Facebook Scandal with Cambridge Analytica PDF

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essay in ACCG1001, only essay about the Facebook scandal with them selling users data without their knowledge, that was then used in Trumps Presidential campaign...

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46419233

Facebook Scandal with Cambridge Analytica

ACCG1001

This essay will review the ethical dilemma Facebook addressed following the unconsented use of user data, (Ikhalq, 2019) the repercussions on stakeholders and the redress that Facebook undertook. Ethics is “an individual’s personal beliefs regarding what is right and wrong” (Fischer, 2004), categorised as, teleological theory, being the greatest possible good for the greatest amount of people, and deontological theory, whereby actions are based on a sense of duty around rules and regulations. (Birt-et al., 2012) This value is important for businesses in their decision-making process to gain the trust of their consumers. This essay will address the impact of the breech of ethics on all stakeholders and the decisions of parties undertaken to address the issue. Mark Zuckerberg founded Facebook in 2004 as a “social media website that allowed users to create a personal profile, upload photos, share interests, and connect with other people.” (Duarte, 2019) Initially, Facebook was restricted to Harvard students; within a year expanded to other US universities. (Duarte, 2019) Facebook currently has over 2.4 billion users. (Global social media ranking 2019 | Statista, 2020) and a share value of US$175.19. (Facebook, Inc. Class-A-Common Stock, 2020) In 2018, news sources revealed that Cambridge Analytica had acquired (Brown, 2020) over 87 million Facebook users’ data, without their consent or prior knowledge. (Ikhalq, 2019) Cambridge Analytica had attained psychographic data to profile people based on their Facebook interactions (Ikhalq, 2019) and to target advertisements for the November 2016 US election. (Brown, 2020)

The ethical dilemma Facebook faced following the discovery of the issue was whether they should disclose the breech in contract of the un-authorised use of personal data and so be transparent with their consumer. (Duarte, 2019) They decided to withhold from their users that their personal data had become the property of another company. (Duarte, 2019) The ethical dilemma Global Science Research faced was whether to disclose the intent and purpose of the use of data they collected through their app ‘thisisyourdigitallife’, a personality test that collected data. (Ikhalq, 2019) They decided to disclose that the data would be used for academic purposes only. (Duarte, 2019) The ethical dilemma Cambridge Analytica, a behavioural research and strategic communications company, (Duarte, 2019) faced, was whether to use the data collected from Facebook users for political services to

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Facebook Scandal with Cambridge Analytica

ACCG1001

promote campaigns without disclosure to the public. They decided to use the data to promote campaigns that aligned with the psychographic data collected. (Ikhalq, 2019)

Facebook users were impacted by the ethical issue due to an invasion of privacy and betrayal of trust. Cambridge Analytica had collected data from users, as well as from their family and friends (Ikhalq, 2019), gaining access to tens of millions of Facebook users’ private information, regardless of privacy or authorisation settings, putting their privacy at risk, (Ikahlq, 2019) and threating citizens’ rights to a democratic political system. (Hsu, 2018) Mark Zuckerberg was impacted as he had to address the lack of transparency towards Facebook users regarding the data breech (Duarte, 2019). and had to regain consumers’ trust by creating a more secure platform through changes to the app being audited for suspicious activities and banning app developers from the platform for disobeying the rules and restricting developers’ access to data to prevent the abuse of power. (Ikhalq, 2019), Zuckerberg was called to testify before Congress on April 18, 2018 (US-Senate, 2018) to address the data sharing scandal. (Duarte, 2018)

Shareholders were impacted by the ethical issue as the share value dropped as consumers, publicly announced they would leave Facebook and encouraged others to follow (Brown, 2020, escalating to many users joining the Twitter campaign #deletefacebook (Brown, 2020; an estimated 74% users made adjustments to their privacy settings, took a break from or deleted the app. (Perrin, 2018) Facebook’s share price decreased 7% and its market value dropped over $36 billion (CNBC, 2018,-November 20).

Facebook’s decision to withhold the truth about the use of their consumers’ data was unethical, displaying a lack of transparency and going against the greater good for the greater number of people. (Birt-et al., 2012) This resulted in reduced trust in the business, negatively impacting on the share price, market values and consumer volumes. However, Zuckerberg’s response in placing measurements to audit all apps associated with Facebook to ensure safety, positively impacted the business with the gradual regain of consumer use and trust. Cambridge Analytica’s decision to acquire Facebook users’ data without consent or knowledge and to use it for political manipulation is regarded unethical due to a breach of privacy and abuse of trust. This negatively affected the business, forcing it to cease trading

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Facebook Scandal with Cambridge Analytica

ACCG1001

due to legal fees, loss of reputation of the brand and loss of customers. (Salinas, 2018) Global Science Research’s decision to use their app to collect psychographic data from Facebook users and make it available to Cambridge Analytica without consent is regarded unethical due to withholding the truth and invasion of privacy. (Ikahlq, 2019) This resulted in the removal of the brand from Facebook and negatively affected their reputation. Both organisations going against a sense of duty to follow rules and regulations.

In conclusion the unethical decisions made had lasting implications, financially and to the brand and reputation of all parties involved, including all stakeholders. However further research is required to understand how unethical behaviour can impact on regulations to monitor organisations.

46419233

Facebook Scandal with Cambridge Analytica

ACCG1001

Reference list

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Birt, J., Chalmers, K., Maloney, S., Brooks, A. and Oliver, J., 2012. Business Sustainability. [online] Accounting: Business Reporting for Decision Making 5th Edition. Available at: [Accessed 22 April 2020].

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Brown, A., 2020. “Should I Stay or Should I Leave?”: Exploring (Dis)continued Facebook Use After the Cambridge Analytica Scandal. Social Media + Society, 6(1), p.205630512091388.

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Duarte, R., 2019. Case Study: Facebook In Face of Crisis. Crisis Management: The Facebook - Cambridge Analytica Data Breach Case,.

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NASDAQ. 2020. Facebook, Inc. Class A Common Stock. [online] Available at: [Accessed 13 April 2020].

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Fischer, J., 2004. Social Responsibility and Ethics: Clarifying the Concepts. Journal of Business Ethics, 52(4), pp.381-390.

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Statista. 2020. Global Social Media Ranking 2019 | Statista. [online] Available at: [Accessed 12 April 2020].

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Salinas, S., 2018. Cambridge Analytica Is Shutting Down, Says The 'Siege Of Media Coverage' Drove Away Clients. [online] CNBC. Available at:

[Accessed 13 April 2020]....