Unit Learning Outcome (ULO)

On November 27, 2018 at exactly 11.28pm, Frank Augstein published an article in ‘ABC News’ online newspaper portal titled “Nine countries grill Facebook in Westminster, saying democratic institutions ‘upended by billionaire frat boys.” Frank reports the outcomes of Facebook Inc. after the company faced complaints against alleged misconduct in which involved conceptions of privacy, truth, and democracy. According to the reporter, the founders of Facebook decided to fore-go hearing after they were summoned. The summoning was because Facebook Inc. allegedly went against privacy laws and thus, charged with foreign interference with the U.S. election results and the 2016 Brexit votes. The report further states that after Mark Zuckerberg – the CEO of Facebook declined attending the summon by the British and European leaders, the Facebook’s chief of European policy Politicians was called for hearing instead. In the Westminster hearing, lawmakers from the U.K. posed questions alongside Brazilian, Argentinian, Canadian, Singaporean, as well as Latvia parliamentarians among others. However, the chief of European policy refused to cooperate, was forced to attend parliament proceedings, and threatened will fines for contempt of court and possible jail time (Augstein, 2018).

What is intriguing about the article written by Frank is the level of deceit that Facebook has played on its users. Charlie Angus states – and quoted by the writer that nothing in the form of Facebook’s operational deceit has been witnessed before. While consumers are using their apps and playing by their phones, Facebook is in the process of upending world democratic institutions (with the narrator describing the CEO as a frat-boy billionaire from California). Angus then adds that by the organization of Facebook trying to use the tactics of misinformation – instead of practicing accountability; it has lost the trust of the people (Ferrell & Fraedrich, 2015). However, regulators are concerned while many other global lawmakers trying to pressure Facebook to provide an explanation to why Facebook declined protecting information privacy for its users. Cambridge Analytica is among several institutions that worked alongside Facebook to perform data breaches. According to reports, Cambridge Analytica used Facebook – back in 2014 to acquire the 50 million user profiles for its research processes (Basu, 2010). By providing the 50 million user profiles, Facebook conducted a consequential data breach compared to none in the entire social networking history. By exposing private information to its users, business organizations have reported several problematic aspects of Facebook’s case. Most importantly, serious ethical misappropriation takes place as soon as Cambridge Analytica gets involved in the harvesting of private data of unknowing individuals (Cambridge Dictionaries, 2014). To make it worse, not a single Facebook user was noted on the existence of surveys from Cambridge Analytica and that personal information would be provided to a third party. The act – among other several misappropriations go against the terms of service of Facebook. According to the Federal Trade Commission’s guidelines, it is important to destroy information once they reach unauthorized individuals. However, Facebook never complied with such guideline and ended up keeping the data all the same (Rees & Smith, 2017). Afterwards, the Facebook gave Cambridge Analytica was instrumental in creating techniques and models that influence Americans voted. However, upon question, Cambridge Analytica denied ever receiving public information from Facebook. As reported by its chief executive officer, Cambridge Analytica denounced being part of providing service towards encouraging Trump’s win during the presidential campaign in 2016. On the other hand, questions arose whether Trump’s win in the just ended presidential heat was advantaged by corruption of election data. Related research outcomes also show that Facebook attempted to cover up the case by suspending Cambridge Analytica two year after the discovery of the breach (Ruthergien, 2016). ABC News reports that some data related to the incident is still present in the internet. Moreover, in as much as Cambridge Analytica denies inappropriately using data provided by Facebook, a whistleblower – who also happens to be a former employee in the company, emphatically contradict such claims (Apple, 2014).

Appealing of Marks

Currently, Facebook closes to about 2.1bn clients. From the 2.1bln, around 1.7bn uses the platform on a daily basis. Since it is a social networking platform, individuals have the freedom to share photos, ideas, as well as life events with family members and friends. Therefore, Facebook has to provide the highest user image as well as the finest media company – while noting that it also emphasizes on user emotions. However, with time, Facebook has become a hot bet for business activities with advertisers targeting more than half the 2.2bn users to market their brands (Andreotti  & Pashby, 2013, pg. 231). However, few years ago, researchers highlighted that the algorithms of Facebook could be employed in predicting political and or product preferences using Facebook ‘likes’. Such researchers were however; more concerned with privacy implications since Facebook’s default likes settings is public. Therefore, Cambridge Analytica – while using the research outcomes performed years ago as its basis of breaching private information, thought it had the ability to change the politics of U.S. through exploitation of insight. From such ethical incidences affecting the operation of Facebook, it is clear that companies should protect private information of its customers. With technology growing broader, millions of individuals are victims of privacy breaches and associated outcomes (Andreotti,  Jefferess, Pashby, Rowe, Tarc & Taylor, 2010, pg. 11).

The law is clear about breaching personal information. The access of an individual’s public information is termed as privacy breach. In most cases, privacy breach occurs in the form of disclosing personal data against privacy policies and legislation. Different statuses define personal information differently (Articadv, 2014). However, private information forms the building block of several privacy laws. There are several types and examples of personal information. However, examples that are more obvious include one’s nationality, home address, ethnic origin, religion, color, marital status, level of education, or criminal history among others. Most importantly, information privacy breach may be inadvertently or intentionally with the outcomes devastating to its victims. Intentional information privacy breaches involve manipulation of technology or thievery mostly used to protect or catalogue personal information (Brea-Solís, Casadesus-Masanell & Grifell-Tatjé, 2012). The process may also involve hacking that is about breeching electronic safeguards computer systems. When hacking is involved, the problem might be serious since many multinational companies and government agencies rely on databases that are heavily computerized. Intentional breaches may be vicious as well because they may occur due to deliberate desires to collect, access, disclose, or use personal information with the intention of perpetrating a crime or causing disturbance (Ferrell & Fraedrich, 2015).

Selection of Articles

On the other hand, information privacy breaches may result from ignorance or human error. Breaches that result from ignorance and human error happen due to mistaken disclosures, careless practices, or communication breakdowns. However, it does not matter that such breeches are performed without malice since they are as greave as intentional breaches. When privacy laws are breached, affected individuals are most likely, standing a chance of losing their jobs and opportunities, face identity theft and physical risks, as well as embarrassment (Miller & Le Breton-Miller, 2005). Most importantly, private information breach may cause financial losses to major multinational firms. No matter the kind of breach that an organization faces – and whether the information achieved illegally is used in fraud perpetuation or not, the organization will face the same consequences of private information breach. Otherwise, it is prudent that organization be aware of the responsibilities they hold towards handling private information – as stipulated in the laws governing the land. Therefore, business organizations should implement practices that prevent private information from reaching the domain of unauthorized personnel (Andreotti  & Pashby, 2013, pg. 230).

To conclude on this matter, it is important to destroy private when usage is complete. Coming up with proper disposal and information destruction policies is vital in preventing breaches. Policies of destroying personal information should account for the destruction of technological and physical elements of the information. Most importantly, hard copy or paper records with personal information need shredding. However, the process of destroying personal data should be monitored and certified (Bysani, 2013). On the other hand, unnecessary electronic files need to be destroyed or wiped out. It is also important that organizations respond to privacy breaches by enacting preventative measures and best practices. As mentioned before, information privacy breach may be inadvertently or intentionally with the outcomes devastating to its victims. For intentional information privacy breaches, thievery or manipulation of technology is employed with the intention of protecting or cataloguing personal information (Grollman, 2014, pg. 6). The process may also involve hacking that is about breeching electronic safeguards computer systems. Intentional breaches may be vicious because they are likely to occur as deliberate desires to collect, access, disclose, or use personal information with the intention of perpetrating a crime or causing disturbance. However, information privacy breaches may result from ignorance or human error. Breaches that result from ignorance and human error happen due to mistaken disclosures, careless practices, or communication breakdowns. Contrarily, privacy protection weaknesses do not create alarm in most cases until breaches occur. In such a case, the breach is described as an outcome of employing business practices that are faulty. The breach may also result from operational breakdowns (Belcher, 2009). Therefore, an organization must employ strategies as soon as possible to rectify cause damages. When a breach occurs, the first 72 hours is important towards its containment and the potential damages or harm that the third parties or the organization may suffer. When an organization is sluggish in its containment processes, the damages that the breach may have on organizational stakeholders may be detrimental (ACSI, 2014). Therefore, managing the situation may be difficult.  Apart from that, employing privacy legislations and organizational policies is important. As mentioned before, the law is clear about breaching personal information. The access of an individual’s public information is termed as privacy breach. In most cases, privacy breach occurs in the form of disclosing personal data against privacy policies and legislation. Different statuses define personal information differently. However, private information forms the building block of several privacy laws. Most importantly, by ensuring that organization personnel understands the obligation of keeping private data undisclosed, then third parties to whom access to private data is granted must also comply with the stipulated policies on information privacy (Ferrell & Fraedrich, 2015). In addition, third party compliance obligations must be contractually written to avoid misunderstanding – as well as establishing standards as agreed upon. The contractual terms must seek to solve information security issues to avoid private information disclosure. The contractual terms must also help in investigating privacy breaches allegations while responding to claims and inquiries from government officials and individuals. By ensuring that the contractual terms have an audit – that is favoring the organization in relation to the practices of the third party, then it is easy for the third party to comply with the stipulated obligations against privacy infringement (Azyan, Pulakanam & Pons, 2017, pg. 471).

Discussion of Each Article

How, therefore, can Private Information Breach be Reduced?  This section will highlight recommendations – or best practices to limit situations of information misappropriation. First, organizations need to adopt aggressive and proactive approaches. However, privacy practices should be built on four pillars. The first pillar is that an organization’s management should understand the obligations of the firm under applicable standard and law. Therefore, the management of the organization must understand regulatory and statutory obligations as highlighted in the legislation of the land. In addition, the firm will have to review its privacy policies, industrial standards, and contracts with third parties – binding the firm to operate in the manner that it does. The second pillar is the fact that managers should be able to properly understand their organization’s practices towards handling private information. Such understanding should be broad enough to encompass knowing the source and nature of private information on intake as well as knowing how an organization stores, uses, discloses, and transfers personal information. Other aspects include understanding how the firm deletes, renders anonymous, or destroys private information already rendered useless. Therefore, organizations should develop and implement technology-based and wireless security protections to reduce unauthorized access of personal information (Sekaran & Bougie, 2016). In addition, the use of digital locks, password protection, and encryption programs may help in reducing hacking and theft cases. In many organizations, encryption of personal information is employed as a standard mechanism towards storing personal data. The third pillar is that organizational management should enact privacy policies. The privacy policies, however, should portray practices of handling private data in compliance with the applicable standards and the law of the land. The final pillar encompasses implementing provisions of the formulated policies after developing the policy (ACSI, 2014). One of the instrumental elements of carrying out such an implementation process is that the management of the organization ensures that officers, employees, consultants, directors, and third parties comply with the policies as formulated. In case officers, employees, and directors do not get proper education on the stipulated privacy infringement laws and privacy policies as stipulated, it is difficult to prevent privacy breaches (Thames & Schaefer, 2017). As aforementioned, an organization that ensures its personnel understands the obligation of keeping private data undisclosed also ensures that the third parties to whom access to private data is granted must also comply with the stipulated policies on information privacy. Most importantly, third party compliance obligations should be contractually written to avoid misunderstanding and establish standards as agreed upon. The contractual terms must seek to solve information security issues to avoid private information disclosure. The contractual terms must also help in investigating privacy breaches allegations while responding to claims and inquiries from government officials and individuals. By ensuring that the contractual terms have an audit – that is favoring the organization in relation to the practices of the third party, then it is easy for the third party to comply with the stipulated obligations against privacy infringement (Louis, 2017).

Article Highlight: Facebook’s Misconduct and Alleged Interference

Zoe Wood – on November 5, 2018 at 0601hours GMT, published an article on “The Guardian” called “Traidcraft eyes young ethical consumers with rescue plan.” According to Wood (2018), a retailer firm by the name ‘Traidcraft’ – on the brinks of closure, re-strategized t target ethical consumers, more so, younger consumers. Since the firm is based on religious doctrines, its traditional marketing and supply chain management technique involved working with volunteers. Such volunteers were charged with circulating tea and coffee products at school fairs and church hall stalls. However, at the beginning of November, the firm broke news by warning about its intentions to stop trading. However, the management claimed that the business would only continue with its processes if it were able to develop a model that would ensure profitability – after registering poor sales caused by the shock that Brexit had on the pound. However, Zoe Wood claims that Traidcraft’s CEO, Mr. Robin Roth showed up on behalf of the organization to clear the air. The CEO claimed that the firm had developed a strategy to keep its operational hopes alive after it sorted pieces of advice from different stakeholders. The main message that the CEO put to the media is that Traidcraft got pieces of advice against giving up. Traidcraft operates from Gateshead and will clock 40 years of operation by 2019. However, the company has fired about 80% of its staff while also outsourcing its warehouse. In the beginning of next year, the company will re-launch operations using a paid-for membership scheme entitling customers to discounts (ACSI, 2014). The company also intends to reduce the range of products sold to put more focus on popular items like tea, coffee, rice, and sugar instead of handicrafts. As a company, Traidcraft struggles because of the Brexit affair with church attendance reducing. Mostly, the reduction of church attendance was because of the austerity cuts impact on the standards of life in general. The Traidcraft micro business recorded a drop in sales from approximately £17.5m back 2010 to about £9m by March 2018. Within a span of five years – from 2013 to 2018, Traidcraft has also fired close to 1500 volunteers running weekend stalls leaving behind approximately 4,250 elderly volunteers. However, the reaming stallholders can only generate half the total sales. Traidcraft, according to one of the leader in the organization, is a business venture paying up front (Uzuner-Smith & Englander, 2015, pg. 69). Therefore, with the falling of the pound after the Brexit referendum, the organization took a hit. However, the company stands on its prices as published unlike other retailer firms that changed prices after the Brexit event. The most important moral aspect that Traidcraft demonstrated is standing by the customers and absorbing additional costs – with rise in prices kept as minimum as possible (Ferrell & Fraedrich, 2015). In the olden days of 1980s and 90s, Traidcraft promoted the development of fair trade products. However, Roth, one of the managers at Traidcraft, elaborated that the company is currently “sidelined” with major supermarkets in the country hitting the £1.7bn market. Therefore, for Traidcraft to gain to regain an upper hand in the market, it needs to come up with radical agenda by having the product prices broken down. By breaking down product prices, Traidcraft will make transparent the prices, costs, and profits aligned with every sold product (Green, 2016). Most importantly, Roth believes that Traidcraft has the capacity to operate beyond boundaries of what individuals understand about fair trade. In the article, the writer makes it clear concerning how agitated Roth is when saying that they cannot let supermarkets define fair trade for micro organizations. In fact, Roth believes that Traidfact should lead the market while other organizations follow. The aim of Traidfact, therefore, is to cause good trouble by envisioning onto the historical trajectory of Traidcraft – using the objectives that were laid in 1979 by the six pioneers of fair trade. Among the strategies that the company intends to employ include (1) encouraging customers to venture into new food trends like zero-waste shopping (2) adopting cooperative sales and marketing and (3) addressing younger audience to encourage the production of vegan, ethical, and organic goods (Sabah, 2016).

Issues Concerning Facebook’s Operations

Otherwise, what do we need to know about fair trade? Fair Trade happens to be a partnership for trading. The basis of Fair Trade is transparency, dialogue, and respect. With transparency, dialogue, and respect, greater trade equity is achievable in the international block. Fair Trade contributes to the goals outlined in U.N’s sustainability and sustainable development through several means including (1) providing better trading conditions (2) ensuring that the rights of marginalized traders and is secured. Organizations within the fair trade treaty are clearly committed towards meeting the goals of the partnership and must adhere to the core principals of its vision and mission (Antonio, 2010). Since clients heavily back the partnership, producers receive fathoming support. Such support also leads to the creation of awareness towards amending rules that would increase the efficiency of conventional international trade. Since the partnership has existed for a long time, the group no longer advocates for trading alone. Fair Trade (1) tries to highlight on the importance of greater justice in the world of business and trade (2) tries to showcase the importance of amending trading practices and rules while demonstrating how successful businesses could give its customers and stakeholders the first priority. Most importantly, Fair Trade also contributes to the fight against climate change, poverty, and economic crisis (Brunn, 2016). Therefore, the partnership is about good working conditions, better prices, fair trade terms, local sustainability, and general sustainable development. Fair Trade ensures that member companies offer prices at prices that are sustainable – however, such prices must not fall below market price. In addition, the partnership strives to tackle injustices within conventional trade – one of which currently discriminates against weak, poor producers. Therefore, the weak producers are able to have greater control over their business lives and improve their market position. Fair Trade gives small and large business organizations and customers the ability to revolutionize trading. By creating simple shopping choices for customers and businesses, better trading deals are created. Most importantly, small businesses are not bullied by large businesses into making market decisions (Bennett, Dawson, Bearman, Molloy & Boud, 2017, pg. 679).

Therefore, does Brexit break or make Fair Trade? To begin with the obvious, the producers at Fair Trade in developing countries worldwide need assurances whether their goods can undergo tariff-free trading once Britain decides to leave the European Union. Otherwise, if Fair Trade cannot provide such assurance, major fallout is likely to be realized. The message is clear from most campaigners Oxfam, Traidcraft, and the Trade Justice Movement. Traidcraft, for instance, intends to make transparent, its prices, costs, and profits aligned with every sold product. Most importantly, through its manager Roth, Traidcraft believes that is has the capacity to operate beyond boundaries of what individuals understand about Fair Trade. As mentioned before, the article – referred to in The Guardian makes it clear concerning how agitated Traidcraft is when Roth says that they cannot let supermarkets define fair trade for micro organizations. In fact, Roth believes that Traidfact should lead the market while other organizations follow. The aim of Traidfact, therefore, is to cause good trouble by envisioning onto the historical trajectory of Traidcraft. Therefore, Oxfam, Traidcraft, and the Trade Justice Movement handed in a petition that is 38,000-strong to Liam Fox – the Secretary of State for International Trade (Peters & Wolper, 2018). The three companies – Oxfam, Traidcraft, and the Trade Justice Movement, sourced backup from Global Citizen and Fairtrade Foundation to gain the momentum for such fallout. Most importantly, the fallouts decided to process their exit plans early enough – before general election to ensure that the new Secretary of State for Trade worked on the files as soon as he or she assumed office. As stated by the campaign manager of Traidcraft, Madam Mary Milne, such campaigns aimed at ensuring that the management of Fair Trade takes into account the requirements of developing countries are put into consideration (Vickers, 2016). Milne also added that the UK had decided to leave European Union while considering the fact that it only imports approximately £35 billion of goods from countries that are developing like Guatemala and Kenya. However, trade wise, the money pumped into imports from such developing countries is little. Most importantly, the concern that most of the fallouts of Fair Trade have is associated with the existing policies. However, it is believed that because the partnership is part of the EU, the management of Fair Trade has to take responsibility towards ensuring that alterations are done. If not, the partnership’s policies will not exist as Britain leaves the European Union. The most significant impact is the imposition of tariffs on trading processes – specifically for the imported goods that would become less competitive (L’Huillier, 2011). The main concern of Oxfam, Traidcraft, and the Trade Justice Movement is business prosperity for growers who supply Fair Trade products such as sugar, banana, green beans, and cocoa among other products. Most importantly, such producers should be provided with a stable market and that their livelihood is not lost (Chan & Maubourgne, 2012, pg. 129). As mentioned before, the moral aspect as demonstrated by Traidcraft is standing by the customers and absorbing additional costs – with rise in prices kept as minimum as possible. In the olden days of 1980s and 90s, Traidcraft promoted the development of fair trade products. However, Roth, one of the managers at Traidcraft, elaborated that the company is currently “sidelined” with major supermarkets in the country hitting the £1.7bn market. Therefore, for Traidcraft to gain to regain an upper hand in the market, it needs to come up with radical agenda by having the product prices broken down. By breaking down product prices, Traidcraft will make transparent the prices, costs, and profits aligned with every sold product (Walker, 2017).

Cambridge Analytica’s Association with Facebook and Data Breaches

One of the challenges that would arise within Fair Trade is the occurrence of different tariff regimes on the existing imports. However, there are products that are imported on fairtrade term while other are not. Significant tariff imposition will therefore, be realized in products as sugar, green beans, and bananas. Therefore, the management of Fair Trade as well as associated governments should perform. Though the proposal is simple, it is the most effective. The proposal is that governments should offer trading deals to poor countries. In such deals, trading processes should be done free of tariffs on the imported products (Pattabhiramaiah, Sriram & Sridhar, 2017). In such a case, goods from poor nations are imported tariff-free. Though the process is simple, it is effective because no negotiations take place – an approach that the British government cannot undertake until Brexit is complete. According to Roth, it would be important for trade activities if the government of Britain were able to offer tariff-free business deals for countries that are economically vulnerable. As mentioned before, no negotiations would be involved and the impact would be immediate. However, campaigners such as Oxfam, Traidcraft, and the Trade Justice Movement believe that the British government should make related commitments before the official Brexit. The British government has many challenging tasks that it needs to perform as long as Brexit is concerned. However, care is paramount when dealing with every situation as it would be detrimental if trade unions sleepwalked into horrifying business situations because of crooked government dealings (Ben-Ner & Siemsen, 2017, pg. 10).

Finally, yet importantly, this article has summarized an ethical situation in which Traidcraft – a business organization in Britain, faces closure because of business management turmoil. The firm has been using traditional marketing and supply chain management technique to sell its products. Volunteers – who also act like marketers, circulate tea and coffee products at school fairs and church hall stalls (Hodges & Grant, 2015). However, at the beginning of November, the firm broke news by warning about its intentions to stop trading. The management, through a representative, claimed that the business would only continue with its processes if it were able to develop a model that would ensure profitability. Poor business outcomes were registered by the company due to the shock that Brexit had on the pound. The company has been in operation for about 39 years and fired about 80% of its staff in the process. However, it is believed that in the beginning of next year, the company will re-launch operations using a paid-for membership scheme entitling customers to discounts. The company also intends to reduce the range of products sold to put more focus on popular items like tea, coffee, rice, and sugar instead of handicrafts. Traidcraft struggles because of the Brexit affair. Church attendance has also reduced because of the austerity cuts impact on the standards of life in general. With the brexit news, many companies increased their product prices. However, Traidcraft stood by its prices even after the Brexit event (Kroeber, Kluckhohn & Untereiner, 2015).

Ethical Misappropriation and Breach of Terms of Service

To curb the situation facing Traidcraft, the company – as mentioned before, must try to regain an upper hand in the market by using better marketing strategies like incorporating the internet in its sales processes (Brunn, 2016). The company could also break down product prices to ensure transparency in its pricing and business operations – the strategy ensures that Traidcraft is morally committed to its business obligations to the customers. Other strategies that the company should employ include (1) encouraging customers to venture into new food trends like zero-waste shopping (2) adopting cooperative sales and marketing and (3) addressing younger audience to encourage the production of vegan, ethical, and organic goods (Wood, 2018).

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