Market Overview

New Data Privacy Report Finds Companies Reliant on Consumer Data Are at Risk


Research Provides Investors with Guide to Evaluate Companies with
Mounting Data Privacy Dependencies

Webinar On Thurs., Sept 20th At 2 PM ET To
Review Findings

A new report, 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. 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.

Prepared by Cornerstone
Capital Group
(CCG) and commissioned by the Investor
Research Responsibility Center Institute
(IRRCi), The
Data Privacy Puzzle
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.

Download the report here.
A webinar, featuring IRRCi and Cornerstone experts discussing the
report, is scheduled for Thursday, September 20, 2018, at 2:00 PM ET.
Register here
at no charge.

"As policymakers and consumers struggle with data privacy issues,
investors need frameworks to understand both the different ways
companies monetize personal data and the business risks those business
models face," said Jon
, IRRCi executive director. "Given the recent data scandals
and the soaring level of concern around data privacy issues, investors
are increasingly wary about how companies will evolve business
strategies reliant on consumer data. As expectations for privacy shifts,
some companies will flounder, and others will flourish. This new report
outlines useful frameworks to assess data privacy issues."

"The ambiguity of the current data privacy environment is unsustainable,
and investors need to understand how social and governance issues like
data privacy impact company performances," said John
, Cornerstone's head of research and corporate governance. "As
data privacy concerns rapidly evolve, investors need to evaluate how
well the company's governance is positioned to manage changing norms,
expectations and regulations that may affect access to data, stakeholder
trust and, ultimately, company strategy."

Several emerging trends are raising the issue of data privacy as a
strategic and operational concern for companies and investors. This

  • Identifies key regulatory, technological and behavioral trends that
    will drive societal response to concerns about data privacy;
  • Outlines four possible regulatory and consumer expectation scenarios
    that will impact companies;
  • Examines the business models relating to the gathering, use and
    sharing of personal data for eight case-study companies, including:
    Alphabet, Amazon, American Express, AT&T, Facebook, MasterCard,
    Twitter, and Walmart; and
  • Provides a general framework for investors to monitor the impact of
    evolving attitudes toward data privacy on companies, plus an overview
    of emerging data-privacy solutions.

The Investor Responsibility Research Center Institute is a
nonprofit research organization that funds academic and practitioner
research enabling investors, policymakers, and other stakeholders to
make data-driven decisions. IRRCi research covers a wide range of topics
of interest to investors, is objective, unbiased, and disseminated
widely. More information is available at

Cornerstone Capital Group was created to catalyze the flow of
capital toward a more regenerative and inclusive global economy. The
firm seeks to optimize investment performance together with social
impact through rigorous research that systematically integrates
Environmental, Social and Governance (ESG) factors into portfolio
design. In seeking positive societal impact at scale, Cornerstone offers
investment advisory and capital markets advisory services, working with
asset owners, corporations and financial institutions. Cornerstone is
are an SEC Registered Investment Advisor and a WBENC certified
women-owned business. More information is available at

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