Data responsibility as a part of corporate responsibility reporting

Abstract

The rapid developments in data-centric technologies and the increasing significance of data in business have brought forth new challenges related to responsible data management. Companies are increasingly expected to take responsibility for the impacts their data use can have for consumers, the environment and society. This master’s thesis investigates the data responsibility reporting practices of companies listed on Nasdaq Helsinki and identifies the potential drivers influencing their engagement in data responsibility reporting using the grounded theory methodology.

The research explores three main questions: (1) How do companies listed on Nasdaq Helsinki approach data responsibility in their sustainability reporting? (2) Which data responsibility topics do the companies choose to report on in their sustainability reporting? (3) What factors might influence companies' decisions to report on data responsibility in their sustainability reporting?

Through an analysis of sustainability reports published by companies listed on Nasdaq Helsinki, the study identifies a wide range of approaches to data responsibility reporting. The approaches found can be categorized under compliance-based, action-based, added value, and ethical approaches.

Regarding data responsibility content topics companies discuss in their sustainability reporting, the study found that the focus is heavily on socially sustainable data use, particularly data privacy and information security. However, promising developments within the environmentally and economically sustainable uses of data are identified.

The primary reasons for engaging in data responsibility reporting are found to be risk management and gaining a competitive advantage. Drivers for data responsibility include digitalization, increasing the risks of cyberattacks, regulatory changes, growing customer demand, and opportunities for profitable growth. Establishing customer trust emerges as the main aim for companies' data responsibility reporting.

While the research finds that some dimensions of data responsibility, such as privacy and information security, have taken a promising role in the sustainability reporting of companies listed on Nasdaq Helsinki, it recognizes considerable room for improvement, especially in the environmental and economic dimensions.

The research contributes to the evolving field of data responsibility by presenting a new type of approach to how companies view and dicuss the ethical concerns of data use. It offers comprehensive frameworks for understanding the nature of responsible data management in a rapidly evolving, data-driven landscape and serves as a guide for organizations aiming to navigate data responsibility reporting in an impactful way.