Question

Ethics in Business and Accounting Question

1. Apply the five steps to ethical decision making and evaluate the following case. You don’t need to do outside research.

You are the CEO of Equifax, and the Company has a big problem. Personal information on 148 million Equifax customers were stolen. Unfortunately, you have found out that the systems Equifax are using are old, and the security systems were out-of-date and could have been updated to prevent the breach. You have a duty to ensure a safe work environment and safe opportunities for consumers and you have a duty to maintain profit and the image of the Company.

What should you do now? (The breach has just occurred a few days ago). Apply the five steps to ethical decision making. (The five steps appear below). Don’t worry about what the real CEO actually did. Instead, focus on what should be done, again using the five step approach:

• Gather the facts (relevant/irrelevant; separating fact, assumption, and speculation).
• Identify the values, issues, and problems (at its basic core, what are we dealing with here?)
• Identify stakeholders (Which parties would be impacted by my decision? How would they be impacted? Do I have an obligation to any of these stakeholders? If so, then what obligations exist?)
• Weight alternatives (Focus on feasible and likely courses of action. Think creatively).
• Check your gut (Can you live with your decision? How do you feel about your proposed course of action?)

Answer 1

Hi there,

Here is my view on the question asked about the ethical Decision Making Process.

Ethical Decision Making Process:

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

The 5 Steps are as Follows :

1.Gather the facts :-

• Don’t jump to conclusions without the facts
• Questions to ask: Who, what, where, when, how, and why
• However, facts may be difficult to find because of the uncertainty often found around ethical issues
• Some facts are not available
• Assemble as many facts as possible before proceeding
• Clarify what assumptions you are making.

In the given case of Equifax , 148 million Equifax customers were stolen as being the CEO i would follow the primary step in Just Collecting all the Information which may be Irrelavant and Relevant and by taking Suitable & Necessary Assumptions to th data so collected before i could proceed furthur.

2. Identify the values, issues, and problems :

• Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two “goods” or between two “bads”?

• Is this issue about more than what is legal or what is most efficient? If so, how?

In the given case Equifax , 148 million Equifax customers were stolen, their personal data has been in danger as it has to be protected . Being the CEO, it is the primary responsibility to address the ethical ,moral,value and issues arising out of sych activity.

3.Identify stakeholders :

• Identify all of the stakeholders
• Who are the primary or direct stakeholders?
• Who are the secondary or indirect stakeholders?
• Why are they stakeholders for the issue?  Perspective-taking -- Try to see things through the eyes of those individuals affected

Here the major stakeholders are the 148 Million customers whose data is in problematic situation. It is the very basic duty of CEO is  to ensure a safe work environment and safe opportunities for consumers and have a duty to maintain profit and the image of the Company.

4.Weight alternatives :

  Evaluate the options by asking the following questions:

• Which option will produce the most good and do the least harm?
• Which option best respects the rights of all who have a stake?
• Which option treats people equally or proportionately?
• Which option best serves the community as a whole, not just some members?
• •Which option leads me to act as the sort of person I want to be?

Be sure you have not been unnecessarily forced into a corner .You may have some choices or alternatives that have not been considered . If you have come up with solutions “a” and “b,” try to brainstorm and come up with a “c” solution that might satisfy the interests of the primary parties involved in the situation.

5.Check your gut :

• Even though the prior steps have argued for a highly rational process, it is always good to “check your gut.”
• Intuition is gaining credibility as a source for good decision making – knowing something is not “right.”  Particularly relevant if you have a lot of experience in the area – expert decision-making
• In This Step it is to ask whether you could live with yourself if you made that particular choice. Would you be willing to let other people know what you did? Would you feel worse or better about yourself? Would you feel guilty or ashamed? Or would you feel proud and wish that others would do the same under similar circumstances? Would you want everyone to act the way you did?

In the Present case, Being CEO after Implemnting the decision of changing the old & Out dated equipment into new systems in order to ensure a safe work environment and safe opportunities for consumers and you have a duty to maintain profit and the image of the Company.