Information privacy has been called one of the most important ethical issues of the information age. In this context, companies need to be able to address the concerns of their stakeholders about how they collect, handle, and process this data. The literature leads to hypothesize that when organisations take explicit actions to address the privacy concerns of their customers, they are successful in improving the perception of the company’s integrity and thus, in contributing to a company’s good reputation. Furthermore, the availability of consumers’ personal data provide companies with a better understanding of consumers’ needs and preferences for environmental products/services, allowing for eco-innovation. The literature also shows that eco-innovation can facilitate the development of green skills of employees that contribute to meeting customer and market expectations. Thus, the purpose of this article is to examine the direct effect of data privacy management on organisational reputation but also its indirect effect through eco-innovation and green skills. A conceptual model was proposed and tested by utilising data collected through a survey instrument. The data were provided by 208 SMEs based in the textile sector of Valencia that has been considered one of the most relevant in the Spanish economy. Partial Least Squares (PLS) using the SmartPLS software allowed for the analysis of the data collected from practitioners. The theoretical model explains 46.1 per cent of the variance in the organisational reputation variable. This study fills the gap in empirical evidence that ethical data privacy management by an SME has a positive impact on its overall reputation. In addition, data privacy management supports organisational reputation indirectly through eco-innovation and green skills. These results should encourage SMEs to invest in data privacy management to satisfy increasingly digitally literate and environmentally conscious customers and thereby improve their reputation.