Project 2 1 Southern New Hampshire University Kiley Al-Nubu'at Module 5 Project 2 Instructor: Anna-Laura Diaz 04/07/2024
Project 2 2 In any situation involving a data breach, it is crucial to consider multiple factors. One important aspect to understand is the company's ethical responsibility for which the data breach occurred. To fully comprehend the responsibility held by the company, it is not just important but necessary to have a clear understanding of both ethics and business ethics. Ethics is the study and practice of deciding what is considered good or right. In contrast, business ethics involves applying ethical principles to the problems and opportunities encountered by businesspeople (Kumbasek et al., 2023). Another factor to consider in a data breach is the social responsibility of the company that experienced the breach. The social responsibility of business includes the community expectations they impose on the firms that conduct business within the community borders (Kumbasek et al., 2023). Social responsibility pertains to the general public's expectations regarding a company's obligations rather than what is considered morally correct. Ethical business practices are essential for upholding social responsibility, as they involve conducting business fairly, honestly, and transparently while considering the impact of business activities on various stakeholders. Ethical business practices and social responsibility go hand in hand, aiming to ensure that businesses operate responsibly by prioritizing the well-being of shareholders, employees, customers, suppliers, communities, and the environment. Business law and business ethics depend on each other, with many legal regulations influenced by the ethical standards of the communities (Kumbasek et al., 2023). By including moral factors in their activities and decision-making procedures, businesses can maintain social responsibility values and positively impact society while fostering supported business accomplishments. Ethics and Law are rules and standards that control or regulate behavior and maintain societal order. However, there are some critical differences between the two. Ethics are the moral
Project 2 3 principles people rely on to make decisions that shape their behavior. Personal beliefs and values form the basis of subjective ethics. On the other hand, the Law is a system of rules created and enforced by the government to regulate behavior and protect society (The Relationship Between Ethics and the Law, n.d.). Law is more objective and grounded in specific statutes and regulations. While ethics and Law often overlap, there are instances where something may be considered ethical and not legal, and vice versa. Additionally, ethical standards are generally higher than legal standards, and the expectation of individuals to uphold both ethical and legal obligations is constant. The ethical and legal issues in the given scenario revolve around the data breach of customer information. The company's commitment to protecting its customer information was compromised, raising concerns about ethical obligations to report the breach to customers and potential legal implications. The decision-making process and the need for a consistent ethical framework for guiding future decisions are also important considerations. The key players involved in this situation are Clare Applewood, the owner of the outdoor equipment business Mountain