GDPR

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law in the European Union that came into effect on May 25, 2018. It aims to give individuals control over their personal data and unify data protection laws across Europe. GDPR impacts various sectors, emphasizing transparency, accountability, and the ethical handling of personal data.

5 Must Know Facts For Your Next Test

1. GDPR requires organizations to obtain explicit consent from individuals before collecting their personal data.
2. Under GDPR, individuals have rights such as the right to access their data, the right to rectification, and the right to erasure (also known as the right to be forgotten).
3. Organizations must implement appropriate technical and organizational measures to protect personal data from breaches and unauthorized access.
4. Non-compliance with GDPR can result in substantial fines, reaching up to €20 million or 4% of annual global turnover, whichever is higher.
5. GDPR applies to all organizations that process personal data of individuals residing in the EU, regardless of where the organization is based.

Review Questions

• How does GDPR influence the ethical use of big data in supply chains?
  • GDPR emphasizes the ethical handling of personal data, which directly affects how organizations utilize big data in supply chains. Companies must ensure that any personal data collected for analytics is done with clear consent from individuals and that it's processed transparently. This means that supply chain strategies must align with GDPR principles to avoid penalties and build trust with consumers.
• What are the implications of GDPR on blockchain technology used in supply chains?
  • GDPR presents challenges for blockchain technology in supply chains due to its inherent nature of immutability. While blockchain can enhance transparency and traceability, it must comply with GDPR regulations regarding personal data. Organizations using blockchain need to find solutions that allow them to maintain compliance while leveraging the benefits of decentralized ledgers, such as ensuring that personal data can be erased if requested by a data subject.
• Evaluate the role of GDPR in managing reputational risks for businesses operating in global supply chains.
  • GDPR plays a critical role in managing reputational risks for businesses by enforcing strict guidelines on data privacy and security. Non-compliance can lead to significant financial penalties and damage to brand reputation. Businesses must proactively implement GDPR-compliant practices in their supply chains to mitigate these risks, demonstrating their commitment to ethical practices and consumer trust while navigating an increasingly complex regulatory landscape.

Related terms

Data Subject: An individual whose personal data is being collected, stored, or processed under GDPR regulations.

Personal Data: Any information relating to an identified or identifiable person, including names, email addresses, and IP addresses.

Data Processor: A person or entity that processes personal data on behalf of the data controller under GDPR guidelines.