20 Questions Businesses Should Ask About Privacy

Privacy has become a significant business risk to organizations that collect, use, retain and disclose personally identifiable information about customers and employees. As a result, business owners, board members and executive management need to assess whether their handling of personally identifiable information complies with numerous privacy laws and regulations. To provide guidance, the AICPA issued a Business Brief on April 10, 2012 called 20 Questions Businesses Should Ask About Privacy. It was prepared by Nancy Cohen, CPA.CITP, CIPP, CGMA, Senior Technical Manager, AICPA Member Specialization & Credentialing.

The questions contained in that Brief were adapted from the guidance booklet, 20 Questions BusinessesShould Ask About Privacy previously published by the Canadian Institute of Chartered Accountants (CICA). They are key questions a business should ask with the aim of understanding privacy risk, implementing a privacy program, managing privacy risk and obtaining privacy assurance.

Who’s Out There? CFOs can’t ignore social media. But what’s the ROI?

The power of social media — or, at least, its potential power — is not lost on American companies. Many are using it successfully for everything from new-product marketing to employee collaboration to innovative and very effective forms of customer service. But, most companies are struggling to turn nascent, ad hoc efforts into something resembling an actual strategy.

Clearly, social media engages enormous numbers of people: how else to explain how Starbucks got 8,006,349 Facebook “likes” (as of early December 2011) for its Frappuccino. More broadly, the numbers on social media adoption are spectacular. As of December, Facebook claimed 800 million active users worldwide, with 50% logging on every day. Twitter reported an average of 460,000 accounts created per day late last fall, with an average of 1 billion tweets per week. As of November 3, 2011, LinkedIn had 135 million members in more than 200 countries; two new users join every second.

That action is not just limited to consumers. A survey of 4,261 global executives conducted by McKinsey late last year found 72% reporting that their companies deployed at least one social technology. A November 2011 Towers Watson study of 604 global organizations found 69% planning to increase their use of social media tools over the next 12 months.

Read the full online article “Who’s Out There?” at CFO.com. For additional insight, refer to the CICA Practical Guidance Series, especially Using the Internet in Corporate Reporting: Practical Guidance for Managing Web 2.0 and Social Media. Also, see the four-part series on Using the Internet in Corporate Reporting (Part 1, Part 2, Part 3 and Part 4).

PwC – 10 Minutes on the CEO agenda

PwC research has found that CEOs across the globe are redefining what growth looks like in a post-crisis world. Companies are reshaping their strategies and operating models—focusing on issues like talent, innovation and collaboration—to find new sources of revenue growth and competitive advantage. There are eight key questions leaders can ask— about where and how to change—to ready their businesses for the road ahead. Read the PwC March 2011 publication Growth reimagined: The eight questions every CEO should ask about getting—and staying—ahead.

CICA/RBC Business Monitor Report (Q1 2011)

The majority of executive Chartered Accountants (CAs) (64%) expressed optimism about the Canadian economy in the first quarter of 2011, marking a notable increase of 23% over the previous quarter, according to the latest CICA/RBC Business Monitor (see the Backgrounder for details). Canadian interest rates and consumer confidence were the top two reasons cited among respondents for the surge in optimism to near record levels. In addition, 66% of respondents in the first quarter survey were optimistic about their company’s prospects over the next year, up 10% from the previous quarter. (Read the CICA Media Release.)

Defined benefit pensions at tipping point

A new survey of more than 150 Canadian pension plan sponsors from professional services firm Towers Watson indicates that just over half (51%) of the private sector defined benefit (DB) plan respondents have now converted their plans to defined contribution (DC) arrangements for current or future employees - up from 42% in 2008. The survey also reveals that recent improvements in economic conditions have had virtually no impact on executives’ perception of a DB funding crisis. The percentage of respondents who agree there is a pension funding crisis has remained at historic highs since the financial downturn of 2008. The survey found that more than half of respondents (56%) believe that the funding crisis will persist for the long term, compared with 34% who held this view in 2008 before the recession. Just under one third (32%) perceive funding challenges to be a cyclical phenomenon. (Read the article “Definedbenefit pensions at tipping point” at Towers Watson online.)

AICPA Top Technology Initiatives Survey 2011

The American Institute of Certified Public Accountants (AICPA) 2011 Top Technology Initiatives Survey rates the proliferation of smartphones, tablet computers and mobile devices in the workplace as the top business technology concern. Mobile devices edged out information security, which had topped the list of tech concerns several years in a row. The survey provides feedback on the technology issues that are of greatest importance, as well as emerging technologies. (Read the article "Mobile Devices Top CPAs' Tech Survey Rankings" in the Journal of Accountancy online.)

CICA/RBC Business Monitor Report (Q4 2010)

The quarterly CICA/RBC Business Monitor indicates that optimism about the Canadian economy among executive Chartered Accountants has stabilized and, like the previous quarter, respondents are much more likely to be optimistic about their own businesses (41% are optimistic about the Canadian economy over the next 12 months and 56% are optimistic about how their company will perform over the next 12 months). The Q4 2010 CICA/RBC Business Monitor webinar will take place on February 23, 2011 at 12:30pm (register online). RBC Assistant Chief Economist Dawn Desjardins will give an economic update and answer questions following the webinar. (Read the CICA Media Release.)

Executive CAs more optimistic about own company than Canadian economy

More than half of executive chartered accountants (56%) are optimistic about how their company will perform over the next 12 months despite their lack of optimism in the Canadian economy, according to the latest CICA/RBC Business Monitor (Q3 2010). Only 39% of executive CAs surveyed are optimistic about how the Canadian economy will perform over the next 12 months, a steep decline from the 57% who had a positive view in the second quarter of 2010. When compared with CICA/RBC Business Monitor results from a year ago, optimism about the national economy is down 7%, marking the first year-over-year decrease since the first quarter of 2009. (Read the CICA Media Release.)

CSR is worth the investment

When prospective employees attend interviews at The Co-operators Group Limited, a national insurance provider, they often have the company’s sustainability report in hand. “They ask us if the information about our social and environmental performance is real, and we tell them - what you read is what you get,” relates Barbara Turley-McIntyre, director of sustainability and corporate citizenship. “The insurance industry is facing a war on talent, and we want to be an employer of choice. Our sustainability program is a big part of that.” New research findings from the Hewitt Associates 2010 Best Employers in Canada study confirm that the experience of The Co-operators Group is growing across a range of industries. There is a strong link between employee engagement and the way employees view their employers’ corporate social responsibility (CSR) approach. (Read the May 2010 article "CSR is worth the investment" at CAmagazine online.)

10 Examples of Tremendous Business Leadership

Great leadership can be hard to come by. With all the politics and blaming that can go on within an organization, many companies are lacking good, solid leadership from people who are willing to stick to their word. That's why it's always refreshing to see examples of great leadership in our society. Here are 10 examples of top-notch leadership from leaders who ultimately led by example, letting their actions (and bottom lines) speak for themselves. (Read the article 10 Examples of Tremendous Business Leadership at Open Forum online.)

Creating social media policies

As social media continues to become more mainstream, the chances that company employees will use these online tools for personal and professional purposes are high. If staff are encouraged to be brand representatives, using the social web to help grow a company and engage with customers, then lines could be unknowingly crossed. A social media policy can set the foundation for expectations, empower employees to tweet or blog without fear, reward social media problem-solving, and educate staff on things to avoid in both personal and professional status updates. It is smart business to have a social media policy and some of the biggest brands have already paved the way and published policies that others can emulate. (Read the article 3 Great Social Media Policies to Steal From at Open Forum online.)

Spotlight on Companies’ Response to Fraud

Fraud is on the increase as the global financial downturn takes hold. The Ernst & Young European Fraud Survey 2009 reveals that, despite the increasing risk of fraud, many companies appear to see combating fraud as someone else’s responsibility and place heavy reliance on internal and external audit to prevent and detect fraudulent activities.

Taking on the World – Positioning Canadian Private Companies for Global Success

To gain an understanding of the growing trend to global expansion and gauge what Canadian private companies are up against in foreign markets, KPMG undertook its second annual national survey to explore Canadian private companies’ success. Private company executives were asked about their current experiences and future plans for expansion. The KPMG report documents the extent of private companies' foreign operations to date; sheds light on the benefits of global expansion for private companies, and the key challenges and risks of doing so; and provides information about local employee and supply resources in foreign markets. (Read the KPMG report Taking on the World – Positioning Canadian Private Companies for Global Success.)

Five Tips for Effective Use of Social Media

Integrating social media into a company's marketing strategy helps to keep in touch with current and potential customers as well as with suppliers, colleagues and other stakeholders. The Business Development Bank of Canada offers a brief overview of social media, including the individual benefits of these sites, and lists five handy tips for effective use. (Read the online article Putting a new spin on networking.)

Fraud Risk in Difficult Economic Times

A new publication by the Canadian Institute of Chartered Accountants (CICA) is designed to help boards of directors protect their companies from the increased risk of fraud in today’s unsettled economic environment. The Director Alert, titled Fraud Risk in Difficult Economic Times, provides guidance to directors on how to satisfy themselves that management has implemented reasonable and prudent measures to manage the risk of both internal and external fraud. External fraud includes losses from frauds by suppliers, customers and others outside the company. Internal frauds are committed by those within an organization, whether management or employees, and may include asset misappropriation, corruption or financial statement fraud. (Read the CICA Media Release and review the Director Alert, titled Fraud Risk in Difficult Economic Times.)

Human Resource and Compensation Issues during the Financial Crisis – Questions for Directors to Ask

The Canadian Institute of Chartered Accountants (CICA) has issued a Director Alert designed to help boards of directors, particularly Human Resources and Compensation Committees, navigate today’s unsettled economy. Titled Human Resource and Compensation Issues during the Financial Crisis – Questions for Directors to Ask, the easy-to-read Alert highlights key topics and questions for corporate directors to consider in addressing the implications of the economic downturn on their compensation and human resource programs. (Read the CICA Media Release.)

Enhancing Our Commitment to a Sustainable Future: 2009 Progress Report

On Earth Day, 77 Chief Executive Officers from leading Uinted States companies cited their personal and corporate commitments to sustainable business practices in Business Roundtable’s Enhancing Our Commitment to a Sustainable Future: 2009 Progress Report. From developing new energy-efficient technologies to providing safe clean water sources in developing nations to creating business solutions that reduce customers’ and suppliers carbon footprints, Business Roundtable member companies are addressing a vast range of environmental, social and economic issues to help make the world more sustainable. (Listen to what CEOs are doing to support sustainable growth.)

Saratoga human capital effectiveness survey

The most successful organizations manage their human capital as a strategic asset by aligning the workforce with business objectives and using measurement to drive decisions, monitor performance and improve results. Each year, Saratoga, a PricewaterhouseCoopers (PwC) human capital measurement service offering, conducts its annual human capital effectiveness survey that reveals hundreds of metrics and thousands of unique benchmarks focused on productivity, turnover, staffing, labor cost, training, and HR cost and structure. This extensive report contains results from over 300 organizations throughout the United States, and provides organizations with the ability to make evidence-based decisions. A majority of participating organizations are in the Fortune 1000. (Read the executive summary or Listen to the Podcast.)

PwC's Technology Forecast, Fall 2008

Do more with less. Be more innovative. Manage continuous change. Anticipate market shifts. Bias investment toward differentiation. Standardize wherever possible to reduce costs. Deliver value from acquisitions. Make information a strategic weapon. Create a sustainable infrastructure. Be more agile. In scores of conversations with business and technology executives, it has become evident that many apparently unrelated initiatives share a common challenge: to manage them in an era of continuous change without tearing the organization apart by lurching from one initiative or crisis to the next. An evolving methodology can help anticipate market changes and assess their meaning for the enterprise as a whole before deciding whether an agile response is necessary. This emerging approach is a method for proceeding with investments with agility when they make sense and without causing more harm than the intended good. This approach fuses two key models and a growing trend which are discussed in PwC's Technology Forecast.

Leading by Example: Key Developments in the First Seven Years of PIPEDA

The Office of the Privacy Commissioner of Canada recently released the publication Leading by Example. Reviewing leading cases, the 63-page book is designed to help businesses comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) and improve their privacy practices.