The Need for New Methods to Establish the Social License for Data Reuse
Stefaan G. Verhulst & Sampriti Saxena
Data has rapidly emerged as an invaluable asset in societies and economies, leading to growing demands for innovative and transformative data practices. One such practice that has received considerable attention is data reuse. Data reuse is at the forefront of an emerging “third wave of open data” (Verhulst et al., 2020). Data reuse takes place when data collected for one purpose is used subsequently for an alternative purpose, typically with the justification that such secondary use has potential positive social impact (Choo et al., 2021). Since data is considered a non-rivalrous good, it can be used an infinite number of times, each use potentially bringing new insights and solutions to public problems (OECD, 2021). Data reuse can also lead to lower project costs and more sustainable outcomes for a variety of data-enabled initiatives across sectors.
A social license, or social license to operate, captures multiple stakeholders’ acceptance of standard practices and procedures (Kenton, 2021). Stakeholders, in this context, could refer to both the public and private sector, civil society, and perhaps most importantly, the public at large. Although the term originated in the context of extractive industries, it is now applied to a much broader range of businesses including technologies like artificial intelligence (Candelon et al., 2022). As data becomes more commonly compared to exploitative practices like mining, it is only apt that we apply the concept of social licenses to the data ecosystem as well (Aitken et al., 2020).
Before exploring how to achieve social licenses for data reuse, it is important to understand the many factors that affect social licenses. One of the key underlying principles behind any social license is trust. The public must be able to trust that the party across the table will uphold its responsibilities when it comes to how data is collected, stored, and used. Without trust, a social license cannot exist. Transparency, open dialogue, and social contracts can help to build trust between involved parties. Explainability and data literacy are especially important in the context of data reuse, as without these, information asymmetries between the public and data practitioners can create power differentials, thus weakening trust (Aitken et al., 2020; Muller et al., 2021; Choo et al., 2021).
There are several ways to acquire social licenses, many of them focused on community engagement and open dialogue. It is important to recognize that each stakeholder has different strategies and approaches when it comes to gaining social licenses. In addition to the factors mentioned above, sociocultural norms and politics also play important roles in determining what the process of achieving a social license will look like (Clover et al., 2022). Social licenses must take these differences into account, and underline the mutual benefits and tradeoffs involved in any agreement (implicit or explicit). This is a vital step in maintaining transparency and building trust. In the case of a data reuse project, this process might entail sharing the objectives of the project in question and the challenges it addresses while at the same time acknowledging foreseeable risks (Aitken et al., 2020; Choo et al., 2021).
When it comes to securing social licenses for data reuse, three approaches are particularly important: public engagement; data stewardship; and regulatory frameworks. While each of these elements can be implemented independently, they are more effective when deployed together.
Since any social license depends on the public’s approval–or at least acceptance–public engagement acts as the foundation of social licenses. Public engagement can take many forms, from data literacy campaigns that build community awareness, to citizen assemblies, to open dialogue between stakeholders in order to foster better mutual understanding (Belenguer, 2021). Public engagement is important not only to establish trust and social contracts between the public and data practitioners, but also to create opportunities for honest assessments of the benefits and risks associated with any given project (Shaw et al., 2020). Without effective public engagement strategies, data practitioners face the risk of perpetuating inequalities by failing to include marginalized groups in the discourse or by adopting a top down approach to their work (Boersma, 2020). One way to address these risks is by taking care to identify all stakeholders in the ecosystem — a task which often falls under the responsibilities of data stewards (Verhulst et al., 2020).
The notion of data stewardship plays an integral function in the third wave of open data, as it facilitates cross-sector data collaboratives and data reuse projects that have the potential to deliver public value. The role of a data steward includes: fostering community engagement; assessing the values and risks of a project; communicating insights with external actors; and nurturing long-term sustainable and ethical data practices. In order to acquire a social license for data reuse, data stewards can leverage their role as conduits between stakeholders and data practitioners to establish a rapport of trust and open communication. They are also well positioned to implement principles like transparency and explainability, as well as ensure the adoption of responsible data practices that make it easier to build trust and acquire social licenses (Choo et al., 2021).
Finally, regulatory frameworks can both shape and foster social licenses. One conception of social licenses is as bridges between what is legally permissible and what is socially acceptable (Aitken et al., 2020). Regulatory frameworks help define legal limits, thus establishing a baseline for social licenses. Furthermore, a strong regulatory framework may give the public greater confidence in data practitioners, helping to establish trust. Regulatory frameworks (such as the European Union’s Data Governance Act) also protect data rights and set guidelines for responsible practices, in the process mitigating some of the risks associated with data reuse projects (Choo et al., 2021). Most importantly, regulatory frameworks create a system of accountability wherein breaches in the terms of a social license by data practitioners can be addressed and action taken. This gives the public a stronger position to negotiate from and empowers stakeholders to more concretely implement their social licenses.
Data assemblies present one effective tool that can be leveraged to acquire a social license for data reuse. In 2020, The GovLab launched The Data Assembly — a citizens assembly on the reuse of data. The Data Assembly brought together policymakers, data practitioners and key members of the community to build understanding amongst them about the underlying issues, the risks and the benefits that are inherent to data reuse projects. Through this approach, participants were able to understand how different stakeholders perceive the challenges and risks of data reuse, as well as the diverse value propositions data reuse promises each actor (Verhulst, 2021). Data assemblies not only create a space for public engagement, but also offer an avenue through which data practitioners can secure consent from the public in the form of a social license. In order to harness the potential of data reuse in an ethical manner, data practitioners in the private sector will need to develop more new and innovative methods, like data assemblies, through which they can secure a social license and the public’s consent for data reuse projects.
As data reuse becomes more prevalent, social licenses for the practice will need to be adopted to help fill the gap left by slow-moving regulators and legislators around the world. Social licenses will help to facilitate responsible data reuse and establish standards of practice for the sector as a whole. Public engagement, data stewardship and regulatory frameworks are the foundations for methods of acquiring social licenses for data reuse. Looking forward, as the digital transformation and datafication continues, and the emerging concept of digital self-determination gains traction, we will no doubt see calls for individual actors to wield greater and more proactive control over their data. Data reuse in such an environment will require new ways to engage with communities as well as a reimagined function of data stewardship (Choo et al., 2021) that can establish as sense of trustworthiness (O’Neill, 2002).
Acquiring a social license for data reuse will become a precondition for unlocking the full potential of our data-driven society. As such, we urgently need to innovate existing methodologies and practices of establishing (and codifying) a social license. Without it, trust will be absent and data collaboration limited.
About the authors
Stefaan G. Verhulst is Co-Founder, Chief R&D Officer, and Director of the Data Program of the Governance Laboratory (The GovLab) where he is building an action-research foundation on how to transform governance using advances in science, data and technology. Verhulst’s latest scholarship centers on how responsible data and technology can improve people’s lives and the creation of more effective and collaborative forms of governance. Specifically, he is interested in the perils and promises of collaborative technologies and how to harness the unprecedented volume of data and information to advance the public good. He is also co-Editor-in-Chief of Data & Policy.
Sampriti Saxena is a research assistant at The GovLab. She recently completed her master’s degree in International Social Public Policy with a specialization in Development from the London School of Economics.
