Corporate social responsibility (CSR) is increasingly linked to data privacy which is now embedded in corporate strategy.
There’s no denying that adopting better data management can guarantee competitive advantages, especially in international markets.
The finance industry has seen a definite increase in banks committing to CSR and taking a closer look at governance, environmental and social issues.
Banks in particular are positioning themselves as socially responsible, with data protection as a focus and clients at the heart of what they do.
Stakeholders require more transparency as the GDPR imposes tough rules on how firms collect and secure data.
Information technology dominates and defines the world we live in today and data responsibility increasingly poses ethical questions.
With this growing reliance on big data, why are people not always aware of how data is collected and the consequences on their privacy? This is a vital question to pose as complying with data privacy regulations helps:
- Enhance company brand, by ensuring robust data protection policies are in place
- Improve company image by prioritising awareness and client interests
- Build effective marketing strategies and campaigns by ensuring proper management of customer data
Last year, Mastercard launched their Data Responsibility Imperative after they commissioned a survey about data.
They found that Nine out of ten people say data privacy is important to them, yet only one-quarter say companies are doing a very good job handling individuals’ data.
The initiative set out to establish a core set of principles guiding the ethical collection, management and use of data. They understand that businesses have a responsibility to individuals, one another and society as a whole in how they manage their data. Organisations have an opportunity to transform the way we think about responsible data practices and operate within a sustainable data framework.
Corporate Responsibility represents a company’s commitment to manage their operations responsibly, and in line with customer expectations.
It covers all aspects of business and includes not just data protection, but also cyber fraud.
Keeping client information safe is vital for any business, but should we also be responsible for ensuring that clients are more aware of threats to their information?
This is where effective training could help mitigate many of these risks. With more than 80% of data breaches down to human error, is it not prudent that individuals should take more responsibility for their data security as well as growing expectations on businesses to look after their data responsibly.
You wouldn’t leave the front door to your home wide open and in much the same way, you wouldn’t leave all your technology open to cyber criminals.
You could have the most robust security measures in place with the most up to date cyber security measures, but if your client base isn’t aware of how to stop potential security breaches, then you leave yourself vulnerable to breaches.
Educating and encouraging your clients to take responsibility for their own security including such basic measures as regularly changing their passwords and explaining why unique passwords are essential is a step closer to a more CRS one step towards becoming a more CSR company.