Business Ethics – Week 6 Assignment – Discussion Analysis Please review the DQ forum for this week. Select 2-3 postings from your peers to analyze in your personal assignment response. For your personal assignment this week: Write a 1-2 page summary on your analysis of the discussion comments and how you believe this content has increased your ethical self-awareness. Please include alternatives, analysis, application, and action. The assignment should be submitted as a Word document and APA format is required. The title page and reference page are not counted in the 1-2 page requirement. *Please remember to include your results from this assignment on your ethics portfolio for the final project. The dropbox will be in Week 8. Discussion Forum: From your readings in Chapter 10, please review the Case Study on Google: The Drive to Balance Privacy with Profit. After your review of the video case study, please post a summary on your thoughts about the case study. Please correlate your thoughts to the readings from the chapter and one peer-reviewed article from the GU library ---------------------------------------------------------------------------------------------------------------------------------------Peer Post from Dallas Uonites Week 6 Discussion Google, a technological giant, has had many issues regarding privacy connected to its data sharing practices. Google has been at odds with multiple countries, as well as the United States in regard to its data sharing practices and what constitutes as legal data sharing (Ferrell, Ferrell & Fraedrich, 2018). Data privacy rights has been an issue found within modern society, especially with cloud based applications, which is why it creates an ethical dilemma for cyber security personnel. Securing one's data is the premise of these professionals, as well as abiding my ethical standards and legal and regulatory policies. As data is seemingly migrated from one's private data storage to the cloud, privacy concerns start to blur between data ownership and security implementation. As the organization continues to migrate data from its own server farms to a third party, such as Google, the organization runs into the problem of losing their personal data and rights to it, as the data is not within their positive control. With this frame of mind, one can see that data privacy rights extend not only from the third party, i.e. Google, who is a company developed for free information sharing and believes in providing its services to all via organizational assistance or by allowing browsers to use their services and creating revenue from adware. This means that this organization is not only innovative but is funded via the use of personal data. Ethically speaking as a cyber security professional, as long as the organization provides a policy or privacy rights document to its users, the company is allowed to sell or use whatever information is required to create revenue, as long as personally identifiable information is secured at all times. Where Google has run into privacy concerns stems from illegal practices, such as wardriving (which is term used in cyber security to dictate that an illegitimate source is acquiring wireless networking information from private sources not owned by the source) or from collecting user data via tracking. Tracking information can occur from simply browsing the internet, just to using one's Android device (Simon, 2018). What is important to note is that Android phones are consistently sending data to Google, even while they are not being actively used. This means that Google is receiving user information, which in turn could be used to tailor ads to the user, and create additional revenue for the organization. As Google is mainly funded via advertising, it is important to know how to secure one's information whilst browsing the internet, using IoT devices, or simply by just using one's smartphone. Being a cybersecurity professional has shaped my view of thinking based upon data security and the ethicacy of using and tracking user data. Professionally speaking, as long as users are provided with documentation telling them their rights and the uses of their data, Google is practicing ethical cyber security practices. Personally, I believe that data should not be tracked, as once that data is aggregated, one can determine how to utilize Personally Identifiable Information (PII) and steal someone's identity. (chart belongs to: Cyberscout authored by Matt Colina) When viewing the chart above, it must be mentioned that all it takes is 3 of the listed sources of PII to steal one's identity. With this in mind, it can be easily seen as to why cyber security professionals, and data giants such as Google, continuously battle between what is considered ethical practices and what is right for those that the professionals are attempting to help. So is Google conducting ethical business? This question can only be answered via one's own morals and values, as it can be swayed either way. Cullina, M. (2012, March 2). Recipe for a safer identity is as easy as pii. Cyberscout. https://cyberscout.com/en/blog/recipe-for-a-safer-identity-is-as-easy-as-pii Ferrell, L, Ferrell, O.C., & Fraedrich, J. (2018). Business Ethics: Ethical Decision Making and Cases (12th ed.). Cengage. Simon, M. (2018). Google Privacy Checkup FAQ: How to limit tracking and still use the apps you love. PCWorld, 36(10), 87–93. ===================================================================================== Peer Post from Jennifer Kim The case study ‘Google: The Drive to Balance Privacy with Profits’ analyzes efforts by the multinational corporation (MNC) to become a good corporate citizen and the ethical issues related to privacy that it faces. Although the MNC has faced several challenges related to privacy, it has attempted to balance between the needs of its different stakeholders. To begin with, Google took extra care to ensure that its actions were ethical by developing robust privacy policies. The company started with seventy policies before summarizing them into one. In particular, in its policies, the company explained how it intended to use consumer information, thereby assuring Google users that their information was safe. At this point, a serious ethical dilemma emerged. Whereas user information could make the company highly profitable, it presented the threat of privacy violation. This correlates with the sentiments by Ferrell et al. (2015) who recognize the dilemma involving privacy violation as a serious issue. For instance, the US Federal Trade Commission negotiated with Google to work with third-party firms in privacy audits. Second, Google has been working hard to maximize profits of its stakeholders by selling data to advertisers. Although this led to several violations and even lawsuits in different countries, for example, in Europe, it presented the company with an opportunity to learn how to balance between profits and privacy. After reading the article by Li and Nill (2020), I believe that Google can avoid the issue by offering to buy information from users. However, I doubt the findings that informed consumers are willing to pay less than their uninformed counterparts. Still, the company should improve its strategy in meeting the needs of consumers. Overall, Google has successfully balanced the needs of its stakeholders with the exception of consumers. In the future, the company should consider buying data from consumers to avoid privacy issues. References Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: Ethical decision making & cases (10th ed.). Nelson Education. Li, H., & Nill, A. (2020). Online behavioral targeting: Are knowledgeable consumers willing to sell their privacy? Journal of Consumer Policy, 43(4), 723-745. https://doi.org/10.1007/s10603-020-09469-7 Peer Post from Robert Adelizzi II Week 6 Discussion Multinational corporation (MNC) technology giants such as Google continue to go unregulated on major ethical concerns that impact our personal freedoms. With the failure of the U.S. and U.N. to declare guidelines on what should be considered personal protected internet information, the government has allowed technology companies to decide where our rights to privacy begin and end. There are no laws to stop technology companies from censoring our online expressions that oppose their business culture. Tech giants such as Google have become so large that they would now be now classified as too big to fail in a time of economic downturn. Without Google, there would be impact on GDP and disruption to the lives of people living in developed countries. Perhaps there is a lack of public concern since studies show the public’s perception of ethical conduct is highest among technology companies. (Ferrell, 2018). We do know that the public had much concern for healthcare privacy in the past, which led to the Health Insurance Portability and Accountability Act (HIPAA) in 1996, but the US still has not enacted legislation to protect our personal internet information nearly 30 years after the start of the internet. Google has the ability to censor the internet in what it deems inappropriate, which is very concerning. Recently other MNC technology giants such as Twitter and Facebook decided to go as far as censoring politicians. It is interesting to see how some U.S. government officials including the President of the United States reacted to being censored. Creating legislation to protect freedom of speech on the internet is essential but the platforms are business owned so have the business has the right to remove content deemed misleading or incorrect. Many would argue that speech being censored is subjective to a company's politcal bias, and freedom of speech should not apply to rules of ethics,. Regardless if freedom of speech on a busiess owned platform should be regulated by a company's ethics commitee, the issue in itself is an ethics issue. Personally I prefer to evaluate all viewpoints and make a judgement based on the collective thoughts, which requires due diligence. Are antitrust laws strong enough for massive MNC such as Google? MNCs now control the vast majority of global production networks, and their political behavior and business strategies directly affect the distributional consequences of international trade. (Ballor 2020). This means MNCs have an incredible advantage over their competitors. International laws do not appear strong enough or there are loopholes that have not been closed to allow for more completion? MNCs can easily acquire all the small innovative technology companies before they are considered competition as we see with Google owning many subsidiaries which cannot evolve into competition against them. Google is now too big to fail like the many large companies during the 2007 Financial Crisis which received corporate welfare bailouts, including the many banks that contributed to the Finical Crisis. The US government bailed out the largest companies and left all the smaller companies to succumb to rules of capitalism, which only made the biggest companies more powerful with less competition. I doubt the largest MNCs now put much emphasis on risk compartmentalization when they know they have world government safety as their nets. I do hope that in the years to come that everything is not owned by a handful of big tech companies or bimodal wealth distribution will be more prominent, which could lead to political instability. (Ferrell, 2018). Without stronger antitrust laws, governments need to mitigate the risk of MNCs growing too large with stronger antitrust laws. Refereneces Ferrell, O., Fraedrich, J., & Ferrell, L. (2018). Business Ethics: Ethical Decision Making & Cases (12th ed.). Caudill, E.M, Murphy, P.E. (Spring, 2000). Consumer Online Privacy: Legal and Ethical Issues. Journal of Public Policy & Marketing. Vol. 19(1) Ballor, G.A., Yildirim A.B. (2020) Multinational Corporations and the Politics of International Trade in Multidisciplinary Perspective. Business and Politics. 22(4): 573–586 Week 6 Chapter 10 Summary In this chapter we tried to sensitize you to the important topic of ethical decision making in an international context. We began by looking at values and culture. A country’s values are influenced by ethnic groups, social organizations, and other cultural aspects. Hofstede identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity. The self-reference criterion is the unconscious reference to one’s own cultural values, experiences, and knowledge and is a common stumbling block for organizations. Another approach organizations tend to take is that of cultural relativism, or the idea that morality varies from one culture to another and business practices are defined as right or wrong differently. Risk compartmentalization is an important ethical issue and occurs when various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole. The last financial meltdown was in part the result of risk compartmentalization. Understanding rational economics and systems is an important foundation for understanding business ethics. Rational economics assumes people make decisions rationally based upon utility, value, profit maximization, and relevant information. Capitalism bases its models on these assumptions. Behavioral economics, by contrast, argues that humans may not act in a rational way as a result of genetics, learned behavior, emotions, framing, and heuristics, or rules of thumb. Social democracy, a form of socialism, allows private ownership of property and features a large government equipped to offer services such as education and health care to its citizens. Sweden, Denmark, and Finland are social democracies. Multinational corporations are public companies that operate on a global scale without significant ties to any one nation or region. MNCs contributed to the growth of global economies but are by no means immune to criticism. The International Monetary Fund makes short-term loans to member countries that have deficits and provides foreign currencies for its members. The UN Global Compact is a set of 10 principles that promote human rights, sustainability, and the eradication of corruption, while the World Trade Organization administers its own trade agreements, facilitates trade negotiations, settles trade disputes, and monitors the trade policies of member nations. There are several critical ethics issues of which global businesses should be aware. Global risks create ethical issues for global companies to manage. Bribery is a major ethical issue, prompting legislation such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Antitrust activities are illegal in most industrialized countries and are pursued even more ardently in the European Union than in the United States. Internet security is an ethical issue, and hacking and privacy violations are on the rise. The United Nations codified human rights as a function of inherent human dignity and includes equal and inalienable rights such as the foundation of freedom, justice, and peace in the world. Health care and labor issues are important ethical issues but tend to vary by country. Wage issues such as a living wage and executive compensation are controversial topics that affect a variety of global stakeholders. Consumerism is the belief that the interests of consumers should dictate the economic structure of a society, rather than the interests of producers; it refers to the theory that an increasing consumption of goods is economically desirable, and equates personal happiness with the purchase and consumption of material possessions. 1. Most countries have a strong orientation toward ethical and legal compliance. No. That’s an ethnocentric perspective; in other countries, laws may be viewed more situationally. 2. The self-reference criterion is an unconscious reference to one’s own cultural values, experience, and knowledge. Yes. We react based on what we have experienced over our lifetimes. 3. One of the critical ethical business issues linked to cultural differences is the question of whose values and ethical standards take precedence during international negotiations and business transactions. Yes. Ethical standards and values differ from culture to culture, and this can be a critical point in effective business negotiations. Some people believe in cultural relativism, which means that the standards of the host country hold sway. However, many MNCs are legally bound to adhere to the standards of the host country. 4. Multinational corporations have identifiable home countries but operate globally. No. Multinational corporations have no significant ties to any nation or region. 5. Certain facilitating payments are acceptable under the Foreign Corrupt Practices Act. Yes. A violation of the FCPA occurs when the payments are excessive or are used to persuade the recipients to perform other than normal duties.
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