MGMT 452 Corporate Social Responsibility Zeynep Gürhan-Canlı Technological Issues Chapter 11 May 5, 2010

Strategic Natural Environment Audit Does the organization show a high commitment to a strategic environmental policy? (Yes or No) Do employees know the environmental compliance policies of the organization? Do suppliers and customers recognize the organization’s stand on environmental issues? Are managers familiar with the environmental strategies of other organizations in the industry? Has the organization compared its environmental initiatives with those of other firms?

Strategic Natural Environment Audit Is the company aware of the best practices in environmental management regardless of industry? Has the organization developed measurable performance standards for environmental compliance? Does the firm reconcile the need for consistent responsible values with the needs of various stakeholders? Do the organization’s philanthropic efforts consider envirnmental issues? Does the organization comply with all laws and regulations that relate to environmental impact?

The Nature of Technology Technology relates to the application of knowledge, including the processes and applications for the solving of problems, performance of tasks, and creation of new methods to obtain desired outcomes. Technology reduces the number of worker hours necessary to generate the nation’s output. It increases job opportunities. Failure to share with developing countries can cause a major divide in the quality of life.

Characteristics of Technology Constant change that challenges the structure of social institutions. For example, the automobile, airplane, and personal computer have had great influence. Challenge many traditional products. Books, music, film, and paper. Broad reach. Functions as a catalyst to spur even faster development.

Effects of Technology Can provide new methods for handling tasks previously thought impossible. Has increased productivity, output, and corporate profits and fueled stock price growth on a global scale. Work environment has changed through telecommunications advances. Nature of meetings has changed.

Concerns About the Use of Technology Small businesses may be less able to take advantage of technological changes. It creates a class breakdown between the “haves” and “have-nots.” The ability to purchase technology affects the nature of competition. It reduces privacy and encourages the growth of cyber crime.

The Internet Interactive communication has supported business relationships with consumers and business customers, provided for more precise target marketing, and facilitated supply-chain management. Fraud has become a major concern. Complaints from consumers have risen dramatically over the past five years.

The Internet and Privacy Shopping on the Internet allows for businesses to track consumers. Technology makes it easier for law enforcement to catch criminals. Information can be collected on the Internet with or without a person’s knowledge. Privacy issues relate to children’s use of the Internet. Identity theft is of growing concern.

International Initiatives on Privacy European Union Directive on Data Protection mandates companies that collect personal information to explain how the information will be used and requires them to obtain permission from the consumer. Direct Marketing Association of Canada has supported the Personal Information Protection and Electronic Documents Act establishing personal privacy rights. Japan’s Electronic Network Consortium resolves issues with the Internet.

Privacy Officers and Certification Privacy officers develop systems and policies to protect consumers’ interests, thus helping to deter government regulation. Nonprofit organizations have helped in developing privacy policies. Better Business Bureau Online TRUSTe

Intellectual Property Ideas and creative materials are developed to solve problems, carry out applications, and educate and entertain others. Generally protected via patents and copyrights. U.S. copyright laws work to protect original works in text form, pictures, movies, computer software, musical multimedia, and audiovisual works. Digital Millennium Copyright Act (1998)

Fair Information Practices

Strategic Implementation of Responsibility for Technology The Role of Business Business is involved in both reactive and proactive attempts to market and make effective use of technology. Reactive concerns relate to issues with legal/ ethical implications as well as to issues of productivity, customer welfare, or other stakeholder issues. Concerns about undesirable employee use of computers which affect the workplace.

Strategic Technology Assessment Issues Are top managers in the organization aware of laws related to technology decisions? Does the organization have an effective system for monitoring changes in law related to technology? Are there communication and training programs to create an effective culture to protect employees and orgnizational interests related to technology? Does the organization have monitoring and auditing systems to determine the impact of technology on key stakeholders?

Strategic Technology Assessment Issues Does the organization have a method for reporting concerns about the use or impact of technology? Is there a system to determine ethical risks and appropriate ethical conduct to deal with technology issues? Is there an individual or department in the organization responsible for maintaining compliance standards to protect the organizations in the areas of privacy and intellectual property?