Vigeo Eiris downgrades Facebook’s scores relating to privacy rights
Vigeo Eiris has issued a downgrading alert to its investor and asset manager clients following recent allegations against Facebook.
Facebook is accused of failing to safeguard users’ private information and properly inform them that their private data was obtained and used by Cambridge Analytica.
This event, which had a global impact, revealed the social network’s vulnerability to risks of data abuse and manipulation, leading to a breach of the privacy rights of millions of users.
Vigeo Eiris has downgraded Facebook’s scores on the following three criteria:
– Decrease of 19 points/100 on the Respect of Fundamental Human Rights (respect and protection of privacy), under the ‘Human Rights’ domain
– Decrease of 10 points/100 on the Audit & Internal Controls, under the ‘Corporate Governance’ domain
– Score remains at 0/100 on the Information to Clients, under the ‘Business Behaviour’ domain.
Facebook already achieved a weak overall ESG score (25/100) and a limited performance in the social domains (human rights, and responsible management of human resources) according to Vigeo Eiris’ research methodology.
Several governments (Germany, Australia, Brazil, United States, India, Israel) have reacted and indicated their intention to investigate Facebook. Despite Mark Zuckerberg’s public apologies, uncertainties remain about the Company’s ability to adequately ensure the protection of users’ data, and prevent the risk of data manipulation.
Fouad Benseddik, Vigeo Eiris’ Director of Methodology said: “If confirmed, these allegations are very serious. It is essential for Facebook’s users to have confidence that their personal data is adequately protected and, if used for commercial purposes, used lawfully”.
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