Solution
Soumi answered on
Mar 07 2021
Running Head: BUSINESS SITUATION AND ETHICAL ISSUES 1
BUSINESS SITUATION AND ETHICAL ISSUES 14
BUSINESS SITUATION LEADING TO LEGAL AND ETHICAL ISSUES
STUDENT’S NAME: _____________________________
COURSE NAME AND NUMBER: ____________________________
INSTRUCTOR’S NAME: _____________________________
DATE SUBMITTED: _____________________________
Table of Contents
Introduction 3
Describing the Business Situation 3
Analyzing Ethical Concerns Raised by Use of AI in Business 5
Use of Virtue Ethics for Assessing Use of AI in Business 5
Use of Egoism Ethics for Assessing Use of AI in Business 6
Best ethical Theory in the context of Use of AI in Business 7
Three Relevant Areas of Law Addressed in the Context of Cu
ent Business Situation 8
Antitrust Law 8
Employment Law 9
Torts Law 10
Recommendation in the context of Use of AI in Business 11
Conclusion 12
References 14
Introduction
The human e
ors and limitations in business organizations has long been identified as one of the primary reasons for limited growth of businesses, therefore, the attempt of accurate business actions and elimination of e
ors has been evident. Recently, based on state-of-the-art technological innovation, business organizations have been introduced to the use of Artificial intelligence, with superior performance, calculation, processing and accuracy, unmatched by the human counterparts.
The use of artificial intelligence is offering better profiting potential to businesses, while posing evident threat to employability, privacy
each and algorithm-based decision making, which is generating ethical as well legal issues in business organizations, hinting whether of the use of Artificial Intelligence in business must be promoted or opposed, using a critical tone and in depth assessment.
Describing the Business Situation
Prior to the inclusion of Artificial Intelligence (AI) in business organizations, the different type of tasks in the organization, primarily the manual labor and the cognitive labor were executed with the help of human labors, positioned in different sections of the internal system of the organization. However, the human labor remained the major factor that restricted each organization from their optimum performance and profit earning owing to human e
ors.
As business organizations started the use of AI, they noticed high profiting potential, due to the accuracy of production and faster adaptation initiated. As mentioned by Ransbotham, Ge
ert, Reeves, Kiron and Spira (2018), the employers of business organizations noticed that with the use of use of AI, the organization could earn more profit and can reduce its internal cost by laying off lower employees, research and development teams and even mid-level managers.
As a result of the layoffs, the degree of unemployment increased significantly, the distribution of cash reduced drastically, as the upper management of the business organizations get to keep higher amount of the profit earned. In addition to the issues of unemployment and restricted cash flow, as mentioned by Lu, Li, Chen, Kim and Serikawa (2018), it is also noticed that the use of AI is also uses data for its algorithm formulation, which makes it prone to accuracy than the human counterparts, making the need of research and development staffs, and manager unnecessary.
Considering the aspect of employees, who lose their jobs due to the superiority of AI, it becomes evident that the use of AI passively provokes ethical issues within business organizations. As mentioned by Andrias (2019), an employee can rightfully be terminated from employment, only if the person is not capable of performing or has legit reasons of misconduct and it is the sole responsibility of the business organizations to offer employees the scope of earning their livelihood through retaining them as active employees of the organizations.
Apart from the corporate social responsibility of providing employment in the market, it is also noticed that unemployment generated from AI usage for higher profit is a legal issue as well. It comes under the implied norms of The Fair Labor Standards Act, USA that states that the employers can terminate their employees as a part of their changing market strategies, which has aroused out of the losses in business.
Another major issue arising out of the use of AI in business is use of private data for accurate algorithm development. In addition to the
each of private data, as supported by Wright and Schultz (2018), it is seen that AI systems also function on certain parameters that make them biased to specific inputs, making the chances of e
or potentially existent. The use of personal data for the commercial purposes of the business not only hints at the ethical as well legal issues. The, use of biased algorithms, as mentioned by Mayer et al. (2018), is also ethically and legally concerning and requires careful attention.
Analyzing Ethical Concerns Raised by Use of AI in Business
Use of Virtue Ethics for Assessing Use of AI in Business
The cu
ent situation, assessed in the context of the virtue ethics theory can lead to positive and sustainable future for business organizations that are using AI in multiple aspects of the functions of business. As opined by Gare and Neesham (2018), the virtue ethics is the ethical form, in which it is expected that all business organization include the aspect of virtue and moral values as an inevitable part of their priorities and act accordingly in terms of virtue retention, refinement and co
ection in case any unethical action is surfaced.
The virtue theory also implies that each person associated with a business organization must retain ethical standards as an un-said rule. As identified by West (2018), despite the remarkable moral value, propagated by virtue theory it becomes evident that abidance of ethics and morale often hinder the potential of businesses, in terms of generating profit, efficacy and competitive advantage in the market in the context of the rivals and the nature of the trends.
Considering the use of the virtue ethics theory in organizations, in which AI is used for higher production it can be assumed that the use of the AI technology will be regulated ethically, including the aspect of moral welfare of the employees. It can be assumed that the virtue ethics incorporation will ensure that only a certain percentage and task will be performed by AI, such as the...