CHAPTER 12Data Ethics
INTRODUCTION
Today the importance of data ethics is increasing due to the profound impact of data on business performance. Trust is an essential part of every relationship, and loss of trust can lead to loss of customer loyalty and subsequently loss of business. According to a recent Deloitte survey, 90% of global consumers said they would sever ties with an organization if the company used their data unethically (Deloitte 2017). This is important, given that many firms rely extensively on data for building trust in their products and services in the market. In addition, due to the sensitive nature of the data they collect, companies today are also subject to strict data protection regulations. While many firms are seriously taking measures to address the compliance of data to regulations concerning data, there is still a lot of grey area associated with the moral and ethical issues associated with data.
DATA ETHICS
What exactly is data ethics? Data ethics is a branch of ethics that evaluates data practices – generating, collecting, processing, consuming, and sharing data – that have the potential to adversely impact people and society. The Open Data Institute (ODI) defines data ethics as: “A branch of ethics that evaluates data practices with the potential to adversely impact on people and society – in data collection, sharing and use” (ODI 2021). It includes addressing instances of right and wrong conduct in relation to data in general and personal ...
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