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Assessing Ethics for Tech Companies

By Levi Perry —

Here’s an in-depth guide for assessing a technology company for ethical practices:

Steps to Assess a Technology Company's Ethical Practices

1. Research the Company’s Mission and Values

  • What to Look For:
    • A clear mission statement emphasizing ethical principles such as sustainability, privacy, fairness, and inclusivity.
    • Concrete actions or programs tied to these values, rather than vague or aspirational language.
  • Red Flags:
    • Values that seem generic or inconsistent with the company's operations or industry controversies.

2. Examine Privacy Policies and Data Handling

  • Key Areas to Review:
    • Transparency about how user data is collected, stored, and shared.
    • Compliance with laws like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act).
    • Mechanisms for users to control their data (e.g., data deletion, opting out of tracking).
  • Tools to Use:
  • Red Flags:
    • Overly complex or vague privacy terms.
    • Frequent data breaches or scandals involving user information.

3. Assess Labor Practices and Workplace Culture

  • What to Investigate:
    • Employee reviews on platforms like Glassdoor or Blind.
    • News articles or reports about how the company treats its workforce, especially regarding diversity, equity, and inclusion.
    • Evidence of fair wages, safe working conditions, and respect for workers’ rights in both domestic and international operations.
  • Red Flags:
    • High employee turnover, negative reviews about management, or lawsuits alleging discrimination or harassment.

4. Review Environmental Impact and Sustainability Efforts

  • Key Metrics:
    • Carbon footprint, use of renewable energy, and sustainability initiatives.
    • Certifications like B Corporation status or alignment with Science-Based Targets for emissions reductions.
  • Where to Check:
    • Company sustainability reports (often found on their website).
    • Independent assessments from organizations like CDP (Carbon Disclosure Project) or Greenpeace.
  • Red Flags:
    • Lack of published sustainability goals or consistent failures to meet them.

5. Evaluate Supply Chain Transparency

  • Questions to Ask:
    • Are suppliers adhering to ethical labor and environmental standards?
    • Does the company disclose its supplier list and policies for fair labor practices?
  • Resources to Use:
  • Red Flags:
    • Connections to exploitative labor practices, such as forced or child labor.
    • A lack of transparency about supply chain operations.

6. Investigate Involvement in Controversial Practices

  • Examples of What to Look For:
    • Does the company support or profit from surveillance, censorship, or harmful technologies?
    • Have they been implicated in anti-competitive practices or monopolistic behavior?
  • Sources to Consult:
    • Reports from civil rights organizations like the Electronic Frontier Foundation (EFF) or Human Rights Watch.
    • Media reports about controversies involving the company.
  • Red Flags:
    • Ongoing legal battles or consistent accusations of unethical conduct.

7. Analyze Financial Contributions and Political Ties

  • What to Look For:
    • Transparency about political donations or lobbying efforts.
    • Ethical alignment between the company’s public values and its political spending.
  • Resources to Check:
    • Platforms like OpenSecrets for US political donations.
    • Reports from advocacy groups about corporate lobbying activities.
  • Red Flags:
    • Donations to causes or political figures that contradict the company’s stated values.

8. Look for Third-Party Certifications and Awards

  • Examples of Certifications:
    • B Corporation certification.
    • Inclusion in ethical indexes like the FTSE4Good or Dow Jones Sustainability Index.
  • Awards:
    • Recognitions from trusted sources for ethical business practices or innovation.
  • Red Flags:
    • A lack of independent verification of ethical claims.

9. Read Reviews from Consumers and Advocacy Groups

  • Sources to Explore:
    • Consumer advocacy groups and ethical review websites.
    • Customer complaints on forums, review sites, or social media.
  • Red Flags:
    • Consistent patterns of customer mistreatment or negative feedback.

10. Engage Directly with the Company

  • How to Do This:
    • Contact customer service or corporate communications to ask specific questions about their ethical practices.
    • Observe how transparent and willing they are to discuss these issues.
  • Red Flags:
    • Evasive or unresponsive answers.

Final Tips

  • Use Aggregators: Platforms like CSRHub and Just Capital can provide aggregated ratings on corporate social responsibility.
  • Focus on Action, Not Words: A company’s ethical stance should be reflected in measurable outcomes, not just public relations statements.
  • Regular Reassessment: Companies can improve or regress over time, so stay informed about changes in their practices.