Data ethics refers to the guidelines and principles governing responsible CRM data collection, storage, and usage. Ethical data practices ensure customer privacy, transparency, and fairness in how businesses handle personal information. Companies must comply with regulations such as GDPR and CCPA, obtain explicit consent for data collection, and avoid deceptive data practices. For example, an ethically responsible CRM should allow customers to opt out of marketing communications and request data deletion. Ethical data handling builds customer trust, reduces legal risks, and promotes corporate responsibility.