4 Data-Mining Ethics and Company Growth Square Off.

SupplyCo. is a supplier to a number of fi rms in an industry.

This industry has a structure that includes suppliers, manufacturers, distributors, and consumers. Several companies are involved in the manufacturing process—from processed parts to creation of the fi nal product—with each fi rm adding some value to the product.

By carefully mining its customer data warehouse, SupplyCo.

reveals a plausible new model for manufacturing and distributing industry products that would increase the overall effi ciency of the industry system, reduce costs of production

(leading to greater industry profi ts and more sales for SupplyCo.), and result in greater sales and profi ts for some of the industry’s manufacturers (SupplyCo.’s customers).

On the other hand, implementing the model would hurt the sales and profi ts of other fi rms that are also SupplyCo.’s customers but which are not in a position (due to manpower, plant, or equipment) to benefi t from the new manufacturing/

distribution model. These fi rms would lose sales, profi ts, and market share and potentially go out of business.

Does SupplyCo. have an obligation to protect the interests of all its customers and to take no action that would harm any of them, since SupplyCo. had the data within its warehouse only because of its relationship with its customers?

(It would betray some of its customers if it were to use the data in a manner that would cause these customers harm.) Or does it have a more powerful obligation to its stockholders and employees to aggressively pursue the new model that research reveals would substantially increase its sales, profi ts, and market share against competitors?

b What are the implications of those decisions even if there is no violation of law or regulation?