Facebook–Cambridge Analytica Data Scandal

Case Code: BECG160
Case Length: 13 Pages
Period: 2010-2018
Pub Date: 2018
Teaching Note: Available

Price: Rs.400
Organization: Facebook
Industry: Social Media
Countries: US
Themes: Business Ethics,

Abstract Case Intro 1 Case Intro 2 Excerpts

INTRODUCTION

In March 2018, under a campaign started against the world’s largest online social networking service – Facebook Inc. (Facebook), many of its users vented their anger against the company, as they felt it was making their needs subservient to its financial goals. Through the campaign #DeleteFacebook, people expressed their concern over the use of data harvesting and manipulation. Anger erupted against the company when news broke in mid-March 2018 that the personal information of up to 87 million Facebook users had been accessed inappropriately by a British political consulting firm, Cambridge Analytica (CA), to create targeted political advertising with the intention of influencing voter behavior during the election campaign of US President Donald Trump. The movement #DeleteFacebook was started and it rapidly swept across the internet. The share value of Facebook also declined sharply after the news and the company’s market value went down by nearly US$50 billion in just two days – from March 18, 2018, to March 20, 2018 – the stock’s biggest two-day decline ever..

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