How Ethical Theories Can Help Build Effective AI Governance in Organizations: Evidence From a Case Study at E-Commerce Company OTTO
Type
conference keynote
Date Issued
2025
Author(s)
Abstract
Governing artificial intelligence at the organizational level (AIG) is crucial to ensure that the
technologies are used responsibly. The literature has largely focused on identifying suitable means to
govern technologies that learn from data and are no longer deterministic. However, there remains
considerable uncertainty about what ‘responsible’ use of AI means, and how governance will bring it
about. This study addresses these conceptual issues by bringing ethical theories (consequentialism,
deontology, and virtue ethics) into the AIG discourse. We first use these ethical theories to clarify the
meaning(s) of responsibility and to develop action-theoretical mechanisms that relate governance to the
organizational use of AI. Which we then apply in an in-depth case study at Germany’s leading e-
commerce company, OTTO. We find that AIG encompasses three dimensions of responsibility
(calculated, compliant, and competent use of AI) and that governance measures exhibit both the
strengths and weaknesses of the ethical theories on which they are implicitly based. We conclude that
governing AI for responsible use depends on situated judgment of individual decision makers but are
currently under-theorized. Hence, we propose an alternative view that understands AIG as an ongoing,
dialogical reflection between those who design AIG measures and those who enact them.
technologies are used responsibly. The literature has largely focused on identifying suitable means to
govern technologies that learn from data and are no longer deterministic. However, there remains
considerable uncertainty about what ‘responsible’ use of AI means, and how governance will bring it
about. This study addresses these conceptual issues by bringing ethical theories (consequentialism,
deontology, and virtue ethics) into the AIG discourse. We first use these ethical theories to clarify the
meaning(s) of responsibility and to develop action-theoretical mechanisms that relate governance to the
organizational use of AI. Which we then apply in an in-depth case study at Germany’s leading e-
commerce company, OTTO. We find that AIG encompasses three dimensions of responsibility
(calculated, compliant, and competent use of AI) and that governance measures exhibit both the
strengths and weaknesses of the ethical theories on which they are implicitly based. We conclude that
governing AI for responsible use depends on situated judgment of individual decision makers but are
currently under-theorized. Hence, we propose an alternative view that understands AIG as an ongoing,
dialogical reflection between those who design AIG measures and those who enact them.
Language
English
Keywords
AI Governance
Responsible Use of AI
Ethics
Case Study
Artificial Intelligence
Refereed
Yes
Event Title
EGOS – Eurpean Group of Organisational Studies
Event Location
Athens
Event Date
July 2025