This Master’s thesis identifies ethical concerns of VR, explores why they matter and discusses the notion of responsibility in relation to them. The purpose of this thesis is to contribute techno-anthropologically to the knowledge of ethics and responsibility in the design and development of VR. The motivation behind it was The IEEE Global Initiative on Ethics on Extended Reality in 2021 to help to move XR technologies from “perilous to purposeful,” (IEEE 2021). Through literature review this thesis identifies four types of ethical concerns of VR: privacy and data issues, physical harm, psychological harm, and issues of transparency. Ethnographic methods are used to understand views of different actors on ethical concerns. Designer’s ethical responsibility in the development of technology is analysed through Mediation theory by Postphenomenology and Instrumentalization theory by CTT. Collective responsibility is discussed through The Problem of Many Hands. The conclusion of the thesis is the recommendation to place the responsibility to the collective setting, such as a company, to act on ethical concerns, and principles for it are provided as a result. Legal authorities in the level of social responsibility was also found responsible since interdisciplinary team work with the industry would benefit the ethical development of VR.