Course: Information Systems Session: 8

Case: Building a "Backdoor" to the Apple iPhone: An Ethical Theme: Technology Governance & Social
Dilemma Responsibility

Who When Where

● Tim Cook ● February 2016 ●

High Level Summary (1-3 sentences)

In February 2016, Tim Cook CEO of Apple, took a stance on a matter that drew strong public debate. Tim Cook
refused to unlock the iPhone and refused to build the backdoor in the iPhone OS (iOS) that could help FBI agents
unlock he phone and access the information on it as a one-off case. Cook refused to acquiesce to the
government’s demand, citing Apple’s commitment to customer digital privacy and security.

Key Statistics & Financials

● First iPhone was launched on June 29, 2007 in a 4 and 8 Gb version.

● As of February 2016, 77 percent of devices were on iOS 9, 17% were using iOS 8 and the remaining 6% were
using earlier OS.

● June 2013, following revelations of massive US government surveillance, exposed by Edward Snowden, a
former CIA employee and US government contractor.

● Apple disclosed that, in first six months of 2015, it had received between 750 and 999 national security-
related requests from the US government, affecting 0.00673% of apple customers.

● Until iOS 6, only resident apple apps were encrypted by default. By 2013, apple had taken measures to
ensure that 3rd party application data was also protected.

● With iOS 7, Apple began encrypting all 3 rd path data stores on customer phones by default until customers
first unlocked the phone after rebooting.

● Dev 2, 2015 a married couple, Syed Rizwan Farook 28 and Tashfeen Malik 29, shot at and killed 14 people
and injured 22 at Inland Regional Center in San Bernardino, California.

● A key focus of the instigation involved checking the couple’s phone, travel, computer and other records to
ascertain the motive behind the attach and to determine the reasons of the makeshift bomb lab found in the
couple’s rented home.

● The shooters had tried to destroy any evidence that could track their digital footprints.

● The iPhone found the car was the property of the employer, San Bernardio County, which consented to a
search of the phone, but investigators feared that the data stored on the iPhone would be completely and
permanently erased in their attempts to unlock the phone.

● FBI sought Apple’s assistance in the days following the attack and apple provided the data that was in
possession and complied with valid subpoenas and search warrant.

● However FBI wanted Apple to go a step further. It sought Apple to build what became known as “a
backdoor” to the iPhone.
 ● Talks went on between Obama administration and Apple’s lawyers for months but in the end, Apple refused
to acquiesce to the FBI’s demand.

Company Background Industry/Environmental Context

● Established in 1976. Company sales US $7.8

million in 1978 and $117 million in 1980. Apple
went public in 1980. Steve Jobs left the
company in 1985 and rejoined in 1997. Apple
Subsequently launched iMac, iPod. iPhone, iPad,
various related services and software (iOS,
iTunes Store and iCloud), and ancillary products
● Hardware, software, digital media, music.
(Apple TV and Apple Watch)

● First iPhone was launched on June 29, 2007 in a

4 and 8 Gb version.

● As of February 2016, 77 percent of devices were

on iOS 9, 17% were using iOS 8 and the
remaining 6% were using earlier OS.

Customers (or potential clients) Competitors

● Government, Business and customers.

●
●

Issue or Problem to be Solved

● The problem is defined as “the dirty-hands problem”. The expression was used by the Badaracco, an ethics
professor at Harvard University, to refer to the hand, moral choices involving the “right-versus-right”
dilemmas faced by management.

● Ultimately Apple’s refusal to comply with the court orders, despite the technical feasibility of doing so was
viewed as “based on its concerns for its business model and public marketing strategy.” Apple called it
“overreach by the U.S. government”.

Decision + Alternatives Action / Implementation

● Option 1: build “backdoor” in their OS.

● Option 2: Comply with the order and loose the Refuse or accept the government and court order.
credibility and market share and also the trust

Key Learnings / Why is this Important? / How does this relate to the theme?

● Mass tools and devices should not be made to surveillance their own people. Just like Apple organizations
can share the data but should not and never should build the backdoor. These backdoors can also be
exploited by other governments and state sponsored hackers.

Case Assignment Q&A

 What ethical dilemma did Tim Cook face? What was the right thing for Cook to do?

Apple rightfully provided the data in their possession and let the securities worry about unlocking the phone.

Apple maintained the privacy because they know that, if they do for US government, they have to do it for
 other governments. Then encryption becomes absolute and does not meet the basic definition.

 Think of one ethical challenge you have personally faced in your career. Did you do the right thing, or the
wrong thing? Try to articulate what made it right, or wrong.