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Management
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Case Study
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Case Study: IBM

Case Study Instructions:

QUESTION:
1) IBM has decided to cease investment in its facial recognition software. CEO Arvind Krishna sent a letter to Congress stating “IBM firmly opposes and will not condone uses of any technology, including facial recognition technology offered by other vendors, for mass surveillance, racial profiling, violations of basic human rights and freedoms, or any purpose which is not consistent with our values.” (Source: https://www(dot)ibm(dot)com/blogs/policy/facial-recognition-sunset-racial-justice-reforms/). Analyze this move using Stakeholder Theory and Trade Fairly (Ch.5 Fifteen Paths). Is this the right decision for IBM? What impact will it have on the industry? Make sure your answer includes a complete stakeholder analysis, showing which stakeholders are helped and harmed by this move as you justify your position.
Please answer the following question as completely as possible, using essay format and citing all referenced work, including the readings you use.
You are not required to give the history or any background information about the company mentioned in the question.
Just jump right to the problem.
Please read and refer to the attached documents before answering the question. Please integrate topics from the attached documents into your response.
I am on a very tight schedule so I will not be able to give an extension.
((Trade Fairly: whats important is, the notion that ethical language matters. And ethical company is one that can share their mission statement clearly.
-Companies need to be transparent.
-Companies often use confusing and though language to explain how they make their money.
-The most ethical firms are the ones that say; here's how we keep our prices so low, here is were we get our goods from, how you differentiate, heres how we do product development. And then society and customers see and understand that are be like 'okay I'm comfortable on how you make your money'
-This means that there is a tradeoff between integrity, innovation, profitability. It is tough because most companies have some part of their business as problematic.
-Main idea: regarding ethics is deep dive into the value chain, transparence, and the tradeoffs between the different facets.

Case Study Sample Content Preview:

Ethical Analysis – IBM Case Study
Your Name
Subject and Section
Professor’s Name
August 20, 2020
Understanding the effects of different ethical decisions in the running of a firm is important for any business manager. It allows him to be able to balance between morality and profitability without focusing too much on the latter. In the case at hand, it could be seen that the CEO of IBM has sent a letter to the US Congress informing them of the company’s move towards responsible technology practices. Although some might think that the company’s denial against the product of facial recognition technologies without proper regulation is unethical since it would limit profitability, closer scrutiny of the case would show that this move can have a more positive outcome in the long run. 
           IBM’s refusal to produce facial recognition technologies without proper regulation is ethical because it strikes the correct balance between morality and profitability. It is a common misconception among managers that since ethical management can hinder profitability, then the former should be considered superior to the other (Harrison, Felps, & Jones, 2019). Although this theory is somehow true for some firms, some studies conducted on the matter show that ethical management could result in increased profitability by building stronger relationships between the consumers and the organizations. This, in turn, could have a variety of effects for each stakeholder in the process.  
           First, if a company seeks to build better and stronger relationships with their consumers through increased honesty and transparency, a “closer, more open and trusting relationships” could be built around them (Weitzner & Deutsch, 2019). This can then help build consumer loyalty which can result in more sustainable and higher profits in the long-run. Going back to the case, it can then be argued that this move could improve the consumers' view about IBM and increased attachment and loyalty to their own products knowing that the compan...
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