Shortly after it was revealed that Cambridge Analytica collected data on Facebook users during the 2016 election campaign, Domini Impact Investments, a registered investment advisory firm that specializes in responsible investing, decided to drop Facebook shares from its holdings. It had already flagged the company for data privacy issues the year before.
“We decided Facebook was really the most clear-cut example of soliciting intimate details about you and selling it to advertisers,” said Amy Lee Domini, founder of Domini.
Nora Chan, Facebook corporate communications associate manager, said in an email that Facebook had no comment.
This was not the first time that Domini, which evaluates investments based on environmental, social and governance standards, had chosen to divest from a company to make a statement. In the past, the investment firm eliminated Walmart from its holdings because of labor violations in its supply chains, and Computer Associates International, now known as CA Technologies, due to high executive pay.