In 2018, Rick Smith, founder and CEO of Axon, a Scottsdale, Arizona-based maker of taser weapons and body cameras, was concerned that advances in technology were creating difficult new ethical questions. I came to embrace So he formed his independent AI Ethics Committee, made up of ethicists, AI experts, public policy experts, and law enforcement representatives, to make recommendations to Axon’s management team. . In 2019, the board recommended not adding facial recognition technology to the company’s line of body cameras, and in 2020 provided guidelines on the use of automatic license plate recognition technology. Axon management followed both recommendations.
In 2022, the board recommended against management’s proposal to build drone-mounted tasers designed to deal with mass shootings. After initially accepting the board’s recommendation, the company changed its mind and in the wake of the Uvalde School shooting in June 2022, announced I was starting a Taser drone program anyway. The board’s reaction was dramatic. 9 out of 13 members resignedand they released letter It outlined their concerns. In response, the company announced a freeze on the project.
Companies promoting better practices as society’s expectations for responsible use of digital technology rise has distinct advantages. according to 2022 survey, 58% of consumers, 60% of employees and 64% of investors make important decisions based on their beliefs and values. Strengthening an organization’s digital responsibility drives value creation, and brands deemed more responsible enjoy higher levels of stakeholder trust and loyalty. These companies are able to sell more products and services, are easier to recruit staff, and enjoy fruitful relationships with their shareholders.
However, many organizations struggle to balance the interests of legitimate but competing stakeholders. There is a significant tension between business goals and responsible digital practices. For example, data localization requirements often conflict with efficiency goals for globally distributed value chains. The ethical and responsible checks and balances that must be put in place during AI/algorithm development tend to slow down development and can be problematic when time to market is paramount. Better data and analytics can enhance service personalization, but at the expense of customer privacy. Risks associated with transparency and discrimination issues can discourage organizations from using algorithms that could help drive cost savings.
If managed effectively, digital responsibility Protect your organization from threats and open up new opportunities. From his ongoing research on digital transformation and an in-depth study of 12 large European companies active in digital responsibility in the consumer goods, financial services, information and communication technology and pharmaceutical industries, he derived four best practices. and minimize resistance.
1. Anchor digital responsibility within organizational values.
A digital responsibility commitment can be formulated in a charter outlining the key principles and benchmarks that an organization adheres to. Start with a basic question: How do you define your digital responsibility goals?Often the answer lies in the organization’s values, which are articulated in its mission statement and his CSR commitment. I’m here.
According to Jakob Woessner, Manager of Organizational Development and Digital Transformation at Weleda, a cosmetics and personal care company, “Our values shape what we want to do in the digital world, and what our limits are in the digital world. and decided where to go and not to go.” The company’s core values are fair treatment, sustainability, integrity and diversity. Therefore, when it came to establishing a robotics process automation program, Weleda executives were careful not to lead to unemployment in violation of the fundamental value of fair treatment.
2. Extend digital responsibility beyond compliance.
Corporate values provide a useful anchor point for digital responsibility principles, but the relevant regulations around data privacy, intellectual property rights, and AI cannot be overlooked. Forward-thinking organizations are taking steps to move beyond compliance. improve their behavior In areas such as cyber security, data protection and privacy.
For example, UBS Banking Group’s data protection efforts began with GDPR compliance, but have since evolved to focus more broadly on data management practices, AI ethics, and climate-related financial disclosures. “It’s like puzzle blocks. We started with the GDPR, but when you start building on these blocks, the level will always go up,” says Christophe, head of service line data at the bank. Tummers said.
The key we have found is establishing a clear link between digital responsibility and value creation. One way to achieve this is to complement compliance efforts with forward-looking risk management thinking, especially in areas where there are no technical implementation standards or where legislation has not yet been implemented. For example, Deutsche Telekom (DT) has developed its own risk classification system for AI-related projects. Using AI can expose your organization to risks associated with biased data, inadequate modeling techniques, or inaccurate decision-making. Understanding risks and building practices to mitigate them are key steps in digital responsibility. DT includes these risks in the scorecards used to evaluate technology projects.
Making digital responsibility a shared outcome also helps organizations move beyond compliance. Swiss insurer Die Mobiliar has built a multidisciplinary team of representatives from compliance, business security, data science and IT architecture. Data Science and AI product his owner Matthias Brändle explains:
3. Establish clear governance.
Getting digital responsibility governance right is not easy. When Axon created an independent AI ethics committee, it had the right idea. However, because governance was not properly considered, when the company disagreed with the board’s proposal, it fell into a governance gray area characterized by competing interests between the board and management. rice field.
Setting a clear governance structure can help minimize such tensions. There is an ongoing debate about whether to create a separate team for digital responsibility or weave responsibility across the organization.
Pharmaceutical company Merck took the first approach, Digital Ethics Committee Provides guidance on complex issues related to data usage, algorithms, and new digital innovations. Due to the growing interest in AI-based approaches in drug discovery and big data applications in human resources and cancer research, we decided to take action. The board provides recommendations for action and decisions contrary to the board’s recommendations should be formally justified and documented.
Global insurance company Swiss Re took the second approach, driven by the belief that digital responsibility should be part of everything an organization does. “Whenever there is a digital angle, the initiative owner, who is usually resident in the business, is responsible. is responsible,” explains Lutz Wilhelmy, Risk and Regulatory Advisor at SwissRe.
Another option we’ve seen is the hybrid model. It consists of a small team of internal and external experts to guide and support managers within business lines to operationalize their digital responsibilities. Benefits of this approach include increased awareness and distribution of accountability across the organization.
4. Make sure employees understand their digital responsibilities.
Today’s employees must not only be aware of the opportunities and risks of working with different types of technology and data, but also ask the right questions and engage in constructive discussions with colleagues.
Educating employees about digital responsibility is one of the key priorities of German e-commerce company Otto Group. “Lifelong learning is becoming a success factor for all individuals, but it is also critical to the future viability of the company,” says Petra Scharner-Wolff, member of the Finance, Administration and Human Resources Board. explains Mr. To kick off that effort, Otto will develop an organization-wide digital education initiative leveraging a central platform containing dozens of videos on topics related to digital ethics, responsible data practices, and conflict resolution. Did.
Learning about digital responsibility presents both the short-term challenge of upskilling your workforce and the long-term challenge of creating a self-directed learning culture that adapts to the evolving nature of technology. We encourage her to incorporate aspects of digital responsibility into her ongoing ESG skills programme, as issues related to digital responsibility rarely arise in isolation. It also focuses on promoting ethical behavior that considers broader stakeholders. This type of contextual learning helps employees navigate the complex aspects of digital responsibility in a more applied and meaningful way.
Your organization’s needs and resources will determine whether you choose to upskill your entire workforce or rely on a few experts. It’s the ideal balance of both, providing a strong foundation of digital ethics knowledge and understanding across the organization while also having experts on hand to provide expert guidance when needed.
Digital responsibility is becoming a necessity for today’s organizations. Success is never guaranteed. But forward-looking organizations can take a proactive approach to building and maintaining responsible practices related to their use of digital technology. These practices not only improve your digital performance, but reinforce your organizational goals.
