Current attention directed at ethical dimensions of data and Artificial Intelligence have led to increasing recognition of the need to secure and maintain public support for uses of people’s data. This is essential to establish a “Social Licence” for current and future practices. The notion of a “Social Licence” recognises that there can be meaningful differences between what is legally permissible and what is socially acceptable. Establishing a Social Licence entails public engagement to build relationships of trust and ensure that (...) practices align with public values. While the concept of the Social Licence is well-established in other sectors – notably in relation to extractive industries – it has only very recently begun to be discussed in relation to digital innovation and data-intensive industries. This article therefore draws on existing literature relating to the Social Licence in extractive industries to explore the potential approaches needed to establish a Social Licence for emerging data-intensive industries. Additionally, it draws on well-established literature relating to trust to examine the relevance of trust, and trustworthiness, for emerging practices in data-intensive industries. In doing so the article considers the extent to which pursuing a Social Licence might complement regulation and inform codes of practice to place ethical and social considerations at the heart of industry practice. We focus on one key industry: Financial Technology. We demonstrate the importance of combining technical and social approaches to address ethical challenges in data-intensive innovation and to establish relationships of trust to underpin a Social Licence for Financial Technology. Such approaches are needed across all areas and industries of data-intensive innovation to complement regulation and inform the development of ethical codes of practice. This is important to underpin culture change and to move beyond rhetorical commitments to develop best practice putting ethics at the heart of innovation. (shrink)

The current research aims to answer the following question: “who will be held responsible for harm involving an artificial intelligence system?” Drawing upon the literature on moral judgments, we assert that when people perceive an AI system’s action as causing harm to others, they will assign blame to different entity groups involved in an AI’s life cycle, including the company, the developer team, and even the AI system itself, especially when such harm is perceived to be intentional. Drawing upon the (...) theory of mind perception, we hypothesized that two dimensions of mind: perceived agency—attributing intention, reasoning, pursuing goals, and communicating to AI, and perceived experience—attributing emotional states, such as feeling pain and pleasure, personality, and consciousness to AI—mediated the relationship between perceived intentional harm and blame judgments toward AI. We also predicted that people are likely to attribute higher mind characteristics to AI when harm is perceived to be directed to humans than when it is perceived to be directed to non-humans. We tested our research model in three experiments. In all experiments, we found that perceived intentional harm led to blame judgments toward AI. In two experiments, we found perceived experience, not agency, mediated the relationship between perceived intentional harm and blame judgments. We also found that companies and developers were held responsible for moral violations involving AI, with developers received the most blame among the entities involved. Our third experiment reconciles the findings by showing that perceived intentional harm directed to a non-human entity did not lead to increased attributions of mind to AI. These findings have implications for theory and practice concerning unethical outcomes and behavior associated with AI use. (shrink)

Privacy is a critical challenge for corporate social responsibility in the mobile device ecosystem. Mobile application firms can collect granular and largely unregulated data about their consumers, and must make ethical decisions about how and whether to collect, store, and share these data. This paper conducts a discourse analysis of mobile application developer forums to discover when and how privacy conversations, as a representative of larger ethical debates, arise during development. It finds that online forums can be useful spaces for (...) ethical deliberations, as developers use these spaces to define, discuss, and justify their values. It also discovers that ethical discussions in mobile development are prompted by work practices which vary considerably between iOS and Android, today’s two major mobile platforms. For educators, regulators, and managers interested in encouraging more ethical discussion and deliberation in mobile development, these work practices provide a valuable point of entry. But while the triggers for privacy conversations are quite different between platforms, ultimately the justifications for privacy are similar. Developers for both platforms use moral and cautionary tales, moral evaluation, and instrumental and technical rationalization to justify and legitimize privacy as a value in mobile development. Understanding these three forms of justification for privacy is useful to educators, regulators, and managers who wish to promote ethical practices in mobile development. (shrink)

Biometric technology was once the purview of security, with face recognition and fingerprint scans used for identification and law enforcement. This is no longer the case; biometrics is increasingly used for commercial and civil applications. Due to the widespread diffusion of biometrics, it is important to address the ethical issues inherent to the development and deployment of the technology. This article explores the burgeoning research on biometrics for non-security purposes and the ethical implications for organizations. This will be achieved by (...) reviewing the literature on biometrics and business ethics and drawing from disciplines such as computer ethics to inform a more robust discussion of key themes. Although there are many ethical concerns, privacy is the key issue, with associated themes. These include definitions of privacy, the privacy paradox, informed consent, regulatory frameworks and guidelines, and discrimination. Despite the proliferation of biometric technology, there is little empirical research on applied biometrics and business ethics. As such, there are several avenues for research to improve understanding of the ethical implications of using this technology. (shrink)

This paper analyzes the case of Made in Carcere, an innovative social enterprise providing jobs to one of the most marginalized groups in society: convicted women. Relying on an extensive database that covers 8 years of activity, we propose a micro-level analysis of the processes adopted by Made in Carcere to foster the integral human development of convicted women, its target stakeholders. We show that this complex effort has successfully unfolded through two macro-processes: creating a safe space for experimentation and (...) allowing convicted women to bridge their experience to the outside reality. Our work provides evidence of an organization that successfully confronts the restrictive and dehumanizing setting of prisons by means of market mechanisms that can foster convicted women’s integral human development. (shrink)

The Code of Capital significantly advances our understanding of the origins of inequality and provides a framework for evaluating proposed solutions. But reviews have so far missed some of the most important insights of the book, including the author's insistence on the indeterminacy of the law and the corresponding incompleteness of existing solutions to inequality that primarily rely on economic drivers. The review demonstrates the relevance of the book's main contributions for evaluating the shared value thesis for investors and reflects (...) on some of the solutions to the law's indeterminacy proposed in the book, including the author's surprising neglect of the increasing importance of ethics in business when innovation outpaces the law. The review concludes with consideration of the theoretical advancements that The Code of Capital makes for our understanding of inequality in the twenty-first century. (shrink)

Several technological developments, such as self-service technologies and artificial intelligence, are disrupting the retailing industry by changing consumption and purchase habits and the overall retail experience. Although AI represents extraordinary opportunities for businesses, companies must avoid the dangers and risks associated with the adoption of such systems. Integrating perspectives from emerging research on AI, morality of machines, and norm activation, we examine how individuals morally behave toward AI agents and self-service machines. Across three studies, we demonstrate that consumers’ moral concerns (...) and behaviors differ when interacting with technologies versus humans. We show that moral intention is less likely to emerge for AI checkout and self-checkout machines compared with human checkout. In addition, moral intention decreases as people consider the machine less humanlike. We further document that the decline in morality is caused by less guilt displayed toward new technologies. The non-human nature of the interaction evokes a decreased feeling of guilt and ultimately reduces moral behavior. These findings offer insights into how technological developments influence consumer behaviors and provide guidance for businesses and retailers in understanding moral intentions related to the different types of interactions in a shopping environment. (shrink)

This paper is the Introduction to the Special Issue comprising a selection of papers submitted to the 19th IESE International Symposium on Ethics, Business and Society. The main topic of the Symposium was “Ethical Challenges in Strategic Management.” The paper presents the rationale and context of the Symposium. We begin with a brief historical overview of the evolution of the relationship between ethics and strategy. We propose four pillars that are at the core of a definition of strategy and elaborate (...) on how ethics can contribute to strategy. We present the six papers that make up this selection within the framework of the four aspects introduced in the previous section. We conclude with some proposals for further research that consider the content of the papers. (shrink)