1. Chapter 6 Ethics and Privacy © Ilin Sergey/Age Fotostock America, Inc.

2. Chapter Outline 6.1 Ethical Issues 6.2 Privacy

3. Learning Objectives 1.Describe the four categories of ethical issues related to information technology. 2.Discuss potential threats to the privacy of personal data stored in different locations.

4. 6.1 Ethical Issues Opening Case: Pinterest Ethics Principles of right and wrong that individuals use to make choices that guide their behavior © AlexMax/iStockphoto

5. Ethical Standards Utilitarian approach An ethical action is the one that provides the most good or does the least harm. Rights approach An ethical action is the one that best protects and respects the moral rights of the affected parties. Fairness approach An ethical action treats all humans equally, or if unequally, then fairly, based on some defensible standard. Common good approach An ethical action is the one that best serves the community as a whole and is important to the welfare of everyone, not just some members.

6. Ethical Frameworks Recognize an ethical issue: Does this decision… Damage someone? Involve good/bad? Go beyond what is legal? Get relevant, sufficient facts Identify stakeholders and consult relevant persons and groups Evaluate alternative actions under all four ethical standards Make a decision and test it Which option best addresses the situation? Act and reflect on the outcome of your decision Implement the decision with the greatest care and attention to the concerns of all stakeholders How did my decision turn out, and what did I learn from this specific situation?

7. Ethics in the Corporate Environment Code of ethics A collection of principles that are intended to guide decision making by members of an organization Examples: AITP ACM URISAAITPACMURISA Fundamental tenets of ethics: Responsibility Accepting the consequences of your decisions and actions Accountability Determining who is responsible for actions that were taken Liability A legal concept that gives individuals the right to recover the damages done to them by other individuals, organizations, or systems What is unethical is not necessarily illegal.

8. Ethics and Information Technology Privacy issues Involve collecting, storing, and disseminating information about individuals Example: Google Street ViewGoogle Street View Accuracy issues Involve the authenticity, fidelity, and accuracy of information that is collected and processed Property issues Involve the ownership and value of information Accessibility issues Revolve around who should have access to information and whether they should have to pay for that access

9. 6.2 Privacy Privacy The right to be left alone and to be free of unreasonable personal intrusions Information privacy Ordering Pizza VideoOrdering Pizza Video The right to determine when, and to what extent, information about you can be gathered and/or communicated to others Companies collect public and nonpublic data and integrate them (profiling) to produce electronic descriptions of you and your habits (digital dossiers). Court decisions have followed two rules: 1.The right of privacy is not absolute. Your privacy must be balanced against the needs of society. 2.The public’s right to know is superior to the individual’s right of privacy.

10. Threats to Privacy Electronic surveillance The tracking of people’s activities, online or offline, with the aid of computers Article Technology Tools ArticleTechnologyTools Personal information in databases Banks, utility companies, government, and credit reporting agencies Information on Internet bulletin boards, newsgroups, and social networking sites Example: Reputation.comReputation.com © Nicolas Nadjar/Age Fotostock America, Inc.

11. Privacy Codes and Policies An organization’s guidelines with respect to protecting the privacy of customers, clients, and employees Informed consent models: Opt-out model Organizations are permitted to collect personal information until the customer specifically requests that the data not be collected Opt-in model (Preferred by privacy advocates) Organizations are prohibited from collecting any personal information unless the customer specifically authorizes it

12. International Aspects of Privacy Privacy issues that international organizations and governments face when information spans countries and jurisdictions Safe harbor framework © Pamela Moore/iStockphoto

13. What’s in IT for ME? Accounting Federal regulations require accounts to monitor information security, fraud prevention and detection, and internal controls over financial reporting Finance CFO is also responsible for information security and accuracy Marketing Marketers do not want to be sued for invasion of privacy over data collected for the marketing database Production/Operations Management Special consideration with labor laws and offshore operations Human Resources Management Formulate and enforce policies to control IT usage while maintaining employee-management relationships MIS Must maintain the highest ethical standards because they have control over large amounts of personal information

14. Closing Case 1: Google and China The Problem Attempts at a Solution The Results Questions Google’s informal corporate motto is “Don’t Be Evil.” Discuss this motto in light of Google’s decision to stop censoring its search results on behalf of the Chinese government. Discuss Google’s decision to stop censoring its search results in China in terms of the ethical framework at the beginning of this chapter.

15. Closing Case 2: Attack of the Dot Clones The Problem A Potential Solution The Results Questions Discuss the ethics of the Samwers’ business model. Now discuss the legality of the Samwers’ business model. Compare the two discussions. What are some alternatives that companies might use to combat dot clones? Discuss the ethical implications of the statement from Groupon’s CEO that the Samwers are superb operators, not simply copycats.