Intelligent Enterprise

IBM's Privacy Czarina

Harriet Pearson is IBM's new privacy policy doyenne In November 2000, IBM appointed Harriet Pearson as its first chief privacy officer, a position that will oversee the development and support of the company's privacy policies and initiatives. An IBM veteran, Pearson has been involved with public policy issues for the company since 1993. She has chaired the Privacy Committee of the Information Technology Industry Council for more than two years. With a background in law, public policy, and technology, Pearson is well suited to oversee IBM's global privacy policies and projects. Intelligent Enterprise spoke with her about her new appointment.

IE: Why did IBM feel the need to create this position?

Pearson: IBM has long been an industry leader on privacy issues. Since the 1960s, we have been proactive in our support for strong consumer medical and financial information protection; and most recently Internet privacy. My appointment as chief privacy officer is really an extension of that commitment and leadership. Much of the movement in this area by companies, including IBM, is designed to create an environment of trust. I hope this appointment will inspire others to follow us.

IE: In your view, what are the main principles of fair information practices?

Pearson: I believe that no one-policy approach will work. Instead, there needs to be a strong balance between self regulation and government policy. But the fundamental principle underlining this is both the need for full disclosure, which means that individuals should know what information about them is collected and how it is used, and also the need for choice which goes to the ability of the individual to have some level of control over how that information is shared.

As an industry, we need to reach out to consumers and educate them. We need to have businesses use good practices in the online environment. For example, IBM, as one of the largest advertisers on the Web, implemented a policy this year to not spend any advertising money on the Web unless the Web site complies with privacy guidelines. Going forward we want to continue this trend of leadership. It's a signal internally within our company but also externally to the marketplace. You really need industry, government, and consumers working together and educating consumers - giving people legal rights but also having the private sector step up to the plate. I am confident that this will happen.

IE: What privacy initiatives do you oversee?

Pearson: Internally I will oversee our compliance with laws and regulations regarding data handling and privacy around the world and ensure that our practices and policies continue to be leadership quality. I will unify on a global basis the many privacy projects and programs underway across IBM, including research and development, marketing, sales and IBM's Web strategy. In addition, I will coordinate the development of IBM technology and services offerings related to privacy.

IE: To what extent can respect for consumer privacy be used for competitive advantage?

Pearson: Survey after survey tells us that consumers strongly prefer to conduct business when they feel that their privacy preferences will be respected. Companies that fail to create a climate of trust for their consumers will quickly compromise consumer confidence and, ultimately, business. Those companies that stand by a consumer's privacy preferences will gain consumer confidence, retain customers, and clearly benefit. Honoring privacy preferences comes down to trust and good business.

IE: How will IBM work with the industry, the FTC, and Congress to develop privacy regulation in 2001 that we can all live with?

Pearson: As IBM's CPO, one of my top priorities is to keep a constructive dialog going on the issue of privacy with our policy makers. Privacy is an issue that requires a close collaboration between the public and the private sector.

IE: IBM's privacy policy page mentions that IBM is "supporting the development of some technologies that will let you manage and control the release of your personal information wherever you go on the Internet." What is your role in the development of this technology?

Pearson: IBM is funding more than 100 research and development initiatives - some inside our own company, others through coalitions - that address the issue of privacy for businesses and consumers. Technologies like P3P [Platform for Privacy Preferences] that enable consumers to specify their privacy preferences hold great promise and I expect that we will see some of these integrated into product offerings in the coming year.

-Chuleenan Svetvilas