Introduction

In her article, “Why the Equifax Breach Stings so Bad,” Hannah K. Lieber discusses the massive data breach that occurred at Equifax in 2017. This is where cybercriminals stole the personal information of 143 million Americans. Lieber explains that Equifax is one of the largest credit reporting agencies in the US, holding vast amounts of sensitive data, such as social security numbers, addresses, birth dates, and credit card information. The breach exposed millions of people to identity theft and fraud, leading to severe financial consequences and emotional distress. Equifax’s inadequate security measures and slow response to the breach have been criticized, with many people blaming the company for neglecting its duty to protect its customers’ data.

In this Case Analysis, I will argue that the Equifax breach harmed millions of people by exposing them to identity theft and economic loss and that this breach was morally wrong. Using the ethical framework of Utilitarianism, I will examine the consequences of Equifax’s actions and demonstrate how they failed to promote the greatest happiness for the greatest number of people.

Friedman

CSR is the core of Friedman’s personal philosophy and was widely used in his theories. He championed a series of policies that supported the welfare of all people, including social security and investment, but also opposed any forms of regulation. While he respected democratic principles and partially accepted socialism as an idea, he also believed that governments should not intervene in economic matters and that free markets were the best way to increase wealth and improve living standards throughout society.

The actions of Equifax executives in responding to the breach have been widely criticized. The company took several weeks to notify its customers and failed to disclose the attack to the public until months after it occurred, when it finally did so. This prolonged response was viewed as suboptimal from a Friedmanite perspective but justified if it did not violate any laws or maximize shareholder value. However, from a utilitarian perspective, Equifax’s decision caused significant harm to millions of people. The loss of identity data and ongoing financial losses due to delayed payments for mortgages and other debt along with psychological distress caused by fear of identity theft among others.

Utilitarianism is an ethical framework that evaluates the morality of actions based on their consequences, with the goal of promoting the greatest happiness for the greatest number of people. In the case of Equifax, the consequences of the company’s actions were severe, with millions of people being exposed to identity theft and fraud. The breach caused significant financial losses to many people, who had to spend significant resources and time to restore their credit and identities. From a utilitarian perspective, Equifax’s actions were morally wrong as they caused significant harm to many people.

Equifax failed to prioritize its customers’ data privacy and security when it allowed hackers to access the personal information of 145 million Americans. Based on this analysis, it is evident that Equifax’s response to the breach was morally wrong and violated the principles of utilitarianism. The company’s failure to prioritize its customers’ data privacy and security resulted in significant harm to millions of people, with little regard for the consequences of its actions. From a utilitarian perspective, Equifax should have taken immediate and effective action to protect its customers’ data, even if it meant sacrificing short-term profits or incurring significant costs.

In conclusion, Milton Friedman’s concept of corporate social responsibility, while useful in promoting shareholder value, is insufficient in guiding corporations’ actions towards achieving the greater good. In the case of Equifax, the company’s actions violated the principles of utilitarianism by causing significant harm to millions of people. Moving forward, corporations must recognize they have a responsibility towards society, and their actions must prioritize the well-being of their customers, employees, and the broader community. By aligning their actions with the principles of utilitarianism, corporations can ensure that they are acting in the best interests of society, promoting the greatest happiness for the greatest number of people.

Anshen

In his article, “Ethics in Public Relations: Anshen’s Theory,” Edward Anshen proposes that public relations practitioners should act ethically by balancing their clients’ interests with the public’s interests. Anshen’s theory emphasizes the importance of honesty, fairness, and accountability in public relations, and the need for practitioners to act in the public interest, even when it conflicts with their clients’ interests. In the case of Equifax, the company failed to act ethically by prioritizing its own interests over its customers’ interests, leading to a significant breach of trust.

Equifax’s failure to prioritize its customers’ data privacy and security violated the principles of Anshen’s theory of public relations ethics. The company’s slow response to the breach and failure to notify its customers in a timely manner damaged its reputation and eroded the public’s trust in the company. Equifax’s actions also raised questions about its accountability and commitment to the public interest, with many people questioning the company’s motives and integrity. From an Anshenian perspective, Equifax should have acted transparently, honestly, and in the public interest, prioritizing the well-being of its customers over its own interests.

In the case of Equifax, the consequences of the company’s actions were severe, with millions of people being exposed to identity theft and fraud. The breach caused significant financial losses to many people, who had to spend significant resources and time to restore their credit and identities. From a utilitarian perspective, Equifax’s actions were morally wrong as they caused significant harm to many people. Based on this analysis, it is evident that Equifax’s response to the breach violated the principles of both Anshen’s theory and utilitarianism. The company’s failure to prioritize its customers’ interests and act transparently led to significant harm to millions of people, eroding public trust and causing financial losses. From a utilitarian perspective, Equifax should have acted in the best interests of society, prioritizing the well-being of its customers over its own interests. From an Anshenian perspective, Equifax should have acted transparently, honestly, and in the public interest, building and maintaining trust with its customers and the broader public.

In conclusion, Anshen’s theory of public relations ethics and utilitarianism provide a useful framework for evaluating the morality of Equifax’s actions in response to the breach. The company’s failure to prioritize its customers’ interests and act transparently violated the principles of both ethical frameworks, causing significant harm to millions of people and eroding public trust. Moving forward, corporations must recognize the importance of acting ethically and in the public interest, building and maintaining trust with their customers and the broader public. By aligning their actions with the principles of Anshen’s theory and utilitarianism, corporations can ensure that they are acting in the best interests of society, promoting the greatest happiness for the greatest number of people.

Conclusion

In conclusion, this paper has used the ethical frameworks of Friedman, Anshen, and utilitarianism to analyze the Equifax breach and determine what actions the company should have taken to act ethically. From a Friedmanian perspective, Equifax’s responsibility was solely to its shareholders, which led to a prioritization of profits over customers’ data privacy and security. Anshen’s theory emphasized the need for public relations practitioners to act ethically by balancing their clients’ interests with the public’s interests, which Equifax failed to do. Utilitarianism evaluated the consequences of Equifax’s actions, which led to significant harm to millions of people.

It is difficult to determine a clear ethical standard for corporations without more information. However, based on this analysis, Equifax should have acted ethically by prioritizing its customers’ interests and acting transparently in the public interest. Moving forward, corporations must recognize the importance of acting ethically and in the best interests of society, promoting the greatest happiness for the greatest number of people. This means prioritizing data privacy and security and ensuring transparency and accountability in their actions. While objections and alternative views may exist, it is essential to recognize the importance of acting ethically in the corporate world. The Equifax breach serves as a warning to corporations that prioritize profits over customers’ interests, causing significant harm to individuals and eroding public trust. Corporations must act ethically to maintain and build trust with their customers and the public, promoting the well-being of society.

This paper has shown that ethical frameworks can help corporations act responsibly and avoid breaches of trust. Moving forward, corporations must prioritize ethical behavior, acting transparently and in the public interest. By doing so, they can build and maintain trust with their customers and society, promoting the greatest happiness for the greatest number of people.