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Data were collected from 208 small and medium-sized enterprises (SMEs) in the textile industry in Valencia, Spain using a survey instrument. Partial least squares (PLS) allowed for the analysis of the data collected.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Findings<\/jats:title><jats:p>The theoretical model explains 46.1% of the variation in the organisational reputation variable. The findings indicate that ethical data privacy has a beneficial effect on an organisation's reputation and eco-innovation. The findings also demonstrate how eco-innovation drives the development of new knowledge and green skills that, in turn, communicate to stakeholders a company's ethical commitment. These results should encourage SMEs to invest in data privacy in order to meet the needs of the SMEs' increasingly technology- and environment-sensitive stakeholders and to improve their reputation.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title><jats:p>This study provides the first empirical evidence that ethical data privacy management has a positive impact on the reputation of firms. Furthermore, the originality of the research derives from the analysis of the results from an environmental perspective. 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