As the topic of social justice increasingly becomes more polarizing, those leading enterprises that provide a variety of important services to Americans are being asked to change business practices or else face significant consequences.
Indeed, you’ve likely heard the “meritocracy-centered” directives from the White House to government agencies, public institutions, universities and private companies alike, regarding the elimination of offices, positions, action plans, initiatives and programs related to diversity, equity and inclusion (DEI).
However, a myriad of industries including finance, healthcare, and insurance are legally accountable to specific fairness standards that include equity measures. Many also believe it makes good business sense to ensure that the customer net is cast as widely and inclusively as possible. In an environment of high competition for each and every customer, companies that win are those that use every tool possible to increase their market share.
This brings us to fairness standards, which work to create a level playing field, ensuring companies comply with federal and state laws in treating consumers equitably. Thus, the expectation in business is that equity will remain an important pillar of fairness standards, not only in complying with regulatory standards but simply as a matter of making prudent business sense — regardless of the changes in the current political environment.
Nearly any business understands that if it can position itself as being both competent and ethical, it will win the battle for customers. Take banking, for example. Would you give your money to an institution you do not trust?
Trust is everything. It is the foundation upon which things like customer loyalty, financial stability and the entire global financial system are built. Traditionally, if customers don’t believe Bank A will treat them fairly and manage their money safely, they will, in fact, go to Bank B. Even worse for the global monetary system, if consumers become so disenchanted with traditional banks, they can now choose from the fast-growing unregulated, alternative currency market — some of which have proved fraudulent.
When trust dissipates, the slope gets very slippery, very fast. And fairness is what builds trust in nearly any relationship.
This is equally true for important institutions outside the corporate sector. For example, the Federal Chief Data Officers (CDO) Council and Federal Committee on Statistical Methodology both voluntarily undertook the FAIRness Project, which centered around building trust and fairness into the broadly impactful process of finding and using government data. Again, customers expect and value fairness and trust when it comes to use of their personal data, regardless of who is using it.
Leaders in industries such as healthcare or banking understand that the level playing field provides the foundation for merit-based decision-making. Thus, they are using the consideration of equity to drive a fair allocation of resources based on individual needs to achieve equal outcomes. This ensures an equal level of resources are available to all Americans while leveling the playing field by addressing specific needs and barriers.
At the end of the day, fairness is the baseline, the table stakes. And isn’t that the foundation of the proverbial “American Dream,” whereby anyone can succeed and reap the rewards of their individual effort and insight? Yes, and it’s seemingly a concept that Republicans and Democrats seem to agree upon.
Companies that fail to comply with state or federal laws governing equality or fairness standards — Title VII, the Civil Rights Act of 1964 or the Americans with Disabilities Act (ADA), to name a few — can face a variety of penalties and consequences, depending on the severity and nature of the violation.
These could include significant financial penalties, individual or class action lawsuits, government sanctions such as the suspension or revocation of business licenses, loss of government contracts, and of course, the reputational damages that can come from oversteps.
Whether these laws regard issues such as race, color, religion, gender or national origin or other protected classes, non-compliance can have severe and lasting impacts.
Understanding where your systems or services may fall short of legal standards can be a daunting task. But if you know what you are looking for and how to find them, the risks are clearly articulated, catalogued and delineated. It’s just that these laws may be hidden inside of a mountain of documentation.
The imperative becomes leveraging expertise and technology platforms that help: find pitfalls for violating state and federal fairness laws; and reduce overall regulatory, legal, and reputational risk.
This is where SolasAI comes in. We bring unmatched experience in providing algorithmic tools, expertise, and supplying an effective playbook to root out and manage risk.
This is how our SolasAI’s team and technology works effectively in collaboration with you and your team:
Baseline: We approach our engagement with you understanding that you are the best at building your models. We don’t seek to replace your team nor ask you to change how you build your organization’s models. We simply seek efficiencies and opportunities to optimize for both growth and risk reduction.
Step One: We simplify and streamline the disparity testing process by testing through the use of accepted standards that will give you the greatest protection possible. We also continually update our testing module based on the latest guidance, research and accepted standards to help you test even the most complex automated decisioning processes.
Step Two: We provide you with additional insight to make any model refinements easier, openly clarify what is happening in the models so you understand it, and ensure you clearly understand what is driving value and disparity in the models. This facilitates effective and efficient communication between diverse stakeholders such as legal, compliance, modeling and management.
Step Three: We preserve and expand the work you have already done, automating the efficient generation of justifiable alternatives and streamlining the identification of the most viable model alternatives while maintaining overall model quality.
Step Four: We generate the documentation and insights you need to have informed conversations with your business organization. We provide you with the information you need to choose the best alternative for your business, justify it to regulators, and equip your subject matter experts with the best alternatives and supporting information to grow and protect your business.
Ultimately, SolasAI’s technology and expertise — which has lived and worked in this field since its inception — supports the systems of our partners in compliance with current and anticipated regulatory requirements. We find and define model disparities, helping you to both understand and to resolve these issues before they can cause real harm.
For more information or to speak with a member of our team, email us at info@solas.ai.
