The Corporate Digital Responsibility (CDR) Calculus: How and Why Organizations Reconcile Digital and Ethical Trade-offs for Growth

Abstract

In this digital age, organizations are increasingly reliant on technology to drive business growth and innovation. With this reliance, comes an impetus for firms to responsibly and ethically manage their digital assets and data. In response, Corporate Digital Responsibility (CDR) has been espoused as a means by which firms can address the competing demands of digital innovation and transformation and ethical responsibility. Ultimately, good CDR practices have the potential to safeguard not only firms, but the various stakeholders they interact with across their digital ecosystems. However, it is recognized that the resource investment required to do so, can come at a significant cost. The CDR Calculus has been developed to assist organizations in evaluating the risks and benefits associated with digital and data practices and to determine whether they align with the organization’s CDR objectives. This paper provides a roadmap of how firms can take steps to establish a culture of CDR practice in light of these tensions. We also recognize that external regulation is required, if not needed, to enforce and cement positive CDR practices as firms respond to growing digital demands.