PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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Capella University

PHI FPX 2000 Ethics

Prof. Name

Date

Business Ethics and Corporate Responsibility

Business ethics and corporate social responsibility (CSR) require organizations to make responsible decisions while balancing profitability with the needs of customers, employees, communities, research partners, and other stakeholders. For Uchromz, which manages a large DNA biobank, ethical responsibility is especially important because genetic information is highly sensitive and can have long-term implications for individuals and their families. The company should therefore prioritize informed consent, privacy, confidentiality, data security, and responsible third-party access while pursuing legitimate business and research objectives. A strong corporate responsibility strategy can help Uchromz protect stakeholder interests, maintain trust, and support sustainable organizational growth.

Ethical Issues Facing Uchromz

Uchromz faces several interconnected ethical challenges because of the nature and scale of the genetic information it manages. Millions of DNA samples can provide valuable opportunities for research and innovation, but they also create significant responsibilities related to privacy, consent, confidentiality, security, and data sharing.

One of the most important issues is informed consent. Individuals who provide DNA samples should understand why their genetic information is being collected, how it may be used, how long it may be retained, and whether it could be shared with researchers, commercial organizations, or other third parties. Consent information that is vague, overly broad, or difficult to understand can limit an individual’s ability to make an informed decision.

Privacy and confidentiality are equally important. Genetic information can reveal sensitive information about a person and, in some situations, information about biological relatives. Uchromz therefore has a responsibility to establish safeguards that reduce the risk of unauthorized access, disclosure, or misuse. Third-party relationships create additional challenges because information may be handled by organizations outside Uchromz’s direct control (Noroozi et al., 2018; Schumacher et al., 2020).

Stakeholder Interests in Uchromz

Corporate responsibility requires Uchromz to recognize the interests of multiple stakeholders rather than focusing exclusively on financial performance.

Uchromz has an interest in maintaining a successful and sustainable business while complying with applicable laws and ethical standards. Customers, however, have an equally important interest in understanding how their genetic information is collected and used and in maintaining appropriate control over their personal data.

Research institutions and other business partners may seek access to genetic information to support scientific discoveries, medical research, technological development, or commercial innovation. These activities can create social benefits, but they may also conflict with customers’ expectations regarding privacy and control.

Responsible stakeholder management therefore requires Uchromz to create transparent policies that address competing interests while protecting individuals whose genetic information is stored in the company’s biobank.

Utilitarianism and Uchromz’s Ethical Responsibilities

Utilitarianism is a normative ethical theory that evaluates decisions largely according to their consequences. From a utilitarian perspective, an ethical action should aim to produce the greatest overall benefit while minimizing avoidable harm (Häyry, 2020).

Applied to Uchromz, utilitarian reasoning requires the company to evaluate both the potential benefits and risks of collecting, storing, analyzing, and sharing genetic information. A large DNA database may support scientific research, improve understanding of disease, and contribute to innovations that benefit individuals and society.

However, genetic data misuse can produce serious consequences. Unauthorized disclosure could expose individuals to privacy violations, discrimination, loss of trust, or other harms. Therefore, simply demonstrating that genetic research could generate benefits would not be sufficient to justify every possible use of the information.

A utilitarian approach would support privacy protections, cybersecurity controls, and responsible data-sharing practices when these measures reduce potential harm while allowing legitimate research and organizational activities to continue.

Milton Friedman’s View of Corporate Responsibility

Milton Friedman’s perspective on corporate responsibility is commonly associated with the idea that businesses have a responsibility to pursue their economic objectives while operating within established legal and ethical rules. This approach places considerable emphasis on creating value for shareholders.

For Uchromz, a shareholder-focused approach could emphasize profitability, business growth, efficient operations, and the productive use of its genetic database. However, financial objectives cannot be considered independently from the responsibilities associated with managing sensitive genetic information.

A company that ignores privacy, security, and customer trust may face reputational damage, regulatory challenges, and declining stakeholder confidence. Consequently, ethical practices can also contribute to long-term organizational sustainability. Research on CSR and financial performance has similarly examined how responsible business practices can influence organizational outcomes (Okafor et al., 2021).

Deontological Ethics and Corporate Social Responsibility

Deontological ethics evaluates behavior according to duties, rules, and moral principles rather than focusing only on the consequences of an action. Under this framework, an action can be ethically appropriate because it respects an established duty or principle, even when another action might produce greater short-term benefits (Barrow & Khandhar, 2019).

For Uchromz, deontological ethics emphasizes the company’s duty to respect the privacy, autonomy, and rights of individuals who provide DNA samples. Obtaining informed consent should therefore be viewed as an ethical responsibility rather than merely a procedural or legal requirement.

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

Uchromz should establish clear standards for:

• Obtaining informed consent before collecting and using DNA.

• Protecting the confidentiality of genetic information.

• Securing genetic data during storage and transmission.

• Limiting access by third parties to legitimate and authorized purposes.

• Clearly explaining research and commercial uses of genetic information.

• Respecting individuals’ rights regarding their personal information.

These principles can provide consistent ethical guidance even when the use or sharing of genetic data could produce financial or research benefits.

Limitations of Milton Friedman’s Shareholder Theory

A shareholder-centered approach has been criticized for giving insufficient attention to stakeholders beyond investors. Critics argue that businesses operate within communities and can significantly affect customers, employees, society, and the environment (Clarke, 2020; Elrick & Thies, 2018).

This limitation is particularly important for Uchromz because genetic information differs from ordinary commercial resources. Customers provide information that can remain sensitive for many years and may also have implications for biological relatives.

If Uchromz prioritized short-term financial gains over privacy and data protection, it could weaken customer trust and create substantial ethical concerns. A broader CSR perspective recognizes that organizational success depends not only on financial performance but also on responsible relationships with stakeholders.

How Uchromz Can Meet Its Ethical Responsibilities

Uchromz can strengthen its corporate responsibility strategy by treating privacy, informed consent, confidentiality, and data security as core organizational responsibilities. Ethical considerations should be incorporated into every stage of the genetic data lifecycle, including collection, storage, analysis, sharing, and disposal.

Transparent communication should also be a central part of the company’s approach. Customers should be able to understand, without relying on complicated technical or legal language, what happens to their DNA after they provide a sample.

The company can further strengthen its ethical practices by regularly reviewing its data-sharing agreements and security controls. Third-party organizations should be evaluated carefully, and access to genetic information should be limited to legitimate purposes.

A responsible approach should balance the potential benefits of genetic research with the need to minimize privacy and security risks. Because technology, research practices, regulations, and public expectations can change, Uchromz should treat ethical data governance as an ongoing responsibility rather than a one-time process.

Why Business Ethics Matters for Genetic Data Companies

Business ethics is particularly important for organizations that manage genetic information because the consequences of poor decisions can extend beyond ordinary customer dissatisfaction. Genetic data may reveal information about health, ancestry, biological relationships, and other highly personal characteristics.

Strong ethical practices can help a company:

• Build and maintain customer trust.

• Reduce the risk of privacy and security violations.

• Promote responsible research and innovation.

• Support transparent relationships with stakeholders.

• Strengthen long-term organizational sustainability.

• Demonstrate accountability in the management of sensitive information.

For Uchromz, ethical responsibility should therefore be integrated into everyday business decisions rather than treated as a separate compliance activity.

Conclusion

Business ethics and corporate social responsibility provide important frameworks for addressing the challenges faced by Uchromz as a company managing sensitive genetic information. The most significant ethical concerns include informed consent, privacy, confidentiality, cybersecurity, and third-party access to DNA-related data.

Utilitarianism encourages Uchromz to consider the overall benefits and potential harms of its decisions, while deontological ethics emphasizes duties such as respecting individual autonomy and protecting privacy. The debate surrounding Milton Friedman’s shareholder-focused perspective further demonstrates why companies may need to consider stakeholder interests alongside financial objectives.

Ultimately, Uchromz can demonstrate corporate responsibility by balancing business and research goals with strong protections for individuals. Transparent consent procedures, effective data-security measures, responsible third-party governance, and clear communication can help protect stakeholders while supporting sustainable organizational development.

Frequently Asked Questions

What is business ethics in corporate responsibility?

Business ethics refers to the moral principles and standards that guide an organization’s decisions and behavior. In corporate responsibility, these principles help businesses consider the effects of their decisions on customers, employees, communities, shareholders, and other stakeholders.

Why is informed consent important for Uchromz?

Informed consent allows individuals to understand how their DNA and genetic information may be collected, stored, analyzed, or shared. Clear consent procedures support individual autonomy and help establish trust between Uchromz and its customers.

What are the main ethical concerns associated with genetic data?

Major concerns include privacy, confidentiality, informed consent, cybersecurity, unauthorized access, third-party data sharing, and the potential misuse of genetic information.

How does utilitarianism apply to Uchromz?

Utilitarianism requires Uchromz to consider the potential benefits and harms of its decisions. For example, genetic research may provide significant societal benefits, but those benefits should be weighed against privacy, security, and other potential risks.

How does deontological ethics apply to genetic information?

Deontological ethics emphasizes duties and principles. For Uchromz, this means respecting individual privacy, obtaining informed consent, maintaining confidentiality, and protecting genetic information regardless of whether doing so creates a direct financial benefit.

What are the limitations of Milton Friedman’s shareholder theory?

A shareholder-focused approach can place substantial emphasis on financial returns and may give less attention to customers, employees, communities, and other stakeholders. For a company handling sensitive genetic information, focusing too heavily on short-term financial objectives could undermine privacy, trust, and long-term sustainability.

How can Uchromz improve its corporate social responsibility?

Uchromz can strengthen CSR by improving informed-consent procedures, protecting genetic information, limiting third-party access, communicating data practices clearly, regularly reviewing security controls, and considering the interests of all relevant stakeholders when making business decisions.

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

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

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

PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility

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