PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility
Student Name
Capella University
PHI FPX 2000 Ethics
Prof. Name
Date
Business Ethics and Corporate Responsibility
Business ethics and corporate social responsibility (CSR) help organizations make responsible decisions while balancing profitability with the interests of customers, employees, communities, and other stakeholders. In the case of Uchromz, a company that maintains a large DNA biobank, ethical responsibility is particularly important because genetic information is highly sensitive. Protecting privacy, obtaining meaningful informed consent, maintaining confidentiality, and controlling third-party access should therefore be central to the company’s corporate responsibility practices. CSR extends beyond financial performance by considering the social, environmental, and economic consequences of business decisions and their effects on present and future generations (Manasakis, 2018).
Ethical Issues and Their Relationships
Uchromz faces several interconnected ethical challenges because of the sensitive nature of genetic information. The company has collected millions of DNA samples in an expanding biobank, creating significant responsibilities related to data security, privacy, confidentiality, informed consent, and potential third-party use.
One of the most important concerns is informed consent. Individuals who provide DNA samples should understand what their genetic information will be used for, how long it may be retained, who may access it, and whether it could be shared with outside organizations. Consent documents that use vague or overly broad language may prevent individuals from making fully informed decisions. Clear and understandable consent procedures are therefore essential.
Privacy and confidentiality are equally important. Genetic information can reveal highly personal information about individuals and, in some circumstances, their biological relatives. Uchromz must implement appropriate safeguards to prevent unauthorized access, disclosure, or misuse. These responsibilities become more complicated when information is shared with third parties because the company may have limited control over how external organizations subsequently handle the data (Noroozi et al., 2018; Schumacher et al., 2020).
Primary Interests of Uchromz Stakeholders
Uchromz has multiple stakeholders whose interests may overlap but can also conflict. The company has an interest in maintaining a successful business while complying with applicable ethical and legal requirements. It also has a responsibility to protect the information entrusted to it.
Consumers generally seek genetic testing for purposes such as ancestry information, health-related insights, or personal research. At the same time, consumers have an important interest in maintaining control over their genetic information and understanding how their DNA may be used.
Partnering research institutions and other organizations may have an interest in accessing a large DNA database to support scientific research, innovation, and collaboration. These interests can create ethical tensions when research objectives conflict with an individual’s expectations concerning privacy and control over personal information.
For Uchromz, responsible stakeholder management requires transparent policies that recognize these different interests while placing appropriate safeguards around sensitive genetic data.
Utilitarianism and Uchromz’s Ethical Responsibilities
Utilitarianism is a normative ethical theory that evaluates actions largely according to their consequences. From a utilitarian perspective, an ethical decision should seek to produce the greatest overall benefit while minimizing potential harm (Häyry, 2020).
Applied to Uchromz, this approach requires the company to consider both the potential benefits and risks associated with collecting and sharing genetic information. A large DNA database can contribute to scientific research and potentially generate benefits for individuals and society. However, unauthorized disclosure or misuse of genetic information could cause significant harm.
A utilitarian approach would therefore support strong privacy and security measures when those measures reduce potential harm while allowing legitimate research and business activities to continue. Uchromz could use this framework to evaluate whether specific data-sharing practices create sufficient benefits to justify their potential risks.
Milton Friedman’s View of Corporate Responsibility
Milton Friedman’s well-known position on corporate responsibility emphasizes the responsibility of businesses to pursue their economic objectives while operating within established legal and ethical rules. This perspective places significant importance on generating value for the company’s owners or shareholders.
For Uchromz, a shareholder-focused approach could emphasize financial performance, business growth, and efficient use of the company’s DNA database. However, financial objectives must be considered alongside the responsibilities created by handling sensitive genetic information.
A sustainable business strategy requires attention to customer trust, regulatory expectations, privacy, security, and other stakeholder concerns. Research on corporate social responsibility has also examined the relationship between responsible business practices and financial performance, demonstrating why social and ethical considerations can be relevant to long-term organizational success (Okafor et al., 2021).
Deontology and Corporate Social Responsibility
Deontological ethics evaluates actions according to duties, rules, and principles rather than focusing exclusively on their consequences. Under this framework, an action may be considered ethically appropriate because it respects an established moral duty, even when another course of action might produce different outcomes (Barrow & Khandhar, 2019).
For Uchromz, a deontological approach would emphasize the company’s duty to respect the privacy and autonomy of individuals who provide DNA samples. The company should treat consent as an ethical obligation rather than simply as a business requirement.
This means Uchromz should establish clear policies governing:
- Informed consent before DNA collection and use.
- Confidentiality of genetic information.
- Secure storage and transmission of DNA-related data.
- Appropriate limitations on third-party access.
- Transparent communication about research and commercial uses.
- Respect for individuals’ rights concerning their personal information.
These principles can help establish consistent ethical standards even when sharing genetic information could potentially provide financial or research benefits.
Limitations of Milton Friedman’s Shareholder Theory
A shareholder-centered approach to corporate responsibility has been criticized for placing too much emphasis on financial returns while giving insufficient attention to broader social and environmental responsibilities. Critics argue that businesses operate within communities and affect stakeholders beyond shareholders (Clarke, 2020; Elrick & Thies, 2018).
This issue is especially relevant to companies such as Uchromz because genetic data is not an ordinary commercial resource. Customers entrust the company with information that can have lasting implications for their privacy and personal autonomy.
If Uchromz were to prioritize short-term financial benefits over data protection, it could undermine customer trust and create significant ethical concerns. A broader corporate responsibility approach would recognize that long-term organizational sustainability depends not only on financial performance but also on responsible treatment of stakeholders.
How Uchromz Can Address Its Ethical Responsibilities
Uchromz can integrate business ethics into its corporate responsibility strategy by treating privacy, informed consent, and data security as core organizational responsibilities. Ethical decision-making should be incorporated into policies governing the collection, storage, use, and sharing of genetic information.
The company should also communicate its practices in language that customers can understand. Transparent communication can help individuals make informed choices about whether and how their DNA information is used.
A responsible approach should balance the potential benefits of genetic research with the need to minimize privacy and security risks. This requires ongoing evaluation because technological developments, research practices, and expectations surrounding genetic privacy can change over time.
Conclusion
Business ethics and corporate social responsibility provide an important framework for addressing the challenges faced by organizations that manage sensitive information. In Uchromz’s case, the central ethical issues involve informed consent, privacy, confidentiality, data security, and third-party access to genetic information.
Utilitarianism encourages Uchromz to consider the benefits and potential harms associated with its decisions, while deontological ethics emphasizes duties such as respecting privacy and obtaining informed consent. The discussion surrounding shareholder-focused corporate responsibility further demonstrates the importance of considering stakeholders beyond financial interests.
Ultimately, responsible corporate behavior requires Uchromz to balance business objectives with its obligations to customers, research partners, employees, and society. Strong privacy protections, transparent consent procedures, and ethical data-management practices can support both stakeholder trust and sustainable organizational development.
References
Barrow, J. M., & Khandhar, P. B. (2019). Deontology. StatPearls. National Library of Medicine. https://www.ncbi.nlm.nih.gov/books/NBK459296/
Clarke, T. (2020). The contest on corporate purpose: Why Lynn Stout was right, and Milton Friedman was wrong. Accounting, Economics, and Law: A Convivium, 10(3). https://doi.org/10.1515/ael-2020-0145
Darby, W. C., & Weinstock, R. (2018). The limits of confidentiality: Informed consent and psychotherapy. Focus, 16(4), 395–401. https://doi.org/10.1176/appi.focus.20180020
Elrick, J., & Thies, C. F. (2018). The social responsibility of business: Milton Friedman reconsidered. Journal of Markets & Morality, 21(2). https://www.marketsandmorality.com/index.php/mandm/article/view/1356
PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility
Häyry, M. (2020). Just better utilitarianism. Cambridge Quarterly of Healthcare Ethics, 30(2), 1–25. https://doi.org/10.1017/S0963180120000882
Manasakis, C. (2018). Business ethics and corporate social responsibility. Managerial and Decision Economics, 39(4), 486–497. https://doi.org/10.1002/mde.2921
Noroozi, M., Zahedi, L., Bathaei, F. S., & Salari, P. (2018). Challenges of confidentiality in clinical settings: Compilation of an ethical guideline. Iranian Journal of Public Health, 47(6), 875–883. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6077627/
Okafor, A., Adeleye, B. N., & Adusei, M. (2021). Corporate social responsibility and financial performance: Evidence from U.S. tech firms. Journal of Cleaner Production, 292, 126078. https://doi.org/10.1016/j.jclepro.2021.126078
Schumacher, G. J., Sawaya, S., Nelson, D., & Hansen, A. J. (2020). Genetic information insecurity as state of the art. Frontiers in Bioengineering and Biotechnology, 8, 591980. https://doi.org/10.3389/fbioe.2020.591980