Better Health for All
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Morgan Stanley, a financial services firm, has engaged in initiatives that support better health. The company's Capital Partners invested in US HealthConnect, a digital platform providing continuing medical education to healthcare providers, thereby strengthening healthcare workforce capacity
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. Morgan Stanley also supports health education initiatives, including funding an education center for children in marginalized U.S. communities
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and hosting a Women, Wealth, and Wellness Expo with sessions on nutrition, sleep management, and women's heart health
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. Additionally, Morgan Stanley committed an additional $20 million over five years to its children's mental health initiative, bringing its total investment to $50 million since 2020
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, and awarded $500,000 to organizations for children's mental health solutions. The firm participated in $3 million seed funding for a startup addressing racial health disparities for women of color
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and co-launched a $100 million investment fund to expand access to healthcare and affordable housing for low-income residents, aiming to serve approximately 75,000 people
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. However, specific quantitative data such as the percentage of revenue or capital allocation for these initiatives, or the percentage of vulnerable populations reached, is not provided in the articles, preventing scoring for related KPIs.
Fair Money & Economic Opportunity
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Morgan Stanley's U.S. subsidiary banks consistently received "Outstanding" ratings from the Office of the Comptroller of the Currency for their record of meeting community needs.
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However, Morgan Stanley paid $1.7 million in restitution for charging excessive fees in some 529 college savings plans due to supervisory failures between January 1, 2013, and June 30, 2018.
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Fair Pay & Worker Respect
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In Australia, a February 2024 government survey revealed Morgan Stanley has a gender pay gap of 48%, indicating women earn 48% less than men, more than double the national average.
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This disparity is partly attributed to the underrepresentation of women in senior roles. A June 2023 report also showed fewer women and working mothers participated in equity compensation plans compared to men and working fathers.
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In May 2025, a federal judge conditionally certified a lawsuit alleging the firm denied overtime pay to client services associates.
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Historically, Morgan Stanley settled overtime pay lawsuits for $4.2 million in 2011
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and 2015,
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and a $54 million sex discrimination lawsuit in 2004.
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While the 2025 Code of Conduct and Equal Employment Opportunity policy emphasize diversity,
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,
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the February 2025 annual report reduced its focus on diversity, shifting to meritocracy.
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Employee reviews from March 2023 highlighted concerns about a toxic environment, micromanagement, and insufficient compensation.
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Furthermore, in May 2024, ISS recommended against approving former CEO James Gorman's proposed 2023 pay of $32.9 million,
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citing excessive one-time awards,
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and he receives a $400,000 annual fee plus perks as an adviser.
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Fair Trade & Ethical Sourcing
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Morgan Stanley requires 100% of its suppliers to comply with its Supplier Code of Conduct and other policies, which include robust ethical terms such as prohibitions against modern slavery, child labor, and human trafficking.
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Any breach of this Code is considered a material breach of contract, and the firm reserves the right to conduct audits, including through a third party.
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In 2024, a supplemental modern slavery review on over 300 high-risk suppliers identified no major issues.
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Morgan Stanley Capital Group Inc. (MSCGI) reported no awareness of forced or child labor in its activities and supply chains during 2024, and zero cases were referred through the Integrity Hotline in the same year.
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As a financial services firm, Morgan Stanley does not procure or trade physical commodities, making fair-trade certification not applicable to its core business.
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Honest & Fair Business
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Morgan Stanley has incurred approximately $269.6 million in ethics-related regulatory fines and penalties within the past three years.
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This includes a $250 million settlement in January 2024 for block trading violations,
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a $15 million SEC fine in December 2024 for client fund misappropriation,
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a $2 million fine in September 2024 for failing to monitor insider trades,
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a $1.6 million FINRA fine in February 2024 for municipal securities violations,
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and a $1 million fine in February 2025 in Switzerland for money laundering failures related to bribery.
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The company maintains a Global Anti-Corruption Policy, updated annually, which prohibits all forms of bribery and corruption.
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This policy includes periodic and targeted training for employees, risk-based monitoring and testing, and risk-based due diligence for transactions and investments.
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Morgan Stanley also provides a comprehensive whistleblower mechanism through its Code of Conduct and Ethics, featuring a 24/7 confidential and anonymous Integrity Hotline available worldwide.
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The company explicitly prohibits retaliation against anyone raising concerns in good faith,
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and reported concerns are reviewed promptly and thoroughly.
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Kind to Animals
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Morgan Stanley scored zero points on Sinergia Animal's 2022 scorecard, indicating a lack of formal policies addressing animal cruelty and ethical farming in its investments.
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In November 2023, Morgan Stanley Investment Management invested in Huel, a company offering plant-based and ethically sourced food products.
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The firm also acquired FoodScience Corporation in November 2024, which specializes in nutritional supplements for pets and humans.
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In March 2023, Morgan Stanley committed to strengthening its deforestation policies, enhancing standards for investments in sectors like soy, beef, and wood products to mitigate impacts on wildlife.
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However, in 2020, Morgan Stanley invested in Brazilian beef producers tied to suppliers involved in illegal deforestation in the Amazon, raising concerns about the firm's indirect impact on wildlife habitats.
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No War, No Weapons
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Morgan Stanley held over $3 billion in Raytheon stock as of October 2023, representing a 2.1% ownership share in the weapons company.
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The firm also provided equity financing to Top Aces, a military training provider, and a $70 million loan to firearms manufacturer Colt Defense in November 2014.
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, 10 These ongoing financial ties demonstrate exposure to companies involved in controversial weapons and the defense sector. There is no evidence of divestment from these defense-related assets; instead, Morgan Stanley projected multi-year growth for the defense and aerospace industry in July 2022.
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Furthermore, in July 2024, Morgan Stanley did not respond to an urgent call by UN experts to cease the transfer of arms to Israel.
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The company states its approach to human rights is informed by the UN Guiding Principles on Business and Human Rights, and its teams conduct assessments considering related frameworks.
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Planet-Friendly Business
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Morgan Stanley exited the Net-Zero Banking Alliance in January 2025, raising concerns about its commitment to climate goals.
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The firm has set a goal to achieve net-zero financed emissions by 2050, with interim targets for key sectors by 2030, but these targets are not stated as validated.
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Despite this, Morgan Stanley achieved carbon neutrality and utilized 100% renewable electricity across its global operations in 2023.
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The company also committed to mobilizing $1 trillion in sustainable finance by 2030, having mobilized over $820 billion by the end of 2023, with $750 billion allocated to low-carbon and green solutions.
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In October 2024, it partnered with Climeworks to remove 40,000 tons of CO₂ by 2037.
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However, between 2016 and 2023, Morgan Stanley provided approximately $183.5 billion in financing to the fossil fuel industry, including $11.36 billion in 2023 for companies involved in fossil fuel expansion.
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The firm also dropped its goal to reduce plastic pollution by 50 million metric tons by 2030 in September 2024 due to data challenges.
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Respect for Cultures & Communities
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Morgan Stanley has established 13 formal partnerships with indigenous or local community groups, including collaborations with the Navajo Nation, Red Lake Nation, The Metropolitan Museum of Art, Somerset House, National Baseball Hall of Fame, and various nonprofit organizations like The Felix Project and Feeding America network.
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In 2024, the company reinvested approximately 5.03% of its firmwide revenue ($61,761 million) through $110 million in charitable donations and over $3 billion in Community Reinvestment Act (CRA) qualified loans and investments.
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No cultural appropriation incidents have been reported. The company's Environmental and Social Risk Management (ESRM) and Environmental and Social Policy Statement (ESPS) include cultural heritage and impacts on Indigenous Peoples in due diligence processes for transactions.
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However, in 2017, Morgan Stanley financed companies involved in the North Dakota Access Pipeline construction, which was opposed by Native Americans due to water quality concerns, indicating a past incident disrupting a cultural context.
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The company's September 2024 policy states it will not knowingly finance projects in UNESCO World Heritage sites without prior consensus.
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Safe & Smart Tech
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Morgan Stanley received a $35 million fine from the SEC in September 2022 for data disposal failures that resulted in unencrypted personal data from 15 million customers being sold online due to hiring an inexperienced storage company.
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Japan's SESC recommended penalties in June 2024 for at least 26 unauthorized client data sharing events that occurred between 2020 and 2023, violating regulations.
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The company also settled for $6.5 million with several U.S. states in November 2023 for data security incidents in 2016 and 2019 involving improper decommissioning of hardware containing unencrypted customer data.
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The UK's CMA fined the firm in February 2025 for sharing sensitive information about UK government bonds between 2009 and 2013.
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Morgan Stanley states it has a global framework to comply with data protection and privacy laws and a global information security program.
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It educates employees on information security and conducts regular phishing simulations.
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The firm uses AI and machine learning, committing to notify users of material impacts from automated decisions as required by law.
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Users are granted rights to access, rectify, erase, restrict, object to processing, and data portability, subject to applicable law.
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Zero Waste & Sustainable Products
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Morgan Stanley has implemented several waste reduction initiatives through investments and partnerships. These include partnering with the World Economic Forum’s Global Plastic Action Partnership (2020)
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, launching the Sustainable Solutions Collaborative (2022, 2023)
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to support companies addressing plastic waste and circular economy, and backing ByFusion via its Inclusive & Sustainable Ventures Lab (2023)
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. The firm also explores capital markets' role in the circular fashion economy (2022)
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. A 2019 Plastic Waste Resolution to facilitate 50 million metric tons of plastic waste reduction by 2030 was discontinued in September 2024 due to data challenges.
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Efforts are now integrated into its broader $1 trillion sustainable finance commitment by 2030.
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