Heidi Bush, John Wilson – Tuesday, August 21, 2018
The Data Privacy Puzzle finds that companies with business models reliant on the increasing quantity and scope of consumer data are at risk if public ambivalence about data privacy turns to opposition. Prepared by Cornerstone Capital Group and commissioned by the Investor Research Responsibility Center Institute, the report outlines four possible scenarios for the impact of data privacy concerns on companies and offers eight company-specific case studies. Importantly, the report provides a framework for investors to monitor corporate responses to this rapidly shifting, high stakes environment. The study coincides with multiple data privacy incidents, including concerns about Facebook that resulted in a single-day valuation plunge of more than $119 billion. Analysts have indicated that a cause of Facebook’s declining growth is tied to data privacy concerns. Analysts also indicate that many consumers do not support the collection of their data, and companies that are built to collect and use data are likely to face downside risk, as the potential for government regulation increases.