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The Ethical Considerations of Digital Transformation

by lacygibson
July 7, 2022
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The Ethical Considerations of Digital Transformation
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expressed opinion entrepreneur Contributors are their own.

We all have a moral responsibility. This means doing what is morally right for society and the planet, and sometimes these ethical principles are enforced around regulations. We cannot forget this as we go digital.

If Meta’s a string of scandals By any indication, tech companies don’t often think about their impact on society.The company realizes that Instagram could be hurting women self esteem, but continue to develop an app version for younger kids. Social media companies generally engage in unhealthy practices as the industry misuses data collected for targeted marketing, customizing products and even creating public policy.

However, public opinion and regulations may force moral responsibility to take precedence. Companies must abide by regulations, just as we have imposed economic sanctions on Russia over its aggression against Ukraine and China’s treatment of Uyghurs. As the CTO of a blockchain consulting firm, I think all companies should consider the ethical implications of their technology stacks.

Related: How to Navigate Data Privacy Regulations When Deploying Enterprise Blockchain Solutions

Business Ethics Responsibility

Business ethics responsibility begins with protecting personal privacy and personally identifiable information (PII).Clients need solution providers that comply with global privacy laws, such as in Europe General Data Protection Regulation (GDPR). When designing the software, providers must protect PII data with encryption so that it can be easily reported and deleted at the customer’s request.

There are also ethical issues with financial management. There has been some serious misconduct in the business in the past that has spawned regulations such as Sarbanes-Oxley, Know-Your-Customer and Payment Card Industry Standards. Regardless of industry or technology, any business must comply with these regulations.

Sustainability is the ethical and social responsibility of every business. Companies need to review their carbon emissions, energy and water use, and other sustainable practices to ensure a net benefit to the community. Mismanagement is draining our planet’s limited resources, and we have an obligation to protect them for future generations.

Related: What Is Sustainable Entrepreneurship and Why Does It Matter?

Ethical considerations for digital transformation

Business ethics and responsibility go beyond generating revenue and profits, and ethical behavior in financial management goes beyond compliance. It’s about contributing to civic welfare, environmental sustainability, and other aspects of society.

I worked for an organization that had an internal tool called “Business Opportunity Assessment” to evaluate potential technology initiatives, but it may have to adapt to new ventures. Beyond simply considering corporate revenue goals, it should also look at ethical aspects such as sustainability, use of child labor, workforce diversity, sourcing conflict minerals, supporting climate initiatives and other global issues. There are three ways to ensure a business adheres to ethical principles.

Related: How to Build a Renewable Business and Save the Planet

1. Perform audits and compliance

While organizations shouldn’t comply for compliance’s sake, compliance is the best way to ensure an organization’s ethical foundation. Tech giants like Apple and Google implement “privacy“In their product, while still supporting robust third-party analytics. Current testing methodologies focus only on functionality, integration, performance and user acceptance, and must expand to include ethical compliance.

Testing for ESG compliance, business process transparency and data privacy will require new approaches, such as examining network energy usage.Bitcoin’s network uses unsustainable energy, causing it banned in China. In response, Ethereum is upgrading to proof-of-stake mining to reduce its carbon footprint.

Exposure to PII can also pose one of the greatest threats. As a result, customers are increasingly asking tech companies to be ISO 27001, SOC 1 and SOC 2 certified. HIPAA or GDPR violations are costly, and companies must conduct security audits and test for malware, ransomware, and other forms of malicious cyberattacks.

2. Recognize that employees are an important part of success

I cannot stress enough the importance of a diverse workforce. Employees from diverse backgrounds can help remove implicit bias in technology for fair use among all. These efforts are critical as racial and gender biases continue to permeate every use of artificial intelligence. OpenAI’s DALL-E 2 Image GeneratorFor example, although women are overrepresented in the data, women are most likely to be shown as “flight attendants”.

Your company should monitor systems for potential insider threats, but employees should also receive comprehensive training on diversity, security, privacy, and regulatory practices.exist Chain Courtwe require all employees to be trained in security, data privacy, and HIPAA.

Related: Ethical Issues in Decoding Technology

3. Include suppliers and partners

An organization’s ESG compliance is closely related to its downstream suppliers and business partners. One of the key challenges is getting these vendors to adopt best practices and report on their progress. Make sure you have consistent communication with them to build trust. ESG violations can result in fines and affect a company’s future.

When building or adopting new technology, it’s easy to focus on the glory. It can make workflow easier, generate profits and support a company’s bottom line. But business is not just about making money.

Companies should focus on ethics business considerations. Everything from our carbon footprint to how we treat others contributes to our net social impact. We should all be committed to doing the right thing in everything we do.

Tags: ConsiderationsDigitalEthicalSteward of Sustainable ProgresstechnologyTransformation
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