Motivations—Why Do Companies Pursue Data Ethics?

This chapter examines the reasons that companies go beyond compliance to engage in data ethics management. Our research suggests that a range of different pressures and incentives may encourage companies to adopt data ethics policies. These include issues of corporate and industry reputation (particularly in the wake of scandals), emerging or looming regulation (in both the U.S. and other jurisdictions, especially the EU), demand from employees, and strategic interests in improving decision-making and gaining competitive advantages. Delving into reputational dynamics, the chapter considers the role of data ethics policies in gaining trust not only with consumers/users but also with regulators and business partners. Using our survey data, we examine how types of markets (business-to-business vs. business-to-consumer), media and stakeholder pressures, and perceptions of regulation may be related to whether companies have a data ethics policy or not.