Privacy Talk with Business Partners - Protecting Your Business

Navigating Difficult Discussions with Teenagers

Being a parent to adolescents often necessitates engaging in challenging dialogues concerning intricate and significant subjects. It’s a common experience for parents to find these conversations consistently demanding, though experience can help develop strategies for approaching them effectively.

Over time, a framework emerges for initiating these discussions, ensuring clarity, and responding to difficult inquiries. This approach is something many parents can relate to.

Similar to many parental experiences, I’ve discovered that my children offer valuable lessons in return. These challenging interactions, in fact, are instrumental in fostering trust.

Applying Trust-Building to Data Privacy

This principle of building trust through open communication has proven invaluable in my capacity as chief legal officer at Foursquare. It directly informs how we approach what I refer to as “The Privacy Talk.”

Conducting “The Privacy Talk” is an extremely important aspect of my role. It requires a similar level of sensitivity and preparation as conversations with my teenagers.

The Importance of Open Communication

Open and honest communication is key to building trust. This applies both at home and in a professional setting, particularly when discussing sensitive topics like data privacy.

Just as with parenting, a well-defined approach is crucial. It’s about ensuring clarity and being prepared to address challenging questions.

The lessons learned from navigating difficult conversations with my children have directly influenced how we prioritize transparency and understanding at Foursquare.

Understanding The Privacy Talk

The Privacy Talk represents a discussion that extends beyond standard, published privacy policies. It’s a detailed exploration of a customer, vendor, supplier, or partner’s ethical framework.

This dialogue aims to establish and synchronize the expectations that two organizations must share before initiating a new collaboration.

The Limitations of RFIs

Requests for Information (RFIs) often include numerous inquiries regarding privacy adherence, information security, and data ethics. However, these are not equivalent to a direct conversation.

A prospective partner’s comprehensive approach is best understood through a live discussion, such as a Zoom meeting. Without this firsthand insight, it can be challenging to determine if a partner prioritizes privacy strategically.

The Financial Implications of Data Breaches

There is a significant financial justification for conducting The Privacy Talk, given that the average cost of a data breach for a company is $3.8 million.

Approximately 38% of breach-related expenses stem from lost business, encompassing both existing and potential clients due to reputational harm.

The consequences of a compromised reputation extend beyond financial losses, potentially leading to talent attrition and a decline in internal morale.

Facilitating a Successful Conversation

These discussions are most effective when led by an individual with expertise in the subject matter. This could be a representative from product development, policy, or the legal department.

The conversation should be characterized by openness and transparency. Participants should feel empowered to ask questions, and responses should be honest and forthcoming.

Key Questions to Ask

Consider posing questions such as: “Can you describe your company’s process for addressing data ethics concerns?” or “What is your assessment of the likelihood of federal privacy legislation being enacted before the midterm elections?”

The discussion should move beyond pre-prepared statements and demonstrate a clear understanding of how evolving legal and regulatory landscapes will impact product development.

It should also reveal proactive measures being taken to anticipate and adapt to these changes.

The Necessity of Privacy Discussions with Business Partners

It is highly recommended that legal counsel within all organizations, ranging from early-stage ventures to established Fortune 50 companies, initiate discussions concerning data privacy with their partners. Does your business utilize cloud-based storage solutions? Are software development kits from third parties integrated into your applications? Is your company involved in digital advertising campaigns? Do you maintain an online presence through a website? If the answer to any of these questions is affirmative, then a privacy discussion with at least one partner is essential.

Your organization’s standing and public image are inextricably linked to those of your partners. Whether a partner is providing analytics services or their SDK is embedded within your application, their practices and adherence to commitments will directly influence how your company is perceived.

Reports concerning data security incidents frequently detail the potential impact on numerous partner organizations. Should a partner’s privacy protocols prove inadequate or questionable, and they become embroiled in a public controversy, your company risks being implicated as well. In today’s climate, where consumer trust is paramount, safeguarding your brand is of utmost importance. Effective reputation management requires proactive engagement, not simply reactive measures.

Drawing upon extensive experience as legal counsel, including over twenty years working within corporate environments, it is understood that legal professionals prioritize risk mitigation and seek definitive assurances. When absolute certainty is unattainable, robust contractual agreements can provide a degree of protection. However, experience demonstrates that contractual provisions offer limited recourse once a company’s reputation has been damaged by association with an untrustworthy partner.

Certain lessons, gained through experience, remain consistently relevant. The importance of associating with reputable entities, a principle instilled by previous generations, continues to hold true. Furthermore, initiating potentially uncomfortable conversations can reveal crucial insights and foster genuine trust.

Prioritize initiating The Privacy Talk if you haven’t already. Valuable lessons on this matter have even been imparted by my own children.