Data, Consumer Privacy and PRISM

The major aggregators of consumer data, including Google, Apple, Microsoft, Facebook, and even Twitter all have come under intense pressure to explain publicly how they have cooperated  with the federal government's request for access to consumer data pursuant to the PRISM program.

PRISM is a clandestine, national security electronic surveillance program operated by the National Security Agency (NSA) since 2007.  It involves massive and widespread data collection by a complex web of government agencies and private companies, and is supervised by the Foreign Intelligence Surveillance Court under the Foreign Intelligence Surveillance Act (FISA).  The program was not widely known until Edward Snowden, an NSA contractor, leaked it, and its existence was published in The Guardian and The Washington Post on June 6, 2013

While the late night comedians have had loads of fun with the PRISM program, the implications are no laughing matter.  Americans can no longer expect any real measure of true privacy from either government or private companies.  In short, national security trumps consumer privacy any and every day.  At least that is the state of the law now, until the Supreme Court weighs in. . . and it is just a matter of time before the Court weighs in on the constitutionality of it all.  And if you are expecting the program to be overturned, I would not bet against it.

When asked by the New York Times what I thought, my advice to those companies who were asked to provide data is they should do everything possible to reassure consumers that privacy will be respected at all costs -- except when national security is involved.

(c) 2013 Adonis Hoffman

More Than Money

In a curious piece in the New York Times, Andrew Ross Sorkin questioned why there was no public record of Apple founder Steve Jobs' philanthropy.  Despite a net worth in the billions, Jobs and his wife appear to leave no trace of charitable giving to any organization. They do not belong to the exclusive "Giving Pledge" group led by billionaires Warren Buffett and Bill Gates, and a whispering campaign is now audible about Jobs' commitment to philanthropy.

I'm sure the opinions of other billionaires and the media are far from Steve Jobs' psyche these days as he battles for his life and continues to fret over his company's fate from the chairman's office.  Whatever money Mr. Jobs chose to give (or not) to worthy causes is a personal matter between him and the good Lord. If he never gave a dime to a down-on-his-luck panhandler on the corner, Jobs could still rest easy for all the good he has caused in this world through his works.

We should keep in mind that several of the fabled 20th century robber-barons and industrialists cleansed their hands and souls by establishing huge endowments to aid the public good. Today their foundations carry on their legacies by doing good throughout the land in their names.  Steve Jobs may end up bequeathing a well-funded foundation or something of the sort, which would cast him into posterity.  On the other hand, he may very well  let his marvelous products, and the joy they bring to hundreds of millions of people, quietly extol his virtue.  

Innovation as Leadership

"Innovation distinguishes between a leader and a follower. To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of discipline." 

This advice from Steve Jobs provides a key insight into the philosophy that drives a company like Apple. 

Apple's innovation in consumer technology has outpaced almost every other competitor in the marketplace. Remarkably, Apple's leadership has been accomplished by sheer performance. It is not known for its philanthropy, or for its political influence, or for its corporate sponsorships. Apple's solid reputation as a good corporate citizen emanates from  its ability to deliver what consumers want, even before they know it.

This form of social leadership through innovation seems to be a model that new technology companies are most comfortable in following.  The challenge for other companies, however, will be to remain as innovative as Apple in the long run.  Otherwise, they should be prepared to bolster their leadership through more recognized avenues of corporate citizenship.