Data ethics is not a subject that you would have expected to be a centerpiece of conversation among Chief Data Officers and senior business leaders in the recent past. However, times are changing. Just this past week, Apple CEO Tim Cook condemned what he called the “data-industrial complex”. In calling for accelerated data protection regulation, Cook declared, “Our own information—from the everyday to the deeply personal—is being weaponized against us with military efficiency. Today, that trade has exploded into a data-industrial complex.”
Cook’s call comes among increasing attention to issues of data privacy and data protection, fueled in part by enactment earlier this year by the European Union of the General Data Protection Regulation (GDPR). Cook and others are calling for legislators in the United States to adopt similar federal privacy laws.
It is against this backdrop that data ethics has rapidly moved to the forefront of any meaningful discussion about data. A spate of recent articles -- Never Heard of Data Ethics? You Will Soon, It’s Time to Talk About Data Ethics, Data Ethics: The New Competitive Advantage, Will Democracy Survive Big Data and Artificial Intelligence – underscore the increasing urgency and highlight the ethical considerations that organizations must address when managing data as an asset, and considering its impact on individual rights and privacy.
I recently convened two thought-leadership roundtables of Chief Data Officers and executives with responsibility for data initiatives within their organizations. The increased focus and concern for the ethical use of data is born out of widespread reaction to recent and highly publicized misuses of data that represent breaches of public trust -- whether this be unauthorized data sharing by social media platforms, reselling of customer information by businesses, or biased algorithms that reinforce social inequalities.
It is within this context that we are now witnessing increased corporate attention to data for good initiatives. Companies are increasingly recognizing and acknowledging that ethical action and doing well can be synonymous with doing good. A few corporations, notably Mastercard through their Center for Inclusive Growth, Bloomberg through Bloomberg Philanthropies and the Data for Good Exchange, and JP Morgan through the JP Morgan Institute have been among those corporations at the forefront of ethical data use for public good.
JoAnn Stonier is Chief Data Officer for Mastercard, and in this capacity works closely with Mastercard’s Center for Inclusive Growth. She notes how the work of the Center has contributed to positive change in the overall culture of Mastercard. Ms. Stonier remarks, “The Center for Inclusive Growth has taken a completely new approach to philanthropy - using the best of Mastercard’s assets for social impact”. She observes that “doing well by doing good” is not a new concept. However, she observes that “Having a philanthropic hub at the heart of the company reminds all of us employees about the value and impact we can have in the communities we serve”. She credits the Mastercard executive team for creating the vision and passion which has permeated every corner of the company. “Every day, we think about how we can make a broader impact, from delivering aid in a digital way so tsunami victims can get needed food and equipment faster to helping transit run faster in developing markets”, says Stonier.
Increasingly, corporations are focusing on issues of data ethics, data privacy, and data philanthropy. An executive representing one of the nation’s largest insurance companies noted, “We are spending more hours on legal and ethical review of data than we are on data management”. He cited this as a positive and constructive development. A number of leading universities have established collaborations with major corporations to collaborate on ethical data initiatives. One example is Washington University in St. Louis, which recently hosted a Data for Good Conference, featuring a discussion by Mastercard executive Chris Merz on “Personalizing Experiences and Protecting Customers”. A number of organizations are undertaking initiatives to develop data codes of conduct. Investment firms like Nuveen, a division of TIAA, have launched responsible investing initiatives that rely on responsible use of data.
Organizations are also turning their attention to algorithmic integrity and its consequences for local communities. Virginia Eubanks, a professor of political science at the University of Albany, SUNY, recently published a study on the impact of data algorithms, Automating Inequality: How High-Tech Tools Profile, Police, and Punish the Poor. Other recent articles, such as Algorithm Blues in the Economist, discuss the work of social organizations such as the Human Rights Data Analysis Group. Increasingly, community groups and corporations are thinking about how data can be used to effect positive social outcomes.
Those who are most closely studying the social consequences of data see a growing disparity between what they characterize as the “data haves and have nots”. Ms. Stonier of Mastercard observes, “One of the major issues of our time is information equality. Often, those most in need of data and insight are the least likely to have access”. She cites an example. “Communities trying to recover after a manufacturing plant closes or after a natural disaster strikes can benefit greatly from information insights that can help them rebuild or restructure or understand how to reinvest. The private sector is astute at data insights and analytics, but too few are pioneering data philanthropy”.
One organization that has been a pioneer in this effort is DataKind, whose mission is to “harness the power of data science in the service of humanity”. Through 18,000 volunteers, 6 worldwide chapters, and 300 projects, DataKind is working with corporations and communities to use data to achieve a positive social impact. Ms. Stonier notes that, “These skills need to be combined with the organizations on the ground who need the data to solve the problems and develop the interventions and do not always have the tools or expertise to make informed decisions or changes. We need to close that divide to help tackle society’s biggest problems together”.
Firms like Mastercard, Bloomberg, JP Morgan, and Nuveen are among a growing list of corporations that are taking steps to tackle ethical data use and socially responsible applications of data. Through community and corporate partnerships, individuals and organizations can begin to think about data in creative and positive ways that can move the needle on humanitarian challenges. The crescendo of voices that are calling for data ethics and greater data responsibility is growing. Data ethics and data responsibility are not just good citizenship. They are good business.
