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Legal and Ethical Data Challenges

The document discusses the legal and ethical challenges organizations face in acquiring and managing customer data, emphasizing the importance of confidentiality and compliance with privacy laws. It highlights the need for businesses to ethically collect data while ensuring that personal information is protected to prevent potential harm to individuals and society. Additionally, it outlines procedures for data cleaning to maintain data integrity and support informed decision-making.
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0% found this document useful (0 votes)
21 views8 pages

Legal and Ethical Data Challenges

The document discusses the legal and ethical challenges organizations face in acquiring and managing customer data, emphasizing the importance of confidentiality and compliance with privacy laws. It highlights the need for businesses to ethically collect data while ensuring that personal information is protected to prevent potential harm to individuals and society. Additionally, it outlines procedures for data cleaning to maintain data integrity and support informed decision-making.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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An Examination of the Legal and Ethical Obstacles Facing Organizations in Regarding


Data

Md Azharul Islam

Westcliff University

MIS 550 Big Data Analytics & Visualization

Professor: Farhad Malek-Asghar


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Introduction

It is imperative for an organization to acquire sufficient client information in order to

effectively administer its operations and meet its objectives with long-lasting results. On account

of these factors, organizations are able to select from an array of sources and methodologies to

acquire adequate data, as well as information pertaining to their clientele. Business personnel

may obtain additional personal information from the organization, beyond the mandatory data.

The dissemination of such information presents a peril to both the individual and the collective.

As a consequence, it is imperative that organizations adhere to ethical and legal principles in

order to ensure the confidentiality of customer information.

Analysis of the Market Basket Approach

Acquiring sufficient client information is imperative for an organization to effectively

administer its operations and satisfy the demands articulated by its clientele. On account of these

factors, organizations are able to select from an array of sources and methodologies to acquire

adequate data, as well as information pertaining to their clientele. Certain personal data will be

provided to them by the organization, beyond the data that is mandatory. Both the individual and

society at large are endangered by the widespread distribution of this information. As a result,

they are obligated to adhere to ethical and legal principles to ensure the confidentiality of the

information concerning their customers. Customers constitute the principal demographic of any

enterprise, given that they are the ones who engage in the transactional exchange of products and

services with said organization. After segmenting the client base of a market, businesses proceed

by gathering data pertaining to said consumers in order to ascertain their needs, preferences, and

purchasing power. Firms are empowered to make well-informed decisions that enable them to

deliver high-quality products to their consumers. By employing Market Basket, an individual can
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initiate communication with the organization, forge an association with its retail division, and

gather client data through the utilization of an electronic point-of-sale (POS) system (Patwary,

2021). The point-of-sale (POS) system provides a streamlined application procedure that

facilitates the collection and examination of a substantial volume of data pertaining to customers'

shopping behavior. Furthermore, organizations can utilize the information provided here to

streamline their organizational processes through the implementation of prudent decision-

making.

The Acquisition of Customer Data and Its Protection from Ethical and Legal Breach

Businesses collect an assortment of data pertaining to the consumers they cater to,

procured from diverse sources. The utilization of big data has the potential to assist organizations

and companies in attaining their overarching goal of optimizing customer satisfaction (Bormida,

2021). It is critical for organizations to consistently address ethical and legal considerations that

may emerge when they formulate decisions supported by information gathered from diverse

sources.

Informing the formulation of strategic decisions within organizations is information

compiled by marketers from an assortment of sources. In contemporary business environments, a

significant proportion of organizations utilize web-based activity tracking to converse with their

clientele via the information gathered from their searches and the content they view across

multiple online platforms. Nevertheless, marketers must exercise caution when it comes to

withholding a substantial portion of personally identifiable information from customers so as not

to infringe upon their right to privacy. In accordance with Florida (2016), the law has been

implemented nationwide by the government of the United States of America to ensure that the

personal information of its citizens remains safely protected. Organizations must also protect the
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privacy of their consumers to the greatest extent possible and act ethically by refraining from

publishing this information in its entirety. Everyday individuals utilize a multitude of online

platforms in the current technological era, including but not limited to Facebook, Instagram, and

Amazon, which require substantial quantities of personally identifiable information. Instead of

committing complete information theft, they pass the buck and accuse all parties involved. Since

those websites sold their customers' information to third parties, these sources supply the data to

business organizations, which subsequently amass them (Springer, 2021). The factors that

contribute to individuals' maladies and their associations can be influenced by a wide variety of

sensitive data. Simultaneously safeguarding the entirety of this data and endeavoring to restrict

its misappropriation frequency are essential for staying abreast of ethical concerns. Such

measures will effectively mitigate the occurrence of such breaches. Ethical and legal

considerations must be applied to ensure the protection of the vast amounts of personal

information and privacy of individuals.

Areas of Issues and Impact

To acquire adequate information regarding their clientele and their purchasing patterns,

organizations utilize an assortment of sources. Furthermore, apart from the essential client data,

they acquire supplementary personal information pertaining to said consumers. Individuals are

free to think independently and participate in any lawful activity; therefore, it is categorically

forbidden for marketers to monitor and gather information regarding the online activities of

individuals. Due to the highly sensitive nature of private information and the potential for its

disclosure to result in harassment for the affected individual, the following is stated: (Puebla,

2022). There is a likelihood that this will result in societal conflicts. Safety considerations must

be maintained for data that is hardly utilized so as to ensure diversity and fairness for all. As a
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result of the high probability of negative consequences, data security should be a matter of

concern for all individuals, notwithstanding the ultimate ethical and legal concerns.

Implemented Measures and Procedures to Reduce Inconsistency in Data Cleaning

By ensuring the data is clean, the organization can obtain the precise information it

requires faster, and the time required to search the data is reduced. Eliminating superfluous

content and error-ridden data is imperative for ensuring that the information presented is lucid

and straightforward to comprehend (Learn, 2023). Certain processes must be adhered to by

businesses in order to maintain pure data. Those processes consist of the subsequent actions:

1. It is imperative to eliminate any and all superfluous and redundant information from the

record. Due to the fact that it comprises every piece of information that was being recorded; the

initial step is to remove any unnecessary information from the record.

2. Enhancements must be made to the structure of the data collection and recording procedures.

As a result of the fact that inconsistencies and cacophony can give rise to discrepancies, incorrect

labeling of categories may ensue. As a consequence of this, it is imperative to rectify every

structural defect.

3. A strategy must be established to effectively handle all the data that is not included in the

record. Given the presence of lacking data that influences the other outcome, it is imperative to

devise a method that efficiently handles this collection of information.

Ultimately, whichever entity is responsible for assessing the reliability of these data must

select the most effective information for its operations that can be utilized in future decision-

making processes, while excluding any erroneous data lacking legal or dependable sources
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(Tableau, 2023). A business can reduce the number of inconsistencies and cleanse its data by

adhering to each of these procedures.

Conclusion

The information that businesses possess regarding their customers originates from an

assortment of sources. There are situations in which data regarding the movements of their

customers is promptly captured. Conversely, they may also amass information from numerous

companies that are alleged to possess substantial amounts of data. To satisfy the stipulation, they

meticulously gather sufficient information from credible sources. When a business utilizes the

information of its consumers, it must exercise caution and ensure that its actions do not cause

harm to any individuals or society as a whole.


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References

Bormida, M. D. (2021). The Big Data World: Benefits, Threats and Ethical Challenges.

Emerald Publishing Limited, 72.

Floridi, L. (2016). What is data ethics? Philosophical Transactions of The Royal Society

A Mathematical Physical and Engineering Sciences, 2083.

Patwary, M. A. (2021). Market Basket Analysis Approach to Machine Learning. DIU

Journals, 6.

Puebla, I. (2022). Responsible handling of ethics in data publication. PLoS Journal, 3.

Springer. (2021). Ethics & disclosures. International Journal of Data Science and

Analytics, 36.

Tableau. (2023, 01 11). Guide To Data Cleaning: Definition, Benefits, Components, And

How To Clean Your Data. Retrieved from Tableau: [Link]

is-data-cleaning
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Common questions

Powered by AI

The acquisition of client data supports strategic decision-making within organizations by providing insights into customer needs, preferences, and purchasing patterns, allowing businesses to make informed choices that enhance product offerings and customer satisfaction. Marketers utilize data collected from various sources to guide business strategies, helping organizations align their operations with consumer demands and optimize outcomes .

Organizations face significant ethical implications in collecting and utilizing customer data, as they must ensure the confidentiality and privacy of customer information. Ethical challenges include avoiding the misuse of personally identifiable information and ensuring that data collection does not infringe upon individuals' privacy rights. It is crucial for organizations to act ethically by not publishing or misappropriating sensitive data, thereby avoiding societal conflicts and potential harassment of individuals .

Organizations can ensure ethical handling of sensitive consumer data by adhering to legal requirements for data protection, employing secure data storage and transfer methods, and restricting access to personally identifiable information. They should also implement data cleaning processes to maintain data integrity and reduce errors, alongside educating employees on privacy protocols and ethical guidelines to prevent data misuse .

Organizations mitigate the risks of data breaches while maintaining effective data utilization by adhering to ethical and legal standards that protect customer information and privacy. This involves using secure methods for collecting data, ensuring that personally identifiable information is not misused, and employing strategies such as data cleaning to manage and protect data effectively. In doing so, organizations can prevent unauthorized data sharing and reduce the frequency of data misappropriation .

Organizations are required to adhere to legal frameworks that mandate the protection of personal information, such as widespread data protection laws implemented in the United States. These frameworks influence data management practices by enforcing restrictions on the sharing and publication of personal data, requiring companies to maintain high standards of data security, and ensuring that consumers' privacy is not infringed upon. Compliance with these legal standards is critical for mitigating risks related to data breaches and maintaining public trust .

Data cleaning plays a crucial role in ensuring data integrity by removing superfluous, redundant, or error-ridden information, which ensures that the data collected is clear, accurate, and reliable for decision-making processes. By organizing data collection and correcting structural defects, businesses enhance the lucidity and reliability of their data. This process is essential for reducing inconsistencies, improving decision-making accuracy, and protecting against potential ethical and legal breaches .

POS systems contribute to customer data collection strategies by facilitating the collection and analysis of large volumes of customer shopping behavior data. These systems streamline the application process and enable organizations to gather detailed information about customer preferences and purchasing patterns, which aids in making data-driven decisions that improve product offerings and customer satisfaction .

Online platforms pose challenges for maintaining consumer privacy due to their extensive collection of personally identifiable information and the potential for this data to be sold to third parties. Strategies to mitigate these challenges include implementing stricter privacy controls, ensuring transparency in data collection practices, and enforcing legal obligations for platforms to protect consumer data. Additionally, encouraging platforms to use encryption and limit data retention can help safeguard user privacy .

Mishandling personal information collected by organizations can lead to societal conflicts and harassment for affected individuals. When sensitive data is misappropriated or disclosed without consent, it can result in privacy breaches and loss of trust. This can also exacerbate ethical and legal challenges, leading to societal tensions, loss of consumer confidence, and legal repercussions for organizations, making data security a critical concern .

The data cleaning process involves several key steps, including removing superfluous and redundant information, enhancing the structure of data collection procedures, rectifying structural defects, and establishing a strategy for handling missing data. These steps ensure that the data utilized is accurate, clear, and reliable, reducing inconsistencies and aiding efficient decision-making within organizations .

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