Download Slide 1

Ethical Perspectives
on Personal Data and
Automated Decision Making
Dr Steven Finlay
15/5/2014
Agenda
1. A bit about ethics
2. Ethics, data and decision making
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A bit about ethics. Definitions
1. Ethics, sometimes known as philosophical ethics, ethical theory,
moral theory, and moral philosophy, is a branch of philosophy that
involves systematizing, defending and recommending concepts of
right and wrong conduct, often addressing disputes of moral
diversity. The term comes from the Greek word ἠθικός ethikos from
ἦθος ethos, which means "custom, habit". The superfield within
philosophy known as axiology includes both ethics and aesthetics
and is unified by each sub-branch's concern with value…
http://en.wikipedia.org/wiki/Ethics
2. Its about right and wrong.
Ethics is….
Subjective, personal, unique…
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Common ethical frameworks
Ethics
Non-Consequentialist
Consequentialist
“It’s more about the journey than where you end up…”
“The means justify the ends”
Utilitarianism
Virtues
“Greatest good for the
greatest number”
“Virtuous modes
of behaviour”
(Jeremy Bentham and
John Stuart Mills)
(Aristotle)
(Human) rights
“Right to life, liberty,
property, privacy, etc.”
(Locke and Rawls)
Kant’s ethical
theory
Religious
Teaching
Universality: Ethical is something
all rational people would agree with
(e.g. the ten
commandments)
Golden rule
“Do unto others as you
would have done unto you”
(Do no evil)
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Ethics in practice
• All ethical frameworks have their weaknesses…
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A bit about ethics. Relevance in the real
world…
• If I follow all laws and regulations, then that’s all I need
to worry about right?
Legal
• Lots of laws allow unethical
actions to occur:
Ethical
“It is illegal to give alcohol to a child under 5”
Another example is tax avoidance:
A great example of what we mean when we talk about the
spirit of the law as opposed to the letter of the law
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A bit about ethics. Relevance in the real
world…
• It pays to be ethically minded:
• Organizations adopting ethical policies tend to reap the
benefits.
• Largest ever study of the relationship between ethical
performance and financial performance:
– Losses from reputational damage, resulting from actions that are
perceived to be unethical, are particularly severe.
– “Corporate virtue in the form of social and, to a lesser
extent, environmental responsibility is rewarding in more
ways than one.” (Orlitzky et al. 2003)
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A bit about ethics. Summary
• There are many ethical perspectives. We all have our own
view on the rightness/wrongness of different actions.
• Ethical theory is all very well, but putting it into practice is
difficult. The world is a messy mixed up place.
• The one thing that can be said to apply across all ethical
frameworks:
– An ethical action is one which the perpetrator can defined in
terms of more than self interest. (Finlay 2000).
• Ethics pays. A well thought out, well implemented ethical
corporate policy benefits both organizations and
consumers/individuals in the long run.
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Agenda
1. A bit about ethics
2. Ethics, data and decision making
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Ethics, data and decision making.
Whose data is it anyway?
Utilitarian
orientated
perspective
My data is a
resource to be
harvested and put
to use.
Constraints (laws) to
prevent specific
abuses and misuse of
my data.
Better data &
predictions =
better outcomes.
Everyone benefits.
Kantian/Rights
based perspective
My data is a part
of who and what I
am. Its mine!
My data should be
treated with respect,
just as I expect to be
treated with respect.
I will decide how data
about me is used. You
have no right to use my
data without my
permission.
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Ethics, data and decision making.
Whose data is it anyway?
Approach
Pros
Cons
Utilitarian orientated
perspective
• More/better data means better
decision making.
• More get the very best deals (if
they warrant it).
• Social benefits. More data to
support national / community
initiatives (e.g. medical research
and counterterrorism).
• Best for the economy.
• People less in control of their
own destinies.
• Better predictions does not
always equate to increased in
well-being.
• The have-nots have even less.
• Once the data is out there, its out
there for good.
• Each individual has control over • Poorer decisions for individuals
their data and the uses to which
may result, if data is withheld or
it is put.
otherwise unavailable.
Kantian/Rights based • Less social exclusion..
• Lower economic benefits.
perspective
• Right change/withdraw
• Society as a whole may suffer
permission to use data, including
because large scale studies are
“Right to be forgotten.”
data limited. (e.g. medical
research and counter terrorism).
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Ethics, data and decision making.
Is more data and better prediction always better?
• More/better data leads to the promise of near perfect
predictions in some areas. Is this a good thing?
• Sometimes:
–
–
–
–
Identify terrorist subjects with high degree of certainty
Predict that a heart attack is very likely in the next 24 hours
Long term compatibility on a dating site
…..
• But not always
– Near perfect insurance claim predictions are no benefit to
anyone (except the insurer)
– Do I want to know, years in advance, when I am likely to die?
– …..
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Ethics, data and decision making.
Whose data is it anyway?
What’s the direction of Travel?
EU has taken a rights based approach, and
looks like it will continue to do so, via revised
Data Protection Legislation approved in March.
USA, has to date, followed a more utility
based model. Use data for whatever you
want, but we will legislate where needed.
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Ethics, data and decision making.
What data to use when?
•
•
•
•
•
•
•
•
•
•
•
•
Age
Alcohol consumption
Credit history
Criminal records
Dependents
DNA
Driving speed
Education
Gas consumption
Gender
Grocery purchases at supermarket
Income
•
•
•
•
•
•
•
•
•
•
Last book purchased
Live with smoker (Y/N)
Marital status
Medical history
Music currently listening too
Race
Religion
Sexual orientation
Smoker (Y/N)
Type of car you drive
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Ethics, data and decision making.
1. Immutability of data?
Mutable
(Individual can change easily)
Immutable
(Individual can’t change at all)
DNA
Income
Criminal record
Age
Education
Alcohol
consumption
Gender
Type of car
Dependents
Race
Smoker
Religion
Live with
smoker
Sexual
orientation
Last book
purchased
Gas
consumption
Music currently
Listening too
Grocery
purchases
Medical history
Marital status
Driving speed
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Ethics, data and decision making.
2. Beneficiary?
For whose benefit is a decisions made ?
(This is not the same thing as if the individual benefits from the decision)
Decision maker
Individual / society
Benefit
payment
Treatment
for illness
Home
improvement grants
Child protection
Match on
dating site
Parole
Foreclosure
Survey selection
Product
marketing
Selection for tax
inspection
Suspect selection
in criminal cases
Redundancy
selection
Credit
granting
Making
job offers
Insurance
pricing
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Ethics, data and decision making:
3. Impact
What is the potential impact of decisions on an individual’s well being?
Low Impact
High Impact
Home
improvement grants
Match on
dating site
Credit
granting
Survey selection
Product
marketing
Insurance
pricing
Selection for tax
inspection
Benefit
payment
Foreclosure
Making
job offers
Parole
Child protection
Redundancy
selection
Treatment
for illness
Suspect selection
in criminal cases
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Ethics, data and decision making.
Risk in decision making
Decision maker
High
3. Impact on
individual
2. Beneficiary
of decision
Low
Individual
Mutable
1. Immutability
of data
Immutable
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You need to decide what’s most important
within your ethical view (i.e. column
order).
E.G,
foreclosure,
redundancy,
parole
Impact of
decision on
individual
Beneficiary
of the
decision
Immutability
of data used
Ethical
challenge
/ risk
High
Decision
maker
High
Greatest
Individual
High
Low
Low
Low
Decision
maker
High
Individual
High
Low
Low
Least
E.G. Marketing
type
applications
•
•
•
•
•
•
•
•
•
More legislation
Audit & regulatory oversight
Public interest
Greater manual involvement
Simple and explicable models
Judgemental overriding
Expert “Buy-in”
Understand model weaknesses
Constant monitoring
•
•
•
•
•
•
Less legislation
Predictive ability trumps all else
Complex “black box” models
Automated model generation
Rapid redevelopment of models
Little oversight
Ethics, data and decision making:
Alternative perspective…
• Its nothing to do with the data or the decision maker…
• Its how you make the decision that’s important…
– Impartial, data driven process = GOOD (Ethical)
– Biased/judgemental decision = BAD (Unethical)
Example: If women more likely to do X or Y than men (or
vice versa), then its fine for Gender to feature in a predictive
model, if that’s what the data is telling us.
However, this view is not popular, at least not in the UK or EU.
As evidenced by (fairly) recent decisions on the use of Gender
in insurance, despite gender being one of the most predictive
data items for all sorts of insurance claim behaviour.
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In Summary
• Ethical data use and decision making brings its own rewards
• An ethical strategy is about more than just following the law.
– Ethical and legal is where you want to be…
• Some things to consider when formulating an ethical data
and decision making policy:
– The immutability of the data that you use.
– The impact that your decisions will have on individuals.
– The beneficiaries of the decisions you make.
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Bibliography and further reading
•
Boatright, J. (2014) Ethics in Finance (3rd Edition). Wiley
•
Finlay, P. (2000). An introduction to Business and Corporate Strategy. Pearson
Education.
•
Finlay, S. (2014). Predictive Analytics, Data Mining and Big Data. Myths,
Misconceptions and methods. Palgrave Macmillan.
•
Orlitzky, M., Schmidt, F. L., Rynes, S. L. (2003). Corporate Social and Financial
Performance: A Meta-analysis. Organization Studies, volume 24, number 3, pages
403-441.
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