Business Law and Ethics Case Study: Facebook Data Breach and CEO Traits
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This case study discusses the Facebook data breach from the perspective of Utilitarianism and Deontological theory, and evaluates the character and virtues of Mark Zuckerberg using Virtue Ethics and Theory of Moral Development.
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Business Law and Ethics Case Study
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Case Study 1: Facebook Data Breach a)Utilitarianism theory Utilitarianism is an ethical theory, and it is one of the most influential moral theories. The theory focuses on the consequences of a situation to evaluate its rightness or wrongness. It provides that effect of actions and the good or bad results which they produce are relevant rather than the actions themselves (Hayry, 2013). The elements of the theory are that greater good for a greater number of people should be the ultimate goal of an action, and everyone’s happiness is equal. Based on this theory, the decision of Facebook to use clients’ private files is morally wrong. Stakeholders, in this case, include Facebook, users and the government. The positive consequence for Facebook is that the use of client files would enable it to show relevant advertisements to them which would be beneficial for the company. On the other hand, the positive consequence for users is that they will only watch advertisement based on their interest which would not disrupt their content. Based on such data, the corporation can improve its performance by finding new ways to interact with their users which would benefit them in the long run. Similarly, the positive consequence for the government is that the data can be used by various governmental authorities to conduct research or other official purposes. However, this decision will also have a substantial negative impact which would result in adversely affecting a large number of people. Firstly, based on this decision, Facebook is breaching people’s privacy since they did not read the terms and conditions, and data is collected by the company without their knowledge. Similarly, data can be accessed by malicious people or organisations which could misuse such data to gain an unfair advantage which would negatively affect the users of Facebook. A good example is the 2016 US presidential elections in which Cambridge Analytica used the data from Facebook to influence the decision of voters (Castillo, 2018). Along with Facebook and users, the government will suffer negative consequences as well due to breach of its data. It shows that the consequences of this decision could result in negatively affecting a large number of people based on which it is morally wrong. b)Deontological theory Page1
Kantian Deontological ethics theory is a normative ethical theory. The theory judges the morality of a situation based on the action of the parties. Unlike Utilitarianism theory, the deontological theory judges a situation based on the actions of the parties rather than its consequences (Paquette, Sommerfeldt & Kent, 2015). Its elements are that actions which are negative but have positive consequences are wrong as well as per this theory. The maxim, in this case, is that Facebook wanted to increase its profits and experience of its users without breaching any regulations. The stakeholders are same as above. Based on this theory, the decision of Facebook to use client files for increasing the profits of the company is moral since it would benefit the company and its users. Based on this decision, the corporation is not breaching any laws since it has the permission to use the data of its users. Furthermore, it would result in substantially increasing the profits of the enterprise which would benefit its stakeholders. On the other hand, clients will only see advertisements and get recommendations which are based on their interest which would improve their user experience while using Facebook. The government organisations will also benefit from this decision since they will collect the data of millions of users through Facebook. Based on these factors, the decision taken by Facebook is a moral act. Page2
Case Study 2: CEO Traits a)Virtue Ethics Virtueethicstheoryisapartofnormativeethicaltheories,anditfocuseson characteristics such as mind and character. The theory focuses on the person rather than actions in order to evaluate the virtue or moral character of the person carrying on the action (Van Hooft, 2014). The aspects of Aristotle approach which applies, in this case, include flourishing, virtues (or excellences and developing the virtues. The element of this theory is that it did not focus on ethical duty or rule or the consequences of the action, instead, it focuses on the sort of quality and behaviours which a good person seeks to achieve. The theory provides that virtues are developed in a person’s life through learning, practice and experiences. This theory applies to the situation based on the character and virtues of Mark Zuckerberg to evaluate the way he handled the whole situation. The theory asks how a person can be a better person and it focuses on qualities that make a person good. Virtues of Zuckerberg include compassion, humility, and bravery. For example, he clearly specified in the hearing that he is the only one who is responsible for this incident which shows his bravery and humility. He provided that he started the company, and he is responsible for ensuring that its users are not getting adversely affected by its actions based on which he is compassioned. He did not blame others for the actions of the company, and he took all the responsibility which shows that he has a good character. Many times in the hearing, Zuckerberg was nervous which was clearly shown on his face, however, it was also seen that he had a robotic, emotionless side when he was given some answers. It can be said that he is not really affected by the whole incident, and he did not really care that the company failed to maintain the security of its users. Virtues of Zuckerberg have developed through his experience in lifestyle and his vision to connect the whole world through Facebook. The decision of adding booster on the seat was also not a good decision; however, it was not proved that it was Zuckerberg who asked to put such booster (Hamill, 2018). Overall his decision to face all the charges and blames by himself and taking initiatives to resolve the Page3
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problem proves that he has a good character, and he wanted to help a large number of people across the globe. b)Theory of Moral development This theory was introduced by Lawrence Kohlberg which provides that morality begins in the early childhood of a persona and it is affected by a number of factors. The theory provides that morality of a person can be developed either negatively or positively based on the fact that how a person completes a task during each stage of moral development throughout his life (Gibbs, 2013). The stages of Kohlberg’s theory which applies to this case include social contract orientation and universal ethical principal orientation. The decision of Zuckerberg to start a website which rates the attractiveness of women is considered an immoral act. However, Zuckerberg has since improved himself for his wife and daughters. Based on the social contract orientation stage, he is focusing on connecting the world through Facebook to make it a better place. Furthermore, he has displayed factors of universal ethical principal orientation stage by involving in various charity foundations and focusing on making the world a better place. For example, he and his wife have pleaded to donate 99 percent of their Facebook share in charity for human advancement, and it is one of the world’s largest pledges (Brandom, 2015). It shows that Zuckerberg has developed morally, and he is focusing on rectifying his mistakes and contributes to the benefit of the world. Page4
References Brandom, R. (2015).Mark Zuckerberg and Priscilla Chan to donate 99 percent of their Facebook fortune.Retrieved from https://www.theverge.com/2015/12/1/9831554/mark-zuckerberg-charity-45-billion Castillo, M. (2018).Facebook's Mark Zuckerberg: 'I'm responsible for what happened' with data privacy issues.Retrieved from https://www.cnbc.com/2018/04/04/mark- zuckerberg-facebook-user-privacy-issues-my-mistake.html Gibbs, J. C. (2013).Moral development and reality: Beyond the theories of Kohlberg, Hoffman, and Haidt.Oxford: Oxford University Press. Hamill, J. (2018).What Mark Zuckerberg revealed about his personality during historic Senatehearing.Retrieved from https://metro.co.uk/2018/04/11/mark-zuckerberg- revealed-personality-cambridge-analytica-hearing-7457656/ Hayry, M. (2013).Liberal utilitarianism and applied ethics.Abingdon: Routledge. Paquette, M., Sommerfeldt, E. J., & Kent, M. L. (2015). Do the ends justify the means? Dialogue, development communication, and deontological ethics.Public Relations Review,41(1), 30-39. Van Hooft, S. (2014).Understanding virtue ethics. Abingdon: Routledge. Page5