Neutral and we anticipate that as the issue evolves, we may reassess our rating over the next 12 months. We believe that regulatory scrutiny of Facebook’s data privacy management will persist. Facebook will remain under pressure from regulators, users and investors in the near term.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

Artikkelen er tilgjengelig for gratismedlemmer hos Morningstar.

Bli medlem, det er gratis!

Verdipapirer nevnt i artikkel

Navn på verdipapirPrisEndring (%)Morningstar Rating
Facebook Inc A312,46 USD-0,18

Om forfatteren

Sustainalytics  er en ledende uavhengig global tilbyder av ESG-analyse (miljø, sosial og selskapsstyrings). Morningstar eier 40 % av Sustainalytics.


© Copyright 2021 Morningstar, Inc. Alle rettigheter reservert.

Brukervilkår        Personvern        Cookies