Privacy & Security: The New Drivers of Brand, Reputation and Action

By Morris Denton, Executive Vice President, General Manager

Data security and privacy have moved from the backroom to the boardroom. Data breaches, security incidents and privacy missteps are making headlines worldwide and have become a focal point for social media discussions and legislation. In fact, President Obama last month called for stronger privacy protections for consumers, outlining a proposed "Consumer Privacy Bill of Rights."

As a result, managing data security and privacy effectively is essential to businesses today. The growing volume and sensitivity of information being shared, stored and used is driving demand for greater transparency about how it is being managed and protected.

Edelman recently conducted a global survey, “Privacy & Security: The New Drivers of Brand, Reputation and Action Global Insights 2012,” to gauge consumer perceptions about data security and privacy. The study shows, for the first time, why managing data security and privacy impact business success by revealing the gap between consumer expectations and what businesses are actually delivering. Our survey also reveals a relationship between effective data protection and business success and shows that data security and privacy considerations do impact purchasing decisions. Following are key findings from the survey:

• 32% of consumers agree that their privacy is adequately protected by today's business practices.
• 85% of consumers say businesses need to take data security more seriously.
• A majority of people globally (57%) report either no change or a decline in the security of their own data over the last five years.
• A majority of people globally (70%) are more concerned about data security and privacy than they were five years ago.
• 68% of consumers globally agree that, "consumers have lost control over how online personal information is shared and used by companies."

The resounding takeaway from the survey is that consumers care about the security of their personal information more than ever before but feel they are powerless to exert control, which leaves companies that collect information with the responsibility for protecting it. These concerns present both a challenge and an opportunity for businesses.

So what can businesses and organizations do to help ease their customers’ fears? They must learn to manage privacy and security issues effectively – much like a core competency. Otherwise, they will lose consumers’ trust – and ultimately, their business.

For more information about the Edelman Data Security & Privacy Group or “Privacy & Security: The New Drivers of Brand, Reputation and Action Global Insights 2012,” visit http://datasecurity.edelman.com/.