Ethical Business Management

This report discusses an unethical data breach incident in the Victorian state government office and provides recommendations for preventing future incidents.

Running head: ETHICAL BUSINESS MANAGEMENT
Ethical Business Management
Name of the Student:
Name of the University:
Author note:

1ETHICAL BUSINESS MANAGEMENT
Executive summary
The aim of this report is to discuss the unethical incident took place in the Victorian state
government office. There took place an unethical data breach where the personal information
of more than 30,000 public staffs and contractors from the office directory. This report has
discussed this particular incident from the virtue ethics perspective and pointed out the most
essential parts of this unethical behaviour. This report has properly utilised the theory and
recommended important measures that the management of this particular organization need
to take so that this incident do not take place in future.

2ETHICAL BUSINESS MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Case Study..............................................................................................................................3
Ethical dilemma.....................................................................................................................4
Virtue ethics:..........................................................................................................................5
Recommendation:..................................................................................................................8
Conclusion..................................................................................................................................8
References:.................................................................................................................................9

3ETHICAL BUSINESS MANAGEMENT
Introduction
As the world has already moved into 21st century, advancement in the field of science
and technology have changed the lives of every individual living in the planet. However, not
every change is positive. Negativities are reaching their height. The amount of crimes that are
committed today using the computers are internet are many. Cybercrime is one of the most
significant and most happening crimes in modern era (Sherer et al., 2018). The aim of this
paper is to present a case study report on a case that is identified with an event that describes
certain ethical issues, within an Asia-Pacific business context. The chosen case for this
purpose is that of the very recent incident of data breach of data security in the employees of
Victorian government. Furthermore, it shall further elaborate on discussing the main ethical
issues and the initiatives taken by the organisation on the basis of ethics and morality.
Discussion
Case Study
On 22nd of December, 2018, one of the unauthorised third party attempted to access
and download a partial copy of the directory of the Victorian government employee. The
directory identified near about 30,000 public staffs and contractors. As per ABC news, it
seems that the third party have accessed all the lists after using one of the employee’s email
account (ABC News, 2019). This directory included all the work emails, the phone numbers
as well as the job titles of these employees. The employees were influenced by this breach
were sent e-mails by the third party. It was very necessary for the Victorian government
managers who were in charge to be aware of such risks, especially in such this modern era
where there are high risks of cybercrime. They were required to stay vigilant when it came to
unsolicited communications through telephones and e-mails. It is also to note that these
government employees were told that no financial information and banking information was

4ETHICAL BUSINESS MANAGEMENT
influenced by this breach. The Victorian government referred this data breach to the
Victorian police for further investigation. As per most of the Cyber security experts such as
Suelette Dreyfus, hacking could also be used for more targeted attacks. As per them, Suelette
not highly sensitive and personal details or information about the employees had been stolen
in this incident (ABC News, 2019). Also, the dataset could be more useful for much more
targeted attacks. She said that the data set can be valuable for anyone who is making efforts
for influencing the decision-making process of the government. In this whole process, the
government was neither able to identify the real culprits of the cyber hacking nor it is able to
bring in the information that were leaked about its employees. Such type of data theft is not at
all acceptable in the level of state government. Such data breaching appears to be very less
harmful but in fact, cause some very dangerous issues. Even a small snippet of data and
information could help the cyber thieves to get a crystal-clear image of all the necessary
information and data about the State government as a whole. It is because of the fact that
cyber criminals get all the necessary data and information regarding different individuals,
along with their personal positions in the workplace as well as their personal contact numbers
as well. It further can enable these hackers to get a quick idea about the exact power centre in
the Victorian state government level, that they can further make use in influencing the
Victorian government by targeting to hack all the email accounts of the government
employees.
Ethical dilemma
Ethics are considered to be those moral principles that effectively govern the attitudes
and the behaviour of the individuals (Hassan, Shiu & Shaw, 2016). Ethical dilemma refers to
the problem faced in the decision making process by an individual, where he need to choose
in between to likely moral or ethical alternatives. It is also known as moral dilemmas. As per
Sunstein (2016), it is the situation where an individual is required to make a choice between

5ETHICAL BUSINESS MANAGEMENT
two different options and neither of them can resolve the very situation in morally or ethically
acceptable way. In the case study of the Victorian government employees’ data breach
mentioned above, there is a total of two ethical dilemma faced by the government of Victoria
itself (Clegg & Rhodes, 2006). The very first is that of the fact that the Victorian government
has failed to give that level of security to the information of its employees that it usually
promises to and secondly, it is not yet able to identify the criminals who are associated with
the very case. For this, it can neither ask for more information from its employees nor can
ensure them that such case shall never happen in the near future.
Virtue ethics:
The above case study is the example of unethical behaviour performed in the well-
known organisation on which the interests of the stakeholders and other associates are
depending. In three major approaches of normative ethics, virtue ethics theories have gained
more exposure. This is due to the fact that this emphasises the virtues, moral characters and
focuses on the consequences of the actions or duties of people. These are the theories that
emphasis the virtues of mind and characters (Mishna, Bogo, & Sawyer, 2015). This category
of ethicists discusses the definition and nature of virtues as well as other related issues. These
include how virtues are acquired and how these are associated to different real-life incidents.
The virtue ethics are established in the universal human nature or in the plurality of the
cultures.
In the case of Victorian state government’s inability to secure the information of the
employees from the unethical hacking process, the aspects of common good, honesty and
loyalty have been proved important. The virtue ethics is the most fitted moral philosophies
that the authority must utilise in order to cope up with this situation. This side to the fact that
these ethics are assorted with the welfare of the individuals and organisation connected with
the virtues and moralities. The virtue ethics accentors ethical duties as well as the

6ETHICAL BUSINESS MANAGEMENT
consequences of the actions (Pearson, 2017). In this case the virtue ethics supports the fact
that loyalty of the employees in the Victorian sate organisation is a necessity. This is the duty
of the individuals to work ethically and protect the professional interest of the other
employees.
Virtue ethics is the character-based ethics which encourages the right action of the
virtuous person in the circumstances. Oy seems that at the moral or virtuous character of the
person carrying out an action, depends more upon the consequences of those particular
actions rather than at the ethical duties or rules. It is a wrong concept that the virtue ethics
wholly depends upon the righteousness or wrongness of the persons and their individual
actions but this particular ethics deals with the act of providing guidance as to the sorts of
behaviours and characteristics of the person which he or she aims to achieve (Crisp, 2015).
This is regard, it can be stated that the virtue ethics not only deals with the particular actions
or the incidents but the philosophy of that person based on which he or she make decisions as
well as acts. As the virtue ethics theories wholly detail the characters rather than an incident,
this led people to develop a good and ethical society.
In the case of Victorian government, the ethical dilemma lies in the fact that they were
not been able to keep the data secured in one hand and could not find out the facts and
persons associated with this unethical breach. In addition to this, the government failed to
respond to the incident immediately or more appropriately (Crane & Matten, 2016). The
virtue ethics teaches the facts that in order to build a good organisation, it is important to
make the members to be ethical and good so that the issues do not emerge. In the case of
Victorian state government, the employees if had proper understanding of the ethics or
orality, they would not have the persons indulging the data hacking process. In this regard,
the use of laws and threat of punishment would not work properly as virtue is completely a
psychological response.

7ETHICAL BUSINESS MANAGEMENT
As detailed by the philosophers of virtue ethics, there are some principles which guide
the people to follow a rightful path to act (Smith, 2017). Virtue ethics teaches, firstly, the
actions is only right if the action is carried out by the virtuous person under same
circumstances. Secondly, virtue is the moral characteristics which helps the persons to live
well. Thirdly, only the virtues persons act virtuously and finally, the persons act virtuously if
they live and possess the virtues. Most of the virtue theorists ascribe with the fact that the
virtue ethics is originated from the rations thought process of the people or their instinct
(Trevino & Nelson, 2016).
The virtue ethics state that there is a common stet of virtues which the people uses and
get benefitted from. These virtues are difficult to acquire but it does not complicate the matter
by setting different sets for different sorts of people (Swanton et al., 2016). On the contrary,
these virtues are naturel to the mature people and the traditional list of cardinal virtues are
prudence, fortitude, justice and temperance. Justice helps the people to treat others more
equally and impartially. Fidelity teaches people to treat people with much care. In this context
the self-care is also important. It is the ability to utilise the unique responsibility for caring of
themselves (Ciulla, Martin & Solomon, 2007). These include affectively, physically,
spiritually and mentally (Annas, 2015). In the case of the Victorian state government, the
employee data is not secured despite of having full security measures in the state
organisations. In addition to this, prudence is another factor that helps the persons to consider
the factors like fidelity, justice and self-care. By knowing these, the persons are able to look
for the opportunities and acquire more from the previously spoken three virtues.
The virtues ethics as pointed out, has both the positive and negative measures. The
positive points include the ability of virtue ethics in centring round the whole of the life of the
persons (Carr, 2016). However, this ethics does not provide general guidance on how to be
good persons. According to these ethical considerations, the people need to work ethically by

8ETHICAL BUSINESS MANAGEMENT
being a better person for supporting the others. The virtue ethics therefore, discusses the
ethical aspects of the people and their eagerness or characters are to be examined.
Recommendation:
 Due to unethical at breach, the employees are the most vulnerable persons
here therefore, the government must do their duty and protect the information
particularly.
 The Victorian government needs to create a positive work environment along
with a positive work culture in the organisation so that good members can be
developed in one hand such type of issue do not immerge in future.
 The managers need to take huge responsibilities. They need to hire, train,
motivate honest employees and ensure that every steps that they are taking are
ethical.
Conclusion
From the above analysis it is to conclude that ethical issues do play a significant role
in the case of Victorian government employees’ data breach, took place in 22nd December
2018. It is a case of unethical hacking by the cyber criminals that has made about 30000
government employees in Victoria, vulnerable. All their contact details, job roles and work e-
mail accounts were hacked by the cyber hackers. However, the Victorian government has not
yet addressed the issue in proper manner and even they did not take any initiative for
mitigating the very situation or securing the data and privacy of the employees. Hence, it is
indeed an unethical action from the part of the authority.

9ETHICAL BUSINESS MANAGEMENT
References:
ABC News (2019). Victorian Government employees' details stolen in data breach. [online]
ABC News. Available at: https://www.abc.net.au/news/2019-01-01/victorian-
government-employee-directory-data-breach/10676932 [Accessed 22 Feb. 2019].
Annas, J. (2015). Applying virtue to ethics. Journal of Applied Philosophy, 32(1), 1-14.
Carr, D. (2016). Virtue, character and emotion in people professions: towards a virtue ethics
of interpersonal professional conduct. In Towards Professional Wisdom (pp. 113-
126). Routledge.
Ciulla, J.B., Martin, C., & Solomon, R.C. (2007), Honest Work : A Business Ethics Reader,
New York, Oxford University Press
Clegg, S.R., & Rhodes, C. (2006), Management Ethics: Contemporary Contexts, London,
New York, Routledge
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Crisp, R. (2015). A third method of ethics?. Philosophy and phenomenological
research, 90(2), 257-273.
Hassan, L. M., Shiu, E., & Shaw, D. (2016). Who says there is an intention–behaviour gap?
Assessing the empirical evidence of an intention–behaviour gap in ethical
consumption. Journal of Business Ethics, 136(2), 219-236.
Mishna, F., Bogo, M., & Sawyer, J. L. (2015). Cyber counseling: Illuminating benefits and
challenges. Clinical Social Work Journal, 43(2), 169-178.

10ETHICAL BUSINESS MANAGEMENT
Pearson, R. (2017). Business ethics as communication ethics: Public relations practice and
the idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Sherer, J. A., Sterling, N. L., Burger, L., Banaschik, M., & Taal, A. (2018). An Investigator’s
Christmas Carol: Past, Present, and Future Law Enforcement Agency Data Mining
Practices. In Cyber Criminology (pp. 251-273). Springer, Cham.
Smith, R. S. (2017). Virtue ethics and moral knowledge: philosophy of language after
MacIntyre and Hauerwas. Routledge.
Swanton, C., Annas, J., Narvaez, D., & Snow, N. E. (2016). Developmental virtue
ethics. Developing the virtues: Integrating perspectives, 116-134.
Trevino, L.K., & Nelson, K.A. (2016). Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.