Cambridge Analytica Scandal: Marketing Ethics and Facebook Impact

This report delves into the controversial practices of Cambridge Analytica, a British political consulting firm, and its impact on digital marketing, corporate social responsibility, and data privacy. It explores the business opportunities the company seized, the strategies employed to influence audiences, and the ethical implications of its actions, particularly in relation to the 2016 US presidential election and the Brexit referendum. The report analyzes the decisions made by CEO Alex Nix before and after the scandal, judging the value of data in both business and politics, and examining the relationship between public goodwill and data-driven companies. Furthermore, it assesses the challenges Facebook faces as a result of the Cambridge Analytica scandal, considering its implications for the future of the social media giant. The report concludes by highlighting the importance of ethical marketing practices and the need for responsible data usage in the digital age.

Marketing in a Digital
Age and Corporate
Social Responsibility

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Business opportunity for Cambridge Analytica? How did the company capture it?................................3
Stand in the shoes of CEO Alex Nix: What could have been done better BEFORE the scandal in 2017
and earlier? What could have been done better AFTER the scandal broke (early 2018)?........................4
Judge the value of data for influencing decision making, in business as well as in politics?...................6
Explain the work and service Cambridge Analytica provided Trump’s campaign. Apart from the legal
side, in your perspective, was it right for Cambridge Analytica to provide this work for Trump?..........7
How do public goodwill/license to operate and data-driven technology companies interrelate?.............7
What challenges Facebook brand is facing today and what implications these challenges and the case of
Cambridge Analytica have for the future of Facebook from your perspective?.......................................8
CONCLUSION.........................................................................................................................................10
REFRENCES............................................................................................................................................11

INTRODUCTION
For every firm or institutions it is necessary to conduct marketing in order to attract
potential customer towards its services, products and ideas. Marketing is determined as activities
which are conducted by an organization for promoting their offerings (Products and services) by
which targeted and potential audiences fulfill their requirement (Boccia, Malgeri Manzo and
Covino, 2019). In today’s time companies are conducting its marketing practices with different
ways i.e. basis on digital age and corporate social responsibilities. Respective report is based on
Cambridge Analytica which is founded by Alastair MacWillson in 2013 and its head office is
located at London, United Kingdom. It is a British political consulting firm and recently they
play major role in American Presidential Election as well as Brexit referendum in UK. For these
political marketing they used digital platform. Topics covered in this report are respective
company business opportunities and they will grab it, factors affecting decision making of
management and services provided by company to Trump’s campaign. Moreover it will also
include ethical concern for company and challenges faced by Facebook.
MAIN BODY
Business opportunity for Cambridge Analytica? How did the company capture it?
Business opportunities is considered as practices involves sale or lease of products,
equipments, services and many more which will enable purchaser licensee for being a business.
In respect of Cambridge Analytica, they are offering its services to businesses as well as political
parties who generally want to change behavior of its audiences. Business opportunities for
respective company are that they can expand their business operations to different nations so that
companies can change behavior of potential audiences. Along with this it will also help company
to encourage audiences to purchase their services which enhance their sales as well as
profitability ratio in successful manner (Byrum, 2019). Respective company also have business
opportunity to enhance their business by using digital medium as through that they able to cover
and attract huge numbers of potential audiences. There are different types of business
opportunities which respective company may adopt such as direct selling, online referral
services, onsite computer services, online gaming, management consulting, public relations

consultant, search engine optimization business and many more. In addition to this, there are
several stages by which Cambridge Analytica can capture business opportunities in effectives as
well as successful manner. Stages which will implemented by Cambridge Analytica are
mentioned below:-
 Understand potential clients and past leads: It is the first stage at which respective
company need to determine potential client from the past record as that will help in
decision making for attaining business opportunities.
 Listen customers requirement: At this stage company will evaluate as well as understand
the need, requirement and perspective of customers as that will help company in
designing products or services accordingly (Etter, Fieseler and Whelan, 2019). This
information is gathered from the potential or past clients who help company in boosting
their business.
 Determine competitors: It is the third stage through which Cambridge Analytica can
capture business opportunity in effective manner. According to this they need to
determine their competitors so that they can develop more effective strategies or action
plan from them. This will help them in gaining competitive advantage at the marketplace.
 Evaluate respective industry trends and insights: It is the last stage of process according
to which management of Cambridge Analytica need to evaluate industry trends and
insights. This is so because it will help them developing more effective strategies which
help in boosting business successful.
By adopting or implementing this stage Cambridge Analytica can capture business
opportunities in effective as well as successful manner. Along with this it will also help them in
increasing their business by enhancing sales as well as profitability ratio at the potential
marketplace.
Stand in the shoes of CEO Alex Nix: What could have been done better BEFORE the scandal in
2017 and earlier? What could have been done better AFTER the scandal broke (early 2018)?
Cambridge Analytica conducts unethical practices due to which shoes of CEO Alex Nix
also face major issues or challenges that impact on their business operations and functions
(Ferrell and et. al., 2019). Along with this, it also impact on the both company’s growth and
profitability ratio. In 2017 CEO Alex Nix conducted some unethical or illegal practices due to

which they go through scandal which affect their business. Below some factors are given which
show impact of scandal before and after:-
 Marketing communication strategy and message: The scandal conducted by respective
company is related to illegally use of data or information of customers in order to develop
strategies. Before scandal respective company conducting its business effective as well as
they also have effective goodwill at the potential marketplace (Kamasak, James and
Yavuz, 2019). This will help company in conduct proper marketing communication
which lead to attainment of desire goal successfully. On the other hand after knowing
about scandal respective company goodwill as well as market value get decreased as well
as it will also impacted on the company operation. Due to decrease in goodwill company
faced major issues in conducting marketing communication.
 Corporate social responsibility and corporate reputation: It is one of the main factors
which are essential to conduct by each and every company as that will help company in
developing goodwill at the potential marketplace. Before conducting scandal respective
company easily able to attract audiences by their corporate social responsibilities
activities. This will also help them in increasing its customer’s base as well as market
value in effective manner. On the other hand after the scandal situation get changed and
no one is attracted and influenced by company. Moreover, even by conducting corporate
social responsibilities potential audiences not able to trust company as well as investors
also not want to invest in company.
 The impact on brand awareness and brand trust: This is the major factors which
impacted first when a company conduct ethical or unethical practices. For every firm it is
essential to conduct proper practices because that will help them in enhancing brand
awareness as well as brand trust (Katmon and et. al., 2019). In respect of scandal before
2017 company have effective brand awareness and trust among the potential audiences
which help them in increasing their customers as well as profitability ratio. On the other
hand, after the scandal whole situation get changed and audiences not trust on company
as well as their brand awareness also get decreased.
These are main areas through which impact of scandal can be determined before and after
as well as it will also help companies in developing strategies in effective and appropriate
manner.

Judge the value of data for influencing decision making, in business as well as in politics?
In business there are several factors which impacted on the decision making according to
which business management will conduct their business operations and function. Similarly there
are also various aspects which influence the politics related decision making process. So it is
essential for both business as well as politics to determine and understand factors which
influence their decision making process. From which some are mentioned below:-
 Corporate social responsibility: It refers to activities which are conducted by a company
in order to increase their market value by providing services or products through which
society can resolve their issues effectively (Muslu and et. al., 2019). In today’s time
corporate social responsibilities are conducted by almost each and every company for
attract wide range of customers. This aspect will impact on both business as well as
politics because by conducting corporate social responsibilities they able to attract more
and more audiences towards them which help tin attaining their desire goal.
 Impact on society: It is main factor which is essential to be considered by each and every
company. Moreover it is also necessary to considered society while developing decision
related to activities. This is so because they have high impact on the business operations
and functions. In respect of business as well as political society will impacted on their
decision making as if society is effective and satisfy with services or products then they
will help them in boosting their business in impressive as well as successful manner.
 Ethics and legislations: For every company it is essential to understand as well as adopt
different ethical as well as legislations as that will help in conducting business in
effective and efficient manner. Government develop different ethical as well as
legislation for different industry and it is essential for every company to follow it as that
will help in attaining desire goal successfully (Orazalin, 2019). In respect of business and
politics for both of them it is essential to considered ethics as well as legislation at the
time of decision making because that help in attaining desire goal successfully.
These are main aspects or factors which are considered by both business as well as
politics while conducting their operations and functions effectively manner. Moreover it is also
essential for them to develop strategies or decision accordingly as that will help in conducting
operations in effective manner.

Explain the work and service Cambridge Analytica provided Trump’s campaign. Apart from the
legal side, in your perspective, was it right for Cambridge Analytica to provide this work for
Trump?
Cambridge Analytica provides marketing support activities to companies and politics so
that they can attain their desire goal as well as objectives in successful manner by changing
behavior of customers or audiences (Palmatier and Steinhoff, 2019). In respect of Trump’s
Campaign, respective company provides various supports so that Trump wins the election with
high votes. In order to attain this desire aim respective company conduct some unethical or
illegal practices due to which they lose their market value at the potential marketplace.
Moreover, due to this respective company market value as well as goodwill gets decreased which
directly lead to minimize in sales and then profitability ratio. Unethical or illegal activity which
is conduct by Cambridge Analytica for increasing votes of Trump in election is respective
company contract with facebook to show more improper or bad image and articles of opposite
parties as compare to good articles. This is so because through it they able to create bad image of
competitors in respect of Trump and it will also help in increasing wining chance of Trump. By
conducting this unethical practices respective company able to attract more and more audiences
who will attract with Trump work and get impressed by them as well as it will also encourage
them to give their votes to Trump.
Furthermore, according to me it is not right for Cambridge Analytica to provide such
services to Trump because at the end it is unethical as well as illegal in nature that will create
wrong image in the society. Along with this, unethical and illegal activities also affect badly on
the image as well as brand of respective company because they conduct fraud activities in order
to attract more and more audiences (Sun, Yao and Govind, 2019). Moreover, it is wrong to show
some other person wrong for increase their value or image at the marketplace or society. So
according to me in order to support Trump respective company need to follow ethical or legal in
respect of which they promote Trump right as well as supportive activities. This is so because
through that they can attract more and more audiences without unethical or illegal manner.
How do public goodwill/license to operate and data-driven technology companies interrelate?
Public goodwill or license companies refer to those firms which develop their decision on
the basis of its brand value at the marketplace. These organizations generally not conduct

unethical practices as they are more concern about their goodwill at the marketplace and in front
of potential audiences. These companies also conduct their business in the ethical manner and for
that they follow almost each and every rules, regulations, legislations and policies in proper
manner (Uduji, Okolo‐Obasi and Asongu, 2019). By conducting this types of activities
companies able to attract more and more audiences for attaining their desire goal. On the other
hand, data driven technologies companies refers to those firm whose decision making are based
on the data as well as interpretations. These companies focus on the gathering information as
well as data so that they can develop effective and most appropriate strategies for attaining their
desire goal or objective. These types of companies are not generally conducted their business
operation as well as functions according to legislations, rules and regulation developed by
government for providing guidelines. In addition to this there is interrelationship among the
public goodwill or license companies and data driven technology company because both types of
companies want to fulfill their customers need, want and expectations in successful manner.
Along with this, both types of firms conduct their business practices and operations so that their
potential customers can achieve their predetermined goal impressively as well as through that
they can enhance their profitability ratio by boosting business.
What challenges Facebook brand is facing today and what implications these challenges and the
case of Cambridge Analytica have for the future of Facebook from your perspective?
Facebook is one of the mostly used marketing platforms which are used by a company in
order to promote their products and services. This is so because from this channel an
organization can cover wide range of audiences as well as them also able to convince them to
buy their products and services. In today’s time there are several issues or challenges which are
faced by a Facebook which impact on their work or operation as well as it also impact on the
company practices. From which some issues are mentioned below:-
 Data privacy: It is one of the main challenges which are faced by Facebook while
operating their practices. This is generally take place because many hackers hack
personal and private data of facebook users (Upadhye, Das and Varshneya, 2019). In
respect of Cambridge Analytica when conduct marketing through respective channel they
gather facebook users personal information. So that they can plan strategies according but
these practices are unethical in nature.

 Implementation of proper regulations: According to this challenge at facebook
companies as well as individual not implement or adopt rules and regulations in proper
manner which impact on their performance (Wenzel and Will, 2019). In respect of
Cambridge Analytica, they are used influential contents or facebook user’s personal
information which is considered as unethical practices. Moreover it also impact on the
implementation of regulation in proper manner.
Furthermore, there are numbers of methods or practices which can be adopted by
Facebook as well as Cambridge Analytica in order to overcome challenges that Facebook faced
related to ethical and legal issues. Some of the main implications for resolving challenges are
given below:-
 Seeking effective regulations: In order to over or resolve challenges which are faced by
facebook and Cambridge Analytica because they use personal information of audiences
in unethical manner. So for resolving this, it is essential for company to implement
regulation and rules in proper manner as well as it is also necessary for them to collect
information in legal manner.
 Giving audiences more accurate information: It is also important for respective company
to inform audiences about their plan that they will use their information for developing
strategies and plan. In respect of Cambridge Analytica they can develop questionnaire for
audiences so that they can gathering proper information according to the requirement in
ethical manner.
 Strengthening protecting and privacy individual information: In respect of this strategy it
is essential for respective company to always gather information or data in ethical manner
as well as they also need to ensure that all information are secure with firm (Yoon and
Lee, 2019). Along with this it is also essential for a company to protect all private
information of facebook users in proper manner.
Moreover, Cambridge Analytica contact with facebook in order to promote good thinks
of Trump and bad thinks of opposite parties. This is so because through it respective company
show good image of Trump which help in increasing chance of winning election by attracting
more and more audiences. This will also aid in showing ineffectiveness of the other parties in the
society which decrease their brand value. But respective activity is considered as unethical or
illegal practices due to which there is high chance that Trump loses their audiences because they

feel cheated (Zolotoy, O'Sullivan and Chen, 2019). So it is essential for Cambridge Analytica to
adopt above mentioned stage so that they can attract audiences by conducting ethical practices.
CONCLUSION
By analyzing above discussed point it can be summarize that for every company it is
necessary to conduct effective marketing activities because through it they able to attract
potential customers to buy their products and services. Moreover, for a company it is essential to
determine business opportunities as that will help them in develop strategies and actions plan in
proper manner. Firm also need to conduct evaluation of their business activities of past and
current for which they considered areas like marketing communication strategies, corporate
social responsibilities and corporate reputation, effect of brand awareness and many more. In
addition to this, an organization management also needs to determine different factors which
impact on its decision making such as ethical, legislations, impact on society, corporate social
responsibilities and many more. Along with this, there are several issues or challenges which are
faced by Facebook while operating their business practices due to ethical as well as legal
challenges. In order to avoid it, an organization need to adopt numbers of strategies such as
conducting practices according to rules and regulation and many more. Moreover firm also need
to follow different practices in order to avoid unethical practices at their workplace such as
develop policies according to rules and many more.

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