W6 Ethics

What are the 4 Key issues around customer protection and privacy?

• Consent

• Privacy laws

• Security and data breaches

• Ownership of personal data

What is Information privacy? – Why do we care?

It is the right of individuals to have control over their personal info, including how it is collected, used, stored and disclosed.

Concerned with primary, secondary and possible unauthorised secondary use of data

How can businesses use data mining and profiling? 3 points

Businesses can undertake data mining and profiling with;

• In-store loyalty cards

• Use of 'cookies' (determins which banners ads, which sequence shown and tracks the sites the user visits)

• Use to target ads to certain individuals

How can info be gathered in regards to consent?

Info about the users can be gathered:

• Without consent of the individual (could be illegal and/or unethical)

• With the informed consent

• With the implied consent (e.g complete personal info on webpage and then click 'next', implies u agree to forward info to website owner)

Summarise the Privacy Act (1998) in 5 key points

• The open and transparent management of personal info, companies must have a privacy policy

• Being able to transact anonymously or using a pseudonym where practicable

• Covers how personal information is collected—whether requested or not—and requires organisations to notify individuals when they collect it

• Keeping personal info secure

• How personal info can be used and disclosed

What is Cybersecurity? – Why do we care? 4 points

Cybersecurity: 'protects confidentiality, integrity and availability of data and assets used in cyberspace'

• Digital transformation and growth in digital business - most organisations' resources are available online

• Accessibility of these resources - increased connectivity, omnipresence + integration means greater digital vulnerability

• Flow and storage of data could be intercepted by cybercriminals

• Breach in data could lead to significant financial and non-financial costs (e.g loss of credibility and brand trust)

What happened with Sony? (good example)

Ineternet securiyt breach in 2011, involving the theft of data (names, …email adresses), passwords, security questions and credit card detials of more than 77 million customers.

Breach was discovered 7 days before customers were notified

Estimated cost: US 24.5 billion

What is the accountant’s role in Ethics of data? 5 points

• Support management’s ethical responsibilities

• Demonstrate ethical leadership

• Communicate relevant info properly

• Uphold transparency and accountability

• Maintain professional competence

Why do we care about the change in the role of accounting? 2 sections, 3 points and 2 points

• Role of an accounting is shifting…

-more intepretation of data

-Database accounting

-The use of AI/analytics

• More focused on the bookends

-on one end, focused on designing the processes and controls to capture quality data

-on the other end, making professional judgement based on the output of the system

What are 3 key issues in regards to ethics in this world of emerging technologies for accountants?

• The use of data to influence behaviour

• AI-produced data: how can we ensure its ethical?

• Optimised output vs explainable algorithm

What is an example of this? + some questions that come with it

Cambridge Analytica Case

• CA was a political data firm hired as part of the US 2016 election campaign

• Gained access to private info of 50 million facebook users (e.g identities, friend networks, likes + location etc)

• Only 270k users consented - but was told it was for academic purposes

• CA offered tool to use this info to profile and influence their behaviour through targeted digital ads

• CA said they had delted the info collection but… copies of data may exist

 

Questions: : Is this an ethical use of data collected? Should such data be collected in the first place?