Socially Conscious Firms Sell, Rethink Facebook Holdings

A number of socially conscious investment firms are reportedly dumping or rethinking their Facebook holdings, prompted by the social network company’s unsatisfactory response to the privacy and data protection issues it had recently been involved in.

On its plan to sell 111,000 Facebook shares, Domini Fund’s Adam Kanzer said that the tech giant’s problems were founded on a lack of sufficient attention to consumer privacy and data security, compounded by inadequate governance.

Meanwhile, Emma Doner from April Eaton Vance Corp unit Calvert Research and Management said that Facebook’s lax controls meant that  the company had clearly violated users’ fundamental right to privacy, which is contrary to the firm’s investment principles.

 

Source: Reuters