"(T)o say that the individual is culturally constituted has become a truism. . . . We assume, almost without question, that a self belongs to a specific cultural world much as it speaks a native language." James Clifford
Showing posts with label social media. Show all posts
Showing posts with label social media. Show all posts

Wednesday, August 26, 2026

Anti-Social Facebook Managers Addicting Children on Social Media

Rowan Williams, formerly Archbishop of Canterbury, spoke out repeatedly on the innate social nature of human beings. Before we can talk, we are talked to. Social interaction is firmly rooted in human nature as well as how we are constituted in groups and societies. Whereas Williams called for more compassion to emerge out of our social nature, a political realist might point out that we don’t have to look very closely to find a power-dynamic existing in practically any group. Nietzsche argues in Genealogy of Morals that exploitation naturally exists in how we as a social species are constituted because the will for power is the strongest human instinct. This motive can operate stealthily as compassion and even altruism. The Jansenist priest, Pierre Nicole, wrote an essay in 1677 to point out that what we moderns call enlightened self-interest is nonetheless rooted in self-love even when it is extended in acts of compassion that appear to spring solely from other-regard. On August 26, 2026, a landmark settlement was announced to end a trial in which 47 U.S. member states sued Meta, which owns and operates Facebook. Regardless of whether Meta executives agreed to pay $17 billion just to get rid of the bad publicity or because the accusations were true, the dollar figure alone suggests that Facebook’s management had indeed been intending to manipulate children by addicting them to feeds.  In other words, the company had been short on compassion even under the rubric of social media. Nietzsche would not have been at all surprised at such power being played to extract value from human beings under stealth.

Speaking on the settlement, Virginia Attorney General Jay Jones said, “For years, Meta intentionally deceived the public about the addictive and harmful design features that have wreaked havoc on youth mental health.”[1] The design features, such as unlimited “scrolling” and “likes,” were intentionally put in place to addict kids; that did not come about as an unintended by-product. Although Meta was not required to admit guilt formally, it is reasonable to assume that a business would pay such a hefty penalty as $17 billion were there not something to the case against the company in terms of evidence even of intent. So besides protecting “children from online harm,”[2] the settlement has value societally in exposing the intent to addict at the detriment of even children. The operative perspective at Facebook was likely one oriented to viewing humans for our use-value alone.

It is no accident that extracting use-value from human beings was part of a secret seminar at Stanford University. Also in 2026, Theo Baker, a student at Stanford, publicly exposed the seminar, which was being taught by Justin Lewis-Weber, a CEO in Silicon Valley. In his book, How to Rule the World: An Education in Power at Stanford University, Baker reports that the course explicitly taught students how to extract value from people. Gaining utility from people without regard to how they are impacted, whether mentally or physically, stems from self-love manifesting narrowly as selfishness even if under the subterfuge of helping children to be more social with their peers. In other words, the students were learning manipulation tactics that could be used under the subterfuge of altruism. Phoebe Gates, founder of Phia, used the course to recruit employees. In 2026, wire fraud charges were filed against that company.

The upshot from all this is that the public (and elected representatives) knew very little of the sordid mentality underlying Meta’s corporate culture; even just from the $17 billion settlement we can only infer guilt because why else would a company agree to settle at such a cost? Many years earlier, Facebook had been found to have sold user-information to Cambridge Analytic, a political organization, but that was treated as a “one off” rather than as indicative of the way Facebook executives actually did business—and Facebook (or Meta) is a business; it is not social even though its industry is social media.

In terms of business ethics, intentionally or even unintentionally but continuing to addict young users of Facebook and Instagram violates Kant’s “kingdom of ends,” wherein rational beings are (ethically) to be treated not just as means (to one’s own self-interest), but also as ends in themselves. It is by the use of reason, Kant argues, that we assign value to things, so reason itself must have absolute value. A being that has reason thus has absolute value and should not be used merely as a means. This does not exclude using other people for one’s own ends, but this should not be the end of the matter, for other people should also be treated as ends in themselves. Addicting kids does not fall under “ends in themselves,” and so Meta can be held to have acted unethically. As much as business ethics focuses on ethical decision-making, ethical theories provide the real grist for the mill. Furthermore, the continuing negative impact of corporate culture is very relevant, as the case of Enron illustrates (e.g., “burn baby burn.”).  Even a highly squalid (ethically speaking) corporate way of doing business can be hidden from the public and regulators, and managers can dismiss ethical concerns very easily. So as in the case of Facebook (Meta), an episodic approach is typically assumed by external stakeholders; connecting the dots would take more effort and insight into the way corporate decisions are really being made.

Finally, we can pause for a moment to glance at the sheer pathos of distance that exists between Williams’ claim that the inherently social human nature can easily afford being more compassionate and the selfish addicting of kids at Facebook. Religion and business management seem to be disparate domains, and the easy compartmentalization by business managers who identify themselves as Christian renders the separation all too ubiquitous. The distinctively Christian divine command of love as universal benevolence, especially to outsiders and even enemies as selfless (or self-in-abeyance) compassion, runs counter to the firm-centric perspective and profit-centric rubric in business. The contrast is so distinct, even severe, that it is no surprise that business practitioners who self-identify as Christian have resorted to compartmentalizing their work from even themselves as human beings. The statement, “I’m a manager,” supports the construction of a “manager compartment,” but look at the underlying assumption: that a person’s essence is solely a matter of one’s functionality. It is easy to extend from this perspective to viewing social-media users solely in terms of their functionality, and thus use-value, as if value is a function of use.


1. Barbara Ortutay and Kelvin Chan, “Meta Reaches $17 Billion Settlement with States in Landmark Trial over Teen Social Media Addiction,” APnews.com, August 26, 2026.
2. Ibid.

Friday, October 5, 2018

Connecting the Dots: Zuckerberg's Facebook Stock

Why did Mark Zuckerberg unload $2.3 billion of his Facebook stock? The complete answer likely involves more than meets the eye, at least relative to what business reporters and editors had to say publicly in 2013. What was not said is itself a story worth publishing. Beyond Zuckerberg’s stratagem, what the media didn't say might be more significant than what made it through the filters.
Part of the answer concerning Zuckerberg’s sell-off involves his need for cash at the time to pay taxes that would be due from his exercising an option to purchase 60 million Class B shares in 2013. This move likely implies a belief that Facebook stock would not go much higher. Had Zuckerberg strongly believed at the time that Facebook was yet to cash in on advertising revenue beyond that which the market had already factored into the company’s stock price, the CEO would not have exercised the options in expectation of a wider spread. Even with the taxes coming due, the billionaire could probably have found an alternative way to come up with the cash. 
Like a deer frozen in an oncoming car’s headlights, the media did not analyze Zuckerberg’s motives beyond his public statements. Instead, the herd animals let themselves be led along, prancing in the tracks of positive correlation, which is does not in itself connote causation. That two things tend to occur together does not necessarily mean that one caused the other to act some way. For instance, we see umbrellas on rainy days. This does not mean that umbrellas cause rain, or that rain rather than manufacturing causes umbrellas. To assume causation from two things tending to occur at the same time is to commit what David Hume calls the naturalistic fallacy. 
So the media’s report that Zuckerberg’s stock sale and exercise came as the CEO was donating $1 billion worth of shares to the Silicon Valley Community Foundation to “boost his philanthropic efforts in education,” and Facebook was selling 27 million shares to raise an expected $1.46 billion for general purposes all count only as positive correlation; causation cannot be assumed.[1] In other words, we cannot conclude that Zuckerberg decided to sell off a chunk of his stock and exercise an option because he had decided to donate some stock and Facebook was raising more capital. In other words, the additional information conveniently provided does not get us any closer to a full answer. Worse still, Zuckerberg and his PR staff might have been throwing the media a tantalizing, diverting bone. This would have been in keeping with claims that Facebook's management was unethical.
One reporter took the bait, writing that with cash and marketable securities of $9.3 billion as of September 30, 2013, Facebook may not have needed another $1.46 billion.[2] Off reporter’s radar screen was the possibility that Zuckerberg had designed his philanthropy and the company’s additional stock offering as luring camouflage that would use even criticism of his company to keep the eye off his own trades and especially what they imply about his view of the company’s future. That shares of Facebook dropped only 1% to $55.05 in trading on the news suggests that investors were swallowing what Zuckerberg and the media were serving as dessert.
What of the market insiders? Were they also biting? As John Shinal puts it, “More important, insiders have detailed knowledge of a public company’s near-term prospects and thus are in a better position to know when to sell.”[3] I suspect that “people in the know” may have connected the dots. Two months earlier, a poll revealed that as the most important social media site for teenagers, Facebook fell from 42% in the autumn of 2012 to 23% a year later.[4] Can we suppose this poll somehow missed Zuckerberg’s attention? The media certainly did not connect the dots.
The theory behind my analysis is not financial; rather, I consider Mintzberg’s theory of the organizational life-cycle to be more revealing in this particular case. The theory suggests that just as empires rise and fall, so too do companies. Once past their peak, a “hardening of the arteries” sets in.
The organizational lifecycle. When Zuckerberg decided to sell a block of shares and exercise options, he already had a picture of Facebook already on the downward slope without much chance of revitalization. Image Source: www.sourcingideas.blogspot.com
The aging (i.e., a decreasing willingness or ability to adapt to a changing environment, and increasing dead weight internally) can be delayed as the downward slope bides its time; but like entropy as a final destination, the end is inevitable for humans and our organizational artifices. I suspect that Zuckerberg had come to view his company as past its prime, given the leading indicator shown in the poll. If I am right, the game has already changed to keeping the illusion alive long enough for the Facebook insiders to get out under the black shimmering cover of the Styx.


Sources:

1. Scott Martin, “Zuckerberg’s in Mood to Sell,” USA Today, December 20, 2013; John Shinal, “Facebook Shares May Underperform,” USA Today, December 20, 2013.
2. John Shinal, “Facebook Shares May Underperform,” USA Today, December 20, 2013.
3.Ibid.
4. Bianca Bosker, “Facebook’s Rapidly Declining Popularity with Teens in 1 Chart,” The Huffington Post, October 23, 2013.

Monday, March 19, 2018

Facebook: A Distrustful Company Projecting Distrust

Cambridge Analytica, political data firm founded by Stephen Bannon and Robert Mercer, and with ties to U.S. President Trump’s 2016 campaign, “was able to harvest private information from more than 50 million Facebook profiles without the social network’s alerting users.”[1] The firm had purchased the data from a developer (a psychology professor at Cambridge University in the E.U.) who had developed a personality test that Facebook users could take, and whose purpose was supposedly academic. The developer violated Facebook’s policy on how user data could be used by third parties. The data firm “used the Facebook data to develop methods that [the firm] claimed could identify the personalities of individual American voters and influence their behavior.”[2] In other words, Cambridge Analytica used the purchased data to manipulate users to vote for Donald Trump for U.S. president in 2016 by sending pro-Trump messages. Although Facebook had not known of the sale of the data to Cambridge Analytica at the time, the social network, upon learning Cambridge Analytica’s political use of the data in 2015, failed to notify its users whose data had been compromised. Although 270,000 Facebook users took the developer’s personality test, “the data of some 50 million  users . . . was harvested without their explicit consent via their friend networks.”[3] It bears noting here that those of the 50 million users who had not taken the personality test should definitely have been informed. At the very least, Facebook’s management could not be trusted to not only  keep users informed, but also protect users in the first place by adequately enforcing the third-party-use policy. So it is ironic that Facebook’s untrustworthy management could be unduly distrustful of ordinary users.
The psychological-political mixture in Cambridge Analytica’s use of the data is downright creepy. Tapping into a psychology professor’s methodology for inferring personality from data on a social network platform so to be able to send politically manipulative advertising to certain Facebook users  is highly invasive, even for the users who voluntarily took the professor’s personality test online. Regardless of party affiliation, a reaction of disapprobation to such an over-reach could be expected; hence the operation was stealth—which is why Facebook’s management erred so in failing to inform the 50 million users. Facebook’s stock deserved to fall when the story finally did break in March, 2018.
It is odd that Facebook’s management even permitted the developer, the psychology professor who went on to sell the data to Cambridge Analytica, to obtain the data in the first place to develop personality constructs for academic purposes. It is also odd that Facebook’s management had been so naïve concerning a political data firm, and yet so demanding of individual users who displayed no cause for suspicion. Facebook suspended an account I set up because I had sent a link to one of my academic articles to some scholars I knew. I deleted the account. A few years later, I tried again. That time, Facebook demanded that I upload a clear facial picture of myself so I could be identified. Apparently my phone number and email address were not sufficient, even though I had not yet even used the account and thus could not have violated any of the company’s use-policies. I deleted that account rather than supply a picture of myself because I was concerned how the facial recognition software would be used, especially when combined with other basic information I had included in the profile. It turns out I had reason to be concerned, for even if my personality had not been construed and I had not been subject to political manipulation psychologically, the fact that Facebook let a political firm in the door means that other harvesting could have been going on. Furthermore, even if Facebook discovered other extractions, I could not trust that the company would have informed me.
It is telling, in short, that a company so distrustful demanded that I upload a picture of my face so I could be identified—as if I were distrustful. I suspect that the managers and their employees were projecting their own distrustfulness onto innocent users, while giving firms like Cambridge Analytica a free hand. In other words, the folks at Facebook were very bad at determining who is trustworthy. The lesson here is that Facebook was not worthy of its users’ trust, and yet strangely the users did not bolt en mass. It could be that people in modern society had become so used to being distrusted by people working in organizations and to interacting with distrustful companies that the Facebook revelation was a mere blimp on the radar screen.
The philosopher Kant reasoned that promise-making is only valid in a context in which promises tend to be kept; otherwise, promises would simply be dismissed as worthless dribble. If large companies only keep their promises when doing so is convenient to them, such a context could recalibrate just how much worth promise-making justifiably deserves. If so, the business world itself could contribute to a society in which distrust rather than trust is the norm. When I lived in Tucson, Arizona, I experienced such a society. I could feel not only the angst in the air, but also the passive aggression in the distrust itself. Besides the police-state being “beyond the pale” even on the local university’s campus, the guarded watchfulness that was (and surely is still) practiced between strangers on the city streets (as well as between bus drivers and riders) included an inherent aggressiveness. Likewise, Facebook’s refusal to notify users of the “harvesting” and Facebook’s demand that I furnish a photo of my face involved passive aggression—which is inherent in unjustified disrespect. Are companies like Facebook unwittingly turning modern society into Tucsons? If so, the link between distrust and aggression should be made transparent so people can at least be aware of the change.

For a business ethics critique of Facebook, see Taking the Face off Facebook



1. Matthew Rosenberg and Sheera Frenkel, “Facebook Role In Data Misuse Sets Off Storm,” The New York Times, March 19, 2018.
2. Ibid.
3. “Cambridge Analytica: Facebook ‘being investigated by FTC,’” BBC News ( accessed March 20, 2018).


Monday, December 4, 2017

Advertisers Remove Ads on YouTube: Fair to YouTube and Video-Producers?

One day after Thanksgiving in 2017, “a fresh wave of advertisers suspended commercials on Youtube after their ads showed up next to videos that appeared to attract pedophile viewers.”[1] Youtube had removed ads from roughly 3 million videos, but the company’s use of human and AI checkers simply could not keep pace with the number of uploaded videos. Even so, Diageo, maker of Smirnoff and Johnnie Walker (alcohol drinks), announced it would hold off its ads until “appropriate safeguards are in place.”[2] Mars and Adidas took a similar line. The question is whether those advertisers were being fair to Youtube and even the producers of the videos.

After a similar revolt the previous March, YouTube and hired more human reviewers and furnished advertisers with new tools to control where their ads would appear. Did not those companies have some responsibility to keep tabs on their ads, especially given the incentive to do so.  “Advertisers don’t want their brands associated with objectionable content and as well can face criticism if their advertising money goes to support the videos’ creators.”[3] It would not have been prudent to leave it to YouTube to review the ads, especially if the advertisers knew that YouTube was short-staffed. Unlike the advertisers, YouTube’s management had little incentive; the pull-out of certain advertisers in March, 2017 had “little impact” on Alphabet’s (Google’s) overall business. In fact record profits were posted.

Of course, the ability and will to review ads, whether by the advertisers or YouTube, would not in itself have caught the cases in which the videos themselves were salubrious and yet received unsavory comments from viewers. An advertiser could hardly be blamed for placing an ad in such a video; neither would YouTube be culpable in having permitted the video in the first place. So even if sordid comments could be readily removed, the incentives would be lacking. To be sure, YouTube is responsible for removing such comments, and just because blame would not be justified concerning innocent videos does not necessarily mean that such blame would not be exacted anyway.

The nuances of responsibility suggest that the reaction of the advertisers was rather blunt and even impulsive, and not entirely fair to YouTube and the video-producers. Distinguishing between objectionable and proper videos, and then between the latter and disgusting comments would be part of a smarter, more refined approach.




[1] Stu Woo and Sam Schehner, “YouTube Deals With Another Advertiser Backlash,” The Wall Street Journal, November 25-26, 2017.
[2] Ibid.
[3] Ibid.

Sunday, May 20, 2012

The Huffington Post Gilds the Lily: Facebook’s IPO Plummets?

On the day of its IPO, Facebook issued at $38 and went to a high of $45 before returning to near its issue price (closing at $38.23). On the next trading day, the price fell to about $34 in the early afternoon. This represents about 10% off the issue price. The Huffington Post headlined “Stock Plummets,” which must have been irresistible to anyone who had bought the stock. The Huff was using the $45 high as its benchmark, from which the $34 price represents a 25% drop. As if that were a plummeting, using the 10% off figure would have made the self-aggrandizing headline too obvious. At the very least, the headline detracts from the credibility of the Huffington Post.


The full essay is at "Taking the Face Off Facebook."

Monday, March 28, 2011

Flickering Ethics at Flickr: On the Ethics of Enforcement

The New York Times has an interesting piece on the ethics involved in providing a social media service for the public.  The article describes how “(t)wo days after using Flickr to display photos of police officers from Egypt’s feared state security force, Hossam el-Hamalawy watched in disbelief as they vanished, one by one, from the popular social networking site, which he had been using since 2008. ‘I thought I was being hacked,’ said Mr. el-Hamalawy, a prominent Egyptian blogger and human rights activist who had uploaded the headshots of the police from CDs found by activists early this month at the State Security Police headquarters in Nasr City. He later learned . . .  that the photos had been removed because he did not take the images himself, a violation of the site’s . . . rules. ‘That is totally ludicrous,’ he said. ‘Flickr is full of accounts with photos that people did not take themselves.’”
 

The full essay is in Cases of Unethical Business: A Malignant Mentality of Mendacity, available in print and as an ebook at Amazon.