Category
Theme
Series IconNo ELSI, no data business!? [1]
Published Date: 2020/02/06

No ELSI, no data business?! What is this trending ELSI?

Mitsuo Kishimoto

Mitsuo Kishimoto

Osaka University

Shu Kizetsu

Shu Kizetsu

Dentsu Inc.

As all businesses become data-driven, previously unimagined challenges are emerging in the business world. In this context, the term "ELSI" is gaining attention. How should businesses confront all risks and transform them into opportunities?

We spoke with Professor Mitsuo Kishimoto of Osaka University, an expert in risk research. The interviewer is Mr. Zhu Xizhe, Principal Researcher at Dentsu Inc.'s Solution Design Bureau, who co-founded the industry-academia collaborative "Data Business ELSI Research Group" with Professor Kishimoto.

左から電通・朱氏、大阪大・岸本教授
From left: Zhu Xi Zhe (Dentsu Inc.), Professor Mitsuo Kishimoto (Osaka University)

First, what exactly is ELSI?

Zhu: In 2019, ELSI rapidly gained prominence in Japan: the Japanese Society for Artificial Intelligence established the " ELSI Award," ELSI was expected to be explicitly recognized as part of the role of humanities in the 6th Science and Technology Basic Plan, and Osaka University announced the launch of its " ELSI Center " (Center for Social Technology Co-creation Research). But what exactly is ELSI?

Kishimoto: ELSI is an acronym for Ethical, Legal, and Social Issues. It originated as a concept within the Human Genome Project, which began in the United States in 1990. As you know, the Human Genome Project was a research initiative to decode all of human genetic information. Discussions arose about the societal impacts once the entire human genome was decoded. Subsequently, 5% of external research funding for genome analysis was directed toward ELSI research, yielding various research outcomes. This concept of ELSI, born from that effort, is now taking root as an indispensable element in business.

Zhu: Especially in the so-called "data business" domain, right?

Kishimoto: While I myself am not necessarily an expert in the E (Ethics) or L (Law) aspects of ELSI, the necessity of the ELSI approach is beginning to spread across administration, industry, management, and indeed all research fields.



Why is ELSI gaining attention now?

Shu: Following the implementation of Europe's GDPR (※1) and California's CCPA (※2) in the US, Japan also revised its Personal Information Protection Law in 2020. Amidst this trend, I've personally witnessed numerous cases where companies involved in data business face backlash over issues they hadn't anticipated. For example, something might be legally permissible (L), but ethically unacceptable (E). Professor Kishimoto, as an expert in risk studies, what are your thoughts on this?

Kishimoto: I see two reasons why a risk-based approach is necessary. First, we need to quantitatively and qualitatively examine the so-called "gray zone" between 0 and 1. This means attempting to visualize the degree of something – how good or bad it is.

Shu: Precisely because this isn't clear, everyone just feels a vague unease about risk without being able to take concrete action.

Kishimoto: The other reason is that we need to return to the fundamental question of what we want to protect. Doing so allows us to perceive "risk = opportunity." The meaning, or value, of risk studies incorporating the concept of ELSI lies precisely there.

Shu: I see.

Kishimoto: The existence of risk implies, conversely, that there is something we wish to protect. What we wish to protect starts with life and money, but today the scope has expanded tremendously—to include things like privacy, human dignity, democracy, a peaceful environment, and rich ecosystems.

Shu: When actions taken to "protect" these important things are criticized by society, simply bowing deeply and saying "We apologize" as we've done before feels like such a waste. Based on the idea that "risk = opportunity," it means we're missing an opportunity to communicate our cherished values—it's a "chance loss."

Kishimoto: Zhu-san is absolutely right. The most crucial part of ELSI is the "E" (Ethics). When Japanese companies hear "compliance," they tend to focus solely on the "L" (Law) and "S" (Society), neglecting to deeply explore the essential "E" (Ethics). They haven't dug deep enough. That's why they only react with surprise—"Huh?"—once a scandal erupts. At the root of this, I believe, is that their own "E"—what they should protect—isn't clearly defined.

※1 GDPR: General Data Protection Regulation. Developed in the EU with input from ethicists and legal scholars, it took effect in May 2018. Its defining feature is establishing privacy as a fundamental human right. Japan obtained adequacy certification in January 2019.
 
※2 CCPA: California Consumer Privacy Act. Enforced in January 2020. Unlike GDPR, it emphasizes privacy protection based on property rights.
 


Globally, a race for "E" (Ethics) is underway

Shu: You mentioned that the definition of "E" itself is ambiguous in Japan. Could you elaborate a bit more?

Kishimoto: To put it simply, one standard for "E" in Europe and the US is whether an action or statement threatens human rights or democracy.

Shu: In Japan, "S" tends to be understood as prevailing public opinion of the era, and "E" as individual moral standards...

Kishimoto: That understanding fails to establish a fundamental principle defining what "E" truly is. Judgments become clearer when based on the Western "E" criteria I mentioned earlier. Of course, even under similar standards, the resulting guidelines can differ 180 degrees between the US and Europe.

Shu: Meaning?

Kishimoto: Take personal information, for example. In Europe, the human rights emphasized are fundamental human rights. Therefore, the very act of buying and selling personal data or privacy constitutes a serious violation of "E." It's often compared to organ trafficking. On the other hand, in the United States, the most protected human right is individual liberty. So, what's wrong with selling your own data, which is your property? Rather, it's seen as a right to know the monetary value of your own data.

Shu: That's very clear. In Japan, when we hear "personal information protection," we tend to see it primarily as an "S" issue. Like, "It wasn't a problem before, but now it's a bad idea, right?" Driven by that trend, that public opinion, "L" – legal frameworks – get established. It's not seen as an "E" issue.

ELSI領域の在り方(欧米)
ELSI領域の在り方(日本)

Kishimoto: However, thanks to this ELSI boom, both business and academia are finally starting to ask: What exactly is "E" in Japan? Simply put, it's about finding a "Japanese approach." The business opportunity might lie in something distinctly Japanese – neither European nor American. For example, while information banks are often called a uniquely Japanese approach, their theoretical foundation isn't necessarily well-established.

Shu: So, rather than viewing Japan's "E" as inferior or underdeveloped compared to the Western "E" and using that as a model, if we can properly express a uniquely Japanese "E," that could open up new possibilities, right?

大阪大・岸本教授

Kishimoto: Exactly. Continuing on the topic of "E," there's currently a scramble for "E" happening globally. You could even call it a battle of imposition. America, Europe, and China are each asserting that their own "E" is the global standard. Considering this, it's fair to say "E" is at the core of every issue, from politics and economics to environmental conservation.

ELSI is a double-edged sword for academia

Shu: How do researchers view the reason industry is starting to focus on ELSI?

Kishimoto: To give a clear example, recently companies have been appealing to the government, saying, "Make regulations for us!" From the government's perspective, this is quite surprising. After all, the conventional wisdom in lobbying has always been "Remove regulations" or "Ease regulations."

Shu: That's an interesting development.

Kishimoto: In the last century, when new technologies emerged, the implicit default was that they were "safe." In other words, they were considered safe unless evidence proved them dangerous. However, in recent years, the default has shifted to "dangerous."

In other words, unless evidence of safety can be demonstrated, it's deemed dangerous, and society won't accept that product or technology. All new technologies start without a track record of safe use. So they can't demonstrate it through experience. Consequently, companies started wanting the government to create regulations, seeking that "stamp of approval" that says they're safe because they comply. But as the pace of technological development accelerates, legal regulations can't keep up. That's the tricky situation we're starting to see.

Shu: I see. So that's why companies start looking to academia.

Kishimoto: Exactly. Ideally, they should develop their own logic to demonstrate safety and present it to the world, but they lack that know-how. So, they collaborate with academia. First, they assess from an E (Ethics) perspective, consider S (Society), and ultimately tie it into L (Law) proposals. This approach might become mainstream going forward. However, there could be problems there too.

Shu: Meaning...?

Kishimoto: The biggest problem is likely the issue of "conflict of interest." What companies expect from academia is essentially the same as what they expect from government: an "official stamp of approval." However, if researchers only provide this "stamp of approval," they abandon their independence as researchers—that is, the critical spirit toward the real world they should inherently possess. In other words, ELSI is a double-edged sword for academia.

Shu: If handled poorly, it could lead to so-called "ethics washing" (criticism that companies are merely going through the motions of ELSI compliance to justify themselves), right?

Kishimoto: That's why we establish "third-party committees," but there's no single right answer for how much authority to grant them. The real challenge lies in how to build the "framework" that effectively drives the "E" (ethics) forward.

Shu: Transparency and accountability are crucial, of course. But in business, where competitive forces operate, you can't disclose everything. What's needed is a space and atmosphere where researchers and companies can speak openly, without hiding things from each other.

Kishimoto: That's what led to the launch of the "Data Business ELSI Research Group" in September two years ago. The activities and outcomes of this group, to which Zhu-san also contributed greatly, were summarized and presented at a symposium held late last year, which drew considerable interest.
 
We adopted the provocative theme "No ELSI, No Data Business," and it was particularly striking how many data business operators expressed a desire to consult with the study group about their future ELSI approaches.

Zhu: Against the backdrop of current trends, we sensed growing attention toward ELSI initiatives through industry-academia collaboration as a solution to the vague anxieties people were feeling.

What is proactive ELSI?

Shu: Listening to Professor Kishimoto's remarks so far, it seems he is exploring not a defensive approach like "risk hedging" or "risk management," but rather a proactive ELSI strategy.

Kishimoto: Exactly. For instance, isn't there a preconception that ethicists are "people only interested in abstract concepts"? Yet, when you actually meet and talk with them, they show tremendous interest in cutting-edge technologies developed by companies. Not leveraging that interest, those ideas, and analytical skills for business seems like a huge waste. It's true that objective data is lacking when it comes to building a uniquely Japanese "E." Given that, I believe bringing in professionals who previously seemed unrelated to business is an effective approach.

Shu: Even if we can't immediately present data, it's crucial to "articulate" new technologies and new concepts, isn't it? At the ELSI Research Group, I felt that creating connections between talented young researchers with such practical interests and the frontlines of data business was a mutual need for both sides.

Kishimoto: In creating a Japanese-style "E," I believe it's crucial for business to deeply understand "how people think?" and "what underpins those thoughts?" It's about knowing not just superficial "trends," but the underlying factors driving them, then articulating or quantifying them. That's what I mean by "proactive ELSI."

Shu: In our business too, "rule-making" and "how those rules are applied" remain crucial no matter how times change. Using the word "optimization" often makes it sound like "armchair theorizing," but isn't creating systems where everyone benefits—not unlike the Omi merchants' "benefit for all three parties"—an eternal theme?

Kishimoto: Exactly. The academic world also wants to master "proactive ELSI." I often feel Japanese companies tend to "wait" for government agencies' decisions. That approach won't build a winning business. It stifles innovation. Communication is essential for "proactive ELSI."

Rather than acting timidly to avoid backlash, we must reach out to more people and more opinions, advocating for what we believe is right. Even if something clearly violates current compliance standards, it might be right from the perspective of ethical or social compliance. It might bring happiness to more people.

Shu: The crucial thing is the courage to open your heart, isn't it? The Data Business ELSI Research Group will continue its efforts in 2020 to explore "approaches to ELSI in data business." We also plan to conduct an "International Comparative Awareness Survey on Personal Data." As interest in the ELSI field grows and guideline development progresses, we aim to deepen our industry-academia collaborative efforts within this research group.

Was this article helpful?

Share this article

Author

Mitsuo Kishimoto

Mitsuo Kishimoto

Osaka University

Completed the Doctoral Program at the Graduate School of Economics, Kyoto University. Doctor of Economics. Joined the National Institute for Resources and Environment, Agency of Industrial Science and Technology, Ministry of International Trade and Industry in 1998. After serving at the National Institute of Advanced Industrial Science and Technology (AIST) from 2001, joined the Graduate School of Public Policy, The University of Tokyo in 2014. Assumed current position in April 2017. Co-authored works include "The Mechanisms of Benchmark Values" (Kodansha Bluebacks, 2014) and edited works such as "Encyclopedia of Risk Studies" (Maruzen Publishing, 2019). Director, Center for Co-creation of Social Technology (ELSI Center), Osaka University.

Shu Kizetsu

Shu Kizetsu

Dentsu Inc.

After joining Dentsu Inc., he worked extensively on data-driven PDCA cycles, including DENTSU DIRECT INC., and in recent years has promoted research on ethical issues in data business and their social implementation. Co-authored works include "Considering Trust" (Keisho Shobo, 2018) and "Independent Research Beginners" (Akashi Shoten, 2019). Completed the Doctoral Program in the Graduate School of Letters, Osaka University. Doctor of Letters. Visiting Faculty, Center for Co-creation of Social Technology (ELSI Center), Osaka University

Also read