PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility:

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Business Ethics and Corporate Responsibility

Social responsibility is a fundamental component of contemporary corporate values. Businesses nowadays are expected to be both profitable and socially responsible, taking into account how their activities influence society, the environment, and other stakeholders. In this assessment, we will use moral hypotheses to argue that companies have a genuine desire to be socially responsible when dealing with a moral issue.

Relationships among the many components of the ethical issues The selected scenario raises several ethical difficulties, including corporate social responsibility, national security, and privacy. The company Rmblppy (RP) should balance the interests of its many stakeholders, including clients, the US government, and investors.

Ethical Issues

One of the most pressing ethical concerns is privacy. Clients rely on RP to protect their personal information, and RP is confident in his ability to do so (Grassi et al., 2020). RP risks endangering client privacy by disclosing user data to the US government, which might harm the company’s trust and image. National security is another ethical concern. The US government is mentioning client information to aid public safety inspections, which is a serious worry. When denying the government access to this data, RP must consider the possibility of terrorist strikes.

Additionally, RP must consider its CSR duties. As a publicly traded corporation, RP must be socially responsible. This includes considering the consequences of its activities for all stakeholders, including consumers, workers, shareholders, and the broader public (Fernando, 2024). RP should balance its responsibility to ensure client security with its obligation to assist the public authorities in protecting the wider public.

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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Stakeholders’ Primary Interests

The scenario in which RP must decide whether or not to offer the US government consumer data creates a conflict between the major interests of many parties. The three stakeholders have the following primary priorities: customers. Customers’ first goal is to preserve their privacy (National Academies of Sciences, Engineering, and Medicine, 2020). They trust RP to keep their personal information private and want the organization to work in their best interests. Customers also want to utilize RP’s platform without fear that their information will be shared with the government without their consent.

US Government

The US government prioritizes public safety. It seeks to protect Americans and others from harmful actions and prevent terrorist strikes. The public authority may agree that obtaining customer information from RP will help to support these efforts and protect the general public.

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RP Investors

The primary goal of RP investors is the organization’s financial success. Investors have invested in RP with the expectation that the company will increase profits and investor confidence. They could want RP to prioritize financial gain over other factors because they are concerned about how the choice will affect the company’s bottom line.

The associations between these partners’ main interests could be clearer. RP should weigh the interests of all partners against one another and devise the most moral strategy. For example, if RP chooses to provide client information to the US government, it may be perceived as acting against the interests of clients who value their privacy (Grover et al., 2022). RP may argue, however, that sponsoring public safety initiatives is acting in the larger public interest. On the other hand, RP’s refusal to share customer data may be interpreted as a breach of the US government’s interests and a danger to national security.

Investors may be concerned about the influence of RP’s decision on the organization’s financial performance, causing RP to prioritize advantages over other considerations. RP must negotiate these opposing interests and reach an ethical decision consistent with its obligations and principles.

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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Standardizing Moral Hypothesis

In terms of the moral hypothesis, RP may use utilitarianism to assess the predicted harm and benefit of each option. It might also utilize deontology to consider its moral obligations to consumers and the wider public in all circumstances (Britannica, 2024). Finally, RP must consider the requirements of all stakeholders and select the best moral course of action under its corporate duties and principles.

Social Responsibility

The Use of Milton Friedman’s Shareholder Theory for Social Responsibility Milton Friedman’s shareholder theory stresses that a company’s main social obligation is to increase profits for its owners while adhering to legal and ethical requirements. According to this concept, firms should focus solely on increasing investor value and avoid actions that undermine this goal, such as participating in socially responsible or charitable activities (Nguyen et al., 2021).

Applying Friedman’s investor hypothesis to the scenario at hand, RP’s social responsibility is to prioritize the interests of its investors over any remaining partners. This would suggest that RP’s key commitment is to increase advantages and investor respect, regardless of whether it implied sacrificing client security or helping the public authority in prospective protection violation. From this standpoint, RP’s choice to supply the US government with consumer data is legitimate if it maximizes earnings and shareholder value. RP may argue that assisting the public authority will help to maintain a favorable relationship with the public authority, perhaps leading to future commercial opportunities.

Customary Hypothesis of Standardizing Morals

A customary hypothesis standardized moral theory that may be employed in this case is deontological morals, which is based on the concept of obligation and emphasizes ethical quality rather than outcomes. Deontological morals require acts to be judged based on whether they are intrinsically proper or incorrect, regardless of the outcome (Barrow & Khandhar, 2023).

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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Applying a Traditional Theory of Normative Ethics: Virtue Ethics

Applying deontological morals to the case presented, RP has an ethical commitment to protect its clients, even if it means refusing to provide client information to the US government (Tseng & Wang, 2021). Because its clients have provided the firm with sensitive information, RP is expected to preserve their privacy and behave in their best interests.

Milton Friedman’s shareholder theory emphasizes shareholders’ interests. It must consider the moral and social responsibilities that businesses have to their customers and the community as a whole. This viewpoint ignores firms’ moral responsibility to act ethically and responsibly by prioritizing shareholder wealth over all other factors (Tseng & Wang, 2021).

Gaps or Deficiencies of Utilitarianism

One of the deficiencies in Milton Friedman’s Shareholder Theory is that it does not account for the long-term repercussions of RP’s activities on company reputation or customer loyalty. By putting short-term earnings ahead of consumer interests, RP risks damaging its brand and losing customer trust. This might eventually harm investor confidence and long-term benefits (Dwivedi et al., 2021).

Another area for development is to give information on how to create a balance between diverse stakeholders’ competing interests. In this position, RP must balance the interests of its clients, the US government, and its investors, which necessitates the consideration of multiple moral obligations and concessions (Dwivedi et al., 2021). Deontological morals provide a framework for changing these commitments and making moral and competent decisions.


The deontological ethics approach highlights RP’s moral commitment to follow legal guidelines and protect client privacy. This concept also emphasizes the long-term outcomes of actions and the balancing of competing interests among diverse parties. When applying Milton Friedman’s shareholder theory to this case, it must account for these obstacles and faults. Deontological morality provides a more detailed and sophisticated approach to evaluating an organization’s social duty in difficult moral situations.


Barrow, J. M., & Khandhar, P. B. (2023). Deontology.; StatPearls Publishing.

Britannica. (2024). Deontological ethics . In B. Duignan (Ed.), Encyclopædia Britannica.

Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., & Carlson, J. (2021). Setting the Future of Digital and Social Media Marketing research: Perspectives and Research Propositions. International Journal of Information Management59(1), 1–37. Sciencedirect.

Fernando, J. (2024). What is CSR? Corporate Social Responsibility Explained. Investopedia.

Grassi, P. A., Garcia, M. E., & Fenton, J. L. (2020). Digital identity guidelines: revision 3. NIST Special Publication 800-63-3.

Grover, S., Avasthi, A., & Nischal, A. (2022). Ethical and legal issues in psychotherapy. Indian Journal of Psychiatry64(7), 47–61.

National Academies of Sciences, Engineering, and Medicine. (2020). Fostering Integrity in Research. National Academies Press.

Nguyen, N. T. T., Nguyen, N. P., & Thanh Hoai, T. (2021). Ethical leadership, corporate social responsibility, firm reputation, and firm performance: A serial mediation model. Heliyon7(4), e06809.

Tseng, P.-E., & Wang, Y.-H. (2021). Deontological or Utilitarian? an Eternal Ethical Dilemma in Outbreak. International Journal of Environmental Research and Public Health18(16), 1–13.

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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