Business Ethics and Technology Chapter 9 Business Ethics and Technology Business Ethics and Technology Chapter 9 Prepared by Deborah Baker Texas Christian University Business and Society: Ethics and Stakeholder Management, 7e • Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning.  All rights reserved

Chapter 9 Learning Outcomes Business Ethics and Technology Chapter 9 Learning Outcomes Identify the role that technology plays in business. Gain an understanding of the technological environment and its characteristics that influence business ethics and stakeholders. Identify the benefits and side effects of technology in business. Gain an appreciation of society’s intoxication with technology and the consequences of this intoxication. Learn to differentiate between information technology and biotechnology and their ethical implications. Identify the ethical issues involved in biotechnology and present arguments on both sides of the issues.

Chapter 9 Outline Technology and the Technological Environment Business Ethics and Technology Chapter 9 Outline Technology and the Technological Environment Characteristics of Technology Ethics and Technology Information Technology Biotechnology Summary Key Terms Discussion Questions Levels at Which Ethical Issues May Be Addressed Personal Level Organizational Level Industry Level Societal and International Levels Personal and Managerial Ethics Principles Approach to Ethics Ethical Tests Approach Managing Organizational Ethics Factors Affecting the Organization’s Moral Climate Improving the Organization’s Ethical Climate Summary

Introduction to Chapter 9 Business Ethics and Technology Introduction to Chapter 9 This chapter explores questions surrounding technology and business ethics, including: What does technology mean? What are the benefits and challenges of technology? How does ethics relate to technology? What are the ethical issues surrounding the major realms of technology: computers and information technology, and biotechnology?

Technology and the Technological Environment Chapter 9 Business Ethics and Technology Technology and the Technological Environment Technology The totality of the means employed to provide objects necessary for human sustenance and comfort

Characteristics of Technology Chapter 9 Business Ethics and Technology Characteristics of Technology Benefits of Technology Increased production of goods and services Reduced amount of labor needed to produce goods and services Made labor easier and safer Increased productivity Increased standard of living Increased life expectancy

Side Effects and Challenges of Technology Chapter 9 Business Ethics and Technology Side Effects and Challenges of Technology Side Effects of Technology Environmental pollution Depletion of natural resources Technological unemployment Creation of unsatisfying jobs http://www.ethix.org @

Technological Determinism Chapter 9 Business Ethics and Technology Ethics and Technology Key Issues Technological Determinism Ethical Lag

Symptoms of Society’s Intoxication with Technology Chapter 9 Business Ethics and Technology Symptoms of Society’s Intoxication with Technology We favor the quick fix We fear and worship technology We blur the distinction between what is real and fake We accept violence as normal We love technology as a toy We live our lives distanced and distracted Find the Right Balance!

Information Technology Chapter 9 Business Ethics and Technology Information Technology Biotechnology Electronic Commerce Computer technology in the workplace Information Technology

Key Issues in e-Commerce Ethics Chapter 9 Business Ethics and Technology Electronic Commerce Key Issues in e-Commerce Ethics Access Intellectual property Privacy and informed consent Protection of children Security of information Trust

Potential Threats to Privacy Posed by the Internet Chapter 9 Business Ethics and Technology Potential Threats to Privacy Posed by the Internet Identity theft Unintentionally revealing information Lost / stolen personal information Fake Web sites Government distribution of information Broadcasting information over the Internet Victim of spying Cyberstalker Figure 9-1

Invasion of Privacy Posed by the Internet Chapter 9 Business Ethics and Technology Invasion of Privacy Posed by the Internet Cookies Spam Identity Theft

Government’s Involvement Chapter 9 Business Ethics and Technology Government’s Involvement The Financial Services Modernization Act of 1999 “Opt in” to having personal information used Governing legislation Financial Services Modernization Act Fair Credit Reporting Act Children’s Online Privacy Protection Act

Privacy Agenda of the FTC Chapter 9 Business Ethics and Technology Privacy Agenda of the FTC Creating a national Do-Not-Call List Beefing up enforcement against spam Helping victims of identity theft Stopping pretexting Encouraging accuracy in credit reporting and compliance with Fair Credit Reporting Act Enforcing privacy promises Increasing enforcement and outreach on children’s online privacy Encouraging consumers’ privacy complaints Enforcing the telemarketing sales rules Restricting use of pre-acquired account information Enforcing Gramm-Leach-Bliley Act Holding workshops Figure 9-2

Business Initiatives to Protect Privacy Chapter 9 Business Ethics and Technology Business Initiatives to Protect Privacy Ethical leadership Privacy policies Chief privacy officers Data security

Questionable Businesses and Practices Chapter 9 Business Ethics and Technology Questionable Businesses and Practices Pornography Gambling Web-based music services Intellectual property Monitoring technology “Phishing”

The Workplace and Computer Technology Chapter 9 Business Ethics and Technology The Workplace and Computer Technology Employee Impression of Technology Expands job-related knowledge Increases productivity during work and commuting times Improves communication with clients and customers Relieves job stress Improved time management Expanded professional networks Development of a competitive edge Balance of work and family needs

Surveillance Computers Monitoring website employee computer files Chapter 9 Business Ethics and Technology Surveillance Computers Monitoring website employee computer files Blocking access to inappropriate websites Storing and reviewing e-mail Telephone Monitoring time spent, numbers called Taping phone conversations Video Video surveillance against theft Video surveillance to monitor employee performance

Unethical Employee Activities Chapter 9 Business Ethics and Technology Unethical Employee Activities Created a dangerous situation by using new technology while driving Blamed error on technological glitch Copied company software for home use Used office equipment to shop on the Internet Used office equipment to search for job Accessed private files without permission Intruded on co-workers’ privacy Visited porn Web sites

Ten Commandments of Computer Ethics Chapter 9 Business Ethics and Technology Ten Commandments of Computer Ethics Figure 9-3

Biotechnology Bioethics Proceduralism Chapter 9 Business Ethics and Technology Biotechnology Bioethics A field that has emerged to deal with ethical issues embedded in the use of biotechnology Proceduralism The use of elaborate protocols to ensure that classical safeguards, such as informed consent, are not violated

Realms of Biotechnology Chapter 9 Business Ethics and Technology Realms of Biotechnology Genetic Engineering Genetically Modified Foods

Genetic testing and profiling Chapter 9 Business Ethics and Technology Genetic Engineering Stem cell research Cloning Genetic testing and profiling

Nonprofit Bioethics Organizations Chapter 9 Business Ethics and Technology Nonprofit Bioethics Organizations American Society for Bioethics + Humanities http://www.asbh.org GE Food Alert Campaign Center http://www.gefoodalert.org Do No Harm: The Coalition of Americans for Research Ethics http://www.stemcellresearch.org Council for Responsible Genetics http://www.gene-watch.org Bioethics.net http://www.bioethics.net National Human Genome Research Institute http://www.genome.gov Figure 9-4

Genetically Modified Foods Chapter 9 Business Ethics and Technology Genetically Modified Foods Safety issues Labeling issues

Key Terms Technology Technological environment Information technology Chapter 9 Business Ethics and Technology Key Terms Technology Technological environment Information technology Biotechnology Electronic commerce Chief Privacy Officer Surveillance Bioethics Genetic engineering Technological determinism Ethical lag Genetically modified foods Embryonic stems cells Cloning Therapeutic cloning Genetic testing Genetic profiling