Ethics of Privacy, Marketing, and Corporate Governance

Definitions of privacy

1) The right to be 'left alone' within a personal zone of solitude. 2) The right to control information about oneself.

Reciprocal obligation in the workplace

A mutual respect where individuals expect respect for each other's autonomy. (employees honor company goals, and employers respect employee rights, including privacy.)

Ethical foundation of the right to privacy

Privacy is based on autonomy—the individual's right to control their own life and choices.

Fourth Amendment protection

Against unreasonable searches and seizures in public-sector workplaces.

ECPA (1986)

Prohibits unauthorized access to stored communications by third parties, not employers.

'Intrusion into seclusion'

When someone intentionally invades private affairs in a highly offensive way. (i.e. Installing an electronic listening device in someone's home without their consent or knowledge.)

'Reasonable expectation of privacy'

Whether an employee had valid privacy expectations, often based on prior notice.

GDPR

EU law requiring consent and transparency in data use, with rights to review and correct data.

EU Privacy Shield

Framework regulating how U.S. handles EU citizens' data, with annual self-certification and complaint mechanisms.

Reasons employers monitor employees

To improve productivity, control resource use, and manage social media behavior.

Ethical concerns about employee monitoring

It may invade privacy, cause stress, and challenge autonomy with biotracking.

Hawthorne effect in workplace monitoring

Employees improve performance when aware they're being observed.

Key guidelines for ethical monitoring

Avoid private areas, notify in advance, collect job-related data, share collected info, avoid off-work bias.

Balancing interests in monitoring

By aligning practices with mission and respecting dignity and transparency.

Marketing according to the American Marketing Association

A function and process for creating, communicating, and delivering value to customers and managing relationships.

Four Ps of marketing

Product, Price, Promotion, Placement.

Ethical purpose of marketing

To support autonomy, provide mutual benefit, and respect fairness, justice, health, and safety.

Conditions for ethically legitimate marketing

Voluntary and informed consent, and consideration of affected social values.

Ethical issues in marketing to vulnerable populations

It challenges autonomy and exploits people with less freedom to choose.

Stealth marketing

Marketing that targets consumers without their awareness, such as hidden endorsements or fake reviews.

Interpretations of 'responsibility' in marketing

Responsibility as cause and responsibility as accountability.

Difference between contract and tort law in product safety

Contract law is based on promises made, tort law covers general duties to others regardless of contract.

Caveat emptor

'Let the buyer beware' - assumes informed consent and minimal seller obligations beyond no deception.

Implied warranty of merchantability

Assures product is suitable for its purpose; shifts burden of proof from consumer to producer.

Negligence in tort law

Failure to exercise reasonable care resulting in unintended harm.

Strict product liability

Holds producers accountable for harm caused by products, even without fault or negligence.

Defending advertising ethically using Kantian theory

If it informs and respects autonomy; not if it manipulates or uses people as a means.

Utilitarianism evaluation of advertising

By its consequences—advertising can increase or decrease overall happiness.

Unethical targeting of vulnerable populations

Because it bypasses autonomy and manipulates people into making poor or harmful choices.

What is the main ethical question in environmental sustainability?

What responsibilities do businesses have regarding the natural environment?

What is the triple bottom line approach?

Measuring success by economic, ethical, and environmental sustainability.

What is sustainable development?

Meeting present needs without compromising future generations' needs.

What are the three pillars of sustainability?

Economic, environmental, and ethical factors.

What is the Kantian view on environmental ethics?

People have a right to a healthy planet; businesses have a duty not to harm it.

What is the utilitarian view on environmental sustainability?

Protecting the planet brings the greatest good to the greatest number.

What is a market-based approach to environmental issues?

Treats environmental issues as economic problems needing economic solutions.

What are the limitations of the market approach?

External costs, missing markets for social goods, and the first-generation problem.

What is the regulatory approach?

Government sets laws and standards, such as CAFE standards and the Clean Air Act.

What are the limitations of regulatory approaches?

Underestimates business influence and assumes growth is ethically benign.

What is eco-efficiency?

Using fewer resources and reducing waste in production.

What is closed loop production?

Reusing waste by reintegrating it into the production process.

What is cradle-to-cradle responsibility?

Businesses must manage their products throughout the entire life cycle.

How does sustainable marketing involve product?

Focuses on designing, creating, and packaging products for sustainability.

How should marketing address pricing in sustainability?

Set prices that reflect true ecological cost.

What does sustainable placement involve?

Fuel-efficient delivery, local sourcing, electronic distribution, and reverse logistics.

What role does promotion play in sustainable marketing?

Influencing demand for sustainable products and educating consumers.

What is greenwashing?

Misleading consumers about the environmental benefits of a product.

What is corporate governance?

A structure that manages, directs, and controls a corporation toward fairness, accountability, and transparency.

Who are 'gatekeepers' in business?

Professionals like auditors, accountants, lawyers who act as watchdogs to ensure compliance with market rules.

What is a conflict of interest?

A situation where personal interests conflict with professional judgment or obligations.

What are fiduciary duties?

Legal duties grounded in trust to act in the best interests of another person or organization.

What is the Sarbanes-Oxley Act?

A 2002 law to enhance corporate accountability and protect investors through regulatory reforms.

What is the purpose of Section 201 of SOX?

Prohibits auditors from providing consulting services to audit clients to maintain independence.

What is the purpose of Section 301 of SOX?

Requires a majority of independent audit committee members with no prior business relationships.

What is COSO?

A framework developed by audit organizations to improve internal controls and corporate governance.

What are the elements of the COSO framework?

Control environment, risk assessment, control activities, information/communication, ongoing monitoring.

What are the legal duties of board members?

Duty of care, duty of good faith, and duty of loyalty.

What is insider trading?

Trading based on non-public, material information for unfair advantage.

Why is insider trading unethical?

It violates fairness and transparency by giving some people privileged access to information.

What is the gatekeeper's dilemma?

The conflict between knowing one's duty and acting on it due to self-interest or external pressure.

Why are conflicts of interest problematic in governance?

They undermine fiduciary duties and fairness, especially in executive compensation decisions.