Business Ethics & Social Responsibility – Activity 2
Business Ethics & Social Responsibility
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Business Ethics
Activity 2
Overview
Ashley Madison What Happened?
Fines
Lawsuits
Investigations
Relationships destroyed
Site Closes – Company rebrands
Debate: Legal vs. Ethical
Is It Acceptable to Promote a Socially Irresponsible but Legal Product to Stakeholders?
When you think of cheating, you may think of irresponsible behavior in the classroom. But Noel Biderman created a company called Avid Life Media (based in Toronto) that is dedicated to another form of cheating.
Avid Life Media is owner of six website brands, including Cougar Life and Hot or Not. One of its more controversial brands is Ashley Madison, the motto of which is “Life is Short. Have an Affair.” The website has more than 8.5 million members. The company encourages married men and women to spend less than a minute to register on the largest website to openly promote infidelity. The company employs hundreds of programmers, designers, and marketers and has conducted a private placement for investors. While many stakeholders would say the purpose of the website is wrong, there is nothing illegal about this business. But the fact that the website helps people engage in cheating on their spouses including providing an email address to which one’s spouse would never have access—has many people concerned. They consider facilitating secrecy for socially questionable conduct to be wrong.
Team 1: There is nothing wrong in providing a legal service many people desire.
Team 2: From a stakeholder perspective, it is wrong to provide socially irresponsible services.
Question:
Which Team do you agree with? Explain why you agree or disagree.
Would you work for this company if they paid you $100,000 right out of college? Explain answer.
What other companies are like Ashley Madison that you know of today? Provide an example.
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