Data protection is highly relevant to corporate compliance as companies increasingly handle vast amounts of personal and sensitive information of customers, employees, and stakeholders. Ensuring data privacy is not just an ethical obligation but a legal requirement under laws like the Information Technology Act, 2000 and the upcoming Digital Personal Data Protection Act, 2023 in India. Failure to protect data can lead to significant legal liabilities, financial penalties, and reputational damage.
Corporates are required to implement data protection policies, conduct regular audits, and ensure secure processing and storage of personal data. Moreover, under corporate governance frameworks, data protection is part of risk management and internal controls, and boards are expected to oversee compliance. Thus, data protection is an integral aspect of corporate compliance, reflecting a company’s commitment to legal accountability, consumer trust, and responsible digital practices.
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