The fourth industrial revolution is upon us. Also known as "Industry 4.0" or "4IR," it takes the technological advances of the third industrial revolution and connects them into systems that can often operate and adapt without human input. New technologies can create exciting possibilities for positive social impact on diverse issues such as income inequality and the environment.

Yet, at the same time, they often raise new, sometimes difficult, ethical questions. In fact, the irony is this: As we develop technologies that adapt without human input, we are discovering we need human input to address what constitutes the ethical use of these technologies.

As mentioned in a Deloitte article, most leaders want their organizations to create social impact. In today's competitive business environment, social impact initiatives have the ability to separate one company from its competitors in the eyes of consumers. The logic that a company "does well by doing good" has taken hold. And 4IR technologies promise to support companies' efforts to reduce carbon emissions, support diversity initiatives, and other social impact goals.

Yet some leaders are also recognizing that 4IR technologies raise ethical questions in areas such as data privacy, algorithmic bias, and potentially a lack of inclusivity in technology design.

According to Deloitte Global CEO Punit Renjen's report, "Success Personified in the Fourth Industrial Revolution," which is based on a Forbes Insights survey, C-suite executives have varying levels of concern about using technology ethically. From June-August 2018, Forbes Insights surveyed 2,042 executives (with company revenue of $1 billion or more) and public sector leaders (with organization budgets of $500 million or more) from 19 countries and all major industry sectors.

As shown in Figure 2 below, only 15 percent of the 194 CEOs/presidents surveyed are strongly concerned about ethical technology use. Surprisingly, chief information officers and chief technology officers are also at the lower end of the spectrum, at 16 percent and 17 percent, respectively. On the other hand, 41 percent of chief operating officers, 41 percent of chief digital officers, and 50 percent of chief sustainability officers are strongly concerned about ethical technology use.

This disparity in levels of concern about ethical technology use at the top of the organization often results in lack of clarity throughout the rest of the organization. Deloitte offers three recommendations to address this:

  • 1. C-Suite adoption: The CEO must prioritize ethical technology use and encourage the rest of the C-suite to do so too.
  • 2. Culture change: The C-suite must set, model, and communicate ethical use of technology and encourage buy-in from employees by allowing them to share ideas about ethical technology use.
  • 3. Adapt: As technology continues to change, companies must continue to define how to use it ethically.

Ethics are important in and of themselves. However, there may also be business benefits for prioritizing ethical use of technology.

As shown in Figure 1 below, Deloitte's analysis of the Success Personified report found a correlation between high concern for ethical use of 4IR technologies and business growth. Of the 536 respondents whose organizations had 0 percent growth, only 17 percent of them strongly agreed that their organization is highly concerned with ethically using 4IR technologies.

On the other hand, of the 148 respondents whose organizations had 10 percent or more growth, 55 percent of them strongly agreed that their organization is highly concerned with ethically using 4IR technologies.

As more companies aim to make a social impact, C-suite leaders should consider the ethics of 4IR technology implementation to grow as a business and stand out among competitors.

---

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

German biotech co. to relocate to Houston thanks to $4.75M CPRIT grant

money moves

Armed with a $4.75 million grant from the Cancer Prevention and Research Institute of Texas, a German biotech company will relocate to Houston to work on developing a cancer medicine that fights solid tumors.

Eisbach Bio is conducting a clinical trial of its EIS-12656 therapy at Houston’s MD Anderson Cancer Center. In September, the company announced its first patient had undergone EIS-12656 treatment. EIS-12656 works by suppressing cancer-related genome reorganization generated by DNA.

The funding from the cancer institute will support the second phase of the EIS-12656 trial, focusing on homologous recombination deficiency (HRD) tumors.

“HRD occurs when a cell loses its ability to repair double-strand DNA breaks, leading to genomic alterations and instability that can contribute to cancerous tumor growth,” says the institute.

HRD is a biomarker found in most advanced stages of ovarian cancer, according to Medical News Today. DNA constantly undergoes damage and repairs. One of the repair routes is the

homologous recombination repair (HRR) system.

Genetic mutations, specifically those in the BCRA1 and BCRA1 genes, cause an estimated 10 percent of cases of ovarian cancer, says Medical News Today.

The Cancer Prevention and Research Institute of Texas (CPRIT) says the Eisbach Bio funding will bolster the company’s “transformative approach to HRD tumor therapy, positioning Texas as a hub for innovative cancer treatments while expanding clinical options for HRD patients.”

The cancer institute also handed out grants to recruit several researchers to Houston:

  • $2 million to recruit Norihiro Goto from the Massachusetts Institute of Technology to MD Anderson.
  • $2 million to recruit Xufeng Chen from New York University to MD Anderson.
  • $2 million to recruit Xiangdong Lv from MD Anderson to the University of Texas Health Science Center at Houston.

In addition, the institute awarded:

  • $9,513,569 to Houston-based Marker Therapeutics for a first-phase study to develop T cell-based immunotherapy for treatment of metastatic pancreatic cancer.
  • $2,499,990 to Lewis Foxhall of MD Anderson for a colorectal cancer screening program.
  • $1,499,997 to Abigail Zamorano of the University of Texas Health Science Center at Houston for a cervical cancer screening program.
  • $1,497,342 to Jennifer Minnix of MD Anderson for a lung cancer screening program in Northeast Texas.
  • $449,929 to Roger Zoorob of the Baylor College of Medicine for early prevention of lung cancer.

On November 20, the Cancer Prevention and Research Institute granted funding of $89 million to an array of people and organizations involved in cancer prevention and research.

West Coast innovation organization unveils new location in Houston suburb to boost Texas tech ecosystem

plugging in

Leading innovation platform Plug and Play announced the opening of its new flagship Houston-area location in Sugar Land, which is its fourth location in Texas.

Plug and Play has accelerated over 2,700 startups globally last year with corporate partners that include Dell Technologies, Daikin, Microsoft, LG Chem, Shell, and Mercedes. The company’s portfolio includes PayPal, Dropbox, LendingClub, and Course Hero, with 8 percent of the portfolio valued at over $100 million.

The deal, which facilitated by the Sugar Land Office of Economic Development and Tourism, will bring a new office for the organization to Sugar Land Town Square with leasing and hiring between December and January. The official launch is slated for the first quarter of 2025, and will feature 15 startups announced on Selection Day.

"By expanding to Sugar Land, we’re creating a space where startups can access resources, build partnerships, and scale rapidly,” VP Growth Strategy at Plug and Play Sherif Saadawi says in a news release. “This location will help fuel Texas' innovation ecosystem, providing entrepreneurs with the tools and networks they need to drive real-world impact and contribute to the state’s technological and economic growth."

Plug and Play plans to hire four full-time equivalent employees and accelerate two startup batches per year. The focus will be on “smart cities,” which include energy, health, transportation, and mobility sectors. One Sugar Land City representative will serve as a board member.

“We are excited to welcome Plug and Play to Sugar Land,” Mayor of Sugar Land Joe Zimmerma adds. “This investment will help us connect with corporate contacts and experts in startups and businesses that would take us many years to reach on our own. It allows us to create a presence, attract investments and jobs to the city, and hopefully become a base of operations for some of these high-growth companies.”

The organization originally entered the Houston market in 2019 and now has locations in Bryan/College Station, Frisco, and Cedar Park in Texas.