Creating an Ethical Framework for Data Usage

By January 3, 2017Data, Nonprofit

As with many new and evolving technologies, regulation lags behind innovation in the collection, use, and storage of data. With so many businesses today collecting customer data, guidelines that fame how data can be used and shared are a necessity. Without them, companies can make mistakes in how data is stored, used and shared, costly mistakes that can wreak havoc with customer information and goodwill. Developing an ethical framework to guide decisions involving data is a ‘must’ for today’s business

Five Questions to Ask to Build Your Ethical Guidelines

Although many industries have governing bodies that guide them in how they use data, others do not. For those that lack such guidance, developing your own rubric is essential. The Journal of Accountancy suggests six questions, which we’ve distilled down to the five most pertinent ones for businesses. Asking and thoughtfully answering these questions can help you develop your own ethical guidelines for your company’s data policies.

  1. Do you have a privacy policy in place? Clearly defined privacy policies written in plain language can help your users understand which data is collected, how it is used, and how they may opt out of data collection. You can develop your own privacy policies modeled on companies within a similar industry or use privacy policy generators You may wish to have your lawyer or corporate counsel review them, too.
  2. Do you assess and understand the risks of data collection? Not every piece of data is useful or relevant to your company’s mission, vision or goals. Understanding why you want to collect data and the risks of collecting specific data is important.
  3. What safeguards are in place to minimize data risks? With any data collection comes risks of data breaches. What safeguards are you willing to put into place to minimize risks? What security measures do you have now to keep customer data from falling into the wrong hands? Make a list of the methods you are using to keep data safe. You may wish to share this list with an internet security expert to see how well you are using all the tools available to you to minimize risk.
  4. What due diligence do you use if sharing data? If you share data with third party companies, what due diligence methods and systems do you use to safeguard your data? For example, do you send your company’s email list to a vendor to send newsletters out? If so, what checks and safeguards do you have in place with your vendor to ensure the list is kept safe?
  5. Why do you collect data in the first place? Understanding your company’s rationale for collecting and using third-party data is truly the most important point. Companies sometimes fall into the trap of collecting data simply because it might prove useful someday. Even if you aren’t currently using the data that you’ve collected, you still must keep it safe.

Website Security Tips

With the growing awareness of hacking and data theft, it’s important for companies to take added precautions with data sent over their websites. Not only is it important for keeping your customer data secure, it can also prevent infection from spreading through your website and wreaking havoc with site visitors’ computers

  • Keep your computer systems up to date. Download critical updates, patches, and repairs. Software vendors are constantly updating their code to prevent problems. Outdated software is an open invitation for hackers.
  • Add SSL or security certificates to your site.
  • Avoid allowing customers to upload files to your site.
  • Change passwords frequently and use strong passwords with upper and lower case, symbols, and numbers. Don’t use personally identifiable information in your password.

The business world is constantly using and harnessing data. The more data you collect, the more important it is to keep data secure. With these questions, you can build your own guidelines for the ethical storage and use of data within your company.

If you need assistance with data usage or policies Welter Consulting can help. We bridge people and technology together for effective solutions for nonprofit organizations. Your accounting software is an important component of the changeover from the older 1993 regulations to the new rollout. We can help you with the change and more.

Please contact Welter Consulting at 206-605-3113.