Walt Disney Company Ethics Paper

Vesna Milenkovski
Chapters 1, 3 and 4
The main goal of any business is profit maximization. The best way to do that is through hiring capable managers that possess the motivation to manage as wells as the technical, human and conceptual skills that would enable them to efficiently and effectively perform the four main management functions: planning, organizing, leading and controlling.
A perfect example of a top manager that possesses these traits is Robert A. Iger, CEO and Chairman of Walt Disney Company. According to Orin C. Smith, Independent Lead Director of the Disney Board “Mr. Iger’s ability has repeatedly resulted in record revenue, net income, and earnings per share for the company”. Since taking over as a CEO in 2005 he increased
the company’s market capital from $48.4 billion to $113.7 billion. Some of the things that helped him achieve this were making smart decisions (he acquired Pixar, Marvel and Lucasfilms) and bringing significant changes in the company (he was responsible for initiating large expansions and improvements of Walt Disney World parks and he invested in new international parks and resort such as the newly opened Hong Kong Disneyland). He was also responsible for WD Company ranking No. 2 in Barron’s 2013 “World’s Most Respected Companies”, being one of Fortune’s “World’s Most Admired Companies” and ranking No.1 in Forbs’ 2013 “America’s Most Reputable Companies”. Through all of these achievements Mr. Iger “has proven he has the unique ability to drive creative and financial success at the world’s preeminent entertainment company (Orin Smith)” which is the main goal of any successful CEO making him a valued asset to the company it manages.

Many of the decisions that CEOs like Mr. Iger make are directly influenced by the changes in the external and internal environments that affect the business they are managing. One type of external environment, which is defined as the forces and events outside a company that have the potential to influence or affect it (p. 41), is technology. Technology belongs to a subclass called general environment because changes in technology eventually affect most businesses.
An example of how technology changes can help companies provide a better product for their consumers is Walt Disney World’s new so-called MagicBand. The MagicBand is a band containing a transmitter that can send and receive signals through a small antenna therefore eliminating the need for guests to carry room keys, theme park tickets, credit cards, Fast Pass tickets etc. The MagicBand can also be linked to a database that stores personal information such as your name and birthdate so that guests can have a more personalized experience when greeted at the theme parks. Guests can also order food in advance online and use the MagicBand to give off a signal to the chef when they arrive at the restaurant so that their food can be prepared. As Chairman Tom Staggs explained “this allows [Disney] to unlock more special things for you, depending on what level you want to participate”.

As an adult I have personally been to Walt Disney World four times.
So when I first heard about the MagicBand I was very excited and thought it was a great idea. As I was doing research to find out more about the device I ran across blogs and posts by many people who were legitimately concerned with whether or not this new Disney invention was ethical. Ethics is the set of moral principles or values that defines right and wrong for a person or group (p.61). We all know that CEOs are under a lot of pressure to make profits but they are expected to make the profit by doing the right thing (p.61). While the MagicBand will undeniably be convenient and beneficial for guests (quicker theme park entry and purchasing transactions, shorter waiting time for attractions and restaurants) the questions is: Is Disney doing this solely to improve your experience at their establishments, as it’s been advertised, or is the underlying goal to gather information on your personal preferences to use it for marketing purposes and therefore increase sales? A Congressman from Massachusetts Edward J. Markey (D) stated in a letter to Mr. Iger “Widespread use of MagicBand bracelets by park guests could dramatically increase the personal data Disney can collect about its guests” and that he “fears [information] could be used to gather marketing information on children”. Also, people generally spend more money when paying with credit card versus cash. How much easier would this “flick of the wrist”
paying method make it for people to make impulse purchases at Disney World?
I think that what Disney is trying to do is not necessarily unethical since they are not selling anything but using data that guests are willing to provide to better their business.
Guests are in charge of how much personal information they share. You can simply use the MagicBand as a room key or a theme park ticket and are not required to share names and birthdays or use it for dining purposes. As I stated at the beginning of this paper, the main goal of any business is to maximize its profits. So, one has to assume that one of the goals of the MagicBand is to bring in revenue. But being a regular Disney World guest I have personally experience their high concern with costumer service and I can guarantee that the sole goal of the MagicBand is not just revenue generation but it is also intended to improve the experience of their park
goers.

http://entertainment.time.com/2014/01/02/disney-nsa-style-magic-bands-theme-park/