Question

Analysis a recent ethics scandal, your report should discuss the conditions that gave rise to unethical business strategies and behavior and provide an overview of the costs resulting from the company's business ethics failure.

Answer 1

Facebook has had an annus horribili an example of the reaction on social media to this scandal.
Cambridge Analytica obtains 50 million users data. Despite their avowed policy changes in 2015, and even since the Cambridge Analytica debacle, users no longer feel Facebook takes their privacy seriously. Data from Facebook has been obtained by potentially hostile actors, Yandex (Russian search firm) and Huawei, as well as Amazon, and Sony (to name just a few.)
Facebook’s platform tilted the Brexit vote, the 2016 US presidential election, and more. Fake news from Russian trolls overwhelmingly favored Trump and Brexit (does anyone else think that if Russia wants it, it almost certainly is not good for us?) We do not know whether this tilting affected the results (although both were super close). Despite this, the company is accused of being biased toward left-of-center causes!
Facebook was hacked in September. The breach gave the hackers access to 30 million users’ data.
A New York Times investigative scoop revealed that Facebook partnered with a very dodgy PR firm, Definers Public Affairs, which is accused of unethical and even anti-Semitic “opposition research.”

The stock is at a two-year low!

I believe this is the beginning of the end (well, ok not the end Yahoo is still floundering around).

Even more worrying than the above is the perception among young people that Facebook is for old people. Literally (well not literally), nobody under the age of 20 uses it, and as they age, it is hard to see the next generation of teens doing differently. That, and the fact that older-users are leaving for ethical and privacy reasons spells (in my view) bad bad news.

I’m not sure how much of this was avoidable. Until a few years ago, Facebook would have vehemently denied that it was a news organization. (Honest, we are just a neutral platform. Really.)

However, algorithms and filter bubbles mean what you get on Facebook is far from neutral. If you are a little racist, you will get news that inflames that.