The decisions of large organizations have an impact on millions of people in today’s quick paced world of technology. This assignment discusses significant ethical concerns involving three well-known companies: Wells Fargo, Facebook, and Apple. It demonstrates situations in which these businesses have come under scrutiny for acting unethically. These incidents show the wider ramifications of such problems in the industry and serve as important reminders that ethical considerations must always be at the forefront in today’s interconnected society.
Wells Fargo (2016): Unauthorized Accounts Scandal
Unethical Behavior: Wells Fargo employees were found to have opened millions of unauthorized bank and credit card accounts in customers’ names without their consent. This was done to meet aggressive sales targets and earn incentives.
Why we found it unethical: The unethical aspect of this situation lies in the bank’s internal culture and the actions of its employees. While software systems may have been used to facilitate these unauthorized account openings, the core issue was the pressure on employees to meet unrealistic sales goals, which led to fraudulent behavior. This scandal affected millions of customers who unknowingly had accounts opened in their names, resulting in financial harm and damaged trust. Wells Fargo till this day is avoided by a good chunk of the American population as their primary bank because of this scandal.
Source: NBC News – Wells Fargo Accounts Scandal
Facebook (Cambridge Analytica Scandal, 2018):
Unethical Behavior: Facebook allowed the political consulting firm Cambridge Analytica to harvest the personal data of millions of its users without their consent for political advertising purposes during the 2016 US Presidential election.
Why we found it unethical: This scandal is an example of how Facebook’s data policies and third-party developer access to user data can lead to significant privacy breaches. Millions of Facebook users had their data misused for political manipulation, raising concerns about the ethical responsibilities of tech companies when handling user information. Facebook was greatly scrutinized for this scandal and user privacy concerns were raised throughout the technology industry causing reforms for user privacy policies. Although people still use facebook today, the number of regular users dropped by 37%.
Source: Theguardian – Facebook & Cambridge Analytica
Apple (iPhone Battery Throttling, 2017):
Problematic Behavior: Apple faced backlash in 2017 when it was discovered that the company had intentionally slowed down older iPhone models through software updates. Apple claimed this was done to preserve battery life and prevent unexpected shutdowns.
Why it’s Unethical: This situation raised ethical questions about transparency and user choice. While Apple may have believed it was acting in the best interest of users, the lack of clear communication about the slowdowns and the absence of a user opt-in/opt-out choice led to accusations of planned obsolescence. Many iPhone users felt deceived and believed that Apple was intentionally slowing down their devices to encourage upgrades, negatively impacting their trust in the company. Even though Apple had the right intention, communicating the choices Apple was making to achieve high longevity of their phones would have potentially increased customer trust rather than raise ethical concerns.
These examples demonstrate that even well-established and respected companies can face ethical challenges. In each case, the ethical issues were related to both the behavior of the companies themselves and the actions of individuals within those organizations. The consequences of these ethical lapses can have a widespread and lasting impact on customers, users, and the public perception of these companies.
Source: Reuters – Apple Lawsuit