Transparency in a World Where Corporations and Governments Do Not Want Transparency

Transparency in the current global socio-political context is a highly contentious issue. In an era characterized by extensive data collection, government and corporate surveillance, and corporate power, the call for transparency from corporations and governments has never been more urgent. However these entities often exhibit reluctance, or even outright resistance, to such transparency. Corporations, intent on safeguarding their competitive advantages and trade secrets, are frequently opaque about their operations. Similarly, governments, under the guise of national security or policy considerations, often withhold information from their citizens.

In the USA, a particular cause for concern is government agencies purchasing people’s data from corporations when the government is prohibited by US law from collecting this data themselves. This contravention of US law is particularly troubling. The situation is better in the European Union because of enforcement of the GDPR laws.

An important aspect of this tension over transparency is the digitalization of modern society. The Internet, social media, and other digital platforms have profoundly transformed how information is created, disseminated, and consumed. Corporations leverage these platforms to gather and exploit vast amounts of data, often without clear consent or comprehension from users. Meanwhile, governments employ these same tools for surveillance and control, creating a sense of opacity that contradicts the inherent openness of the digital age. This opacity can lead to distrust, as stakeholders feel their privacy is being compromised without clear benefits or reciprocal transparency in return.

Transparency advocates argue that it is crucial for establishing and maintaining trust, particularly as society becomes more interconnected and interdependent. Trust can facilitate collaboration, drive economic growth, and promote social cohesion. For corporations, transparency can foster a healthier relationship with customers and other stakeholders. It can also lead to better decision-making, as diverse viewpoints are more likely to be heard and considered. For governments, transparency can enhance democratic governance, promote accountability, and help prevent corruption.

However, this “humans first” push towards achieving transparency is fraught with challenges. Corporations and governments must balance the need for transparency with other (sometimes) legitimate concerns, such as privacy, earning excess profits, and security. Transparency initiatives can also be costly, time-consuming, and difficult to implement. Moreover, in an increasingly complex and dynamic world, even the concept of transparency can be hard to define and measure. But with the digital revolution irreversibly changing the dynamics of information flow, the push for greater transparency is unlikely to wane, serving as a vital check against potential misuse of power.

While some governments like the USA and EU enforce transparency laws, there is still a problem with countries that don’t while still doing international business. In the USA, the Corporate Transparency Act was passed in 2021 to counter money laundering, the financing of terrorism, and other illicit activity by creating a national registry of beneficial ownership information for “reporting companies”. While this is a good bill as far as it goes, it does little to protect US consumers from US corporations. In Europe, the General Data Protection Regulation (GDPR) requires companies to ask for some permissions to share data and gives individuals rights to access, delete, or control the use of that data. However, not all countries have such regulations in place, which can create challenges for international business. Organizations such as Transparency International are working to promote transparency and fight corruption globally.

Building transparency into AI systems is an important step in protecting the rights of people using these systems. Transparency in AI systems refers to the ability to understand how the system makes decisions and what data it uses to do so. This can help ensure that the system is fair, unbiased, and accountable. It also involves letting users know how their data is being used and if any of their data is shared with third parties.

One way that individuals and companies can build transparency into their AI systems is by using explainable AI techniques. These techniques allow developers to create models that can provide clear explanations for their decisions, making it easier for users to understand how the system is working. This can help build trust in the system and ensure that it is being used in an ethical and responsible manner.

Another way to build transparency into AI systems is by implementing strong data governance practices. This includes being transparent about what data is being collected, how it is being used, and who has access to it. Companies should also have clear policies in place for handling sensitive data and ensuring that it is protected.

Finally, companies can build transparency into their AI systems by engaging with stakeholders and being open about their development processes. This includes involving users, regulators, and other stakeholders in the design and testing of the system, as well as being transparent about any challenges or issues that arise. By taking these steps, companies can help ensure that their AI systems are transparent, fair, and accountable.