Lopez | 0 Valerie Lopez Michelle Berthiaume BUS - 206 February 11, 2024 5-2 Project Two - Ethical Test or Framework The ethical test or framework I would recommend for this company is the Utilitarian Approach. This approach, first proposed by philosophers Jeremy Bentham and John Stuart Mill, suggests that the most ethical choice is the one that will produce the greatest good for the greatest number. Also known as consequentialism, suggests that an ethical decision should maximize benefits to society and minimize harm. What matters is the net balance of good consequences over bad for society as a whole. The Utilitarian Approach assesses an action in terms of its overall impact on society or on all those affected by the action. The benefits of this approach include it is straightforward and quantifiable, making it easier to compare potential actions. It considers the welfare of everyone and tries to minimize harm and maximize benefits. However, it also has potential shortcomings. It can justify actions that are unjust or unfair to individuals if they benefit the majority. It requires predicting the consequences of an action, which can be difficult or uncertain. The Utilitarian Approach is appropriate for this company because it operates in a sector where the actions of the company can have a significant impact on a large number of people (customers). In the case of the data breach, the company needs to consider the potential harm to the customers
Lopez | 1 whose data was accessed, the potential damage to the company's reputation, and the potential benefits of transparency and taking responsibility for the breach. Using the Utilitarian Approach, the company would likely conclude that notifying the affected customers and taking steps to prevent future breaches would result in the greatest overall benefit. This would minimize harm to customers and potentially enhance the company's reputation for honesty and integrity. In the case of the data breach, the Utilitarian Approach would involve the following steps identify the potential actions (e.g., do nothing, notify the affected customers, improve security measures). Predict the consequences of each action for all those affected (customers, company, employees). Choose the action that produces the greatest overall benefit or least overall harm. For example, if the company decides to notify the affected customers and improve security measures, it might suffer short-term harm (e.g., loss of trust, potential legal action), but in the long term, it could benefit from increased trust and loyalty from customers.
Lopez | 2 References: Kubasek, Nancy. (2023). Dynamic Business Law. 6e Ch 33, 35, and 42 https://prod.reader-ui.prod.mheducation.com/epub/sn_8133c/data-uuid- 4b79a3b3390b4c5ab676c21560e9662d Data Breach Response: A Guide for Business https://www.ftc.gov/business-guidance/resources/data-breach-response-guide-business Mill, J. S. (1863). Utilitarianism. London: Parker, Son, and Bourn. https://www.loc.gov/item/11015966/ Bentham, J. (1789). An Introduction to the Principles of Morals and Legislation. London: T. Payne and Son. https://www.econlib.org/library/Bentham/bnthPML.html