The Impact of Ethics On Retention and Engagement

Ethical design isn't a trade-off against results. This post explores the evidence: 80% of consumers trust brands more than institutions, while 56% have abandoned sites due to manipulative practices. With UK regulators now able to fine up to 10% of global turnover for dark patterns, and 44% of Gen Z rejecting job offers over ethics, the case for doing right by users has never been stronger.

User Experience

The Impact of Ethics On Retention and Engagement

Published on:
December 15, 2025
Author:
Jon Crowder
Jon Crowder

The Impact of Ethics On Retention and Engagement

Ethical practices drive loyalty and repeat business, not just one-time conversions

There's a persistent myth in digital marketing that you have to choose between ethics and results. You've all been contacted by agencies claiming to know "the secret". They will tell you that to hit your conversion targets, you need to push users into decisions they wouldn't otherwise make. That manipulative design, fake urgency messaging, hiding bad news etc are simply "the price of doing business online".

This is a lie. And the evidence increasingly shows that exploitation is commercially stupid as well as just morally bad.

The trust economy

We're operating in what global comms firm Edelman calls "the trust economy." According to their 2025 Trust Barometer, 80% of people trust the brands they use - this is a higher trust level than any major institution including government, media, and NGOs. Trust isn't really a nice-to-have. It is as much a purchase consideration as quality or price.

Research published in the Journal of Business Ethics found that brands who behave ethically generate stronger emotional commitment from customers, which in turn boosts retention and prevents them from seeking alternatives. Ethical brands create advocates who spread positive word of mouth.

The numbers are compelling. According to a paper published by the Indo American Journal of Multidisciplinary Research and Review,  revealed that "68% of consumers prioritize ethical practices when making purchasing decisions, and brands like Patagonia saw a 35% increase in loyalty due to their ethical stance."

The dark side of conversion

Contrast this with what happens when businesses choose the other path. Deliberately deceptive design techniques that try to manipulate, guilt, force or trick users into actions they didn't intend are everywhere. A comprehensive 2024 review by the FTC, ICPEN, and GPEN examined 642 subscription websites and apps worldwide. Alarmingly, 76% used at least one dark pattern, with 67% deploying multiple deceptive tactics. Shitty techniques like confirmshaming, roach motel design, sneaking/preselection etc. All stuff to avoid. All stuff that feels bad.

The short-term appeal is obvious. Research published in the Journal of Legal Analysis found that users exposed to mild dark patterns were twice as likely to sign up for services they would normally avoid, while more aggressive tactics nearly quadrupled unintended conversions.

But here's what the conversion dashboards won't show you: the erosion of trust, the brand damage, and the customers you'll never see again.

A 2023 study by customer research platform Dovetail found that "56% of consumers had lost trust in a website or platform specifically because of manipulative design practices". Over 43% of online shoppers stopped buying from a retailer entirely after experiencing dark patterns. That's not a marginal loss. That's nearly half a customer base walking away because you cared more about driving the first conversion than earning a customer.

When users feel cheated by you, they don't quietly accept it. They share their experiences. They leave negative reviews. They tell their friends. In an age where reputation spreads instantly through social media, the compounding damage of manipulative practices far outweighs any temporary conversion boost.

And the regulatory environment is tightening. In the UK, the Digital Markets, Competition and Consumers Act 2024 has given the Competition and Markets Authority (CMA) significant new powers to tackle dark patterns directly, including the ability to levy fines of up to 10% of global turnover. The CMA has already taken enforcement action against companies like Emma Sleep Group for misleading countdown timers and fake discount claims, and has signalled that drip pricing, fake reviews, and manipulative design practices are priority areas for investigation. Meanwhile, in the USA, the FTC has taken significant action against companies using deceptive practices, including a $520 million settlement with Epic Games. The legal and financial risks are real and growing.

The employee dimension

Here's something that often gets overlooked: ethical practices don't just affect your customers. They also shape your ability to attract and retain talent.

Deloitte's research in 2020 claims that purpose-driven companies experience 40% higher levels of workforce retention than their competitors. The younger the workforce the more powerful that becomes. According to their 2024 Gen Z and Millennial Survey, 86% of Gen Z and 89% of Millennials say that purpose is important to their job satisfaction and wellbeing. These aren't abstract preferences. This generation is your customer AND your workforce. Half of Gen Z respondents and 43% of Millennials have rejected assignments based on their personal ethics or beliefs, and 44% of Gen Z and 40% of Millennials have turned down entire job offers for the same reason.

A study referenced by Gallup found that companies with strong ethical foundations experience a 25% increase in employee retention rates compared to those without.

It makes sense when you think about it. Nobody wants to spend their working hours manipulating people. The cognitive dissonance of knowing your job requires you to exploit users takes a toll. It affects morale, creativity, and ultimately the quality of work produced. Conversely, when people believe they're doing something worthwhile and when they can be proud of what they build then engagement and performance increase.

There's a reason companies like Patagonia, which has embedded ethical practices into its DNA, boast an 4% employee turnover rate and fierce workforce loyalty. Purpose isn't only good for the soul; it's good for the bottom line.

The AWIP approach

This is precisely why Another Web Is Possible exists. Our core mission is to demonstrate that ethical optimisation is a competitive advantage.

We believe in "Power to the users." Every optimisation decision we make starts with a simple question: "does this genuinely serve the person on the other side of the screen?" If an improvement only benefits the business at the user's expense, it's exploitation and it's going to hurt you eventually.

The reality is that sustainable conversion rate optimisation comes from understanding what users actually need and removing the friction that prevents them from getting it. It comes from building trust through transparent experiences. It comes from creating genuine value that makes customers want to return, and it comes from being the change you want to see in the world and inviting your users to follow.

The businesses that thrive in the long term aren't the ones that squeezed every possible conversion out of reluctant users through manipulation. They're the ones that built loyal customer bases who feel good about you, and who actively choose to come back, who recommend the brand to others, and who forgive the occasional misstep because they trust your underlying relationship.

Building for the long term

If you're measuring success purely by this week's conversion rate, dark patterns probably look appealing. But if you're building a business for the long term, the evidence is unambiguous: ethical practices correlate strongly with customer retention, brand advocacy, employee satisfaction, and sustainable growth.

The question isn't whether you can afford to be ethical. The question is whether anyone can afford not to be.

Customers will remember how you made them feel. Employees will remember whether they were proud of their work. And in an economy increasingly defined by trust, those memories determine whether your business thrives or withers.

Another web is possible. One where commercial success and user respect aren't in conflict. One where optimisation means making experiences genuinely better, not just more extractive. One where everyone benefits from the work being done.

That's the web we're building. And the data shows it's not just the right thing to do, it's the smart thing to do, and we all sleep better at night because of it.

Another Web Is Possible (AWIP) is an ethical conversion rate optimisation consultancy dedicated to proving that you don't have to choose between commercial results and user respect. Get in touch to discuss how ethical optimisation can drive sustainable growth for your business. Or learn more about our CRO agency services to discover how we help businesses build ethical optimisation programmes.

Want to read more?

Ready to get started?

Book a Call