360 Security Technology (SH:601360) 2 1 Shi Ji Jing Ji Bao Dao·2025-12-17 12:24Core Viewpoint - The recent scandal involving a former executive of 360 (601360.SH) has raised significant concerns regarding the company's governance and social responsibility, particularly in the context of ESG (Environmental, Social, and Governance) ratings and public trust [1][4]. Group 1: Governance and Social Responsibility Issues - The scandal has highlighted structural shortcomings in governance and social responsibility, as reflected in 360's MSCI ESG rating of BB, ranking 8th out of 13 in its industry [2][3]. - The company scored only 3.7 out of 10 in the social dimension and 4.3 in governance, indicating significant weaknesses in employee relations and stakeholder communication [2][3]. - The low scores in social and governance dimensions are seen as a result of long-term governance issues and inadequate stakeholder management [3]. Group 2: Impact on Reputation and Trust - The incident has severely damaged 360's social reputation and trust, which may take a long time to repair, affecting its business ethics and compliance image [4]. - Regardless of the outcome of the allegations, the incident has reinforced existing perceptions of ESG risks associated with 360, particularly the low social dimension score [4]. Group 3: Financial Performance and Market Reaction - Despite ongoing operational challenges, 360 reported a revenue of 2.241 billion yuan in Q3 2025, a year-on-year increase of 16.88%, surpassing the 3.67% growth in the first half of 2025 [5]. - Following the scandal, 360's stock price fell by 4.79% within the first hour of trading on December 17, closing at 10.51 yuan per share, a decline of 3.22% [6]. Group 4: Consumer Concerns and Governance Transparency - Users have raised complaints about difficulties in uninstalling 360's software and intrusive advertising practices, which have not been addressed in the company's ESG report [6][7]. - Experts emphasize that the authenticity of financial reports is a core aspect of governance, and companies must ensure transparency to rebuild trust [7].