BSB111 Case study - Received a 5 PDF

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BSB111 Case Study Assignment, Semester 2, 2018 Student name: Student number: Case 1(a) (10 marks) Utilitarianism is explained as a significant theory that focuses on the importance of actions producing a positive outcome. Utilitarian analysis helps to determine the pain and pleasure inflicted onto all stakeholders involved (James et al., 2017). In this instance, the action is sharing information from the server pertaining to client information. The three stakeholders considered are consumers, employees of Facebook and shareholders. Bentham’s approach proposed a way in which the consequences of the action performed would affect society. This approach is used to quantify the pain or pleasure felt by the stakeholders once the action has occurred (James et al., 2017). Facebook consumers would experience a considerable decrease in pleasure since private information would be passed on without consent. Although this pain would not be felt by all consumers, for those who do experience it, the duration of the pain will be significant. Secondly, employees of Facebook would encounter both an increase and a decrease in pleasure. If there are no detrimental consequences for the company, there would be an increase in profits and a potential increase in wages. However, if caught their reputation would be tarnished affecting their future job opportunities as well as their working reputation. Stakeholders would encounter an increase of impure pleasure due to the increase in profit from the trading of information. However, this pleasure will only occur for a short period of time. There is also a decrease in pleasure as well. Just like the employees, once the unscrupulous sharing becomes public knowledge they would experience a loss in profits as many consumers may choose to abandon the App. Stakeholders Consumers Employees – increase in profit Employees – negative reputation Shareholders – increase in profit Shareholders – loss of profit due to reputation Total net happiness

Decreas e Increase Decreas e Increase Decreas e

200 0 100 0 300 200 0 500 200

After using Bentham’s approach, the consequences of sharing information, which include client’s personal information, to gain profit (in the table above) are quantified. Therefore, it could be concluded that this action is ethically correct under the assumptions of utilitarianism (it would be unethical if the information was not shared). Page 1 of 5

Case 1(b) (6 marks) Deontology, also known as Kantianism is described as an ethical approach in which the morality of actions does not vary under any circumstances. There is however, an absolute moral law that applies to every individual (James et al., 2017). The proposed action of sharing private client information for profit is analysed through two formulations of the categorical imperative. The first formulation by Kant states that all individuals must “act only according to that maxim whereby you can at the same time will that it should become a universal law” (James et al., 2017). The maxim in this case would be, “I will share private information to increase profits in the company.” Since this formulation focuses on universal acceptability, the universal maxim would be, “Everyone can share private information to increase company profits.” If this universal maxim is used, then the use of privacy policies would be useless and untrustworthy and therefore the universalised maxim is contradicting. So, this action will fail the first formulation of the categorical imperative. Formulation two declares that everyone “act in such a way that you treat humanity, whether in your own person or in the person of another, always at the same time as an end never simply as a means” (James et al., 2017). In this case by sharing private client information without consent the company is only treating consumers as a means to an end, which is profit, and not respecting the consumers privacy. Therefore, the proposed action would also fail the second formulation of the categorical imperative. It can be concluded, that under Kantianism ethics, the company should not engage in the sharing of consumer information.

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Case 2(a) (10 marks) Unlike the theories discussed in case one, virtue ethics is based on the individual and how decisions are made using their characteristics (James et al., 2017). When examining the Mark Zuckerberg case, there are four elements to consider from Aristotles approach: 1. Function goals and the good, 2. Flourishing, 3. Virtues and 4. Developing virtues. Zuckerberg is a well-known entrepreneur creating a multi-million-dollar business from his dorm room in college. The goal of an entrepreneur is to create a business which sells and distributes products in return for money. Zuckerberg is now the CEO of his company Facebook and has millions of people using his App every day. It is important to consider the virtues that a good entrepreneur would inhabit. Some of these are character-based as well as intellectual. According to Aristotle, for Zuckerberg to be an effective entrepreneur and flourish in his role, he would have to embody the following virtues: ambition, trustworthiness and generosity. Wisdom is also an intellectual virtue that is crucial for an effective entrepreneur. Experience and knowledge of the competitive business market are also very important skills. Zuckerberg was very ambitious and generous by using his platform to help raise funds and awareness for charities and movements. However, he lacked trustworthiness once consumers private information was abused for profit. It was evident that some of Zuckerberg’s vices were apparent throughout the questioning of his legitimacy. Zuckerberg demonstrates the vice of shyness during the Senator’s questioning. A sense of vanity is also apparent throughout the case. Zuckerberg uses a pillow to appear taller, in turn projecting a more ‘powerful’ persona when answering questions. The case does not clearly state if the virtues explained above were in the process of being developed by Zuckerberg, but, it is clear to see that he did feel remorse due to his shy personality throughout the interview. He was however, willing to take full responsibility for the consequences of his company’s actions. In conclusion, virtue ethics is very important to consider when understanding the genesis of a virtuous business person.

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Case 2(b) (6 marks) The moral reasoning theory created by Kohlberg focuses on ways a person decides what course of action is ethically moral. There are three levels each composed of two stages (Dellaportas, 2005, p1). Since the case does not specify what Zuckerberg’s reasoning was throughout the leaking of private user information, the use of Kohlberg’s reasoning suggests that stage two of level one was apparent. Stage two explains that an individual will follow rules only if the outcome benefits themselves (Dellaportas, 2005, p3). It was discussed throughout the questioning that many believe the App was distributing political data with the intent to sway users a certain way when voting in the U.S election. There was also evidence of political bias due to the current location of Facebook headquarters in Silicon Valley. Zuckerberg admitted that this area has definite left leanings. A potential outcome of this bias is to have in power a government that is more favourable to his business. During the hearing it becomes apparent that Zuckerberg began to consider the consequences to the general population. This relates to stage three of the Kohlberg moral reasoning theory. The individual will make decisions based on how they will be perceived by friends, family and colleagues (Dellaportas, 2005, p4). During the interview Zuckerberg appears to be acting as a ‘good’ person profusely apologizing for the issues that have occurred. Throughout the interview Zuckerberg also mentions the origin story of Facebook. This could also be an example of him attempting to prove to the public that he is just like them and can be trusted. The Kohlberg theory suggests that Zuckerberg considered moral reasoning through level one (preconventional) and two (conventional).

Word count: 1239

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Bibliography Dellaportas, S. (2005). Ethics, governance and accountability: a professional perspective. Retrieved from: https://content.talisaspire.com/qut/bundles/5a5ff44f540a26514a52aeb4? download=true&print=true&key=68642e87d775fe4b295409705870eb18da4bbd238e586 78bfac0ad961363bad3. James, N., & Hales, S. D. (2017). Business Law and Ethics (2nd ed.). Brisbane: John Wiley & Sons.

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