The Data Avalanche and What to Do With It

Take a page out of Apple’s book: prioritize privacy and ethics for business success

Coming out of the pandemic, we have a greater digital footprint than ever:  so many businesses underwent a digital transformation to survive, creating an influx of digital data where manual processes once sufficed. Now, with all this digital information available to us, businesses must find the right balance between leveraging data to grow while respecting the privacy rights of individuals—and avoid becoming bogged down in the volume of data.  

For businesses unaccustomed to collecting so much data, how can they move forward?

Amid today’s landscape where trust and transparency are paramount, brands must move beyond what’s required by law to consider the ethical implications of how they leverage consumer data. By investing in leadership that supports ethical data practices and taking the time to educate and train all employees, businesses will be able to operate ethically while leveraging the vast amounts of data they now have access to. 

Bringing data ethics into the conversation 

Digital transformation sped up by several years for many companies due to the pandemic. Because companies had to move fast or become irrelevant, many did not consider the ethical implications of the technology they deployed or the practices they began implementing.

However, as we settle into this “after” period, when the pandemic has no official end date, brands must reexamine these practices. Wherever they are located, companies are bound by the restrictions of local law. 

We can assume that companies deployed technology in accordance with current laws and regulations during the pandemic, but is this enough? For many consumers that value privacy, it isn’t—40% of consumers don’t trust companies to ethically use their data, with 30% unwilling to share their personal data for any reason.  

No matter the industry you operate in, if you touch consumer data, you have a moral responsibility to move beyond laws and regulations to consider data ethics as well. 

An ethical data use framework

To ensure that you ethically collect, store, use and delete data, you have to be clear upfront about what you will do with the data. An ethical data use framework can be the North Star for your organization. The purpose of this framework is to steer your organization’s data practices by outlining what you believe and how you act. 

Treat people’s data the way they want it to be treated.

At the most basic level, brands’ data ethics framework should be guided by the Platinum Rule of data: treat people’s data the way they want it to be treated. Not everyone is comfortable sharing information with companies; assess what consents consumers have provided to better understand what they want done with their data.

You should also ensure that your existing data practices are clear and provide consumers with the opportunity to opt-out. If your privacy policies aren’t designed in an easily digestible way, be sure to update them.

A Chief Data Ethics Officer (CDEO) can lead the evaluation of these consents and the creation of your company’s data ethics principles. Unlike a Chief Data Officer, the CDEO’s role is focused on keeping your organization accountable from an ethics perspective. One of their main responsibilities is to create data ethics principles that guide your organization’s data practices.

Your C-suite should contribute to the development of these principles, but a CDEO can help ensure they are externally published, distributed widely and upheld across your company and with the partners and suppliers you work with. By investing in a CDEO, your brand is investing in accountability and transparency.

Once your CDEO has stewarded the creation of your company’s data ethics principles, it’s time to disseminate them and integrate them into the fabric of your culture. Make data ethics training part of candidate interviews and onboarding discussions for new vendors. Provide ongoing training to employees across functions and expertise.

With clearly outlined data practices, you’ll hold every employee at your company and every partner you work with accountable so any touchpoint a consumer has with your brand is guided by data ethics.

Consider a company like Apple, for example. At a corporate level, the company’s commitments around data and data usage are very clear—in many ways, it’s a guiding tenet of their ethical philosophy and product strategy.

As a customer myself, I know this commitment is sincere because it permeates the entire user experience: notices are provided and consents are sought in a clear manner, providing users with a real opportunity to opt out, not just providing a notice that says, “By continuing to use our products, you accept these terms.” By operating in this manner, Apple’s reputation has strengthened, and it’s been recognized as the World’s Most Admired Company for the 14th year in a row.  

Not all companies are as forward-thinking or ethically minded, instead simply complying with data privacy regulations. Take a page out of Apple’s book: prioritize privacy and ethics for business success. 

Building consumer trust 

The kinds of data brands collect now have not changed radically from what they gathered prior to the pandemic—it’s still web browsing, purchase history and demographics. But what is different now is the richness of this data.

With more connections happening online, it’s easier to get a more comprehensive view of a consumer’s likes, dislikes, and other nuances that make them who they are. However, people are increasingly aware of how much data is being collected and are becoming more intentional about the types of data they share. 

By being transparent and clear about your data ethics stance, consumers will come to trust your brand and be more willing to share personal data with you. The release of Apple’s iOS 15 and the upcoming end to third-party cookies make collecting data directly from consumers even more critical. In our new privacy landscape, zero-party data given willingly by consumers can help you curate the personalized experiences they’ve come to expect from brands. 

This is the way forward: provide value and be useful. Ensure your audience trusts you enough to opt-in. 

So, how can businesses not only survive but thrive amid the influx of data? By creating data ethics principles that encourage transparency and accountability to your customers. They’ll thank you for it, and because it differentiates you from other brands, your bottom-line will too.