Intersections is published by Junction House - the home for today’s leading thinkers working across business, government, and technology. We explore the myriad ways in which these spheres overlap and impact society. If you’re interested in learning more about Junction House and how to join, subscribe to stay in the know.
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We try to stay away from mainstream news and, for the past month, that has mostly included COVID-19. However, the globe’s response to the virus is at the center of the relationships between government x technology x business, and there are lots of interesting and illuminating results. To successfully navigate the current situation, each sphere must work together in high pressure scenarios not previously required. Where we discuss the virus this week, we’ve attempted to dig deeper than what we see on the news cycle. Let us know how we did.
Tech x Society
🤳 COVID-19 is the first global pandemic to harness social media. Social media platforms have played a crucial role in making/keeping people aware of the virus, but the resulting “infodemic” (a term first coined in the 2003 SARS outbreak) has led to a spread of unreliable information. The WHO’s definition of an infodemic is “an overabundance of information—some accurate and some not—that makes it hard for people to find trustworthy sources and reliable guidance when they need it.” On the positive side, early in the pandemic, social media allowed doctors to raise initial warnings (before being silenced by the Chinese government) and governments to track the spread based on user posts. On the negative side, incorrect information and unbased speculation resulted in some unhealthy, irresponsible, or manic decisions.
The avalanche of information means that, even when receiving correct information, the overload can cause panic attacks and severe anxiety over the virus. The most tangible result of this avalanche came in the form of hoarding (frequently the wrong things). The reasons most early hoarders rushed to the supermarket were not based on rationale but fear. Then hoarding begot hoarding. Some valued the goods they were hoarding, some valued them simply in reaction to the first movers - much like behavioral-based trading on the stock market. Of course, social media platforms were built to influence and trade on human behavior. And this isn’t the first time they have done so at scale: hello 2016 election, welcome to 2020 (side note: the older generation has proven most susceptible to fake news - see what some organizations are doing to help them spot it).
👨⚖️ Federal court rules social media platforms not bound by first amendment. A California federal court recently ruled that social media platforms are free to censor media as they see fit, causing ripples on all sides of the political spectrum. The case in question concerned YouTube censoring videos explaining/promoting conservative ideas. The decision enflamed rhetoric about these platforms systematically censoring conservative content. On the other end, Zuckerberg and co. have used the first amendment “we are a platform” argument as to why they shouldn’t be treated as publishers and held accountable for what users post. This ruling now flies in the face of that argument. If these platforms are publishers, they (along with the user who posts content) are suable for any content on the platform. What does this mean for their argument that they shouldn't censor? They are no longer just platforms, but distributors of content.
Question for you: do you believe social media platforms should be responsible for content that users post? Tell us what you think!
Also: Zoom tracks everything you do. Cross-site tracking is dead. Isolation sucks, play Warcraft or just go talk to grandma. We now have a microchip that mimics smell - that’s a big deal. Google controls what political emails you see.
Government x Tech
👩💻 The White House CTO has been meeting with big tech to explore how we can better track the COVID-19 spread. As governments try to stem the spread like China seems to have done, mimicking the level of technological invasiveness proves tricky. This does two things: (1) forces a fascinating level of technological innovation within the government and (2) leads to inevitable questions around privacy.
Early discussions with Facebook and Google had centered on sharing location data to track the virus. Tech companies have largely backed away from this, and location data is for now likely to play a minimal role. Without testing, there’s only so much to track, and no amount of location data will make up for lack of testing. Secondarily, while many of our apps collect location data accurate to within 5 meters, that doesn’t mean they are able to simply hand it over to the federal government (although the government can legally request it in case of “emergency”). Palantir, always ready to push the boundaries, has meanwhile stepped up to the plate to help the CDC model the outbreak using social media data, location data mining, and potentially facial recognition.
International governments wrestle with privacy v. containment as well. South Korea, Taiwan, and Italy have all used location data. Israel enacted emergency laws to track cell phone location. The UK is looking into location with Google. And of course China. Importantly, all has been done for the good of public health, and forces individuals to chose between individual privacy and health. September 11th ushered in a new era of government’s ability to use data for the safety of citizens in the US. COVID-19 may have a similar effect.
Question for you: if you could give away your privacy to 24/7 monitoring in order to solve every crime and maintain public health, would you? Let us know!
🖇️ The healthcare industry is resisting a necessary move to interoperability. Healthcare interoperability is a hospital’s ability to easily share patient health information with other health practicioners (hospitals, specialists, etc.). It is critical to improving patient health, cost of care, and public health. It also doesn’t exist in the US. Red tape and intense lobbying have hamstrung the move to interoperability (see pieces by Forbes and Politico).
Epic, the largest electronic health record (EHR) provider in the country, recently vehemently opposed further interoperability legislature and continues to hold many of our health systems hostage with exteremely high switching costs. Simultaneously, healthcare reimbursement urges hospitals to keep patients for themselves. This helpful summary outlines the well-meaning but perverse incentives that created EHR systems that neglected physician need and actually contribute to physician burnout.
Also: No, facemasks don’t protect you from Chinese facial recognition. The techlash saw its limits in the Democratic primary. Too many government officials end up in tech. French anti-trust watch dog just took a $1.2bn bite out of Apple and EU staff are banned from using WhatsApp.
Business x Society
☑️ ESG (environmental, social, governance) metrics don’t work because they ignore underlying corporate strategy, according to this report from three HBS professors. The report seeks to answer why companies highlighted for their positive social impact both consistently outperformed the MSCI World Stock index and are consistently underestimated by analysts. While ESG activities for stakeholders can certainly improve shareholder value on a company level, the ESG filters used by investors frequently disregard any link between ESG and financial performance. Their effect on economic value-creating activities is not well understood.
Assessing a bank’s carbon footprint is not nearly as important as highlighting its issuance of subprime loans that a consumer cannot pay back, but ESG metrics frequently assess the former and not the latter. Where companies can truly make a positive difference in the world is by altering corporate strategy in a way that aligns with business goals through (1) addressing emerging customer needs, (2) enhancing the value chain, and (3) improving the business environment in which the company operates. The report cites, among others, Mastercard’s financial inclusion invitatives and Nike’s waste-free Flyknit shoe as good examples. Assessing this type of ESG work requires much more work. In the meantime, ESG checklists are feelgood fun, but not all that useful.
“When investors ignore their own social responsibility and fail to recognize the powerful connection between company strategy, social purpose, and economic value, they are eroding the impact and legitimacy of capitalism as a vehicle for advancing society. It is no wonder that so many citizens have lost faith in capitalism.”
😀 In some good news, businesses are rallying to provide necessary goods in response to COVID-19. Amazon is deprioritizing all shipments of non-essential goods. LVMH is changing its fragrance factories to produce hand sanitizer. Zoom is giving away its service for K-12 schoolchildren for free. Ferrari, Fiat, and F1 teams are producing ventilators. Zara’s making face masks. Even prior to President Trump’s Defense Production Act, businesses rallied in wartime mode against our common enemy.
Also: New brands are reimagining our relationship with alcohol. Should we really be demonizing the billionaire philanthropist? WeWork encouraged members to come into the office even as it sent its own staff home. Heat and greed in the California wildfires.
The dinner table: We welcome discourse and feedback. The nature of the intersections we explore means friction and disagreement exist. The only way forward is through constructive conversation, and we want to facilitate that.
We’re happy to engage in a conversation, facilitate connections, or publish your opinions and work if that’s what you’d like. Our community doesn’t have soap boxes, only dinner tables. Simply reply to this email.
What else we’re reading
This is the closest we’re getting to sports anytime soon: how the 1994 World Cup changed soccer in America.
The second person ever cured of HIV reveals his identity to become an ambassador of hope.
Confused about quantum physics? No longer.
We leave you with this: Do you see the view or the bars from @sefleuria