Question

HighLight is an online company that sells lighting products to both the building industry and individual consumers. As a result of its very competitive price schemes, HighLight has developed an extensive customer base, which is reflected in its burgeoning database of customer details, purchasing history and Web usage data. Recognising that this data is potentially valuable to third parties, HighLight’s directors discuss the prospect of selling its customer database to a large insurance company, thus allowing the insurance company to target advertising and mailouts about home and contents insurance packages to home owners. The directors are split on the issue — some view this as an exciting way to add value to their customers, through customised product offerings, while others see it as a gross misuse of information that is not in keeping with the original purpose for which the data were gathered. You have been engaged by HighLight as an ethics consultant and asked to advise the organisation on the possibilities that exist to resolve the boardroom debate. Required Work through the 5 steps of the ethical decision-making model presented in the lecture to evaluate what course of action HighLight should take.

Answer 1

Required
Work through the 5 steps of the ethical decision-making model presented in the lecture to evaluate what course of action HighLight should take.

1. Identify the facts of the dilemma and define the ethical issues it raises
2. Identify the principles or theoretical frameworks that could be used to address the dilemma
3. Identify alternative courses of action that could be taken and the effect on stakeholders
4. Match the alternatives from step 3 to the principles/frameworks in step 2
5. Determine which course of action to take