Ethical Case Study: Privacy Concerns and Business Models in 2016

This report analyzes the ethical implications of privacy in the context of the article 'Privacy Will Hit Tipping Point in 2016.' It examines the growing importance of user privacy and the ethical dilemmas faced by businesses in the digital age. The report delves into various ethical theories, including utilitarianism, deontological theory, virtue ethics, and contract theory, to evaluate the morality of business practices related to data usage and consumer privacy. The analysis considers the shift towards a 'pay for privacy' model and its potential benefits and limitations. The report concludes that offering user privacy by additional charge is morally just action and highlights the need for organizations to prioritize and protect user data. The report provides a comprehensive overview of the ethical considerations surrounding privacy in the business world.

Running Head: PRIVACY WILL HIT TIPPING POINT IN 2016 1
Privacy Will Hit Tipping Point In 2016

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Table of Contents
Ethical Case: Privacy will Hit Tipping Point in 2016......................................................................................3
Analysis of the Case by Ethical Theories......................................................................................................3
Utilitarianism...............................................................................................................................................4
Deontological Theory..................................................................................................................................4
Virtue Ethics Theory....................................................................................................................................5
Contract Theory...........................................................................................................................................5
Conclusion...................................................................................................................................................5
References...................................................................................................................................................7

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Ethical Case: Privacy will Hit Tipping Point in 2016
The newspaper article has highlighted the concern of growing importance of privacy in
the present times. In the past, there have been occurrences, in which the privacy of the users has
been compromised. It has also encouraged the government to implement policies so that the
users have more power and control for their information. The growing concern over the data
usage and consumer privacy has encouraged the business organizations to adopt a model, in
which the users pay for their privacy. The IT business giants have realized that they will not be
able to operate further if they will continue compromising the user privacy. Therefore, they are
inclined to offer privacy by asking for revenues from the users. Although it is a progressive
strategy, it has certain limitations such as it is a capped strategy. It means that the organization
will not be able to grow much after a certain extent. The current ethical dilemma is analyzed with
the help of ethical theories.
Analysis of the Case by Ethical Theories
The ethics have a significant importance in directing the behavior towards the right
directions. The ethics establishes the standards of differentiating between the wrong and the right
decisions. They try to address the situation of ethical dilemma, wherein the person is puzzled in
taking the right decisions (Danis, Largent, Grady, Hull & Wendler, 2012). Over the years,
several ethical theories have been developed to guide the proper behavior of an individual. The
ethical theories can be differentiated based on consequentialism and non-consequentialism. The
consequentialism ethics state that the morality of an individual should be judged according to the
consequences of the action on the larger part of the society. On the other hand, non-
consequentialism theory states that an action can be categorized as moral, if he does abides the
rules of the society (Rossouw, Van Vuuren, Ghani & Adam, 2010).
Utilitarianism
The utilitarianism is the most popular ethical theory, which states that the morality of an
action should be judged according to its impact on the larger section of the society. It is a part of
the normative ethics (Gregory, 2003). According to this theory, if an action is bringing good for
the people, then it is ethical even if it deviates from the normal course of actions. If an action has

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utility element, then it is morally correct (Loue, 2007). When the current case is evaluated with
the utilitarianism theory, it can be considered as morally just. The action of the organizations to
establish a pay for privacy model is in the welfare of the society. The utilitarianism theory states
that those actions are just, which are bring happiness to majority of the users. The users will have
more control over their private and personal information. It will increase the happiness for all the
users. The users can choose whether they will give more weightage to the privacy or cost. In the
past, there have been several incidence regarding in which the privacy of the users has been
compromised (Mertens & Ginsberg, 2009). This step will offer the user more control over their
information. The companies are facing ethical dilemma whether they should create a pay for
privacy business model. This step is beneficial for the society as a whole. Therefore, this action
is justifiable according to the utilitarianism perspective. However, utility cannot judge morality
of action. Although the step is beneficial for the society, there are issues that this business model
will be profitable for the organization. It will reduce the overall profit of the organization and
further, it is a capped growth strategy. According to the utilitarianism perspective, the companies
should provide privacy to the customers by offering pay for privacy model.
Deontological Theory
The deontological ethics state that all the actions of the human beings are ethical, if they
are legal and abide by the standard rules of the society (Comstock, 2013). According to this
theory, there is no requirement of additional changes as the current business model of these
companies is legal (Taylor, 2015). When the uses sign up for the services of search engine or the
social media, they agree that their personal information can be use later to personalize their
experience (Christensen, Peirce, Hartman, Hoffman & Carrier, 2007). Therefore, the companies
are not breaching any law by using the consumer data. The current step of the organization will
reduce its overall profitability and shift it towards a non-profitable business model. The
deontological ethics state that the moral judgement should be based on whether an action has
complied by the moral duties of the society. In the past, the business model of the social media
companies and search engine was based on the collection of user information and using it for
target marketing. However, once these organizations will stop showing advertisements, it will
directly impact on their revenue. Therefore, according to deontological perspective, this action is
not recommended.

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Virtue Ethics Theory
The virtue ethics is another set of ethics, which state that a person follows ethics, based on
his virtue. It means that the ethical thinking is based on the individual character of a person
(Beauchamp, Bowie & Arnold, 2004). The virtue of an organization or an individual should be
directed by the right or wrong at the receiver (Annas, 2009). According to this theory, it is the
responsibility of the organization to provide privacy to the users. The company provides a
platform so that the users can remain connected with other users. However, it has an ethical
responsibility that the organization maintains the user privacy. The organization should offer
excellent privacy to the customers. The organizations should work to protect the consumer
privacy, as the information breach has a direct impact on the lives of the consumers. The hackers
are also attracted towards the information system of these companies as they comprises of large
amount of data containing the personal information.
However, the users are concerned that this information can be used for malicious purposes and
without their consent. Therefore, it becomes necessary for the organizations to provide protection
against unwanted advertisements and breach of privacy.
Contract Theory
The social contract ethics state that an individual being part of the society has some social
obligations towards other members of the society. The organization participates in the society;
therefore, it has some moral duty towards the society (Mertens & Ginsberg, 2009). Therefore,
according to this theory, the organization has some moral responsibilities towards the society. It
should maintain the user privacy and offer maximum protection towards the users. According to
this model, it is recommended that the companies should adopt a business model, which
maximizes the user privacy. They should also limit the number of advertisements, shown to the
users in order to protect their personal information. They should also offer advertisement
blocking services, so that the users can control the amount if advertisements shown to them.
Conclusion
In the light of above discussion, it can be concluded that the offering user privacy by
additional charge is morally just action. The organization has moral duties towards its user;

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therefore, it is important that no part of the business model or actions of the society should
impact the organization in a negative manner. In the past, there have been several data breach
accidents; therefore, it is important for the organization to assure that the user privacy is not
breached. In the present report, different ethical theories have been applied to analyze the issue
of privacy in the internet organizations.

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References
Annas, J. (2009). Virtue ethics. In The Oxford handbook of ethical theory. Oxford University
Press.
Beauchamp, T. L., Bowie, N. E., & Arnold, D. G. (Eds.). (2004). Ethical theory and business.
Danis, M., Largent, E., Grady, C., Hull, S.C., & Wendler, D. (2012). Research Ethics
Consultation: A Casebook. Oxford University Press, USA.
Gregory, I. (2003). Ethics in Research. A&C Black.
Mertens, D.M., & Ginsberg, P.E. (2009). The Handbook of Social Research Ethics. SAGE
Publications Inc.
Taylor, H. (2015). Privacy will hit tipping point in 2016. CNBC. Retrieved 4 may 2018 from
https://www.cnbc.com/2015/11/09/privacy-will-hit-tipping-point-in-2016.html