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Business Ethics Case Analyses

Individualism (Friedman's Economic Theory), Utilitarianism, Kantianism, and Virtue Theory Analyses of Business
Controversies

SATURDAY, NOVEMBER 19, 2016 SEARCH BOX

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Apple: Refusing to Help The FBI Due to Privacy Concerns (2015-2016)

Controversy POPULAR POSTS

In late 2015, Apple was instructed by McDonald's "Deceptive"

the FBI to unlock an iPhone 5c Marketing to Children (2010)
belonging to Syed Farook (shown on A boy posing with a happy
the right), the man responsible, along meal display, held by Ronald
McDonald, McDonald's
with his wife, for a shooting in San mascot Controversy 
McDonald's is one of
Bernardino killing 14 and injuring an the large...
additional 22 people (Nakashima).
Farook was found to be connected to an Apple Inc.: Severe Employee
overseas terrorist organization, and the Abuse (2011)
FBI believed that his iPhone could Controversy Apple Inc. logo
Apple Inc., in 2011, were
contain crucial information regarding accused of treating their
the attack. This information is thought employees inhumanly and like machines.
to include things such as his planning To cut costs a...
of the attack, who he was in contact
with, and whether or not this attack in Nike: Abuse in Indonesia
(2011)
San Bernardino was connected to or
Controversy Nike logo Nike
aided by the terrorist organization Tim Cook, CEO of Apple Inc. since 2011 was founded by Bill
overseas. However, each iPhone, Bowerman and Phil Knight.
including Farook's, has either a numerical or number/letter combination code required to unlock They started to create the company back in
the 1960's...
it. Both Farook and his wife were killed in a shootout with the police following the shooting,
therefore rendering the FBI unable to unlock his iPhone, to gather what could be crucial
Starbucks Scolded for Stifling
information for the case. The FBI then went to Apple, the creator of the iPhone, requesting that Competition (2006)
they unlock the phone. Although the law states that Apple must comply, CEO Tim Cook politely Based on paper by Ben
refused the request, stating that: Kapinos and Jahmel Rollins
Summary by Katie Eckert
Starbucks is very well known and also
“Up to this point, we have done everything that is both within our power and within the law to considered ...
help them,” it continued. “But now the U.S. government has asked us for something we simply
do not have, and something we consider too dangerous to create. They have asked us to build a The Walt Disney Corporation:
backdoor to the iPhone” (Nakashima). Marvel CEO Taking Over
Based on a paper by Abigail
As Cook stated, Apple consider the creation of a "backdoor" into the iPhone too dangerous to Couch Summary by Abigail
Couch The Walt Disney
create, because it would create a precedent to be mimicked, which could compromise the Company is a leading family entertainment
security of the iPhone. Apple intentionally created their security feature with the intention of and...
only allowing the user, or whomever knows the pass-code, access and use of the phone.
The FBI, however, need this backdoor program to be created, because after just ten tries of The Ethics Behind "The Wolf
entering an incorrect pass-code into an iPhone, all of its information is deleted. This prevents of Wall Street" (1990s)
Stratton Oakmont Inc. logo
them from "brute-forcing" the task, by trying every combination of letters and numbers in order
Controversy This man is
to eventually come across the pass-code of Farook's iPhone. It was suggested that this feature known for being part of one of
should be removed, but Apple are unable to do so. Even if it were to be removed, the it could the biggest business fraud scandals of all
take five or more years in order to crack a pass-code (Nakashima). This provokes a major time and w...
controversy between government/protection and privacy.
Volkswagen: Emissions
Scandal Due To Fraudulent
Stakeholders Software (2014)
It is very important to note the stakeholders of Ethics Case Controversy
this controversy. The stakeholders might Analysis
Controversy Over the past two years,
include (but are not limited to) the following Volkswagen has been dealing with the
people or groups of people. afterma...
Perhaps the most important stakeholders of this
controversy, iPhone users are at risk of their Abercrombie & Fitch: Fat
security and privacy being compromised. Shaming (2013)
Controversy The entrance to
Although many people claim not to have any
an Abercrombie & Fitch store
personal information on their phones, this can A few years ago, the Chief
lead to the compromise of information such as

Syed Farook, the man responsible for
the shooting in San Barnardino
organization.
a home address, or a credit card number. The Executive Officer of Abercrombie and Fitch,
Mi...
general American population is also a
stakeholder in this controversy. Information
GlaxoSmithKline: 3 Billion
found on Farook's iPhone could be used to Dollar Lawsuit (July 2012)
prevent future attacks on American people. For Based on a paper by: Chris
similar reasons, the overseas terrorist Bohnwagner Summary by:
organization is also a stakeholder in this Chris Bohnwagner April 15th
2013 GlaxoSmithKline is one of the leading
controversy. Obviously we would hope that
pharmaceutical...
they are eradicated or set back from the
information found. Apple itself is a major
stakeholder in this situation as well. Due to BLOG ARCHIVE
their refusal to comply with the FBI, they are
► 2019 (52)
under scrutiny and could be punished as a
result. Alternatively, the FBI is also a ► 2018 (79)
stakeholder. Whether or not Apple comply will ► 2017 (101)
be the deciding factor as to whether or not they ▼ 2016 (15)
are able to find the pass-code into Farook's
► December (2)
iPhone and perhaps find valuable information
regarding the attack and the terrorist ▼ November (13)
Mitsubishi: Fraudulent Fuel Economy
Tests (April 2...

Individualism UBER: Misleading Claims Lead to

Lawsuit (2014)
Milton Friedman's theory of Individualism states that, "the only goal of business is to profit, so
the only obligation that the business person has is to maximize profit for the owner or the Apple: Refusing to Help The FBI Due
to Privacy Con...
stockholders" (Salazar, Power Point Presentations). From an individualist's point of view, Apple
may or may not have to worry about the security of their users. If security is viewed purely as a General Electric Breaks Promises to
separate feature of the iPhone, which would not affect the customer relationship or loyalty to the Retirees (2015...
brand, Apple would not have to worry about the compromise of privacy, and would comply with Mitsubishi Motors Falsifies Mileage
the FBI. This is only if it is considered to not have an effect on how much profit the company is Data (April, 2...
able to make. If the Individualist strongly values customer loyalty in the consideration of making Volkswagen: Emissions Scandal Due
profit, then the company would not be compliant to the FBI. Whichever way it is seen from the To Fraudulent So...
Individualist would determine how the company would react to this controversial situation; Microsoft's Privacy Problem (2016)
however they see they can make the most profit for the owner and stockholders in the company.
Samsung: Galaxy Note 7 Explosion
(2016)
Utilitarianism
McDonald’s: Using Unsafe
Utilitarianism is the concept of Meat(2014)
maximizing the happiness of all
Goldman Sachs Trust Issues Due to
conscious beings involved in any Stealing Employe...
business transactions ("The Case
Walt Disney Company: Alligators
Manual" 17). In a more general sense,
(2016)
Utilitarianism is about “maximizing
the overall good” and focusing on Coca-Cola: Misleading Obesity
Research (2015)
making the largest amount of people
happy; pleasing the stakeholders Mylan's Epipen Price Boost Risks the
Photograph protesting the FBI getting into private phones Lives of Pati...
(DesJardins 33). From the Utilitarian
perspective, I believe that Apple
► 2015 (52)
should find a way to give the FBI easier access to Farook's phone without compromising their
users' privacy and security. However, this is much easier said than done. In this case, Apple ► 2014 (127)
could perhaps help the FBI crack the hardware key, as mentioned in the Washington Post, which ► 2013 (88)
would then make it possible for them to find the pass-code of the phone, though running all of
► 2012 (1)
the numbers and letters (Nakashima). In doing this, Apple would be able to uphold the privacy
of their millions of users, while helping the FBI prevent future attacks on American people. This,
in my opinion, would be the best way from a Utilitarian perspective to maximize the happiness HEATHER SALAZAR, PROFESSOR OF
and overall good of the situation. PHILOSOPHY IN ETHICS AND MIND

Kantianism
Kantianism focuses more on acting ethical, as opposed to creating ethical outcomes for
stakeholders. "The Case Manual" describes Kantianism as being about rational decision making,
autonomy, and freedom. It suggests that , instead of lying to get your way, one should tell the
truth and gain rational consent from all parties ("The Case Manual" 17). A Kantian would likely
want Apple to continue to refuse to help the FBI unlock Farook's phone. Although the phone
could contain some vital information for that case, it may not prevent any attacks in the future.
However, unlocking Farook's iPhone will undermine the security of the millions of iPhone users.
Because Kantianism is focused on creating ethical outcomes primarily, refusal to help the FBI
would give the best ethical outcome. In this case, the millions of iPhone users could continue to
trust that their iPhone information will continue to be private and secure, and Apple can work
autonomously to continue to uphold these ethical standards held by the public. Though this does
not help the Farook case, the FBI are still able to gain the pass-codes, just far slower. This could
in fact take the FBI multiple years to obtain the pass-code, unless they were to use a Cooperative Blog, Administrator: Heather
supercomputer, of which there are only a few in the world. Overall, this would be by far the Salazar. www.heathersalazar.com
safest route in terms of the most ethical outcome.
EDITORIAL ASSISTANT
Virtue Theory Dana Dufour
Virtue Theory is the concept of judging
ethical situations based on character traits
and values. Although Apple are
sometimes seen as being the user-
friendly, ethical company to the average
consumer's eye, they have run into many
ethical controversies during their
uprising. In fact, someone who knows
more in depth about the history of Apple
and perhaps even Steve Jobs would argue
that they are not the nice group of people
they appear to have been. A Virtue
Theorist might argue that some of Apple's
"character traits" would consist of
manipulative and overpowering. These
traits come from their problems spanning
from giving Chinese manufacturers Apple Inc. logo
terrible working conditions, causing some
cases of suicide in that factory, to charging average families hundreds of dollars for the newest
iPhone. Many see these kind of actions as an abuse of power. Based on this analysis, a Virtue
Theorist would perhaps argue that Apple should in fact comply with the FBI to improve their
perceived character traits. However, it is well known that Apple have a high value of security
and privacy of the average iPhone user. If Apple were to stick to their values, it could be argued
that they should continue not to comply.
Looking at the FBI, the average American would probably like to think that they uphold very
good "character traits" and values. The FBI is in place to protect the American people, and surely
value protection over privacy and security. Overall, I believe that in terms of values and
character traits, the FBI takes priority over Apple. Although Apple has millions of users, the FBI
also protects the entire population of the United States, 300+ million people. In this case, Apple
should comply with the FBI and help them find the pass-code to Farook's iPhone.

Justified Ethics Evaluation

Apple's actions in this case are justified and perfectly understandable. Understanding that Apple
has spent years perfecting its privacy and security features on its products for their users to be
safe is enough reason to at very least dispute requests from the FBI to undermine them. This case
has really been a question of whether Apple should put its users at risk, and ensure the closing of
Farook's case, or whether to keep Apple's iPhone users safe, and possibly take as much as ten
years in order to gain information on Farook's case, perhaps withholding vital information for the
FBI to ensure the safety of American citizens. In that case I believe that it is justified that both
the FBI and Apple would want the outcome to favor them.

Company Action Plan

Ethically, I believe that this dispute should be settled by a compromise, which, in my opinion,
has not been strongly enough considered. Though it has been suggested, I believe that a
compromise is the only way to give both sides a decent outcome. As aforementioned, I believe
that the best way to do this is for Apple to help the FBI crack the hardware code, which would
soon allow the FBI the ability to "brute force" the actual iPhone pass-code. Though this may take
a long time, I do not think it is worth the compromise of iPhone users' security. Perhaps a
mission statement in this action plan should be, "To provide safety, privacy and security, to the
best of our ability". This statement captures both the idea of keeping iPhone users' information
private, but also keeping them safe as is the goal of the FBI. I believe that the three main
components of the mission statement also serve as perfect values for the situation. This being
because safety, privacy and security, though similar concepts, are what most Americans care
about most, and should be given to the best of our ability.
Although it will be tough to avoid this situation again, due to the growing popularity of iPhones,
and the disturbing amount of violence in our country in recent years, this action plan would best
be served as a new protocol for any time this is to happen again. I do not believe that this action
plan would require any replacement or changes in faculty, as long as everyone from both Apple
and the FBI are willing to work together.
This will hopefully allow Apple to market themselves as being ethical, and promoting of the
safety of American citizens. This marketing would perhaps be beneficial to them financially by
earning the trust of new customers, who perhaps do not have that same trust for other cell
phone/technology companies. This in turn would hopefully gain Apple even more revenue and
sales for compromising with the FBI.
References
DesJardins, Joseph R. An Introduction to Business Ethics. 5th ed. New York: McGraw-Hill Higher Education, 2009. Print.

Lichtblau, Eric, and Katie Benner. "Apple Fights Order to Unlock San Bernardino Gunman’s IPhone." The New York
Times. The New York Times, 17 Feb. 2016. Web. 19 Nov. 2016.

Nakashima, Ellen. "Apple Vows to Resist FBI Demand to Crack IPhone Linked to San Bernardino Attacks." Washington
Post. The Washington Post, n.d. Web. 19 Nov. 2016.

Salazar, Heather. The Business Ethics Case Manual: The Authoritative Step-by-Step Guide to

Understanding and Improving the Ethics of Any Business. Print.

Salazar, Heather. Power-Point Presentations.

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Heather Salazar, Professor of Philosophy in Ethics and Mind. www.heathersalazar.com. . Picture Window theme. Powered by Blogger.