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AC313 - Which Is Worse Facebook or Amazon PDF
AC313 - Which Is Worse Facebook or Amazon PDF
– An Ethical Evaluation
&
Personal Reflection
socially responsible and ethical manner. Facebook and Amazon are currently two of
the most powerful companies in the world, having changed fundamentally the way
people communicate, shop, and interact with eachother. Both companies faced
significant scrutiny over their unethical business practices in recent years. This
essay, will critically evaluate the morality of each company and conclude on which
one is worse with the use of two ethical theories; Utilitarianism and Kantian Ethics.
and supports that the correct choice is whatever makes the world the best in the
using the greatest happiness principle; “it is the greatest happiness of the greatest
an ethical approach focusing on the intention behind actions, not the consequences
or emotions behind them (Barrow and Khandhar, 2022). Kant introduced a rule of
conduct called the categorical imperative (CI), which is described as the fundamental
principle of moral duties which individuals must follow (Johnson and Cureton, 2022).
According to Kant, each person has dignity based on his capacity for moral
Facebook has been involved in many scandals over the years which have put their
moral compass in questioning by the public. The issue which will be ethically
minority in Myanmar which was facilitated by the false information and hate speech
the positives derived from it outweighs the negatives for the greatest number of
people (Driver, 2014). Facebook’s actions in the case of the Rohingya genocide,
have negatively affected more 740,000 Rohingya who had to flee out of the country,
and thousands more killed during the military crackdown (McCue and Lisbon, 2021).
The platform amplified the reach of hate speech and facilitated the formation of
humanitarian crisis. Outside of the Rohingya genocide, Facebook plays part in the
not doing enough to stop as a way to maximise their profits (Bateman, 2021).
Haugen stated that "Facebook has realised that if they change the algorithm to be
safer, people will spend less time on the site, they'll click on less ads, they'll make
On the contrary, by not limiting harmful content - which causes emotional reactions -
they increase their user engagement which increases their financial gains, and
Advertising revenue is Facebook’s main revenue stream (Isaac, 2021) and according
to a study from the Global Disinformation Index, disinformation and content which
for the company (Melford and Fagan, 2019). Despite this, after Facebook’s
numerous controversies, they are still receiving scrutiny from the public and the
media which caused more than one thousand companies to boycott Facebook in an
(Hsu and Lutz, 2020). If Facebook’s actions doesn’t improve in line with the public’s
demands more boycotting could follow which could significantly damage their future
Under the greatest happiness principle, Facebook’s actions, have failed to increase
the pleasure of their investors and instead has increased the pain for thousands of
communities and people around the world which have been negatively impacted by
all that is happening on the site (Driver, 2014). The harm caused to these
communities as a whole far outweighs any potential benefits to the company and
prevent pain and improve the well-being by preventing the spread of hate speech
and misinformation on its platform, especially where it could lead to violence
The first formula of the CI is described as the ‘Universal Law of Nature’ and it states
that people should act according to moral principles so that it can become a
universal law without any conflict (Johnson and Cureton, 2022). The first step is the
formulation of the maxim; “Facebook does not prevent the spread of hate speech
and misinformation on their site which causes harm to the public, for their own gain”.
This maxim then has to be universalised into a law of nature; “All big media
companies do not prevent the spread of hate speech and misinformation on their
sites which causes harm to the public, for their own gain”. This universal maxim is
then applied to a perturbed social world (PSW) where everyone is aware that this
maxim applies and is socially acceptable (Johnson and Cureton, 2022). The
maxim could rationally be applied to the PSW (Johnson and Cureton, 2022). As
harmful content is currently being spread though other social media sites apart from
Facebook the maxim is not contradicted and passes the first test. Following this the
‘contradiction in will’ test has to be applied to establish whether the PSW is one
where individuals would willingly want to be a part of (Johnson and Cureton, 2022).
who are trying to resolve it, as mentioned by the UN Secretary General, Antonio
Guterres (2021), “Social media provides a global megaphone for hate” and steps
have to be taken to keep social media users a safer and better informed (United
Nations, 2022). The UK government has also proposed a new ‘Online Safety Bill’,
made to protect users of social media sites by removing illegal and harmful content
(GOV.UK, 2022). As there are currently steps being taken to combat the spread of
such content on social media, the universal maxim does not pass the ‘contradiction
in will’ test, as individuals would not want to be part of the PSW. Facebook has an
imperfect duty to limit the spread of harmful content online, and their actions could
Kant’s ethics have been criticised by philosopher Schopenhauer, who supported that
“morality can arise only from the feeling of compassion” (Guyer, 2012) and that
Kant’s CI is rooted in egoism since Kant dismisses emotions when determining the
Koontz (1993) argues that “[Schopenhauer] fails to prove his thesis that compassion
Amazon is currently the most valuable brand in the world with an estimated brand
Amazon has been criticised for using aggressive tax avoidance to lower their tax
liabilities. Tax avoidance involves using loopholes in tax systems to gain a tax
advantage, which is entirely legal (Carlile, 2018). In the past decade Amazon has
paid just $3.4bn in taxes despite having revenues of $961bn (The Silicon Six, 2019).
Amazon avoids tax through stock-based compensation reliefs (Yglesias, 2019) and
carried forward losses that can be offset against future tax (Neate, 2021).
Using this the utilitarian ethical framework to analyse the morality of Amazon’s tax
happiness for the greatest number of these stakeholders (Driver, 2014). Amazon's
tax avoidance practices could be seen as unethical as they potentially harm the
was estimated that tax avoidance caused losses of up to $500 billion globally, with
the biggest effect being noted in low-income and developing countries such as
Argentina and Chad (Turner, 2017). In the UK, HMRC estimated £1.5 billion in losses
resulting from tax avoidance in 2019/20 (Seely, 2020), and according to the Ethical
Consumer (2022), Amazon’s tax avoidance specifically has cost the UK government
an estimated £500 million in 2021. Tax revenue is used to fund public services, such
as education, healthcare, defence and welfare, which benefit all members of society
funding for these essential services, which could harm the well-being of the wider
society. Additionally, the tax burden of the money lost from corporations partaking in
tax avoidance schemes could be shifted to individuals who could have to pay higher
amounts of tax. This decreases the happiness of the public as it can result in poverty
management and investors as it reduces the company’s costs and increases their
profits. The money that would otherwise be paid to the government can be
reinvested back into the company and aid in the growth and expansion of the
business. Amazon can also gain a competitive advantage over other companies
through the money saved by offering better deals and lower prices to consumers
than its competitors. The company being more profitable could benefit employees
with an increased job security and higher wages, as the company's profitability could
lead to better working conditions. However, with the increase of social awareness,
the public demands that companies take responsibility for their unethical behaviour.
This means negative publicity and boycotting is expected to happen when practices
Organisations such as the Ethical Consumer have been promoting the boycotting of
Amazon for years, and a big anti-tax avoidance protest could cause the company’s
revenues to plummet as seen in the case of Starbucks, where their sales dropped for
the first time in the UK after boycotts over their tax avoidance (Bergin, 2014).
Using utilitarianism, tax avoidance does not contribute in maximising the pleasure of
Amazon’s stakeholders, as the negative impacts outweigh the positives for a greater
amount of people. Amazon’s actions are considered immoral under utilitarianism and
2014).
The ‘Universal Law of Nature’ formula states that people should “act only in
accordance with that maxim through which you can at the same time will that it
become a universal law”(Johnson and Cureton, 2022). Firstly, the maxim needs to
be formulated: “Amazon minimises their payable tax through tax avoidance schemes
to maximise their profits”. This maxim then has to be universalised into a law of
nature and therefore: “All big multinational companies minimise their payable tax
through tax avoidance schemes to maximise their profit”. This universal maxim is
applied to a PSW where everyone is aware that this maxim applies and is socially
acceptable (Johnson and Cureton, 2022). The universal maxim passes both the
‘contradiction in conception’ test and the ‘contradiction in will’ test as tax avoidance is
already written in the letter of the law, and is therefore legally acceptable, and
utilise the incentives offered by the government and “play by the rules set by
politicians" (Eric Schmidt in Telegraph, 2012). The maxim passes both tests,
therefore using Kantian ethics Amazon’s use of tax avoidance for their own gain is
The second formula of Kant’s CI is the ‘Humanity Formula’ and it proposes that
individuals should always treat the humanity in a person as an end, and not as a
mere mean, implying that they individuals should not use others for their own
personal gain (Bowie, 2002). This derives from Kant’s belief that people are an “end
in themselves” (Johnson and Cureton, 2022). Amazon cannot be blamed for limiting
governments resources, as they are not the only tax avoidant company and many
other factors play a part in this. With this argument Amazon is not using others as a
means to an end for their own benefit, and under the Humanity Formula their actions
Kant’s ethics have been criticised by John Stuart Mill who argues that Kant’s CI is a
form of utilitarianism since Kant actually looks at the consequences of actions, and
that “his system is impotent” (John Stuart Mill in Lawrence, n.d.). Academics such as
Lawrence (n.d) disagree with Mill’s interpretation of Kant’s ethics, arguing that Kant
does not take the consequences of the maxims into account but rather the duty and
good will which are used to judge whether these maxims would be morally
acceptable. The criticisms around Kant’s CI are not enough to support that his theory
is unreliable and therefore the results of the CI can be considered in the evaluation
of Amazon’s morality.
4. Conclusion:
To conclude, both Facebook and Amazon have had negative impacts on society but
have also positively affected some of their stakeholders. Facebook’s enabling of hate
speech and misinformation on their site is deemed immoral from both a utilitarian
greatest number of people and their actions could not be made into a universal law.
in decreasing the happiness of the largest amount people. However, under Kant’s CI
their actions are deemed as morally acceptable as tax avoidance is written in the
letter of the law. Because of this, it can be argued that Facebook is more unethical
the knowledge that was gained, and observe points for future development. The
Business Ethics module has provided me with knowledge of different ethical theories
and how these can be applied to real-life business scenarios. In this module I was
responsible for the effects of their tax avoidance, which I will be reflecting on in this
I was pleased with the team I was allocated to as I knew most people and felt like we
would work well together and achieve a good outcome. We decided collectively with
the team to meet after our seminars to discuss ideas and work on our presentation.
Initially, we decided that the most appropriate ethical theories for our presentation
question would be virtue and egoism ethics. Additionally, we thought that the best
way for the presentation to be cohesive and for everyone be equal and contribute the
same time and effort, would be for everyone to individually work on collecting data
from different sources on the ethical theories and tax avoidance. We would then
meet and compile the resources we all found in our presentation. This resulted in
some issues within the team as some people ended up doing more work than others
and as there were many people working on the same areas, plenty of the materials
we compiled initially could not be used in our final presentation. When we realised
that the way we went about allocated the work was not the most efficient we decided
to allocate different areas between different people on the team. Another issue we
faced closer to the deadline, was that one of the members of our team thought that
we had to introduce a third theory in our presentation, Kantian ethics. Others on the
team, me included, disagreed with this and thought that we should stick to two well
explained theories rather than three rushed ones, since we already had more than
enough material in our presentation. However, after many discussions it was decided
that he would have to complete the Kant portion of the presentation by himself and it
would be included in the presentation if everyone else agreed after he showed his
work to us. This third theory was included in the end, however, looking back at this, I
believe this was not the best decision and in the future I will work on more
expressing my opinions to the group as I think that including the third theory made
Overall the presentation went well and we achieved a ‘First’ mark and satisfactory
feedback. In the future, I would try to allocate work within my teams more efficiently
to ensure no time and resources are wasted, and as mentioned before, be more
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