Introduction
Any company has many areas of activities, such as marketing, finance, business, and supply chain management, that require consideration, support, and development for the successful operation of the business. As a worker in the hospitality industry, I understand the need to study these areas in detail to apply them in practice and my professional career and ensure the success of any company in which I work. The use of Corporate Social Responsibility (CSR) is one of the central practices for a business as it affects and depends on both the organization’s marketing and business operations. CSR does not have a unified definition but means the use of ethical practices by businesses in interaction with stakeholders to benefit society, employees, customers, and the environment through various social and economic initiatives (Wallace, 2014). Nevertheless, it is necessary to examine different CSR theories and practical examples to understand their significance for business in the digital media era.
For this reason, I took a course on these topics to deepen my knowledge and improve my professional skills. I had pretty high expectations for the course as I knew that the field of marketing includes multiple components but had significant knowledge gaps about their specifics. However, the module exceeded my expectations as it gave me much new theoretical knowledge and practical skills needed for the job. In this paper, I will reflect on the content of the course and the benefits it brought to me through specific concepts and assignments to determine future directions for working on my knowledge and the possibility of applying it in practice.
Reflection on the Critical Analysis Assignment and the Module’s Content
One of the first assignments of the course was a case study of Cambridge Analytica and Facebook that I needed to analyze from an ethical and marketing perspective. For me, this assignment was informative and challenging in the part where it was necessary to assess possible solutions for companies and use corporate social responsibility strategies. The underlying challenge was to find theories and evidence to support my guesses and choose the most appropriate solution for a particular mistake.
For example, for me, the rules of moral responsibility for computer artifacts were new as classified and systematized norms. On the one hand, all the described rules violated by Cambridge Analytica and proposed by Wilson (2020) are intuitive from the point of view of fundamental morals. However, at the same time, the interpretation of the case through the prism of these rules was an interesting discovery for me, since I had not previously thought about this side of the issue. In addition, this classification prompted me to believe that every technology company should include these rules in their Code of Conduct to avoid crises like Cambridge Analytica.
Another helpful addition to the theories explored in the module was the categorization of the response strategies that I applied to the case. To this end, I needed to study all the possible solutions that Cambridge Analytica and Facebook could use and compare them with the steps they applied in reality. The process of this comparison was the most educational for me because although the companies found themselves in similar situations, their answers were different and led to opposite consequences. Cambridge Analytica has chosen a denial strategy, although many factors point to its guilt. Thus, the company refused to correct its mistakes and gain back the trust of the public, which could have saved it from bankruptcy. At the same time, Facebook chose the impression management strategy, which had some negative consequences for it, but they were minor compared to the positive impact. Facebook admitted the data breach and paid a fine, which forced some users to abandon the social network. However, this recognition and promise to improve the social network’s security have demonstrated Facebook as a socially responsible company that cares about its stakeholders.
Analyzing these differences was most helpful in understanding the importance of CSR and ethical business practices. Even before taking the course, I realized that these practices are essential to companies and their reputation; however, the assignment allowed me to learn underlying connections. In addition, earlier, I assumed that CSR is a basic practice that is used to form a company’s image but cannot be applied as a tool to restore it. In other words, I thought that if a company faced a crisis and allegations of unethical business conduct, it would be complicated for it to restore consumer confidence. However, studying this case on Facebook, as well as other companies in the process of finding a solution, showed me that companies widely use CSR practices to restore their reputation.
This discovery, as well as the need to offer a solution for Facebook and Cambridge Analytica, forced me to study in more detail the strategies for responding to crises and the impact of CSR on them. Many of the discoveries that I made during the study were not included in the paper, since they did not fit the case, but they were helpful for my understanding of CSR and the management process in general. For example, one of the steps in an accident in which people are injured is to arrange for urgent help and support, such as treatment, transportation, or housing. In the case of Facebook, this assistance was not possible, since it was impossible to track the spread of data on the Internet or change the voting decision. However, this study of this approach is essential for operating a hotel in the event of an incident such as an earthquake or fire, which is valuable knowledge for me.
Other findings were new to me and fit the case. For example, I realized that the speed of reacting is vital in the days of social media and the Internet; however, I was unaware of the significance of responding in the first hour after the incident (Coombs, 2020, p. 103). This reaction is because every hour of delay enables the media to create news or manipulations and broadcast them to the general public. Consequently, the company loses control of the situation as people receive and distribute messages, often exaggerating the details and their meanings. Such facts often go unnoticed in the process of studying any topic as a whole through reading, but considering the case in detail allowed me to find this fact and apply it to the situation. Consequently, I believe that case study analysis has been beneficial in enriching my knowledge of digital marketing and corporate social responsibility.
Another task of the assignment that was particularly challenging for me was to find the right response strategy for Cambridge Analytica to make it ethical and safe for the business at the same time. Initially, it seemed to me that such a solution did not exist, since the confession of Cambridge Analytica in using user data for political manipulation is destructive to the brand’s image and leads to legal consequences and high financial costs. However, studying theories led me to assume that if Cambridge Analytica had used corporate apologia strategies and impression management, such a move could help the company (Coombs, 2020, p. 107). The primary efforts could be to recognize mistakes and correct them and broad coverage of these steps in the media. In addition, other CSR initiatives could help consolidate this image in the perception of the public.
Moreover, I realized that a key component of the response had to be interaction with the media, which could help broadcast the message that the company admits its mistakes, is ready to help the public, and take care of its customers since this was an effective solution for Facebook. Nevertheless, I also understand that the application of this strategy requires a more thorough analysis of the legal aspects of the case, the perception of the public of the company after the scandal, and the construction of a well-thought-out public relation strategy since the risks associated with this approach are significant. Cambridge Analytica cannot escape the legal consequences of its actions by confessing its guilt; thus, analysis can help evaluate if the company can manage this situation and how.
Nevertheless, the analysis of the case study from the point of view of corporate social responsibility, business ethics, and their impact on the company was intuitively understandable for me in general. Probably, my experience of working in a hotel and the previous study of the CSR topic helped me highlight the main details of the case and the companies’ mistakes. I have also used literature to justify my opinion, but citations mostly confirmed my thoughts. In addition, I believe that despite the lack of some details of the situation, this case was quite straightforward for people who rely on general rules of ethics. In other words, most people would agree that collecting and using people’s data without their knowledge for political manipulation is a clear violation of ethics and legal norms.
Therefore, it was also easy for me to identify a solution for this situation considering the mainly ethical side of the issue, as Cambridge Analytica had to either refuse this job or admit guilt and focus on rebuilding its reputation, which could save the business. Thus, completing the first assignment and preparing for its writing allowed me to gain knowledge about certain CSR strategies and responses to the crisis. However, the issues discussed in the paper made me think about the need to study other manifestations of CSR, unethical business practices, ethical dilemmas, and their impact on the company’s activities.
I believe these knowledge gaps were filled by exploring other topics and participating in discussions. The assignments were varied and required both reading course materials and critical thinking. One of the most interesting and challenging tasks for me involved choosing a morally and ethically correct decision. I find that the solution to the situation from a theoretical point of view is quite straightforward since the students had to determine exactly the morally correct steps. In addition, most of the theoretical and practical findings of various authors demonstrate that the use of CSR practices and the choice of ethical decisions benefit companies (Wallace, 2014). Simultaneously, their violation can be destructive for the reputation and, consequently, companies’ earnings. However, this assignment forced me to engage myself in the situation and critically assess what actions I would take in reality if the fate of my company and job were on the line.
The first impulse was to hide the error since it was possible that this mistake would not harm users significantly and would not make the company bankrupt. However, since, according to the terms of the assignment, it was not known how serious the consequences could be caused by the error, it was necessary to consider all possible scenarios. In the process of analyzing and applying theories and knowledge about CSR, it became more and more evident to me that the most appropriate option would be honest recognition, even if it forces managers to close the business. Many business people have lost several companies before they succeed. However, the reputation of an entrepreneur and customers’ trust is more difficult to restore than starting a new business or finding a new job. Thus, I noted that the acquired knowledge and the situation’s complexity revealed to me my new professional and personal qualities, which I had never had to use before. In addition, I learned that I would like to look at more of these scenarios that relate to the hospitality and apparel business to develop my skills and prepare myself for situations that may occur in real life. This approach can make me a more valuable professional, which is my primary goal.
Studying other cases and topics also helped me understand the use of CSR and media strategies and their impact on brand image. For example, the concept of greenwashing was new to me, although I met such examples in real life. In addition, since the topic of environmental protection is widely used in modern business, greenwashing is directly related to the field of hospitality and business premises. For example, Watson (2016, para. 6), in his article, talked about how one hotel asked visitors to reuse towels to preserve nature, but at the same time built up the coast with new bungalows, destroying the environment. This lesson is useful for me as a hotel manager to avoid deliberate or unintentional use of greenwashing elements.
Furthermore, McDonald’s supply chain and recycling examples helped us understand effective, sustainable initiatives. The most interesting part of this discussion was the task of finding a flaw in the McDonald’s chain and proposing a solution. It seemed to me that the McDonald’s system is efficient enough, although the restrictions of various countries and their waste recycling policies significantly impede the implementation of this initiative. Nonetheless, the solution is beneficial to the community, and the McDonald’s brand, and globally promising. In addition, such a chain can be used in hotels, especially hotel networks, as they create tons of waste in the form of food leftovers or packaging from disposable hygiene products. Therefore, the study of this topic was also useful for the development of my professional knowledge in my work area.
The Main Lessons of the Case Study
The main lessons that I learned from the case study are related to the importance of corporate social responsibility, its application, its implementation strategies, and the place of digital media in these practices. The first lesson that Cambridge Analytica and Facebook have shown is that CSR is critical to a company’s operations for two reasons. First, the use of CSR means that the company applies ethical practices in dealing with customers, employees, partners, and suppliers. Consequently, such practices prevent critical errors and involvement in scandals. In other words, if companies founded and refused unethical data collection and use techniques, they would not be involved in a scandal harmful to their brand image and reputation.
Secondly, the use of CSR practices contributes to the formation of a reputation that wins the public’s trust. It makes people believe more in the company’s statement in the event of a crisis (Eisenegger and Schranz, 2011; Kraesgenberg, Beldad, and Hegner, 2017). At the same time, while CSR practice data should cover areas that are problematic during the crisis, such as data protection for Facebook, other areas can also soften the public’s reaction. Thus, the main lesson is that CSR practices are necessary to avoid a crisis and mitigate the consequences if it occurs.
The second lesson is that ethical business conduct and the choice of strategies that demonstrate the company as socially responsible are, in most cases, more morally and business appropriate. From a moral point of view, the choice is evident to most people because companies prevent themselves from correcting mistakes and future problems by hiding information. As the case of Facebook and Cambridge Analytica demonstrates, ethical choices can also benefit a company as it improves its public image. In other words, admitting mistakes and trying to correct them open up opportunities for business development, while denying guilt when there is evidence against the company leads to losing stakeholders’ confidence and reducing such opportunities. However, I need to consider this case from a legal perspective, since the Facebook violation was resolved through the payment of a fine, while the act of Cambridge Analytica is a more severe violation that probably, would have forced the owners to close the company anyway.
The third lesson is that CSR practices are necessary to increase brand value after a crisis, as the example of Facebook demonstrates. Zuckerberg and his team recognized the problem of weak data protection of their users and announced their intention to fix it (Rodriguez, 2019). Some of the steps taken to implement this plan were not profitable for the company, but they showed concern for users and allowed them to increase their confidence. This decision had direct consequences for Facebook’s business activities because user confidence guarantees the company a profit, most of which it earns through data collection and targeted marketing. In other words, Facebook’s CSR initiatives have improved the company’s reputation by making information gathering more difficult, which is beneficial to users. Nevertheless, this step allowed Facebook to preserve the fundamental algorithms of the company’s work, which are the most profitable. Thus, CSR initiatives have benefited Facebook’s brand value and, therefore, its profit.
The final lesson of this case study is that despite the importance of CSR, its business value grows with the use of effective marketing and digital media. Facebook’s initiatives to remove apps that did not meet the required level of user data protection would not have been as successful for the company’s reputation if they had not been widely reported in the media. Other steps to improve data privacy were also described in many well-known news sites and magazines, which positively impacted the public; however, many changes have not yet been implemented or are not as effective as sound (Winder, 2019). Consequently, media communication was as important to Facebook as CSR initiatives.
Conclusion
Therefore, completing the assignment and studying the module materials developed the skills necessary for a career and gave several valuable lessons. The main lessons were that CSR practices should be applied to avoid critical mistakes, choose the appropriate response strategy, and restore the company’s reputation after crises. Reading scientific literature increased my level of knowledge, applying theories to the case improved my level of critical thinking, and the need to complete tasks on time and combine them with working responsibilities developed my time management skills. In addition, I often put myself in the shoes of a manager or employee to find a solution, and this method increased my self-awareness and opened some unexpected professional and personal qualities. However, the most rewarding task for developing self-reflection is writing the current paper, as it helped me see the strengths and weaknesses of my skills and knowledge.
Strengths acquired skills, and knowledge that I can apply to improve my practice are CSR theories and concepts and their application, critical thinking, and understanding of marketing strategies. My knowledge of crisis response can be helpful in emergencies. In addition, a common understanding of business ethics will help me improve my management approaches and will also assist in noting and proposing solutions for top managers to avoid crises, for example, updating the Code of Conduct for the organization or creating a response plan.
However, this assignment has demonstrated some gaps in my current knowledge and skills that I would like to fill. For example, I need to study CSR practices that are more appropriate for the hospitality business in more detail, as well as approaches to responding to different crises. Moreover, I would like to explore more cases in which an ethically complex decision is required to prepare myself and reflect on my approaches to problem-solving. Nevertheless, these problems can be overcome by reading relevant literature, as well as gaining practical experience in the field.
Reference List
Coombs, W.T. (2020) ‘Conceptualizing crisis communication’, in Heath, R.L. & O’Hair, H.D. (eds.) Handbook of risk and crisis communication. New York: Routledge, pp. 99-116.
Eisenegger, M. and Schranz, M. (2011) ‘Reputation management and corporate social responsibility”, in Ihlen, O., Bartlett, J.L. and May, S. (eds), The handbook of corporate social responsibility. Malden, MA: Blackwell Publishing, pp. 128-146.
Kraesgenberg, A.-L., Beldad, A.D., and Hegner, S.M. (2017). ‘Restoring trust and enhancing purchase Intention after a crisis through a corporate social responsibility program and a specific response strategy: an abstract’, in Rossi, P. (ed.) Marketing at the confluence between entertainment and Analytica. Cham: Springer, p. 587.
Rodriguez, S. (2019) ‘Facebook has suspended tens of thousands of apps after Cambridge Analytica investigation’, CNBC.
Wallace, D. (2014) Human rights and business: a policy-oriented perspective. Boston: Brill Nijhoff.
Watson, B. (2016) ‘The troubling evolution of corporate greenwashing’, The Guardian.
Wilson, R. (2019) ‘Cambridge Analytica, Facebook, and influence operations: a case study and anticipatory ethical analysis’, in edited Cruz, T. and Simoes, P. (eds.) ECCWS 2019 18th European conference on cyber warfare and security. London: Academic Conferences and Publishing International Limited, pp. 587- 595.
Winder, D. (2019) ‘Facebook privacy update: Mark Zuckerberg’s response to Cambridge Analytica scandal one year on’, Forbes.