THE IMPORTANCE OF ETHICS AND LEGAL COMPLIANCE IN BUILDING TRUST IN DIGITAL BUSINESS

Abstract

The digital era has brought about a major transformation in global business models, presenting both innovative opportunities and significant ethical challenges. Technological dynamics such as artificial intelligence, big data, and e- commerce platforms are expanding economic horizons, but also pose risks of data leaks, information manipulation, and privacy violations. Amid this complexity, ethics and legal compliance serve as key pillars in building public trust in digital business entities. This paper aims to systematically examine the importance of implementing ethical principles and legal compliance in strengthening trust in digital businesses, by reviewing seven recent literatures (2020–2025). The analysis shows that companies that integrate ethical values and regulatory compliance are able to gain social legitimacy, maintain their reputation, and build long-term relationships with consumers and partners . The study's findings emphasize that trust is not the result of legal compliance alone, but rather a balance between moral values, social responsibility, and transparent digital governance.