Every shopper who used the website was affected by the Equifax data hack. They trusted Equifax with sensitive personal financial information, believing that Equifax would keep it secure and confidential. Names, home locations, phone numbers, dates of birth, social security numbers, and driver’s license numbers were among the details revealed. Credit card information for around 209,000 customers was also exposed. Equifax, one of the three major consumer credit reporting agencies in the United States, announced in September 2017 that its systems had been compromised, exposing the sensitive personal information of roughly 148 million Americans. Equifax failed to keep their data secure and failed to properly handle the aftermath of the hack. They demanded a fee to freeze their accounts, and when customers contacted them for information, they claimed they didn’t have databases of their information or internet access to look them up. Confucianism is the ethical, educational, and political system taught by Confucius and his students, emphasizing respect for mankind, ancestor worship, reverence for parents, and harmony in thought and action. Confucianism is a philosophy of living rather than a religion, like Christianity and Buddhism are. In this case analysis, I will argue that Confucianism demonstrates that the Equifax hack harmed customers by letting a data breach to occur and then failing to handle it properly, which was ethically wrong. 

The first article I’ll be reviewing is “The Social Responsibility of Business Is to Increase Profits” by Milton Friedman. A company’s social obligation, according to Friedman, is to increase its profits. He highlights the importance of profit in business and how it should be the company’s primary aim. This is for the company, not for one individual. Individual social responsibilities, on the other hand, differ from those of a corporation. These include responsibilities to one’s family, friends, conscience, philanthropic emotions, church, city, and nation. This type of obligation may not always be in the best interests of the business or employers because it is more of a moral responsibility than a business one. Since profit appears to be the most essential component in today’s society, businesses have greater social responsibilities than people. Confucianism focuses on our responsibilities in life and how to perform them properly. It is not always our obligation to do what we are told; sometimes, we must question an order in order to determine if it is the best choice. As previously mentioned, we may have to pick between many obligations and actions in life. Because no two situations are the same, you must examine all factors and select the best solution depending on the facts. In this case, the decision would be between commercial responsibility to the company and social duty to the customers. In order to fully understand we need to consider which was more significant to Equifax and how it affected them and their company. The commercial responsibility of Equifax is to make money and when they charge people for their services, they are doing just that. They also did this following the data breach by charging customers for account freezes. They are adept at business responsibility because they make money, but they also have social responsibilities to the customers who pay them. Because social responsibility is more personal and he is the CEO, this would have to be more focused on Richard Smith. Based on how he handled the aftermath of the data breach, I don’t feel he fulfilled his social responsibility role. His morality would have dictated that he freezes everyone’s accounts immediately and without charge. He would have also informed anyone whose account information was hacked. According to the account, Smith was more concerned with his professional responsibilities than with his social obligations. While he was helpful to his company and his employees, he ignored his customers and their right to privacy. This was morally incorrect because customers are what keep businesses going. Their needs come first or at least be considered, and especially in the aftermath of a data breach, he should do everything in his power to make their lives easier and to help them out the most. According to Confucianism, what you should do in any situation will not always be the same, however, every action taken is relational. Confucianism instructs us on how to spend our lives in the greatest way possible, based not on individual choices but on the general path we take. 

Melvin Anshen’s “Changing the Social Contract: A Role for Business” is the second article I’ll be analyzing. In his journal, Anshen discusses the conceptual shift. This is the idea I’ll be focusing on in this paper. This is the effect of social and economic advancement on a business. For a long time, many people believed that economic expansion was the primary driver of industry and civilization. Until recently, people did not consider other factors. While more research is needed, a vast amount of scientific evidence implies that social advancement (quality of life) is as important as economic progress. Anshen promotes the need for social and economic equality. In contrast to Freidman, who was more concerned with profit than anything else. In today’s culture and the accessibility of social media, one cannot survive without the other if they want to be a successful business. Businesses are evolving in a variety of ways, including morally. By concentrating on the roles, we may connect this notion to Confucianism. One would be associated with the role of economic advancement, while the other with the role of social growth. Each path has its own set of concerns; thus, you must base your decisions on the position you are seeking to fill. Every situation is unique, much as the Equifax data breach. The corporation has specific duties to sustain, such as data security, which they did not fulfill. The next moral step would be to help their customers as much as they could, regardless of economic development. They should consider their clients’ socioeconomic advancement. In this instance, Equifax focused on the business element, and they made judgments that benefited both themselves and their companies. On the other side, there is societal development, which they have failed to deliver. They were careless with the quality of life of their customers. When making business decisions, they prioritized outcomes that benefitted them over those that benefited their consumers. However, research has shown that social advancement is just as important as economic success. So, it doesn’t matter if only one is finished because there is still another half of a task that has to be completed as well. However, in order for the company to grow and operate at full potential, obligations must be fulfilled. Equifax must make a few adjustments if they want to perform better in the future. One strategy would be to focus less on profit and more on the well-being of their consumers and ensuring that they obtain the highest quality possible for them and their company. Confucianism offers a distinct viewpoint on how a government leader should act and how a government should operate. Men have the most impact on the development of a successful political system. The ruler’s principal objective in the Confucian state was to teach and reform the people and Equifax did not do that. When Equifax’s data was compromised, I believe the Confucianism ethical tool could have helped them do the right thing. Just like the drill instructor was severe on his squad despite his desire not to be. Equifax should have also been forthright with their consumers when they were hacked, even if they did not want to. 

In my case analysis, I claimed that Confucianism demonstrates that the Equifax breach harmed customers by letting a data breach to occur and then failing to handle it properly, which was ethically wrong. There are several alternative approaches they might have used to address this issue. Although I continue to believe that Equifax should have done more to address this data leak, I can state unequivocally that it was not their fault that they were hacked. On a daily basis, many businesses experience data breaches. It is nearly difficult to stay completely safe from hackers and other malicious web users. A reporting agency like Equifax, should understand the sensitivity of the data they receive from their customers and must be held to a higher standard. When you make a mistake, intentionally or not, it is up to you to fix the mistakes and hurt you caused, and Equifax did not do that. Instead of taking responsibility and fixing the breach at no cost to the customers affected, Equifax charged customers to fix a mistake that they made and that was unethical and immoral.