Question

1. What moral and ethical issues impacted mastercard between 2014 and 2019?
   1. How did these factors/issues impact the company?
   2. What actions did the company take as a result of those issues?
2. Situation analysis of what you see as reasons mastercard made the 2019 list.

the company is Mastercard

Answer 1

Following are the moral and ethical issues which impacted mastercard between 2014 and 2019-

1: , Misrepresentation of material facts and many unfair dealing or practice for Marketing was seen in the years 2014- 2019

2:  Fix prices or terms on the products and services that were sold by Mastercard.

3: Non Accuracy in Financial Books and Records were seen alot .

4: Huge Leakage in Information Assets were noticed during these years .Following Data were misused-

• Aggregated Data • Anonymized Transaction Data • Business Contact Data • Company Performance Data • Competitor Data • Confidential Transaction Data • Consumer Data • Customer-Reported Data (e.g., Quarterly Member Reporting (QMR) data) • Employee Data • Merchant Data

- Following are some points reflecting how these factors/issues impacted the company-

1: Lack of Customer Satisafction -

Customer is known as the God of the Market and company whether it is big or small its success or failure depends upon the number and quality of clients they have been working with.

As the Information of the clients were leaked out to other sector companies like Insurance , Health ,B2B and b2c companies so clients were very annoyed by MasterCard for leaking their information.

2:Decreasing Goodwill in the Market -

Its is said by JAMES SMITH ONE HAPPY CUSTOMER WILL BRING MANY CUSTOMERS AND ONE DISHEARTED OR CHEATED CUSTOMER WILL TELL THOUSANDS AND LAKHS OF PEOPLE TO AVOID THE SERVICES OF PARTICULAR COMPANY.

A huge impact of decrease in the Goodwill was seen between the years 2014- 2019 as there were more dissatisfy customers of Master card .

Consumers in emerging markets more concerned about ethics, environment -

A new survey by MasterCard compares shopping behavior in emerging and developed markets in terms of social responsibility and found that the former seem to care more about whether a product is perceived as more socially responsible, is fair trade and from ethical merchants than their counterparts in developed markets.

More than 70 percent of consumers surveyed in Indonesia, China, Malaysia, Thailand, India and the Philippines said they considered whether a product is fair trade, environmentally friendly or a portion of its proceeds were donated to charity when shopping. Only 30 percent of consumers in Australia, 34 percent in New Zealand, 38 percent in Hong Kong and Korea and 39 percent in Japan considered these criteria according to MasterCard's Ethical Shopping Survey 2015, which was published last week and is based on interviews that took place between October and December 2014 with more than 7,000 people aged 18-64 in 14 markets.

64 percent of shoppers consider fair trade principles

The survey found that an average of 64 percent of shoppers across countries purchased products based on fair trade principles, 59 percent bought environmentally friendly products and 47 percent purchased products from companies that donated a portion of their sales to a good cause.

“People in emerging markets are increasingly concerned about the impact of rapid growth on the environment and society. It is not surprising that they are more likely to think of the supply chain and ethics of a merchant when deciding what to buy and where to shop,” said Georgette Tan, Group Head, Communications, Asia/Pacific.

"This may be the key reason why consumers in emerging markets are more thoughtful when it comes to choosing products, brands and merchants that act ethically and are socially responsible. Another contributing factor could be that emerging markets are where a supply chain begins, so it is only natural for consumers in these countries to favor fair trade products and merchants that give back to local communities," said Tan.

On the other hand, consumers in developed markets may be less exposed to the impacts of environmental degradation and social strife, so these issues are not top-of-mind when shopping, said Tan. In addition, the current generation of consumers in developed markets are likely to be one-step removed from the supply chain process, she added.

The survey also found that more than half (57 percent) of consumers in Asia/Pacific are likely to purchase a product because it is ethical. With 68 percent, Chinese shoppers are most likely to buy products from a merchant they consider ethical, followed by shoppers in Thailand (68 percent) and Malaysia (64 percent). Consumers in Japan (21 percent) are least likely to consider whether a merchant acts ‘ethically’ when shopping, followed by consumers in Korea (29 percent) and Hong Kong (30 percent).

The shoppers polled considered whether a merchant is environmentally responsible the most important ethical issue when choosing where to buy from (47 percent).

MasterCard used the findings for its 'Purchase with Purpose' initiative, which involves cardholders in the company’s efforts to give back to the community whenever they use their credit card. Among the causes are supporting women and education, giving the underprivileged a chance to learn a skill, championing further education, raising awareness of health issues, supporting environmental protection and others.

Paying late: an ethical business issue-

Paying suppliers late is an ethical issue that doesn't receive the column inches of Libor Fixing or phone hacking, and yet it is a scandal that affects the lives of many. Late payments, for no valid or legitimate reason, are unethical. They are an abuse of "power" and in essence bullying behaviour by customers who hold all the cards. Small businesses are reluctant to use legislation, or they agree to punishingly long payment terms, for fear of losing contracts with bigger businesses on which they are often reliant.

Following are the actions which were taken by company result of those issues-

1:Beat communication breakdown

When change is first announced, people will have information concerns. Often, leaders will want to explain why the organization is moving in a certain direction and why the change is a good idea. This is a mistake. People don’t want to be told the change is good until they understand it. Instead, leaders should share information as plainly and as completely as possible. In the absence of clear, factual communication, people tend to create their own information about the change, and rumors become facts.

2:MASTERCARD

Mastercard Launches Initiative To Foster Data Security Among Businesses

Mastercard wants organizations to work together to heighten privacy and fend off cyberattacks. The initiative depends on coming up with fundamentals to direct how data is used. It is based on the premise that businesses have a responsibility when it comes to data management.

In a Mastercard-commissioned survey, nine out of 10 people said data privacy is important to them. Just one-third of those surveyed believe companies are acting responsibly when it comes to data privacy.

“In today’s fast-paced digital economy, we’re facing never-before-seen circumstances that test our ethics on a daily basis,” said JoAnn Stonier, chief data officer, Mastercard. “We need high data standards that allow us to face these situations head-on, knowing that our practices are sound, consistent and based on treating individuals and their data with decency. For Mastercard, this commitment starts at home, and we’re embedding these principles into how we do business — every day.”

Mastercard is proposing six data principles intended as a complement to regulatory compliance. Corporate data responsibility (CDR) could become “the corporate social responsibility of the 21st century,” the release said.

“Mastercard’s Data Responsibility Imperative is a good model for companies that want to use data while honoring individual privacy rights,” said Jules Polonetsky, CEO of the Future of Privacy Forum. “Data is more than just a valuable business asset; principled, moral data practices are a corporate responsibility. In the long run, companies that build trust through principled uses of data — even when there is a short-term cost — will be best suited to thrive in a data-driven economy.”

3: Innovation -

Innovation is at the heart of Mastercard’s 50-year history. They take an innovative, value-driven approach to the solutions we create and services we offer, making transactions faster, easier, and more convenient and secure.  

One of the many ways in which they innovated is through our culture and people. They hire talented, inventive employees. They also encourage all employees to participate in efforts that cultivate innovation in local communities such as STEM programs. And, through outreach to developers and entrepreneurs, we are helping to facilitate improvements across the payments ecosystem that will generate future innovations.

By underpinning innovation in everything we do, we are transforming the way people pay and get paid, helping businesses grow, improving the shopping experience and advancing financial inclusion around the world.