Idea in Brief
The Problem
As companies jockey for competitive advantage in the digital age, they are increasingly penalized for the abuse of data. In 2018 the Cambridge Analytica scandal alone wiped $36 billion off Facebook’s market value and resulted in fines of nearly $6 billion for Meta, Facebook’s parent firm.
Why It Happens
Most problems arise from (1) ethical failures in data sourcing, (2) using data for purposes other than those initially communicated, (3) lack of security in storing it, (4) how it is anonymized, and (5) how it’s prepared for use.
The Solution
Companies should create a special unit to review projects involving people’s data. In its reviews this unit should carefully consider the five Ps of data safety: provenance, purpose, protection, privacy, and preparation.