Ethical implications of employee and customer digital footprint: SMEs perspective

In a world where Small and Medium Enterprises (SMEs) increasingly leverage their Digital Footprint (DF) for business growth, ethical concerns surrounding employee and customer DF pose a significant challenge. This research investigates how SMEs can navigate this complex landscape, balancing the creation of business value with the broader social value of managing data. Drawing upon Kantian ethics, which emphasizes the duties of organizations to respect individuals’ autonomy and protect their rights, the study addresses a critical gap in understanding the ethical implications of DF for business value creation and employee experiences. Using a social constructivist approach, the research reveals the importance of DF awareness and proposes a novel conceptualization of DF as a dual entity: (i) an independent actor influencing consumer decisions and (ii) a collaborative activity within and beyond the organization. This broadens the traditional view of DF and informs a new framework for ethical DF management in SMEs. This framework emphasizes four core pillars – data transparency, data protection, data privacy, and data transformation – supported by stakeholder involvement. The study also highlights overarching factors three key actions and DF strategic implications at the end.