A Little Class on the Internet: Ethical Marketing: The role marketing plays in conscious capitalism and use of personal data (3)

Friday, June 08, 2018

Ethical Marketing: The role marketing plays in conscious capitalism and use of personal data (3)

Ethical Marketing: The role marketing plays in conscious capitalism and use of personal data

Conscious Capitalism

Conscious capitalism upholds that businesses have a duty to turn a profit for the good of employees and stakeholders while at the same time giving back to their broader communities and the environment. The recent focus on data collection begs the question: What is a marketer's role in the collection of personal data, and how can companies be conscious capitalists while investing in data?

Data can be an extremely powerful resource for the common good. It can also be used in a variety of nefarious ways that marketers should seek to fully understand before they implement new campaigns, or sell products to collect sensitive personal data.

Defining Personal Data

Personal data includes unique, identifying information such as: any information relating to an identified or identifiable individual; an identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identification number (e.g. social security number) or one or more factors specific to his physical, physiological, mental, economic, cultural or social identity (e.g. name and first name, date of birth, biometrics data, fingerprints, DNA…)

If used correctly, personal data can contribute positively to business and society. Examples include improving product offerings that increase value for consumers, getting companies closer to producing truly personalized/precision medicines, and improving safety.

According to Tech Republic, the 5 ethics principles big data analysts must follow are...

Beneficial
Progressive
Sustainable
Respectful
Fair

Are DNA testing kits fair?Companies tout their benefits as innocuous tools people can use to learn about their history and take control of their health. At the same time, the cost of acquiring data has risen exponentially in the past few years as companies who aggregate the data realized what business they were really in. Marketers have the opportunity to lead the way with ethical use and fair compensation for those who volunteer their data. Customers are currently paying to give away the rights to their personal data in exchange for receiving limited information in return.

There are plenty of examples where personal data has been exploited, stolen, or not properly safeguarded.

Companies must be aware of the consequences a major data breach into a system containing personal data, like the MyHeritage breach that affected 92 million users, put people at immense risk.

Unlike credit cards, data containing genetic codes are unique like fingerprints and cannot be replaced. The value of data increases with each passing day. Thus, appealing to the consumer's emotional side and having them buy a genetic testing kit in exchange for the extremely profitable use of that person's data is ethically questionable.

From Accenture, "Guarding and Growing Personal Data Value:"

Businesses collect massive volumes of data from individuals, using it to personalize customer offerings, innovate products and diversify into new markets. But increasingly customers are concerned about who is doing what with their data. Governments are rewriting the rules to protect privacy. And watchdogs are stepping up their scrutiny of data practices. How can organizations preserve and even increase the potential of personal data? Accenture believes five principles of corporate digital responsibility—stewardship, transparency, empowerment, equity and inclusion—can turn potential risks into opportunities for business differentiation and growth.

A Little Class on the Internet