BA5UK58O Business Ethics case study Sample

Introduction Of Business Ethics

Facebook is a social media stage that was launched in 2004 by Mark Zuckerberg and his university roommates at Harvard University. Initially intended as a platform for linking university students, this platform quickly gained popularity and extended its user base to include people from all over the globe. At present, it is one of the biggest and most significant social media networks internationally. This application allow customer to make profiles, join with friends and family, share photos and video, and communicate themselves through status update and comments (De Bakker, et. al. 2019). It provides a variety of features such as messaging, news feed, groups, events, and marketplace for buying and selling goods.

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Meta (before known as Facebook) reports a decline in its periodical revenue, attributing it to macroeconomic pressure. The group stated that its revenues for the April to June period were $28.81 billion, which marked a 1% decrease compare to the same period in 2021. Analyst had predictable revenue of $28.92 billion base on consent data compile by FactSet. The article also mentioned that Meta provided a gloomy outlook for the coming months as advertisers decrease their expenditure.

In October 2021, Meta agreed to pay $725 million to resolve a privacy court case related to the Cambridge Analytica scandal (DesJardins, 2020). The resolution came after years of investigation and legal proceedings close the illegal access and misuse of Facebook user data by the political consulting company, Cambridge Analytica.

The recent Facebook change, which have been announce in the past week, are expected to have a important and far-reaching impact on publishers, mainly given the already strained relations between Facebook and news outlet. Many news organizations have grown-up greatly reliant on the case company as a source of traffic and revenue, as both Google and Facebook have dominated the digital publicity market. In fact, a study conduct by the Pew Research Center found that 45 percent of US adults devour news openly on the Facebook platform (Ferrell, et. al. 2019). These changes are likely to disturb the existing dynamics between Facebook and publishers, potentially distressing their capability to reach and connect with their audience on the stage.

Part 1

The concept on sustainability of Facebook -Cambridge Analytica scandal

The concept of sustainability in the situation of the Facebook-Cambridge Analytica scandal refers to the social, ethical, and environmental implications of the event and its impact on company’s long-term viability as a accountable and trusted platform.

The Cambridge Analytica scandal concerned the illegal access and abuse of personal data of millions of Facebook users, raise major concerns about data protection, privacy, and the ethical responsibilities of social media company (Trevino and Nelson, 2021). This case study serve as a stark prompt of the significance of sustainability in the digital age, where technology platforms must reflect on the long-term effects of their events on society, the environment, and their own business status.

From an ethical point of view, sustainability in this background involves ensure that user privacy and data protection are prioritized. It entail establish robust security events, implementing severe data access controls, and being apparent about how user data is composed, shared, and utilize. Sustainable practice would need companies like Facebook to repeatedly assess and inform their privacy policies, permission mechanisms, and data handling events to protect user rights and uphold trust.

Social sustainability focuses on the broader community impact of such incident. It includes address issues of fake news, disinformation, and exploitation of public opinion through targeted promotion or data-driven political campaign (Werhane, 2019). Organization’s like Facebook must endeavor to create a protected and healthy online atmosphere that, respects diverse viewpoints, fosters constructive dialogue and safeguards self-governing processes.

Environmental sustainability, while not directly tied to the Cambridge Analytica scandal, is a significant aspect of overall sustainability. It involves minimize the environmental footstep of technology platform through accountable resource management, energy competence, and decrease of electronic waste. Sustainable practices would include using renewable power sources, adopt eco-friendly data centers, and promote accountable spending and production patterns.

By analyzing the Facebook-Cambridge Analytica scandal throughout the lens of sustainability gains a holistic considerate of the implications beyond instant legal and regulatory concern. It highlights the necessity for companies like Facebook to hold sustainable practices that prioritize user ethical conduct, privacy, societal well-being, and ecological responsibility to ensure their long-standing accomplishment and add positively to the digital network (Wilson, 2019).

Facebook-Cambridge Analytica scandal and its allegation for sustainability:

• Scale of data breach:The scandal concerned the illegal access of personal data from around 85 million Facebook users, which was then use for beleaguered political publicity and manipulation.
• Privacy and trust erosion:The occurrence sternly impacted user trust in company’s capability to protect their personal information and raise concerns about the privacy practice of social media platform in general (Mussell, 2022).
• Regulatory response: The scandal provoked enlarged inspection from regulator wide-reaching and led to the achievement of stricter data protection set of laws, such as the California Consumer Privacy Act (CCPA) and the European Union's General Data Protection Regulation (GDPR).
• Corporate responsibility: The scandal highlighted the significance of corporate responsibility, emphasize that firms like Facebook have a duty to defend user data, be apparent about their data practice, and take prompt action to remedy any breach or misconduct (Brown, 2020).
• User Empowerment: The incident underscores the requirement for empower users with more control over their personal data, including, clearer privacy settings, apparent consent mechanisms and easier access to data management tools.
• Ethical considerations: The scandal raises ethical questions concerning the use of personal data for political campaigns, targeted advertising, and the potential manipulation of public opinion. It emphasizes the significance of ethical conduct and responsible use of data in the digital realm.
• Social Impact: The event highlighted the broader community impact of data breach and the potential treatment of democratic processes through the mistreatment of personal data. It underscores the significance of preserving self-governing values, protecting free speech, and ensure fair elections in the digital age.
• Environmental footprint: While not directly tied to the humiliation, sustainable practices also include reducing the environmental impact of technology platforms (Kanakia, al. 2019). This can be achieving through energy-efficient infrastructure, responsible e-waste management, and minimizing carbon emission.

These data point communally demonstrate the implication of the Facebook-Cambridge Analytica scandal as a method for promoting sustainable practices in the areas of ethical conduct, user privacy, societal security, and environmental responsibility within the digital network. It highlights the significance of positive measures by companies like Facebook to recover user trust, make stronger privacy protection, and add completely to a sustainable digital future.

Part 2

The approaches of the facebook Cambridge Analytica Scandal case

The scandal, which comes to light in 2018, exposed that Cambridge Analytica had harvest personal data from millions of Facebook users without their approval. This data was then used for targeted political advertising during a variety of election campaigns, including the 2016 US presidential voting (Venturini and Rogers, 2019). The complaint alleged that company failed to protect user data and did not take enough measures to prevent illegal access by third-party applications. The resolution amount of $725 million was reach to determine the claims made by the exaggerated Facebook users who were element of the class-action lawsuit.

In addition to the financial resolution, Meta also approved to put into practice various changes and improvement to its privacy practice and data handling measures. These actions are aimed at enhancing user privacy and ensure better shield of user data on the stage.

The resolution marked one of the major privacy-related payouts in history and highlighted the implication of data privacy and safety concerns in the digital age. It also serves as a channel for Meta to strengthen its pledge to addressing privacy issues and strengthening its data protection events moving forward. Business ethics refers to the study and purpose of ethical principles and moral standards in the business circumstance. It involves investigative ethical dilemma and making ethical decisions in the empire of practices, business operations, and interactions with a variety of stakeholders. The field of business ethics is continually evolving as societal prospect and ethical consideration change (Bonomi, 2020). Ethical dilemma in areas such as artificial intelligence, data privacy, and international supply chains continue to challenge businesses to uphold ethical values and pilot complex ethical landscapes.

Deontology: this is an ethical theory that emphasizes adhere to moral rules and duty. From a deontological perspective, company’s approach in the Cambridge Analytica scandal case can be evaluated as follows:

Normative Evaluation:

• Duty to User Privacy: company failed to fulfill its duty to defend user privacy and make sure the responsible use of personal data. The unlawful access and mistreatment of user data by Cambridge Analytical desecrated the ethical duty to respect user privacy and keep up data security.
• Duty to transparency and accountability: company’s approach was incomplete in terms of transparency and responsibility. They did not sufficiently inform users about the data practice, nor did they swiftly address the issue when it came to light (Henriksen, 2019). This desecrated the duty to be transparent and responsible to stakeholders.

Descriptive Evaluation:

• Organizational culture: company’s organizational culture and practice at the time may have contributed to the stoppage in upholding deontological main beliefs. The emphasis on enlargement and data-driven promotion may have overshadowed the moral obligation towards user privacy and data protection.

Stakeholder Theory: this theory posits that business should consider the benefit of all stakeholders, not just shareholders (Hinds, et. al. 2020). Evaluate Facebook's approach in the Cambridge Analytica scandal case throughout the lens of stakeholder theory yield the following appraisal:

Normative Evaluation:

• Stakeholder identification: company’s approach fell diminutive in sufficiently identifying and bearing in mind the interests of its stakeholders, mainly users whose data was compromise. They prioritized the interests of advertisers and targeted advertising revenue over user privacy and comfort (Hendriksen, 2022).
• Stakeholder engagement: company’s initial retort lacked meaningful engagement with pretentious stakeholders, such as offering remedies, providing clear information, and involving them in decision-making processes. This unnoticed the standard of actively engaging and addressing the concern of stakeholders.

Descriptive Evaluation:

• Power Imbalance: The power imbalance among Facebook as a leading platform and individual users contribute to the compromise approach (Afriat, al. 2020). Company’s focus on maximize shareholder value and advertising income may have overshadow the interests and well-being of other stakeholders.

It is important to note that these evaluations are based on the explicit context of the Cambridge Analytica scandal and the obtainable information. Ethical evaluations can differ, and a complete analysis would require deeper insights into Facebook's interior decision-making process, motivation, and following actions.

Company’s approach in the Cambridge Analytica scandal case exhibit shortcoming in terms of maintenance user privacy, lucidity, accountability, and allowing for the interests of all stakeholders involved.

Part 3

The stakeholder perspectives on the business behavior

Analyzing stakeholder perspective on business behavior involves considerate the viewpoint and interests of a variety of individuals or groups that have a vested interest in the actions and outcomes of a business. Stakeholders can comprise customers, employees, suppliers, investors, local communities, government entities, and advocacy groups (González-Pizarro, et. al. 2022). Each stakeholder group might have diverse concerns, priorities, and expectations regarding a firm’s behavior.

The Facebook-Cambridge Analytica scandal had important implications for various stakeholders concerned. Analyzing their perspectives can shed light on the impact of company’s behavior in this case:

1. Users:

• Trust erosion: The indignity considerably eroded user trust in company’s ability to protect their personal data. Users expressed concerns about their privacy and the misuse of their data for targeted publicity or political purposes (Giladi, 2023).
• User engagement: Some users condensed their engagement with the stage, either by limiting their use or delete their accounts in general. This impacted company’s user base and impending advertising reach.

1. Advertisers:

• Data reliability concerns: Advertisers become cynical about the dependability and accuracy of the data provide by Facebook for target advertisements. They question the efficiency and value of their promotion investments on the stage.
• Reputational Risk: Advertisers were alarmed about potential damage to their own brand reputation if their ad were linked with platforms concerned in data misuse controversy.

1. Investors:

• Stock value decline:subsequent the scandal, company’s stock value practiced a major decline, eroding shareholder worth and investor assurance (Brown, 2020).
• Regulatory risks: investor faced likely regulatory actions and lawful repercussion, which added indecision and risk to their speculation in Facebook.

1. Regulators and Governments:

• Increased scrutiny: The scandal encouraged heightened narrow scrutiny and investigations into company’s data protection practice. Regulators international began investigative privacy laws and allowing for stricter regulations for social media platforms.
• Legal consequences: the company legal settlements, faced fines, and potential legal actions from regulatory bodies, additional impacting its reputation and monetary standing.

1. Civil Society Organizations and Activists:

• Advocacy for data protection: Civil society organization and activists detained the opportunity to highlight the significance of privacy rights, data protection, and the requirement for stronger regulations in the digital space (Wilson, 2019).
• Public awareness: The scandal raise public awareness about the latent risks associated with social media platforms and spark conversations around data principles and digital rights.

1. Society at Large:

• Public indignation: The scandal generates public indignation and fueled discussions about the power and accountability of tech firms in safeguarding user data and defending privacy rights.
• Calls for reform: The occurrence led to increased strain for stronger data protection laws, enhanced transparency and accountability from technology firms, and greater user control over personal data.

It is significant to note that stakeholders' perspective may extend beyond or differ depending on their precise roles and interests. Though, overall, the scandal had a thoughtful impact on user trust, business relations, regulatory scrutiny, and societal expectations regarding privacy and data safety (Peruzzi, et. al. 2018). Company’s behavior in the Cambridge Analytical scandal was extensively seen as a breach of stakeholder prospect and ethical standards necessitate changes in business practices to recover trust and speak to the concern raised by stakeholders.

Conclusion

The report concludes that, the Facebook-Cambridge Analytica scandal which serves as a important case study highlighting the extensive implication and consequences of immoral behavior within the digital ecology. The event had thoughtful impacts on business relationships, user trust, regulatory inspection, and societal prospect regarding privacy and data defense.

The violation of user privacy and exploitation of personal data established a violation of stakeholder expectations and ethical standards. Advertisers, Users, investors, regulators, and civil society organization all uttered concerns and raised strain for accountability, increased transparency, and ethical conduct from Facebook and other tech company.

The scandal encouraged a range of responses, including regulatory investigations, legal actions, fines, and reputational injure. It also sparks deliberations and support for stronger data protection laws, enhanced corporate practices, and better user control over individual data. The case study underscores the significance of ethical consideration and sustainable practice in the digital age. It highlights the requirement for firms like Facebook to prioritize ethical conduct, user privacy, societal well-being, and environmental responsibility to make sure their long-term accomplishment and contribute positively to the digital network.

The Facebook-Cambridge Analytica scandal serve as a reproving tale, emphasize the vital for businesses to proactively address ethical challenge, defend user data, and bring into line their practices with the outlook of stakeholders and society at large. It serve as a prompt that upholding ethical ideology is not only ethically right but also crucial for sustainable business achievement in today's consistent world.

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