14_Big Tech Firms and More

Final Lecture: The Ethics of Big Tech Firms

Foundations of Ethical Behavior

• University of Notre Dame seminar focusing on ethics in business and technology.

Agenda

1. Business Ethics at Notre Dame

2. Foundations of Ethical Behavior

3. Are Big Tech Firms Evil?

4. Conclusion

Business Ethics at Notre Dame

• Discussion of ethics at individual and group levels.

• Importance of:

  • Personal integrity

  • Upholding moral principles (fairness, duties, rights, dignity, responsibility)

Key Quote by Warren Buffett

• "In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don't have the first, the other two will kill you."

Dean John Francis O'Hara's Vision

• "Notre Dame should send [people] into business with a sound knowledge of business theory, character, lofty ideals of citizenship, and sound conceptions of business morality."

• Emphasizes the significance of ethics in business, connecting morality with advancement in civilization.

Foundations of Ethical Behavior

Three Key Answers

1. Virtue

2. Company Culture

3. Institutions

Virtue

• Developing character is a lifelong process, including:

  • Cardinal Virtues: Prudence, Justice, Courage/Fortitude, Temperance.

• Practices include:

  • Rituals (reading, reflection, prayer)

  • Leadership through moral exemplars.

Company Culture

• Important values for companies:

  • Should companies prioritize profit maximization?

  • Trade-offs between profits and stakeholders’ interests.

  • The necessity of virtue and moral character in business practices.

Institutions

• Political-economic frameworks (Capitalism, Socialism, Democracy).

• Intra-firm ethics (chief integrity officer, acceptance of whistleblowing, and values sorting in hiring).

Ethical Assessment of Firms

• How should firms be evaluated?

  • Outcomes (profit), virtues, rights, or something else?

The Ethics of Big Tech

Tyler Cowen’s Perspective

• Cowen argues that big tech firms have overall positive impacts despite privacy threats.

Key Facts of Big Tech Firms

• Facebook (Meta): $127B revenue, 3 billion active users.

• Apple: $383B revenue, major player in mobile OS.

• Google: $297B revenue, dominates search market.

• Amazon: $553B revenue, leading in e-commerce and AI.

• Microsoft: $211B revenue, key in personal computing.

• Cowen highlights that data is the primary driver of these businesses.

Benefits of Tech Firms According to Cowen

1. Enhanced human connection through social media.

2. Accessibility of vast amounts of information.

3. Value derived from services like Google Search and free email.

Concerns About Monopolistic Competition

• Large firms can set prices and restrict supply, leading to negative consumer impacts.

• Despite market power, Cowen argues that innovation continues and firms often charge lower prices compared to pre-internet counterparts.

Case Study: Google

Google’s Market Power

• Google’s dominance attributed to innovation and competition from diverse media.

• Example: Improvements made to YouTube post-acquisition.

Enhancements at YouTube

• Addressed copyright issues and improved user experience significantly with advancements in video technology.

Other Technologies

• Issues with Facebook and concerns about time-wasting behavior.

• Self-driving vehicles projected to be pivotal technological advancement.

Cultural Impact of Big Tech

• Cowen suggests that big tech does not dumb down culture; people engage with long-form content.

Privacy Concerns

• Cowen raises alarms on heightened privacy risks due to surveillance technology and data retention.

Final Arguments by Cowen

• Despite criticisms, big tech adds more societal value than the concerns regarding cronyism and monopoly power.

• The influence of users is downplayed; they also have the power in tech ecosystems.

Concluding Thoughts

Ethics in Business

• Ethics should not be viewed as restrictive but as integral to a flourishing life.

Addressing Potential Objections

1. Business and ethics can align.

2. Ethical business is central to civilization.

3. Encouragement to bring personal virtues to workplaces.

The Future of Business Ethics

• Understanding and reflecting on the moral implications of business practices can guide future actions.