1. Facebook-Cambridge Analytica
- Description: In the 2010s, personal data of millions of Facebook users was collected by a British consulting firm, Cambridge Analytica, who used this data to provide analytical assistance to the 2016 presidential campaigns of Ted Cruz and Donald Trump. This was done through a Facebook quiz app called “This Is Your Digital Life” created by Cambridge Analytica which presented itself as a simple personality quiz but would simultaneously harvest all personal information of not only the user but also the user’s friends on Facebook. The data of over 87 million users was then purchased by the Trump presidential campaign which the campaign would use to push negative ads about his opponent to swing voters, and positive ads about him to his supporters.
- Problem: First, obtaining the personal information of millions of users without their explicit consent is obviously an unethical practice. Second, the users were also not adequately informed about how their data would be used, as there was no indication that their Facebook friends’ data would be taken, especially without their consent. Next, the use of data for political manipulation purposes is highly unethical, especially considering the psychological methods used to manipulate users’ voting patterns by using this data. Overall, the informed consent violations and the breach of trust and manipulation by Facebook, Cambridge Analytica and the presidential campaigns involved made this incident much more important, highlighting the need for stricter ethical guidelines concerning the use of personal data.
- Description: In 2015, the Environmental Protection Agency (EPA) found that Volkswagen had programmed some of its diesel engines to activate their emissions controls only during laboratory emissions testing. This software, installed in about 11 million cars worldwide, made the vehicles meet US standards during regulatory testing but emit up to 40 times more nitrogen oxides in real-world driving conditions. This deceit not only violated environmental laws but also betrayed the trust of consumers who believed they were purchasing environmentally friendly vehicles.
- Problem: The unethical behavior in this situation is twofold. First, the software engineers and company executives who designed, implemented, and approved the use of this “defeat device” software acted unethically by intentionally circumventing environmental laws and regulations. Their actions demonstrate a deliberate effort to deceive both regulators and the public for financial gain. Second, the software itself performed functions that are unethical, as it was designed to deceive and cause harm to the environment, directly contradicting the purported eco-friendly benefits of these diesel vehicles. This case is a stark example of unethical behavior on the part of both the engineers and the product they created.
- Description: Once a titan in the energy industry, Enron Corporation when bankrupt in 2001. At the heart of its downfall was the company’s use of sophisticated accounting software to engage in “mark-to-market” accounting and to set up special purpose entities (SPEs). They used this software in order to artifically inflate their revenue figure while hiding massive amounts of debt from its balance sheet. This defrauded investors, regulators and the public from what was truly happening withing the company. These manipulations involved complex financial instruments and partnerships, obscured by the software’s capability to manage and disguise the true financial state of the company, impacting an estimated $74 billion in assets at the time of its bankruptcy.
- Problem: The unethical conduct that Enron Corporation did was seen throughout many levels in the corporation. Firstly, the accountants, software engineers, and executives who developed, deployed, and sanctioned these software applications engaged in unethical conduct by deliberately skirting financial reporting standards and regulations. Their actions were a calculated attempt to mislead stakeholders about Enron’s financial performance and stability. Secondly, the software itself was a tool of unethical action, engineered to facilitate and conceal financial wrongdoing. It played a critical role in fabricating a misleading picture of Enron’s financial status, leading to one of the most significant corporate collapses and scandals in history. This episode serves as a glaring illustration of unethical practices by both the individuals behind the technology and the applications they designed.