>> This is an important question.>> Facebook has been raked over by lawmakers on both sides of the Atlantic for its massive data breach scandal. And now some socially responsible funds are dumping the social media giant's shares, or thinking about it. That's because they don't think Facebook is doing enough strengthen personal data protection and online safety after the scandal involving now the debunked political consulting firm Cambridge Analytica.
Which was hired by Trump's 2016 presidential election campaign. Domini Funds and Calvert Research and Management both well known socially minded investment firms, are selling their holdings in Facebook citing the problem since the data scandal. While the holdings aren't big enough to make a dent on Facebook's share price, they could have a ripple effect, says Reuters' correspondent, Ross Kerber.
>> The more significant thing about these moves is what effect it could have on the larger index-based investors like BlackRock and Vanguard that hold much bigger stakes in the company. Both of them and other index firms have been paying much more attention to social issues in the last couple of years.
So this in effect sets the tone ahead of the May 31 meeting.>> That's when Facebook holds its annual shareholders' meeting, and some funds are calling on shareholders to hold on to the shares,. But vote in support of resolutions that try to reduce CEO's Mark Zuckerberg's power. But they have little chance of getting any change.
>> Zuckerberg himself controls a majority of Facebook shares' voting power. And so at one level this is all just noise and technically the company does not have to do anything in response to whatever these votes are, Zuckerberg can just decide the outcome of the elections. On the other hand, it's important what outside investors think as far as the direction of the shares.
>> Facebook shares dropped sharply in the wake of the data scandal, but have been steadily climbing back up.