Privacy and data security: why should investors care?

[Commentary] Looking for a mortgage? Tell us how much you owe and how much you earn. Think you might have a health problem? Tell us your age, gender and medical history. Want to buy a new pair of shoes? Please provide your size, preferred color, style and zip code – and, by the way, how did that last pair work out for you?

These inquiries may seem like a slight nuisance, but the repercussions are broad. As the global economy shifts to a digital economy, data has become the lifeforce of commerce. Big data is big business, presenting enormous opportunities for economic growth. But not without risk – data privacy and security have quickly become critical business and social risks, leading us to question whether, in fact, our secrets are safe.

How are companies handling those vast terabytes of personal information? Have adequate measures been taken to ensure it can't be hacked by foreign governments, criminals, or thrill-seeking computer activists? And do the companies we place our faith in have appropriate policies and practices to ensure they're protecting the privacy we as consumers want and demand?

[Natasha Lamb is vice president, shareholder advocacy and corporate engagement, at Trillium Asset Management LLC; Corey Johnson is sustainability research analyst at Pax World Funds; Michael Connor is executive director of Open MIC, a non-profit organization that works with companies and investors on open media issues.]