Tech's tug-of-war between mission statements and income statements
Issue #37
Most companies today have a mission statement. It's an integral part of a business's DNA. A mission statement is immediate: it describes the company's business, goals, and approach to achieving those goals. The mission is often virtuous and inspiring. After all, most companies set out to improve the world in some way or another. But, the mission isn't just a nice bit of writing to put on your company's website. In a perfect world, it guides every decision the company makes.
I think the true pressure test for your mission happens when you decide on your business model. Every business needs to make money (or at least have capital) in order to operate. That's a given. But there are lots of ways to make money, and many of them involve trade-offs at the expense of your customers, employees, the environment, etc. In some extreme cases, companies must decide between money and democracy itself. For most businesses, there comes a point when you have to choose: stay true to your mission or compromise for profit?
Aligning your business model to your mission is arguably the trickiest thing to pull off, especially in the tech industry. It's extremely common for companies in this industry to make money by harvesting user data or serving users targeted ads. Or both. This business model incentivizes tech companies to grow their user base and keep us engaged—at all costs.
We know there is tremendous value in having vast amounts of users on a tech platform. The value created by user counts, in the form of daily and monthly active users, incentivizes platforms to acquire and retain users by any means necessary. This can even result in design choices that are ethically questionable at best. We see this come to life in features that trigger the dopamine-driven cycles that keep us coming back to the platform, as well as massive efforts to combat declines in user-generated content. Call it persuasive design or manipulative design—either way, it's meant to keep you online and scrolling ad infinitum.
We have real-world examples of what happens when a company's business model is fundamentally at odds with its mission. At Facebook, the mission is to give people the power to build community and bring the world closer together. But I would argue that their business model makes that mission increasingly difficult —and there's the rub. Obviously, Facebook didn't set out to develop algorithms that prioritize divisive content. They didn't intend to create a toxic environment for girls and teens. But they simply can't bring people together and generate the massive amount of revenue that they do.
Similarly, YouTube's mission is to give everyone a voice and show them the world. This Google-owned platform has come under fire for the way its algorithm serves up increasingly radical content. I can't be sure, but I suspect that was never "the world" they intended to show everyone. But again, outrage is good for engagement, and engagement is essential for an ad-based business model.
At Kinzoo, our mission is to be the most trusted brand for incorporating technology into our children's lives. We can't build trust if we rely on data collection and targeted advertising. That's why we'll never compromise your privacy to make a profit. We'll never use our platform to show you targeted ads. And we'll always think about the ethical implications of every design decision, big or small.
Big tech has shown us that it's possible to turn a quick profit when you collect and sell user data. They've shown that divisive content and manipulative design are lucrative. But we know it's possible to build a sustainable company and stay true to what we believe. Otherwise, why have a mission statement at all?
A deeper dive
Here are a few helpful resources in case you want to really dig into today's topic:
When we talk about social media, the conversation often circles back to algorithms. According to the Washington Post, "While the phrase “the algorithm” has taken on sinister, even mythical overtones, it is, at its most basic level, a system that decides a post’s position on the news feed based on predictions about each user’s preferences and tendencies." Check out this informative article to learn just how Facebook's algorithm has changed over time—and how that affects what you see in your newsfeed.
While YouTube has taken some steps to address the way its platform promotes divisive content, research as recent as July 2021 shows that it still has a major problem. According to Tech Crunch, "YouTube’s AI continues to puff up piles of “bottom-feeding”/low-grade/divisive/disinforming content—stuff that tries to grab eyeballs by triggering people’s sense of outrage, sewing division/polarization or spreading baseless/harmful disinformation—which in turn implies that YouTube’s problem with recommending terrible stuff is indeed systemic; a side effect of the platform’s rapacious appetite to harvest views to serve ads."
TL;DR
Too long; didn't read. It shouldn't be a full-time job to keep up on industry news, so here is a mercifully quick summary of some other notable developments:
It finally happened: Adam Mosseri, the head of Instagram, will be testifying before Congress during a series of hearings on protecting children online. This will be the first time Mosseri participates in a hearing like this, so it will be an interesting one to keep an eye on. I expect he'll be grilled on the now-paused plans to build an Instagram platform for kids. Keep an eye out for my next newsletter for a recap!
Online privacy is a concern for so many parents. But what exactly is the state of kids' privacy online? Well, Common Sense Media just released a detailed report and you can see all the findings here. Some interesting takeaways: while there has been an overall increase in transparency when it comes to privacy, there has also been an increase in products and services indicating that they sell user data.
And lastly
Here are a few more pieces of original writing from me and my team—just in case you're keen for more:
If you have kids, chances are you've heard of Fortnite. This is a wildly popular online game among children, and my team put together a quick guide outlining all the different modes, parental controls, safety concerns and more.
If you use the Kinzoo app, you may have noticed our new KidNuz Path! We're thrilled to have their informative, kid-friendly news podcasts available right in the app—and we had a chance to chat with Tori Nelson, one of the anchors. We asked her all about media literacy and how parents and kids can become more news-savvy. Check out our interview here.
Okay, that's it from me until next time. If you enjoyed this newsletter, and know of another parent who would as well, please feel free to forward it along.