Business Ethics – Final Project

Business Description and Conflict of InterestFacebook is a global social networking platform that allows billions of people to connect with
each other – Meta Platforms, Inc. This means that the company’s main source of income is
targeted advertising based on comprehensive user data(Al Ghrair & Dwivedi, 2021). But there is
a serious conflict of interest between owners who are interested in the highest profit and other
stakeholders and particularly users in their privacy and data security. The conflict of interest
these two objectives is especially relevant to Meta’s data privacy practices and the company’s
strategies for maximizing ad revenue through the widespread collection and use of personal data
for targeted advertising purposes. This conundrum is a microcosm of the wider dilemmas that
Meta is grappling with in terms of how it will pursue its commercial goals while managing the
needs of various stakeholders.
Shareholders’ Interests
The primary shareholders of Meta Platforms, Inc. are shareholders who are only concerned about
financial and expansion results. The key issues in these companies include greater levels of
profitability over since greater revenues and greater profits translate to higher dividends for
them. They also concentrate on raising the share value; this in turn has an effect on their initial
capital. Another key issue is sustainable growth strategies which are vital in guaranteeing Meta
achieve and sustain a competitive advantage within its market space to achieve profitability
goals. Furthermore, certain shareholders may require the company to distribute regular
dividends, and this will give them periodic cash flows(Dwivedi et al., 2021). In summary,
shareholders are concerned with share-value and other financial ratios that quantify the
company’s capacity to create wealth and increase investments’ worth during time.
Stakeholders and Their Interests
Meta Platforms, Inc. has a varied number of stakeholders with each having different interests
that are usually cogent to their association with the firm. For users, the issue is usually about the
confidentiality of personal information, and they demand guarantees that their privacy will not
be violated. They also want a platform that will entertain them and help them access content
that is not harmful to them. Advertisers on the other hand are interested with the efficacy of the
platform in delivering ads to the most relevant population group so as to maximize advertisers
returns for every dollar spent in advertising. The employees of Meta demand stability in the
workplace and want to work in a positive, ethical, and diverse environment. The company is
concerned with privacy laws and regulations, and the amount of money that the company needs
to give to the government through taxation. Finally, society as a whole expects the company to
be responsible and ethical in its actions, especially with regard to topics such as misinformation
and data privacy. These consumers are also concerned about the social consequences of their
purchasing decisions, such as the impact on mental health and democratic participation.
Primacy of Interests and CSR Model
I will argue that stakeholder interests should be the paramount concern in the Shareholder–
Stakeholder debate. This view is orientated towards how the actions of the company will affect
society as a whole and is therefore consistent with the stakeholder view of CSR. This model
outlines that a company has responsibilities beyond the pursuit of profit to the maximization of
shareholder wealth to all the stakeholders. Putting the stakeholders’ interest first would translate
into Meta adopting additional data privacy policies because this would earn people’s trust and,
in the long term, contribute to the creation of a model for a sustainable business. This is because
failure to address users’ privacy concerns may attract litigation charges as well as regulatory
sanctions and this would be reflected in the negative publicity that the company receives due to
privacy breaches. Moreover, guaranteeing users a high level of satisfaction and adherence to
ethical principles increases the likelihood of obtaining a dedicated user base, which, in turn,
contributes to shareholder value through continuous positive cash flows and positive brand
associations (Tazeen & Mullick, 2023). This mediation of these interests is of utmost importance
to the company for sustainable growth. Shareholders are interested in getting financial profits,
but these are actually derived from the impact on costs and benefits to all stakeholders. It fits
the description of CSR with regards to the stakeholder model of CSR—the company not only
recognizes the need to maximize shareholder wealth but further recognizes the need to
discharge ethical and social responsibilities in order for the company to benefit society. If Meta
is to adopt this model, it will develop a strong company that can survive the challenges of scrutiny
and continual changes in regulatory systems to deliver value to all its stakeholders.
References
Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., & Carlson, J. (2021). Setting the Future of Digital and
Social Media Marketing research: Perspectives and Research Propositions. International
Journal
of
Information
Management,
59(1),
1–37.
Sciencedirect.
https://doi.org/10.1016/j.ijinfomgt.2020.102168
Tazeen, F., & Mullick, N. H. (2023). The Impact of Social Media Platforms “Facebook and
Instagram” in Influencing Purchasing Behaviour of Green Products. Vision: The Journal of
Business Perspective, 097226292211339. https://doi.org/10.1177/09722629221133960
Final Case Study Project: Case Description & Stakeholder Analysis (10 pt)
Due Friday, 5/17 by 11:59 pm CST
late submissions possible with 1 pt. penalty per day for “unexcused absences”
This is the first of two assignments that make up your Final Case Study Project
Your final project will be a case study of an ethical problem in business. It will include: i) a case description
where the business practices being evaluated is described, ii) two case studies that apply an ethical
theory to see how that theory would assess and resolve an ethical problem, and iii) an analysis section
where you analyze the results of the case studies to make your own suggestions.
In this assignment, you will create a draft of your case description and do some preparatory work
determining who all of the stakeholders are. Completing this will give you the chance to receive feedback
prior to your final project and leave you with less work to do during finals.
In your final project, you will apply two ethical theories we have studied to run case studies that show: a)
how they would diagnose and describe the ethical problem and b) what kind of response or solution they
would suggest. You will also offer your own evaluation of the results and make your own suggestions
about what you think ought to be done.
What to do to prepare for this assignment
•
Read this prompt and the prompt for the final project in full to see what you are expected to do
here and what you are working toward.
•
Look at example projects.
•
Email with your questions more than 48 hours before the due date.
•
Choose a topic.
o Find an example of one particular business that has done or is doing something that you
think may be unethical in some way.
▪
Remember, NGOs, non-profits, Government entities are NOT businesses.
▪
Potential business practices to consider include product development or marketing,
hiring, working conditions, impacts on health and safety, environmental impact, etc.
o Your topic should demonstrate an ethical problem, not just a legal problem, although you
may use it to show that legislation is lacking or to argue for changes in law when you
conduct case studies in the next step of the project.
•
Find at least two sources you will use for research in the case description.
o Wikipedia is NOT an acceptable source.
o Sources must be publicly accessible (i.e. do not use a private social media post or a source
of information that cannot be accessed by others).
Stakeholder Analysis, 4 points
1. Research your topic and read the Stakeholder Analysis Worksheet from Week 3 (re-posted in this
module).
2. Complete Step 1 on the worksheet using section headings, columns, or a table for each category
of stakeholders listed. If there are no stakeholders within a particular category, write N/A beneath
that heading. Make sure to list as many stakeholders as you can think of, including those who are
indirectly impacted.
3. Complete Step 2 on the worksheet using red/green (or colors of your own choosing) text or
highlighting to make clear who is being harmed and who is being benefited in this situation.
4. Then, create a section titled “conflicts of interest” and describe any conflicts of interest you
noted between stakeholders. You can use bullet points or paragraphs for this.
Case Description (2-4 paragraphs), 6 points
Unlike most papers, you do not need to write an introduction or conclusion for this assignment. This
section of your project should be a purely descriptive piece of writing providing details and research about
one particular business practice or product that is potentially unethical. Your case description should begin
by describing the business practice or product right away.
In the next stage of the project, you will apply two of the ethical theories we’ve studied to make claims
about what exactly the ethical problem is and what ought to be done. In this section, we do not want to
know what your opinion is or what you think should be done.
How to format your document:
• Use a Word (.docx) document or a PDF to ensure D2L will allow commenting.
• Use 12 pt., black, Times New Roman font and double spacing for full credit.
• Include your name and a title based on your topic.
• Use the section headings below in your assignment:
o I. Case Description
o II. Works Cited
A case description (2 – 4 paragraphs) should do the following:
•
Provide all of the information someone needs to understand why there might be a potential ethical
problem. The goal is to describe the harm or problem(s) a business practice or product is causing
so that we can test different ethical theories to see what kinds of particular ethical violations they
might diagnose and what kinds of solutions they might recommend.
o In the case description, you want to avoid ethical judgments (eg. “This is unethical”) and
stick to describing the problem itself.
o Clearly describe who or what is being harmfully impacted, how, and by whom. Answer any
who, what, when, where, why, how questions that you think an intelligent but uninformed
reader would need to be aware of to consider what the potential ethical problems might be.
o Try to avoid stating that businesses have any particular ethical duties or rights so that you
can use this description to test various theories with different assumptions about what our
ethical duties are.
o You CAN mention potential rights violations, for example: “This might potentially violate
employees’ rights to [insert right here].”
•
Use MLA in-text citation for two sources you use for quotes, paraphrases, or summaries of data,
statistics, or other information. (See Basic MLA Guidelines under “course info” for help)
A case description should NOT do the following:
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Make an ethical judgment (eg. “this is not ethical” or “this business is unethical”)
•
Solve or suggest solutions to the potential ethical problems you are describing.
•
Assume a particular ethical theory or framework in the description (e.g. appeal to particular rights
or duties businesses have according to one ethical theory)
•
Provide a comprehensive history of the topic you are exploring outside of what is relevant to your
case.
Works Cited list instructions
Use MLA formatting to provide a works cited entry for all sources of data and information you use,
whether you are quoting it, summarizing it, or paraphrasing it. You must have at least two sources from
outside of the class. You do not need to include a works cited entry for our textbook even if you cite it in
your case description.
You will submit two documents in the submission folder on
D2L: 1) your stakeholder analysis and 2) your case
description.
Stakeholder Analysis Worksheet
You can use this to help you with assignments that require weighing stakeholder interests. You will
use this to complete a stakeholder analysis for your final case study later.
When we practice ethical decision-making and run ethical case studies, we need to be able to identify and
analyze stakeholder interests. This is especially important in utilitarian ethics but factors into many kinds of
managerial responsibility.
It is always best to work on identifying as many stakeholders as possible. From there you can work on
narrowing down the most relevant stakeholders for your problem and on identifying conflicts of interest
between stakeholders.
STEP 1: Make a list of all stakeholders using the following column headings.
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Shareholders (those who profit from the company directly)
Producers (employees, management, contracting companies, competitors, etc.)
Directly impacted members of the public (consumers, neighbors of a factory, etc.)
Indirectly impacted members of the public (future generations, those who live downstream, etc.)
Public goods (goods all people benefit from, like air and water)
STEP 2: Note whether each stakeholder is currently being benefited or harmed (if analyzing a current issue) OR
would be benefited or harmed by the proposed course of action (if analyzing a proposed change)
•
You can do this by arranging stakeholders in columns or by color-coding entries in your existing columns
using red and green highlighting.
STEP 3: Identify conflicts of interest between stakeholders.
•
•
You can do this by drawing lines on your worksheet or through using another column on a spreadsheet.
A full stakeholder analysis (in your final project) would write a brief report on identified conflicts of
interest.
STEP 4: Consider the context to determine whether you believe that some stakeholder interests matter more
than others in this particular case.
•
•
Once you do this, you may end up narrowing the list of stakeholders you consider relevant.
You might also decide to rank stakeholder interests in order of importance, depending on your topic.
Stakeholder Analysis Worksheet
You can use this to help you with assignments that require weighing stakeholder interests. You will
use this to complete a stakeholder analysis for your final case study later.
When we practice ethical decision-making and run ethical case studies, we need to be able to identify and
analyze stakeholder interests. This is especially important in utilitarian ethics but factors into many kinds of
managerial responsibility.
It is always best to work on identifying as many stakeholders as possible. From there you can work on
narrowing down the most relevant stakeholders for your problem and on identifying conflicts of interest
between stakeholders.
STEP 1: Make a list of all stakeholders using the following column headings.
•
•
•
•
•
Shareholders (those who profit from the company directly)
Producers (employees, management, contracting companies, competitors, etc.)
Directly impacted members of the public (consumers, neighbors of a factory, etc.)
Indirectly impacted members of the public (future generations, those who live downstream, etc.)
Public goods (goods all people benefit from, like air and water)
STEP 2: Note whether each stakeholder is currently being benefited or harmed (if analyzing a current issue) OR
would be benefited or harmed by the proposed course of action (if analyzing a proposed change)
•
You can do this by arranging stakeholders in columns or by color-coding entries in your existing columns
using red and green highlighting.
STEP 3: Identify conflicts of interest between stakeholders.
•
•
You can do this by drawing lines on your worksheet or through using another column on a spreadsheet.
A full stakeholder analysis (in your final project) would write a brief report on identified conflicts of
interest.
STEP 4: Consider the context to determine whether you believe that some stakeholder interests matter more
than others in this particular case.
•
•
Once you do this, you may end up narrowing the list of stakeholders you consider relevant.
You might also decide to rank stakeholder interests in order of importance, depending on your topic.
When to cite using in-text citations
• When quoting a source directly or using data you did not collect yourself.
• When paraphrasing or summarizing information and ideas you found in another source that are not considered
common knowledge in your own words.
o See syllabus for examples of common knowledge vs specific knowledge and ideas.
• See this resource for examples of paraphrases and summaries.
When to provide a Works Cited entry in our course
• When referring to any source that is not provided for you on D2L.
How to cite using MLA citations
If the author’s name IS NOT mentioned in the sentence, include the author’s last name followed by one space and
the page number (name #)
• The author states that the revolution was motivated by austerity policies (Gammage 6).
• It could be argued that “all austerity is manufactured” (Gammage 6-7).
If the author’s name IS mentioned in the sentence, only include the page number(s).
• According to Gammage, the revolution was motivated by austerity policies (6).
• Gammage argues that “all austerity is manufactured” (6-7).
Where to use in-text citations
Citations go at the end of the sentence for which they provide information after any quotation marks and before the
end of sentence punctuation.
• This revolution rejects Antoinette’s association between eating cake and holding disregard for
commoners, advocating instead for, “free cake for all” and calling for all baked goods to be, “unchained
from authoritarian ideology” (Gammage 4).
o This sentence blends paraphrasing and direct quotes and doesn’t mention the author’s name in
the sentence.
• Gammage argues that cake should be freely available to all persons (3).
o This is an example of a paraphrase and does mention the author’s name in the sentence.
If you are offering a summary throughout a paragraph or piece of writing and you are not including any direct
quotes, you can cite in the first sentence introducing the summary only.
• If you’re summarizing an entire text:
• Gammage, in Cake for All, outlines the history if The Great Cake Revolution of 2022.
• You would go on the summarize the entire text.
• If you’re summarizing a particular section, chapter, or article in a collection:
• Gammage, in “Cake for All,” argues that cake is an inherent human right (3-7).
•
You would go on to summarize the information in that section, chapter, or article.
Special cases
• Work without page numbers, such as websites does not include page numbers.
• When citing PDFs, use the original page numbers if shown; otherwise use the PDF page number
in our class.
• If you’re citing more than one work by the same author, use an abridged version of the title in the
in-text citation.
Further citation guidelines for MLA style citations and guidelines for MLA works cited entries are available on the
Purdue OWL website.
Choosing a topic for your Final Case Study Project
Requirements for a topic:
•
Topic must be a practice or product by a particular business that involves harm caused to at least some
stakeholders such that it opens ethical questions.
•
Topic must be about something pertaining to business.
o Businesses do not include non-profits, NGOs, or government entities.
o Your topic may call attention to a lack of or failure of a piece of legislation but it should allow you
to demonstrate ethical problems rather than purely legal problems.
▪ Example of a legal problem: Legislation about child labor is lacking.
▪ Example of an ethical problem: Child labor results in harmful and unethical conditions for
children with very little regulation in place to protect them.
•
Keep your goal in mind when choosing a topic. You want to take on something you can describe in
reasonable detail in 2-4 paragraphs and can then apply ethical theories to in order to make judgments
about ethical problems and offer solutions to them.
•
You need to be able to find enough detail about your topic to run case studies on it. Some important
ethical issues in business are thoroughly covered up and difficult to find data on. You ideally want a
topic you can find solid information about.
Broad vs narrow topics, pros and cons
A topic that is too broad can be difficult to complete research for or explain in a project of this size.
Example: The use of prison labor in business. OR The use of palm oil in food production.
These are both important topics, but it would be hard to describe them in enough detail in 2-4 paragraphs to
run good case studies on them.
A narrow topic about a very specific situation can help you run a very detailed case study and help keep your
research focused.
Example: Victoria’s Secret’s use of prison labor in garment manufacturing. OR Hershey’s use of palm oil.
These topics are narrow enough that you could describe them in a project of this size with enough detail to run
good case studies.
Potential topics for those who need help choosing one (some of these would need to be narrowed):
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Discrimination in hiring or compensation (particular businesses)
The use of consumer surveillance for marketing research (particular businesses)
Development or advertising of harmful products (particular businesses or particular products)
Environmental issues or land rights (particular businesses or particular cases or particular products)
Working and labor conditions (particular businesses or particular products)
You may use any topic from our textbook or readings but will need to find two research sources that
were not assigned in class.
If you are unable to choose a topic, I can help you.
Final Case Study Project: Presentation of Findings (15 pt.)
Due Friday, 6/14 by 11:59 pm CST (this is the last day of finals week)
late submissions are not possible except in cases of extreme emergency verifiable by an “excused” absence
What to do to prepare for this assignment
•
Read the feedback on your Case Description and make revisions if needed.
•
Consider which ethical theories you want to use based on the possibilities below and refresh your
knowledge of them by revisiting the material in the readings and tutorials.
Potential ethical theories to use for your two test cases (choose 2 frameworks with DIFFERENT
colors of highlighting)
•
Utilitarianism
o we aim for the greatest good and least harm for the greatest number of stakeholders
o Economic utilitarianism is NOT an option as it will recommend the same thing in every case
o this approach believes that the free market naturally results in the greatest good due to the
ability of consumers preferences to shape production
•
The stakeholder model of CSR
o this is a utilitarianism approach to corporate responsibility that attempts to balance the
interests of all stakeholders, including shareholders
•
Aristotelian and/or Confucian virtue ethics
o you can use both or choose one
•
Kantian ethics
o the duties/principles of the categorical imperative, including universality and treating
persons as ends in themselves by respecting autonomy and reason
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Moral minimalism
o the economic model of utilitarianism plus minimal duties, including the negative duty to do
no harm
•
The United Nations Ruggie Principles
o this is a moral minimalist approach minus economic utilitarianism
o it holds only one negative duty for businesses: the duty to do no harm
•
Maximalist principle-based ethics
o This includes both negative and positive duties and may or may not be combined with
economic utilitarianism.
o If you use this, you will need to make clear which rights/duties you understand this position
to consider and should draw on the textbook material to do so.
How to format this assignment
• Use a Word (.docx) document or PDF.
• Use 12 pt., black, Times New Roman font and double spacing.
Use the section headings below in your assignment.
o I. Case Description (already completed, revise if needed)
o II. Case Study 1: NAME OF ETHICAL THEORY YOU USED
o III. Case Study 2: NAME OF ETHICAL THEORY YOU USED
o IV. Analysis
o V. Works Cited (already completed, make additions if needed)
How to complete case study sections (you will complete 2, each one is worth 5 points)
Each of the two case studies should be 2-4 paragraphs and do the following:
1) (2.5 pt.) Describe how the theory/framework you are using would determine that there is an ethical
problem and clearly state what the ethical problem or judgment that theory would identify is.
For example, if you are using the Ruggie Principles, explain how your case demonstrates an
ethical issue with businesses failing to meet their duties as described in this framework. If you are
using a principle-based maximalist approach, explain which rights/duties seem to be violated. If
you are using utilitarianism, explain how the greatest good for the greatest number is not being
achieved and/or how happiness is being violated by drawing on stakeholder impacts. If you are
using Kantian principle-based ethics, explain which principle or duties are being violated. If you are
using virtue ethics, explain how virtue is not being demonstrated or encouraged and/or how vice is
being demonstrated or encouraged.
2) (2.5 pt.) Then, offer a response or solution to the ethical problem that you think the
theory/framework would recommend and explain how this response or solution would satisfy the
theory/framework you used.
How to complete the analysis section (5 points)
Your analysis section should be 2-4 paragraphs and do the following:
1) (2.5 pt.) State and provide reasons for your opinion of the results of your case studies. Does one
theory/framework offer a better analysis of the ethical problems than the other? Why? Do you think
both should be combined to fully illustrate the ethical problems as you understand them? How? Do
you find both solutions problematic for fully demonstrating the ethical problems as you understand
them? Why?
2) (2/5 pt.) Explain what you think the solution to the problems ought to be. Does one case study offer
a better solution than the other? Why? Can both suggestions be combined? How? Do you think
there is a better solution than the ones your case studies provided? What is it and why do you think
it is better than the others?
SUBMIT YOUR FINAL PROJECT AS ONE DOCUMENT ON D2L BEFORE 11:59 PM ON 6/14.
The portal will close at 11:59 pm and emailed submissions will not be accepted.