1 Chapter 11. Using Information Ethically Managing and Using Information Systems: A Strategic Approach by Keri Pearlson PowerPoint Slides prepared by Gene Mesher Copyright © 2001 John Wiley & Sons, Inc.

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3 CONTROL OF INFORMATION

4 Figure 11.1 Mason’s areas of managerial concern zPrivacy: What information must a person reveal about one’s self to others? What info should others be able to access? What safeguards exist for your protection? zAccuracy: Who is responsible for the reliability and accuracy of information? Who will be accountable for errors? zProperty: Who owns information? Who owns the channels of distribution, and now should they be regulated? zAccessibility: What information does a person or an organization have a right to obtain, under what conditions and with what safeguards?

5 NORMATIVE THEORIES OF BUSINESS ETHICS

6 Normative theory zMeaning doing the “right” thing: principles expressed in ordinary language that can be applied to moral quandaries in business. zStockholder theory zStakeholder theory zSocial Contract theory

7 Stockholder theory zBiz. goal: maximize stockholder value. zM.Friedman: “sole resp. of business is to increase profits through open and free competition without deception or fraud” z1. Managers must employ legal means to achieve this goal. z2. Managers must take the long view of shareholder interest, forgoing short-term gains so as to maximize long term value.

8 Stakeholder theory zBiz. goal: maximize benefits to all stakeholders zStakeholder: any group whose interests the corporation vitally affects zIncludes: stockholders, customers, employees, suppliers, the local community zManagement must balance the rights of all stockholders without impinging the rights of any one particular stockholder

9 Social Contract theory zDerived from needs of managers to consider their social responsibilities to society. zSocial contract = social welfare + justice zSocial contract  managers must pursue profits in a way compatible with societal well-being zJustice  corporations must pursue profits legally, without fraud or deception, avoiding activities that injure society.

10 EMERGING ISSUES IN THE ETHICAL GOVERNANCE OF INFORMATION SYSTEMS

11 Inner and outer ethical spheres of managerial overview zOutward transactions of the business. Focus is on the customer zExample: selling [private?] customer preference information for marketing purposes zUse of information inside the corporation. Includes: internal surveillance and monitoring, deskilling, and workplace rigidity. zExample: conducting private business on company time (e.g., sending personal ).

12 Figure 11.3 Some causal connections between identified areas of ethical concern (cf. Leal (1995)) Loss of Skills Loss of Control Loss of Identity Loss of Privacy

13 FOOD FOR THOUGHT: ETHICS AND THE INTERNET

14 Ethics and the Internet zNow an issue of public debate. zE.g., consider a pornographic website: y Does the website have a responsibility to make sure only appropriate visitors view it? yWho is resp. to keep children from seeing it: yThe web author? The website host? The access site (e.g., school)? Parents? zConsider Rinaldi’s ethical rules regarding using computers (see figure 11.4). zSecurity measures may also have unforeseen consequences (see figure 11.5).

15 Fig Ten commandments of computer ethics (cf. Rinaldi, 2000) z1. Thou shalt not use a computer to harm other people. z2. Thou shalt not interfere with other people’s computer work. z3. Thou shalt not snoop around in other people’s files. z4. Thou shalt not use to steal. z5. Thou shalt not use use a computer to bear false witness. z6. Thou shalt not use or copy software for which you have not paid. z7. Thou shalt not use other people’s computer resources without authorization. z8. Thou shalt not appropriate other people’s intellectual output. z9. Thou shalt think about the social consequences of the program you write. z10. Thou shalt use a computer in ways that show consideration and respect.

16 Figure 11.5 Security and control tools (cf. Duquenoy and Whitehouse, 1999) zFirewalls zEncryption zNet OS zSecurity Info Mgmt zServer and Browser sfwe security zLabeling and Rating sfwe zFiltering/Blocking sfwe

17 End of Chapter 11