Business Ethics Current Events: What You Need to Know

Introduction

Businesses today are faced with several ethical issues. We need to understand the current ethical issues in business, the causes of these problems, and how to address them.

While high salaries and unique perks may be the keys to attracting top talent, a new survey from Glassdoor shows that a company’s mission and culture matter most to job seekers. They are seeking more meaningful workplace experiences.

“In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And, if they don’t have the first, the other two will kill you.” – Warren Buffett

Glassdoor’s Mission & Culture Survey 2019 found that over 77% of adults across four countries (the United States, UK, France, Germany) would consider a company’s culture before applying for a job there, and 79% would consider a company’s mission and purpose before applying.

Furthermore, over half of the 5,000 respondents said that company culture is more important than salary regarding job satisfaction.

The agenda for this article,  Current Events Business Ethics

What do we mean by Ethical issues in Business today?

Well, Ethics is a broad term, but at its heart, it’s about doing the right thing in business.

That means building a company on values like integrity and trust while playing by the rules.

Ethical business also covers other important stuff, like being empathetic, embracing diversity, and accepting differences.

It’s about whether your actions are in line with the values of your organization.

So, when we discuss ethical issues in business, we are entering the world of doing business the right way.

Current Events Ethical Issues in Business: 2023

Critical decisions must be made to ensure we protect personal freedoms and use data appropriately. What are the current events and ethical issues in 2023? Here are the top six.

• • • Consumer Privacy Issues
    • Personally Identifiable Information (PII) safety issue
    • Misuse of Deep Fakes
    • Information Validation issue
    • AI Bias issues
    • Ethical Financial Practices

 1. Consumer Privacy Issues

In today’s business landscape, ethical issues center around how companies use Consumer data. As we surf the web, shop online, enter our data on websites, interact with different businesses, and engage on social media platforms, we’re constantly providing personal information.

Companies collect information to personalize their online experience and buying habits. Do we know, how much that information violates our privacy?

Legislation like the GDPR and California’s Consumer Privacy Act has taken some steps towards giving consumers greater control over their personal information, but companies must do more to match their business models with their product strategy to deliver high-quality, personalized experiences online without violating privacy.

Example:

Facebook is one of the most controversial social media companies in the world. The company has been accused of mishandling user data in several cases. These cases serve as a wake-up call to businesses about the importance of protecting consumer privacy.

2. Personally Identifiable Information (PII) safety issue:

In the current era of data-driven technology, there is a growing awareness of the extensive collection of personally identifiable information (PII) by various organizations. Not only are they collecting a ton of info about people, but they’re also selling it off to the highest bidders.

This is scary and can lead to real problems if criminals get their hands on it.

Example:

Equifax data breach Case: Equifax is one of the top three consumer credit reporting companies in the United States. In September 2017, Equifax reported that its systems were hacked and the personal information of 148 million Americans was compromised.

The compromised information includes names, home addresses, phone numbers, birth dates, social security numbers, and driver’s license numbers.

The United States Department of Justice has accused four members of the Chinese military of perpetrating a cyber-attack on Equifax to gain access to the personal information of approximately 150 million individuals.

The Federal Trade Commission (FTC) has reached a settlement with Equifax Inc. in which the credit reporting company agreed to pay a minimum of $575 million for failing to take reasonable precautions to protect its network.

3. Misuse of Deep Fakes

Deepfakes have made us question the credibility of video as a trustworthy source of information. This new technology has the power to manipulate digital images with ease, leaving us perplexed.

Deepfakes have advanced to the point where people can convincingly pretend to do or say things they never did. The consequences of this technology go far beyond the surface of the internet. Deepfakes can lead to the invasion of privacy and the misuse of an individual’s identity.

Therefore, the credibility of video is now in doubt and the need to fight against deepfakes becomes more pressing.

Example: Watch how dangerous Deepfakes can be:

4. Information Validation issue:

Today’s world is bombarded with a constant flow of live updates and breaking news. Celebrities and political figures have the power to express their opinions on social media, impacting public discourse without any fact-checking.

People’s opinions, even if they’re right or wrong, get spread all over the internet.

Unfortunately, the rigorous verification process used to publish newspapers and books no longer applies to the information we’re exposed to.

Example:

In previous U.S. presidential elections, the potential of misinformation to gain a wider support base. The effect created polarization that has had wide-reaching effects on global economic and political environments.

5. AI Bias Issues: A Call to Transparency

Artificial intelligence has tremendous potential to automate and improve our operations, but we need to be clear-eyed about how we use these technologies. Bias is a very real ethical issue, and we must be honest about it. Poor data and poor algorithms will be the death of AI if we don’t address them directly and quickly.

Example:

Angle Bush, founder of Black Women in Artificial Intelligence, an organization aiming to empower Black women in the AI sector said

“This can result in automatic loan denials for individuals from marginalized communities, reinforcing racial or gender disparities”.

When AI is applied to banking, Frost Li (founded and runs Loup) said:

“it’s harder to identify the “culprit” in biases when everything is convoluted in the calculation”.

Amazon’s Recruitment Algorithm: Amazon built a recruitment algorithm trained on ten years of employment history data. The data reflected a male-dominated workforce, so the algorithm learned to be biased against applications and penalized resumes from women or any resumes using the word “women(‘s).”

6. Ethical Financial Practices

The foundation of any successful business is sound financial management. This includes accurate accounting, sound budgeting, and avoiding financial mistakes. Companies that conduct their business with integrity build trust with their investors and other stakeholders.

Example:

Patagonia is a renowned outdoor clothing company that demonstrates the importance of taking stakeholders into account. Not only do they provide quality products, but they also prioritize environmental sustainability.

They have a program called “Worn Wear” that encourages customers to buy second-hand clothing, which helps reduce their environmental footprint.

Patagonia is a company that values the Earth, its customers, and its business.

Wells Fargo: 2023 has seen its share of scandals with trusted names like Wells Fargo. faced allegations ranging from sanctions violations to fraudulent practices.

Bottom Line: The Power of Business Ethics

We hope this article has been useful to you in understanding the current ethical issues in business, the causes of these problems, and how to address them.

Preventing ethical problems in business begins with top management.

You can ensure transparency and effective ethical business practices by providing written policies and procedures that are both acknowledged and followed.

Tips to protect your company’s reputation and hold your employees accountable for their behavior by following the steps outlined in this post.

• • • Communicate and enforce a strong code of ethics in all decision-making processes.
    • Be aware of harassment and discrimination laws in your area.
    • Stay up to date on compliance rules that affect your industry.
    • Review your financial statements regularly.
    • Work with accountants to ensure transparency and integrity in your financial statements.

Note: This article is intended to raise awareness of ethical issues in business and should not be interpreted as legal advice for making business decisions.

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