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Technology can help your organisation or community to achieve its goals in a more effective way, but is the technology you are using aligned with your values? What are the Digital Ethics of your organisation?
Digital Ethics, as Rafael Capurro puts it in his 2009 paper with the same name, “deal with the impact of digital Information and Communication Technologies (ICT) on our societies and the environment at large”. Big companies have already started to hire Tech Ethicists to work in teams dedicated to ethical technology use, like Salesforce’s Office of Ethical and Humane Use and Facebook’s Responsible Innovation team. As technology continues to evolve, prioritising ethical practices in the digital space becomes essential for organisations of all sizes. Whether you are a sole trader, part of a SME or a bigger organisation, these are the reasons why Digital Ethics are important for you:
1. Legal Reasons
Governments are increasingly establishing regulations to ensure technology serves the common good. In 2024, more than 130 countries around the world have enacted comprehensive data protection and privacy laws. Some key examples include the GDPR (General Data Protection Regulation) in the EU, the Data Protection Act in the UK, the CCPA (California Consumer Privacy Act) in the US and the PIPL (Personal Information Protection Law) in China. New frameworks like the European Union’s AI Act and the UK’s Online Safety Bill address concerns around AI and harmful content and aim to serve as a model for AI regulation in other countries. Failure to comply with these regulations can result in costly fines, such as GDPR penalties that can reach up to €20 million or 4% of a company’s global annual revenue. These fines, along with legal fees and potential lawsuits, can impose a significant financial burden on SMEs, which often lack the resources to fully comply with these regulations.
2. Brand Reputation
Brand reputation is one of a company’s most valuable assets. Data breaches, unethical use of AI and other factors related to Digital Ethics can damage the reputation of the organisation. By adopting Ethical Technology, companies safeguard customer trust and ensure long-term business success.
3. Customer Acquisition
Ethical Technology is a powerful market differentiator. According to an Accenture report, “nearly 63% of consumers prefer to purchase from companies that stand for a purpose reflecting their values and beliefs”. Being this an increasing trend, it is clear that companies demonstrating ethical behavior and commitment to social responsibility are better positioned to attract and retain customers.
4. Customer Retention
Once customers are onboard, Ethical Technology practices can enhance customer loyalty. With growing awareness of privacy issues and data misuse, maintaining ethical standards can lead to stronger customer retention and positive referrals. Businesses that prioritise Digital Ethics are building trust and long-term loyalty with their customers.
5. Workers’ Loyalty – Employee Retention
Employees, like customers, want to work for organizations that share their values. Ethical business practices create a sense of purpose among staff. In the long run, companies that use ethical tools and uphold strong values increase employee engagement, productivity and loyalty.
6. Ethics as Innovation
Ethics is not just about compliance, it is also about driving innovation. Ethical considerations can lead to the creation of new products that meet the evolving demands of consumers. Ethical Software creates safer, user-friendly experiences, driving innovation and giving companies a competitive edge. Open-source platforms and ethical AI initiatives are good examples of this trend.
Digital Ethics are a fundamental aspect of the technological strategy of an organisation. Is it equally valuable for society? How can Ethical Technology improve the world?
Do you want to explore how your organisation can embed ethical principles in its Digital Strategy? Get in touch to book a call.