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Normative Theories Of Business 
Ethics and Hotel WiFi Security 
PATRICK FARRELL AND MALI MECKER
Stockholder Theory 
 The stockholder theory states that one should maximize 
stockholder wealth in an ethical way (Pearlson/Saunders 
356). 
 This theory relates to breaches in Hotel WiFi security 
because a business person should take precautions to 
protect sensitive information that, if leaked, could be 
detrimental to company stock value. 
 Examples of options to protect your information include 
making sure to connect to the correct network, set up 
good antivirus defenses, avoid file sharing, disconnect 
when not in use, avoid financial transactions, change 
passwords frequently or use a Virtual Private Network 
(VPN) (us.norton.com).
Stakeholder Theory 
 The stakeholder theory states that one should maximize 
benefits to all stakeholders while weighing costs to 
competing interests (Pearlson/Saunders 356). 
 This theory relates to Hotel Wifi Security breaches in a 
similar way that the stockholder theory does. 
 One should take precautions in order to protect private 
information of other employees and customers/clients 
because the cyber crime game targets high profile 
executives to gain further access into company networks 
which contains private information (abcnews.go.com)
Social Contract Theory 
 The social contract theory states that one should 
create value for society in a manner that is just and 
non-discriminatory (Pearlson/Saunders 356). 
 This theory relates to hotel WiFi security breaches in 
that a hotel should take steps to secure its network, 
as allowing a cyber crime gang to steal information is 
unethical and negatively impacts society as a whole.

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Normative theories of business ethics and hotel wi fi

  • 1. Normative Theories Of Business Ethics and Hotel WiFi Security PATRICK FARRELL AND MALI MECKER
  • 2. Stockholder Theory  The stockholder theory states that one should maximize stockholder wealth in an ethical way (Pearlson/Saunders 356).  This theory relates to breaches in Hotel WiFi security because a business person should take precautions to protect sensitive information that, if leaked, could be detrimental to company stock value.  Examples of options to protect your information include making sure to connect to the correct network, set up good antivirus defenses, avoid file sharing, disconnect when not in use, avoid financial transactions, change passwords frequently or use a Virtual Private Network (VPN) (us.norton.com).
  • 3. Stakeholder Theory  The stakeholder theory states that one should maximize benefits to all stakeholders while weighing costs to competing interests (Pearlson/Saunders 356).  This theory relates to Hotel Wifi Security breaches in a similar way that the stockholder theory does.  One should take precautions in order to protect private information of other employees and customers/clients because the cyber crime game targets high profile executives to gain further access into company networks which contains private information (abcnews.go.com)
  • 4. Social Contract Theory  The social contract theory states that one should create value for society in a manner that is just and non-discriminatory (Pearlson/Saunders 356).  This theory relates to hotel WiFi security breaches in that a hotel should take steps to secure its network, as allowing a cyber crime gang to steal information is unethical and negatively impacts society as a whole.