HC2121 Comparative Business Ethics
In the recent business world, the corporate culture has changed and has been grown up immensely. All these qualities will frame an organization. The concept has overreached far beyond human capabilities, money, and material. All these components mentioned is may not be tangible but can be felt and experienced and because of these measuring the work culture of that specified organization will become easy. It is very necessary for the businesses in the era of intense competition to follow the ethical practices that are required to full fill the responsibility towards society. Business in today’s world is always following the ethics of good practices is fulfilling responsibilities towards society.
The main purpose of this essay is identifying the comparative social responsibility and business ethics. The essay is based on the data breach case of Uber and how it impacts on the ethical standards of the company and based on the arguments are taken from the article of The Sydney Morning Herald. The essay will on firstly demonstrate the summary associated with the issues and discuss the incidence with own decision making based on philosophical theories and other case studies such as the case of CBA.
Outline and summarize the arguments made in the article including relevant background/history and consider any legal or sanction implications.
The whole article has been based on the massive data breach incident of Uber that will happen in the year 2016. In this data breach incident, the phone numbers, names and email addresses of more than 20 million customers of Uber technologies have been breached by hackers. The whole incident will put a massive blow on the Uber and they will have to pay $ US 148 million for not implementing proper security measures to control the data breach.
This is one of biggest embarrassments on the part of Uber and has also suffered image of the company (The Sydney Morning Herald, 2018). The data breach that occurred in the case of Uber will bring the company under the several legal implications in the context of the data breach. Data breach that has been happened on the Uber will bring down the liability of the Uber under the privacy legislation, it will be stating that the companies are required to be maintaining in the proper data protection and privacy measures as well as providing timely notification in case of any security breach happen (The Sydney Morning Herald, 2018).
This legal implication will also authorize the concerned government to investigate the company for complying with the concerned privacy laws. The government will also have an authority to sue the company at the legal court for not following non –compliance and also not able to compensate the damages (Derfel, 2018). These types of breach will also result in civil liability. In the mentioned case of Uber people who have suffered disclosure of their confidential data will implement lawsuit against Uber and are totally seeking class action certification. Suffered people are seeking damages for credit counseling, theft fortification services, and monitoring. This legal implication will provide a claim on the Uber who has failed to uphold its duty to inform its users (Derfel, 2018).
In this article, it has been mentioned that the company has done a settlement with 50 US states is among the biggest legal battles that have been resolved by the initial public offering last year. The article will also state that the cover-up has been violating reporting of a security breach and also enabling the data security laws. The cover-up incidence that has initiated by the Uber will affect the trust of the Uber on the public view (Derfel, 2018).
Even in November 2016, the management of Uber has also paid the concerned hackers to destroy the stolen data and this whole procedure has performed secretly without informing the public. This overall incidence of disclosure of sensitive public information and after that trying to evade or cover up this problem secretly will also bring a question mark on the ethical standards of the company. This article will demonstrate the strong disfavor in respect of Uber which is trying to cover up the whole issue silently.
Discuss the key ethical issue/s/ concerns raised in the article (this can include: corporate governance, corporate social responsibility, corporate citizenship, leadership etc.
The several key ethical concerns are being raised in this article. Below stated are concerns that are being raised in this article.
Corporate governance: It is the system of rules, processes, and practices that can be controlled and also being directed. Corporate governance is effectively balancing the interests of the stakeholders of the company and will be managing the several shareholders, customers, management, suppliers, financiers, community and government authorities. Corporate governance is available in every aspect of management because it is providing the framework for gaining the company objectives (Tricker and Tricker, 2015).
Customers are the most crucial component in the context of Uber and they are deriving action plans and internal controls for enhancing performance measurement and corporate disclosure. In this mentioned case the firstly the sensitive data of their customers are hacked and after then the company has not disclosed the incident to its stakeholders and tried to cover up the whole incident. This is affecting the corporate governance of the company and disturbed the balance among the stakeholders (Tricker and Tricker, 2015).
Corporate Social Responsibility: Corporate social responsibility is a form of international business model that will help any company to become socially accountable to themselves, stakeholders and to the public. Companies are becoming conscious regarding the form of impact they will be having on all the mentioned aspects of society that is social, economic and environmental. To engage in the CSR activity in the normal process of business the company is operating with the help of processes that will effectively enhance the environment and society (Trong Tuan, 2012). In the mentioned case of Uber, the company tried to cover up the whole incident and this deemed as a violation of CSR norms.
It is important for the Uber management team to disclose this matter to its stakeholders in an efficient matter instead of covering up the whole incident silently. CSR is also a wide concept and is taking many forms depending on the several industry and company. It is with the help of CSR programs businesses across the globe will able to benefit its society while promoting their image and became a good corporate citizenship (Trong Tuan, 2012). CSR is crucial for the community it is at the same time will be equally valuable for its company. If a company wants to be socially responsible then it will first need to be responsible to itself and also to its shareholders.
Leadership: A leader which is more concerned to follow the established corporate ethics code or several moral standards of its behavior. Another most important driver of ethical behavior is the form of importance the leaders will place on defining themselves as morally good people. The reason behind the mentioned incidence of Uber will more because of the ineffective ethical leadership (Trong Tuan, 2012).
There are many incidences happened across the globe where businesses will drive higher revenues but are not able to conduct their business ethically. Uber has also derived higher revenues but is not enough concerned about the ethical practices that are required to be followed up in the business.
In your opinion has/have the most appropriate ethical decisions been made? If so why? If not why not? Provide examples of other ethical cases to support your answer. (If a legal and or sanction imposed, was this (in own opinion) reasonable? Why /Why not?
There are also some other incidences that are highlighting the cases of unethical conduct in the business. In the Commonwealth Bank of Australia (CBA) where hard earned money from several elderly citizens has put in risk by the rogue financial planners and after that CBA will be tried to cover up this incident.
This unethical scandal will come in light only when this Jeff Morris will come forward to expose this misconduct of unethical behavior. In my opinion, the whole incident is totally unethical in terms of the standards and moral value of CBA (Thinkspace, 2018). This whole incidence will crop up because of excess pressure on the financial planners to achieve their financial targets and promoted the unethical practices by providing huge commissions to support their doings.
Also after the incidence will become highlighted then CBA management will also cover up the incidence for a longer period of time. The whole incidence will support the involvement of CBA management in this because when the issue will be highlighted in the year 2006, the CBA management instead of investigating the matter promptly took two long years until 2008 to take action on involved financial planner Don Nguyen and suspended him only for a month and again promoted him after a while to a senior financial planner as the matter cool down (Thinkspace, 2018).
As the incidence will be highlighted the legal implication process was started on this case and in my opinion, it is totally reasonable if the legal sanction has been imposed on the CBA. The whole incidence from inception and the manner by which CBA had handled the incident will be totally unethical and supporting the legal implications on them.
Outline your ethical decision-making processes aligning your opinion/decision by identifying the most relevant of the seven moral philosophies.
The ethical decision-making process in the current will be based on the seven moral philosophies. Each of the philosophy will have their own perspective. In the mentioned case of the Uber, the moral philosophy of Teleology will be applicable. This moral philosophy will be defining that if the act is acceptable considerably then the outcome or result will also be as per the expectations (Fieser, 2018). This will define that if any incidence will not benefit a specific group or an individual then they will have nothing to do with the process. Teleology will be looking the incidences as per their moral worth by effectively examining their consequences.
Teleology is also further depending on the two most important philosophies that are usually used in the process of decision making in business such as Utilitarianism and Egoism. Egoism has been defined in terms of business where they will concern for their own welfare and interest on the basis of morality. In the mentioned case of the Uber, Egoism will be affecting the direction their customers because the data breach will disclose their confidential data (Fieser, 2018). This philosophy will have a negative effect on the image of the Uber because it will be deemed as selfish behavior in the context of Uber management. Though there is another side of the egoism that will be deemed as positive and will be deemed as enlightened egoism. T
This form of egoism will be concerned about the well being of their customers but they will be more concerned about their own interest first. The second form of philosophy has been stated as utilitarianism and has been described as a concern of promoting more satisfaction and happiness to the greater number of human beings (Fieser, 2018). Both these terms utilitarianism and egoism are totally concerned with the several consequences. Though Utilitarianism is primarily concerned with human beings as a whole, while egoist in businesses is totally concerned with the outcomes of the business in the overall aspect.
This has been concluded from this essay that is lack of effective consensus on the matter that is defining the business ethics. It has been witnessed from the mentioned cases of the Uber that business will have to follow the ethical standards in the true sense. The modus operandi of the business across the globe has been changed. A corporate world has been changed not because of its liabilities, assets, balance sheets and capital. It is also defined by social responsibility, social accountability, behavior, respectfulness, honesty, commitment, integrity, team bonding, confidentiality, transparency, compliance, code of conduct and adherence to the law.
It has also been witnessed the moral philosophy of business will be based on the prevailing theories of ethics such as the philosophy of Teleology and this will reflecting on the case of Uber. Both the positive and negative aspects of the philosophy have been defined in these mentioned cases. It has concluded from this essay the behaving ethically will base on the aspects or form of leadership and both the corporate governance and corporate citizenship will get the implications of ethical standards in the true sense.
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