Understanding How to Put Data Ethics into Practice
Is your data governance and processes putting your business at risk?
When looking at providing an answer to this question, leaders must understand what is required to strike a balance between meeting users’ demands for services and convenience and ensuring that their data is used only for the intended and desired purposes.
Amid the rise of data regulation, such as the General Data Protection Regulation (GDPR) in Europe, most businesses are aware of the growing importance of data ethics. Consumers are increasingly attuned to data protection and privacy, the way that businesses implement data ethics can build (or erode) consumer trust and become a source of competitive advantage. Nevertheless, many businesses have yet to fully implement data ethics and best practice into their operating model and organisational culture. Which could be detrimental to them in the long term.
Here is a simple guide for businesses to translate data ethics from theory to action.
Develop a risk framework
Leaders can start by developing a comprehensive data risk framework that defines the guiding principles, risk inventory, policies and standards, and controls that govern the ethical usage of data (exhibit). Once the framework has been developed, successful implementation can take place only when there is clear communication, robust discussion, and alignment across the business.
Communication is Key
Employees should understand why and how to use data in a responsible and ethical manner, including applying this knowledge to their day-to-day activities.
When collecting or using customer data, leaders can clearly communicate the additional value proposition to their customers which builds valuable trust and enables informed consent, even when that consent is not required for regulatory compliance
It’s important that senior leaders can be role models for the implementation of data ethics and emphasise its importance to the business. A robust communications strategy can help the business solicit feedback, achieve broad buy-in, and improve compliance and risk awareness.
The same principle applies to communication with customers and clients.
Use the right tools
Some businesses may need to leverage a number of tools to create accountability, increase compliance successfully and implement data ethics
These could include: -
Creating a data catalog
Outline data lineage that provides visibility into the flow of data
Implement tools that identify where and how sensitive data are processed, data governance processes that clearly outline ownership and responsibilities for data handling
Develop comprehensive processes of data ethics standards (including a code of conduct) for employees and customers to reference as needed.
This is just a quick overview of the instruments that could serve to provide guidance and guardrails for businesses to fulfil their data ethics responsibilities. Implementing the relevant technical tools can ensure adherence to risk standards and the use of relevant data controls.
Did you find this snap shot of how to embed a data ethics framework, culture, and tool kit into your business useful? Why not share how your business has been able to lay the groundwork for compliance with data ethics regulations in the comment section below.
Source: Margarita Młodziejewska, McKinsey’ Zurich and Henning Soller McKinsey Frankfurt.