Introduction to data ethics in Kvadrat

The Kvadrat Group (Kvadrat) as a business striving to push the boundaries of high-quality textiles through design and innovation is relying on its customers, partners, suppliers, employees, and the accompanying data which drives our business. The use of data is fundamental for Kvadrat. It offers analytical returns that allow Kvadrat to strive towards better customer service, seamless cooperation, and a better place to work as an employee.

Working with data also comes with great risks and a significant responsibility. Cyberattacks, data breaches, low-quality data and system failure have become daily risks, and we take them seriously. It is Kvadrat’s responsibility to continuously identify, prioritize, manage, and mitigate these risks on a professional level and create the best possible outcome for all involved parties. Equally, it is our responsibility to only process necessary data and secure strong compliance and ethical framework.

Data ethics is a code of behaviour that describes what is right and what is wrong with the collection, storing and sharing of data insights. Knowing the difference between what you have the right to do and what is right to do is the essence of ethics.

Purpose of Kvadrat’s data ethics policy

Data Ethics is about people and finding a balance between all the possibilities the digital world has to offer, and the ethical framework in which Kvadrat can navigate. The purpose of this policy on data ethics is to be transparent regarding Kvadrat’s ethical views, compliance, and governance towards collected and processed data under the company’s responsibility. We hope to inspire stakeholders beyond our company borders and thus foster learning and collective action.

Four principles on data ethics

To ensure the best possible foundation working with data ethics, Kvadrat has adopted 5 principles on which our governance setup is based. These principles describe how Kvadrat processes personal data and non-personal data and how we balance the natural interaction between digital possibilities and our data ethics principles. Kvadrat four principles of data ethics are considered as an evolving concept reflecting evolving technologies, the regulatory landscape and changing stakeholder expectations.

The goal of the principles is to create clarity about what data ethics in practice means to Kvadrat, and how it affects the people whose data we process

    Kvadrat strives to secure transparency towards all persons which personal data Kvadrat processes via good communication and informed decision making.

    Communicating transparently means we publish and continuously improve our privacy policies to ensure that individuals and businesses understand which of their data is being processed, and by whom. Data-driven decision making has the potential to create added value for all stakeholders. However, it requires high-quality data and people equipped with the right capabilities, who know how to work with data ethically and responsibly.

    Our transparency measurements

    1.1 Foster good communication
    In Kvadrat we pursue best practices in ethical communication. Ethical communication is based on honesty, transparency, and consistency. Communication regarding the processing of personal data to our customers, partners, suppliers, etc. happens through our privacy policy on our websites, which is linked to every e-mail sent. Keeping a close dialogue with our employees on responsible processing of personal data, and all other data is essential. Other data related guidelines and information sharing tools are our IT security policy, data ethics policy, e-learning, campaigns on our intranet, and face to face communication and education.

    1.2 Nurture a positive error culture
    Kvadrat has a constructive, open, and solution-orientated approach to errors and failures. Empathy is one of Kvadrat’s values and this also reflects our approach towards errors. We pursue an environment, where failures can be discussed, helping us to improve and minimizing the risk of repeated errors. Depending on the error, we use logs and statistics as a learning platform and pursue high-quality data to minimize risks.

  • The definition of data integrity is completeness, consistency, timeliness, accuracy, and validity. This means that Kvadrat must take good care of and control of all processed data and training our employees is a priority for us. Ensure that measures are implemented to protect against wilful or accidental loss, damage, or unauthorized change. Kvadrat must also take steps to uphold continuous control, integrity, availability, and confidentiality of all data under Kvadrat’s responsibility.

    Our integrity measurements
    2.1 Ensuring data quality
    Quality is one of our core values. In alignment with this strive for excellence, Kvadrat is pursuing quality data to support better decision making, e.g., prioritising material choices for client. Learning from data and making data-driven decisions inhibits also great risk. There are ethical factors that need to be considered when using data to optimize key business processes. In Kvadrat quality data is defined as a strong balance between data accuracy and its ethical strength, meaning the absence of causing ethical harm.

    2.2 Developing responsible data users
    A data user is a person that is processing data in IT systems. In Kvadrat our data users only have access to data for which they have a legitimate work purpose, and they receive appropriate training regarding integrity, availability, and confidentiality. All our employees are required to follow specific policies, guidelines, and business procedures. The data users are responsible for reporting any suspicion regarding misuse, accidental access, security issues etc. All our employees follow an onboarding program that consists of e-learning, and introduction to our Privacy Policy, and IT Security Policy. Departments and subsidiaries which have extensive data-driven processes will also receive specific training.

    2.3 Governing risk and opportunities
    All major acquisitions of new software must be approved by Kvadrat´s Technology Board, represented by selected colleagues from different departments across Kvadrat. The Technology Board has a defined process for evaluating technology choices, which also considers cost, legal and ethical aspects. During 2022, the board defined a set-up for technology assessment for the existing technology portfolio. For the process of implementing new software Kvadrat also launched a risk assessment tool that must be used before the implementation of a new IT system. This risk assessment provides Kvadrat with an evaluation of risks in IT systems. It makes sure that the security levels in Kvadrat are met both at its introduction, but also during the lifespan of the use of technology to secure ongoing compliance towards legislation. Going forward we will expand the tool to also include more ethical related risk assessment criteria. As an important governing body our Technology Board ensures security, policy, and process alignment across different departments.

    Security of data and data ethics are intertwined and are dependent on each other to secure data against threats and to gain and uphold the trust of data subjects. In Kvadrat we have a strong focus on security, and we, therefore, employ the best protection, advice, and training to avoid internal or external corruption and unauthorized access.

  • Respect for the privacy of Kvadrat's customer and employee data is a fundamental value for Kvadrat. Therefore, Kvadrat complies with both Danish and European legislation for data protection. These legislations constitute a minimum and a necessary but not sufficient basis for Kvadrat’s work on data ethics. Kvadrat must be proactive in the approach towards data ethics since legislation often falls behind the possibilities that technologies create. Kvadrat must at all times assess new technology before implementing these, even if they do fall within the legal framework, it is not necessary the right ethical path.

    Our privacy measurements

    3.1 Protecting anonymity and confidentiality
    In Kvadrat we take appropriate precautions to protect personal data and non-personal data, which means that when it is possible, we anonymize or pseudonymize data for the use of statistics or any other similar processing, where it is not necessary to process the full dataset. When we anonymize personal data, it is not possible for anyone to personally identify the people behind the data. In Kvadrat we ensure the confidentiality of our data during data collection, data storage, data processing and data reporting using encryption, high-level passwords, firewalls, security programs etc.

    3.2 Safeguarding a strong compliance program
    As a company, we believe that having a strong compliance program is the right way to ensure that we follow national and international legislation and take compliance to the next level by including ethics thinking in the way we process data. In Kvadrat, it is our goal to secure compliance and good governance. We do so by working actively with standards, policies, procedures, communication, education, monitoring, auditing, internal reporting, investigation, and risk mitigation.

  • Implementing new technology can be an asset for most companies as process efficiency and smart ways of working are enhanced, but Kvadrat is also aware of the possible downsides that technologies, such as AI, machine learning, data mining etc. impose on diversity and inclusion. Unconscious biases of digital design and technology development risk excluding some of our recipient groups and thus create damage to stakeholders and the organisation. In Kvadrat we do our best to meet these challenges. For now, Kvadrat does not actively use AI technology but instead aims to evaluate data through our very capable employees.

    Our inclusion measurements

    4.1 Making value creation for data subjects the end goal
    Kvadrat focuses on high customer satisfaction and wishes to create services and products that meet and even exceed the customers’ expectations. One way how we measure our impact is through our customer satisfaction survey. Key insights inform our corrective actions to provide even better customer service and products aiming for exceptional customer experience.

    4.2 Pursue employee diversity to design inclusive solutions
    To grow and evolve, we need a diverse workforce that consists of committed employees with the necessary skill set, expertise, and qualifications to drive our business forward. The access to diverse ideas and perspectives drives creativity and innovation across all areas of our business.

    For the past years, Kvadrat’ s focus has been to hire more women in leadership positions. In 2023, women in middle management represented 47% and 38% in our senior management team. Our Kvadrat A/S board is represented by 40% women. 21% of our workforce is under 30. As we are a global player, we have a strong focus to recruit locally, so our teams reflect the communities we are active in.