PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

Business Ethics and Corporate Responsibility

Issues of business ethics and corporate responsibility are increasingly important in today’s business environment defining the relation of a company to its stakeholders and society as a whole. Ethical practices enhance credibility by building customer trust and loyalty within a firm (Islam et al., 2020). In today’s era consumer expectations increasingly focus on getting maximum transparency and accountability, and this is where ethical dilemmas arise, especially in industries like biotechnology that handle sensitive personal data. This assessment aims to explore how the ethics encourage businesses to act in the society beneficial way while preserving the interest of human and environmental value.

Scenario

Uchromz, a biotech firm based in Cambridge, Massachusetts, offers inexpensive genetic tests to its customers on ancestry, health, among others after obtaining samples of the customers’ DNA tests. Although it represents these tests as safe and educational, the company has collected one of the biggest databases of genes, sharing this information with numerous third-party scholars. Employees have complained that consent forms are written in very general terms hence do not specify who gets the DNA or what the recipient of the DNA intends to do with it (Capella University, n.d.). This ambiguity raises ethical questions regarding potential misuse of genetic information, especially regarding insurance companies and profit-driven research

Relationships Between Components of the Ethical Issue in the Scenario

To analyze the relationship between the components of ethical dilemmas in the Uchromz case, normative ethical theories such as utilitarianism, virtue ethics, and deontology are employed. Initially, utilitarianism focuses on maximizing overall happiness and minimizing harm (Tseng & Wang, 2021). In the case of Uchromz the fact that the company offers affordable genetic testing should be viewed as a benefit since the customers will be able to know their genotype and other predisposed diseases. Nonetheless, the same information can fall on the wrong hands and be used in negative approaches such as discrimination by insurance firms or the use of the same DNA data in wrongdoings without consent (Capella University, n.d.).

From the utilitarian view, Uchromz has to balance the utility of their services against the costs, defined by harm to the privacy and well-being of individuals. While, in Virtue ethics theory, the actions depend on the context of the situation and the consequences that follow it (Morrell & Dahlmann, 2022). While it is possible to admire the market logic behind Uchromz’s marketing campaign, it is difficult not to dwell on the virtues of ethical truth in advertising. Those employees promoting the adjustment of the disclosure forms are motivated by ethical responsibility implying that the company should embrace the right thing and customer welfare (Capella University, n.d.). By fostering an environment that values these virtues, Uchromz can enhance trust and foster a more ethical business model.

Deontology centers on adherence to moral rules and duties. In this context, Uchromz has a duty to obtain informed consent and to protect customer data (Morrell & Dahlmann, 2022). The vague wording in consent forms can be seen as a failure to fulfill this duty, as it does not provide customers with clear information about how their DNA will be used and shared (Capella University, n.d.). From a deontological perspective, Uchromz must prioritize ethical obligations to ensure that customers are fully informed and their rights are respected, regardless of the potential business benefits that might arise from less transparency.

Relationships Between the Primary Interest of at Least Three Stakeholders

The case of Uchromz focuses on the three stakeholder interests that create common and conflicting goals such as the customers, Uchromz the firm, and third-party researchers. Customers need insights from genetic testing focusing on the ease of use, low cost and confidentiality of the genetic data, to avoid any impacts on health insurance or identity theft (Hazel et al., 2021). Uchromz intends to be profitable and increase its market share by offering unique services while owning a large biobank for research cooperation. However, the goal includes the prevalence of profit-making incentives, while ethical considerations should be prioritized (Hazel et al., 2021). Third-party researchers use Uchromz’s biobank for scientific purpose but customers for their trust; if customers develop mistrust in data management of Uchromz, they may be restricted access to such data crucial in research (Islam et al., 2020). This complex interdependence highlights the need for Uchromz to align stakeholder interests and ensure ethical standards to maintain its business model and consumer trust.

The Company’s Social Responsibility in the Scenario

In evaluating Uchromz’s social responsibility, R. Edward Freeman’s stakeholder theory provides a comprehensive framework, positing that a company has duties not only to shareholders but to all stakeholders affected by its operations, including customers, employees, suppliers, and the broader community. Applying this theory to Uchromz highlights several key responsibilities. First, the company must prioritize customer interests, ensuring that personal data is handled ethically and securely (Behare et al., 2024).

By providing clear consent forms that outline data use and sharing, Uchromz can foster trust and respect customer rights. Second, Uchromz has obligations to its employees, who are concerned about the ethical implications of vague disclosures (Behare et al., 2024). Addressing these concerns through open dialogue and clearer policies enhances morale and reinforces ethical practices.

Additionally, Uchromz’s relationships with third-party researchers illustrate another facet of responsibility. By collaborating with researchers in both non-profit and for-profit sectors, Uchromz can contribute to scientific advancement and public health. However, this collaboration must prioritize ethical standards that protect customer privacy and ensure research aligns with the public good (Islam et al., 2020). Finally, Uchromz’s operations impact the broader community regarding privacy and genetic discrimination. By implementing robust data protection measures and engaging in ethical data sharing, Uchromz can promote public trust in genetic research and testing.

Gaps or Deficiencies

Milton Friedman’s shareholder theory is not selected because it has significant gaps when applied to complex scenarios like that of Uchromz. It prioritizes profit maximization at the expense of broader stakeholder interests. This gap leads to decision-making that creates ethical dilemmas in establishing relationships among customers, especially in activities highly sensitive as biotechnology (Firdaus et al., 2023). Besides, owing to the exclusion of ethical considerations and social responsibility standards, the shareholder theory can fail to prepare firms for the challenges of modern corporation governance.

Traditional Theory of Normative Ethics to Justify the Company’s Social Responsibility

This paper argues that deontological ethics, especially the categorical imperative as pointed out by Immanuel Kant offers Uchromz a good basis for social responsibility in this turn of events. Deontological ethics stress the notion of duty, principles and rights, and obligation of an act rather than its consequence (Dilbar, 2024). From a deontological point of view, Uchromz owes its customers a duty of respect and dignity by at least taking the time to make the customer aware of how his or her DNA will be utilized. This implies making consent forms very clear and comprehensible that will state that one’s genetic information may be shared with one and other third parties.

In this regard, through the self-serve platform, Uchromz respects the principle of autonomy by providing a platform for customers to take charge of their personal information. Deontological ethics put forward the principle of universalizability, meaning actions must be taken in such a way that a principle fully applied as a moral law (Dilbar, 2024). Therefore, while ensuring that customer data and information is protected by ethical standards, Uchromz meets its social responsibilities of being ethical in its business practices as it puts in efforts to ensure that all the members of its supply chain are acting and being ethical as well.

Gaps or Deficiencies

While I chose not to apply utilitarianism, it has notable gaps when evaluating Uchromz’s social responsibility. Utilitarian theory aims to deliver maximum mean utility, even if doing this sometimes leads to suffering for a minority, ignoring their rights and personal worth, cast aside from customer individuality (Morrell & Dahlmann, 2022). Compared to the contextual analysis, utilitarianism can facilitate the monetary concerns that might negatively influence privacy, erode trust, and degrade ethical norms critical for future enterprise viability.

Conclusion

Uchromz needs to reflect good standards of ethical practices and corporate responsibility to create trust due to the nature of the sector where biotechnology is practiced. This way the company strengthens its compliant behavior to meet the standards of societal expectations strengthening its reputation and sustainability. Stakeholder involvement brought out and incorporated in this perspective entails that: Uchromz can achieve its moral responsibility and give back and help to be a positive influence on the community and related industries.

References

Behare, N., Mahajan, R. D., Mohture, A., Waghulkar, S., Behare, S. N., Shitole, V., & Dadas, A. B. (2024). Data-driven insights: The power of genetic information in precision marketing. Www.igi-Global.com; IGI Global. https://www.igi-global.com/chapter/data-driven-insights/347862

Capella University. (n.d.). Library Support Services. Www.capella.edu. https://www.capella.edu/capella-experience/support/library-support-services/

Dilbar, K. (2024). The principles of deontological ethics. Web of Teachers: Inderscience Research, 2(5), 56–59. http://webofjournals.com/index.php/1/article/view/1299

Firdaus, F., Firmanda, H., Hendra, R., & Samariadi, S. (2023). Corporate social responsibility regulation in Indonesia and a critique of the Milton Friedman theory. Global Trade and Customs Journal, 18(11/12). https://kluwerlawonline.com/journalarticle/Global+Trade+and+Customs+Journal/18.11/GTCJ2023061

Hazel, J. W., Hammack-Aviran, C., Brelsford, K. M., Malin, B. A., Beskow, L. M., & Clayton, E. W. (2021). Direct-to-consumer genetic testing: Prospective users’ attitudes toward information about ancestry and biological relationships. Public Library of Sciences ONE, 16(11), https://doi.org/10.1371/journal.pone.0260340

Islam, T., Islam, R., Pitafi, H., Xiaobei, L., Rehmani, M., Irfan, M., & Mubarak, S. (2020). The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25(3), 123–135. https://doi.org/10.1016/j.spc.2020.07.019

Morrell, K., & Dahlmann, F. (2022). Aristotle in the Anthropocene: The comparative benefits of Aristotelian virtue ethics over Utilitarianism and deontology. The Anthropocene Review, 10(3), https://doi.org/10.1177/20530196221105093

Tseng, P.-E., & Wang, Y.-H. (2021). Deontological or utilitarian? An eternal ethical dilemma in outbreak. International Journal of Environmental Research and Public Health, 18(16), 1–13. https://doi.org/10.3390/ijerph18168565