PRESS RELASE 4 July 2013 After Apple, Google, Microsoft, Verizon and Yahoo! are accused of violating customers’ privacy, Vigeo reviews its rating on the Human Rights performance of the companies involved Vigeo warns its clients on the reputational and legal risks these allegations represent for the accused companies Press sources reported, in June 2013, that Apple, AOL, Dropbox, Facebook, Google, Microsoft, PalTalk, Skype (Microsoft), Twitter, Yahoo! and YouTube (Google) are accused of allowing intelligence services to access their servers to retrieve data about users, through a monitoring programme (PRISM) endorsed by the Obama administration. Verizon was also accused of revealing customers’ records to the National Security Agency (NSA), under a top secret court order. The information includes the location, date and duration of the national and international calls, as well as the telephone numbers that were involved. The agency has no knowledge about the content of conversations. All over the world, companies in the Information & Communications Technology (ICT) sector face increasing government pressure to comply with domestic laws and policies in ways that may conflict with the internationally recognized human rights of freedom of expression and data privacy. In the last decade, ICTs, have opened new channels for free flow of ideas and opinions, thereby promoting democracy and human rights. In fact, freedom of expression can be observed also using internet and other telecom services. Companies’ involvement into ensuring the respect of this right is crucial. But also the extent to which a company protects customers’ private data (data privacy), in addition to informing them of their rights and the companies’ own legal obligations in terms of providing information to legal authorities is becoming increasingly important. It is one of the main responsibilities from companies to ensure that the privacy of data exchanged in their networks is ensured. The issue of privacy breach is analysed in Vigeo’s rating framework within the Human Rights domain under the “Respect for human rights standards and prevention of violations” sustainability driver. Vigeo analysed the management systems of the companies involved according to the relevance of their policies, the coherence and efficiency of implementation and the effectiveness of results. Given the importance of the accusations of privacy breaches, the recurrence of such events for the company’s concerned, and the apparently insufficient due diligence measures implemented to prevent violations of the right to privacy, all the company’s scores in the Human Rights sustainability driver have been downgraded by Vigeo. Also Vigeo’s assurance on the companies’ ability to adequately manage the risk factors linked to their reputational assets and to protect their legal security is lowered. 1 Indeed, human rights violations, including violations of privacy of data, represent a reputation risk, given the strong media attention. Privacy breach cases can also expose the company to legal action, damage claims and fines. On the other hand, companies that adopt explicit and appropriate human rights principles and goals along with mechanisms for their implementation and reporting are better prepared to prevent human rights abuses and to deal effectively with allegations of wrongdoing that may arise. Fouad Benseddik, Director of Methods and Institutional Relations, notes “This serious case shows that the corporate responsibility of preventing the violation of human rights and the privacy rights of company’s customers does not arise only in authoritarian regimes, but also in democratic countries. Companies must respect “the right to know” of their customers and at least inform them in a clear and intelligible way that their communications can be observed and monitored by public authorities”. For further information, please contact : PARIS Anita LEGRAND (FR/EN) +33(0)1 55.82.32.44 anita.legrand@vigeo.com BRUSSELS Jordi LESAFFER (FR/NL) +32.2.206.11.17 jordi.lesaffer@vigeo.com CASABLANCA Zineb BELYMAM (FR) +212.522.87.14.77 zineb.belymam@vigeo.com LONDON Lindsay SMART (EN) +44 (0) 203.402.6401 lindsay.smart@vigeo.com MILAN Simonetta BONO (IT) +39 02 27 72 71 40 simonetta.bono@vigeo.com TOKYO Robert VERDIER (JA/EN/FR) +81 3 5721 6159 robert.verdier@vigeo.com About Vigeo Vigeo is the leading European expert in responsible performance. Founded in 2002 and headed by Nicole Notat, Vigeo measures the performances and risks of more than 2000 companies, local and countries in the word with regard to six areas of corporate social responsibility: environment, human rights, human ressources, business behavior and corporate governance. Vigeo offers two lines of services through two business brands: - Vigeo rating –the way to responsible investment- offers a broad range of products and services to investors seeking a sustainable and responsible performance of their investments ; Vigeo enterprise –the way to responsible management- conducts global CSR audits and benchmarks in organizations of all sizes, public and private, support teams and integrate CSR/SRI criteria into business functions and strategic operations. Vigeo rating’s research meets high quality standards and is externally certified to the Arista standard. Vigeo is present in Paris, Casablanca, Brussels, Milan, London and Tokyo and has more than a hundred employees. www.vigeo.com 2