The end of privacy?

More and more authorities, stakeholders and even criminals are closely interested in the privacy of individuals at the top of companies. The time when the private sphere was largely protected by law is over.

In this new environment, executives should adapt to the changing situation if they want to protect their careers and finances.

The traditional concept of separating a person's role as a member of the management board from their private self, the idea of “The King’s Two Bodies” (the duality of the CEO), no longer holds. Social media is not the only factor making board members and executives more public figures; Tesla CEO Elon Musk is an extreme example of this; even more so after he joined the Trump Cabinet and plays No. 2).

Furthermore, the societal division accelerated by the COVID-19 pandemic, the polarization surrounding the US and China technology hubs, and the loss of trust in institutions of Western democracies have intensified this previously unnoticed paradigm shift.

Since 2021, the Edelman Trust Barometer has recorded a high societal expectation for companies to act on these shifts. This is further justified because it protects the reputation of top executives and builds trust with stakeholders. According to the 2021 report, nearly 70 percent of respondents expect CEOs to take personal stands on political and social issues.

Over the past years, there has been a significant expansion of the influence stakeholders have over business decisions, partly due to new laws but also due to the growing societal focus on CEOs and their personal conduct. By 2022, nearly 80 percent of respondents wanted CEOs to make binding personal statements about their political or social stances.

Companies must now orient themselves in a way that takes into account the personal lives of their leaders. This includes statements made by board members on topics ranging from political views to their personal or business networks outside the company.

Companies should expand their risk management radar to consider personal issues as well. At least once a year, they should inquire about adherence to codes of conduct, possibly through governance surveys or interviews regarding sensitive topics.

The most important aspect is raising awareness. Executives must consider the interests of the company even in their private lives.

In conclusion, let me remind you that external individuals, such as hackers, virus writers, and ransomware peddlers, are often seen as the biggest threat to organizations. However, industry statistics consistently indicate that insiders pose a larger danger. It makes sense when you consider the damage that a single disgruntled employee (or an employee unaware of good security practices) could cause to a company, based on access privileges outsiders don’t possess.

Allowing employees to access data to do their jobs is a double-edged sword. Permitting organizational staff to install and use external hard disks, flash drives, and even personal media players makes the task of stealing corporate information that much easier.

Allow me to add an amazing policy change of well-known Jeff Bezoz. His Washington Post is one of the most government-critical icons in the US media. This did not change when Amazon founder Jeff Bezos took over the newspaper in 2013. But now Bezos has sent an instruction to his editorial staff that can only be interpreted as the billionaire bowing to the Trump-friendly zeitgeist in the US. "I am writing to inform you of a change to our opinion pages," says a message to the editorial staff that Bezos published on the X platform. And:

We will write every day to support and defend two pillars: personal freedoms and free markets. Of course, we will cover other issues as well, but we will leave opposing viewpoints to be published by others.

I am sure you will agree with Bezos’ view regarding personal freedoms and free markets!!!!

I would certainly be interested to receive your reaction to my fear of the ‘End of Privacy”]’; you can reach me at hjschumacher59@gmail.com