1. Ethics and the Conduct of Business
Eighth edition
Chapter 6
Privacy
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2. Modules Introduction: Privacy 6.1: Challenges to Privacy
6.2: Meaning and Value of Privacy
6.3: Privacy Away from Work
6.4: Privacy of Employee Records
6.5: Big Data Analytics
6.6: Using the Internet
Conclusion: Privacy
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved

3. Learning Objectives (1 of 2)
6.1: Identify how different business practices challenge the privacy of employees in the workplace and consumers in the marketplace
6.2: Explain the concept of privacy and how the utilitarian and Kantian arguments defend privacy as a necessary right of all individuals
6.3: Evaluate the reasoning that leads a company to monitor its employees and the measures undertaken to limit such monitoring
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved

4. Learning Objectives (2 of 2)
6.4: Determine what ethical issue(s) are associated with a particular handling or use of employee records and whether the action is justified or a violation of the employee’s privacy
6.5: Describe how big data analytics enables companies to profile and target consumers and the potential ethical issues with this process
6.6: Analyze the ethical issues associated with collecting and using information about consumers’ online activities, and the adequacy of the rules and principles created to protect Internet privacy
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved

5. Introduction: Privacy
Psychological testing at Dayton Hudson case
Telecommunication companies compelled to provide information
Internet the most recent challenge to privacy
Government surveillance impacts the privacy of individuals
Understanding of right to privacy is important
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6. 6.1: Challenges to Privacy
Objective: Identify how different business practices challenge the privacy of employees in the workplace and consumers in the marketplace
6.1.1: Privacy in the Workplace
Available tools
Why do companies collect personal data?
Why is evaluation important?
6.1.2: Privacy in the Marketplace
Information gathering
Database marketing
Issues in database marketing
6.1.1: Privacy in the Workplace
Point 1- Available tools
Pencil-and-paper test
Drug test
Employer-issued mobile devices
Concealed cameras
Point 2- Why do companies collect personal data?
Due to changing nature of work
Potential for misuse and costly errors
To avoid employee theft and stealing trade secrets
To provide safe workplace
Greater concerns create greater dangers to employee right to privacy
Point 3- Why is evaluation important?
For predicting job performance
For identifying potentially troublesome employees
For assessing if the employees meet employer expectations
For determining the termination of employee during lay-offs
6.1.2: Privacy in the Marketplace
Point 1- Information gathering
Corporations use same tools employed for employees
Consumers are the main target
Point 2- Database marketing
Utilization of Internet
Provides tailored information
Use of database marketing
Internet advertising
Point 3- Issues in database marketing
Control over information
Potential misuse
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7. 6.2: Meaning and Value of Privacy (1 of 2)
Objective: Explain the concept of privacy and how the utilitarian and Kantian arguments defend privacy as a necessary right of all individuals
6.2.1: History of the Concept
Overview
Acceptance
6.2.2: Defining Privacy
Right to be left alone
Right to control access to personal information
Having secrets remain secrets
6.2.1: History of the Concept
Point 1- Overview
Followed from the nineteenth century
No mention in Bill of Rights
1890 article in Harvard Law Review
Warren and Brandeis proposed privacy of private life
Theory was rejected by court
Point 2- Acceptance
Privacy declared as constitutionally protected right in 1965
Griswold v. Connecticut
6.2.2: Defining Privacy
Point 1- Right to be left alone
Warren and Brandeis definition
Critics argue it as overly broad
Narrow in few situations
Privacy involves information
Point 2- Right to control access to personal information
Control over information about ourselves
Too broad and too narrow
Privacy cannot be identified with control
Point 3- Having secrets remain secrets
Certain facts of a person are not known by others
Undocumented personal information
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8. 6.2: Meaning and Value of Privacy (2 of 2)
Objective: Explain the concept of privacy and how the utilitarian and Kantian arguments defend privacy as a necessary right of all individuals
6.2.3: Utilitarian Arguments
Arguments
Drawbacks
6.2.4: Kantian Arguments
Two Kantian themes
Common utilitarian and Kantian arguments
6.2.3: Utilitarian Arguments
Point 1- Arguments
Personnel decision making using inaccurate information harms the individuals
Employees lives are disrupted
Harm continues to occur when employees unable to examine their files
Point 2- Drawbacks
Appeals to consequences
Rests on an unapproved assumption
Assumes that more harm than good will result
Considers only possible harmful consequences
6.2.4: Kantian Arguments
Point 1- Two Kantian themes
Autonomy
Respect for persons
Point 2- Common utilitarian and Kantian arguments
Privacy important to dignity and well-being
Privacy not absolutely necessary for either one
Privacy an important value in our culture
Privacy is like luxury that soon becomes necessity
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9. 6.3: Privacy Away from Work
Objective: Evaluate the reasoning that leads a company to monitor its employees and the measures undertaken to limit such monitoring
6.3.1: Justifying Monitoring
Personal behavior and ability of employees
Cost of doing business
6.3.2: Limits to Monitoring
Social media
Ways of monitoring
Limits applicable for government and business
6.3.1: Justifying Monitoring
Point 1- Personal behavior and ability of employees
Workers tested for drug use to provide safe workplace
Drug use affects workplace performance and environment
Testing for drug use benefits employer and employee
Point 2- Cost of doing business
Direct costs such as smoking and insurance policies
Indirect costs such as using social media
6.3.2: Limits to Monitoring
Point 1- Social media
Employers can access information that is publicly posted
Efforts are underway to limit employer use of private information
Examples such as Civil Rights Act and National Labor Relations Act
Point 2- Ways of monitoring
Disclosing how, when, and under what circumstance monitoring takes place
Collect important information about citizens
Point 3- Limits applicable for government and business
Must demonstrate a cause of action
Ways of monitoring should be used selectively
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10. 6.4: Privacy of Employee Records (1 of 4)
Objective: Determine what ethical issue(s) are associated with a particular handling or use of employee records and whether the action is justified or a violation of the employee’s privacy
6.4.1: Ethical Issues with Records
Issues to be addressed
Examples
6.4.1: Ethical Issues with Records
Point 1- Issues to be addressed
Kind of information collected
Use to which information is put
Person who accesses the information
Disclosure outside the company
Means of collecting information
Point 2- Examples
Maintaining medical records
Only medical information should be collected
Only people who are monitoring health and safety should have access
Must use the information for intended purpose
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11. Figure 6.1: Some Privacy Issues with Employee Records
Services offered by data aggregators
Sell access to data
Offer consulting
Offer mitigation services
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12. 6.4: Privacy of Employee Records (2 of 4)
Objective: Determine what ethical issue(s) are associated with a particular handling or use of employee records and whether the action is justified or a violation of the employee’s privacy
6.4.2: Justifying a Purpose
Examples
Resolving disagreements
6.4.3: Disclosure to Outsiders
Overview
Argument
6.4.2: Justifying a Purpose
Point 1- Examples 
First three issues
Henry Ford’s paternalistic regard was not legitimate
DuPont Company screening black applicants
Point 2- Resolving disagreements 
Specify necessary business conditions
Contract model of employer-employee relationship
6.4.3: Disclosure to Outsiders
Point 1- Overview
Fourth issue
Employers should not disclose information without employees’ consent
Information should be used for the justified purpose
Employer has no justification in giving out information
Point 2- Argument 
Unrelated use of medical records is prohibited
Neither the employer nor the employee own the information
Should develop a conceptual model for personal information
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13. Figure 6.2 Services offered by data aggregators Sell access to data
Offer consulting
Offer mitigation services
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14. 6.4: Privacy of Employee Records (3 of 4)
Objective: Determine what ethical issue(s) are associated with a particular handling or use of employee records and whether the action is justified or a violation of the employee’s privacy
6.4.4: Gathering Information
Overview
More intrusive means
6.4.4: Gathering Information
Point 1- Overview
Use of certain means may violate an employee’s right to privacy
Examples of impermissible means: polygraph testing and pretext interviews
Less intrusive means are preferred
Point 2- More intrusive means
Conducting strip search, constant monitoring, polygraph machines
Denies people in creating their own identity
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15. Figure 6.3 Services offered by data aggregators Sell access to data
Offer consulting
Offer mitigation services
Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved

16. 6.4: Privacy of Employee Records (4 of 4)
Objective: Determine what ethical issue(s) are associated with a particular handling or use of employee records and whether the action is justified or a violation of the employee’s privacy
6.4.5: Accuracy, Completeness, and Access
Overview
Objection to drug test and polygraph machine
6.4.5: Accuracy, Completeness, and Access
Point 1- Overview 
Employers who maintain inaccurate files are not invading privacy
Use of information in unfair ways is the issue
Point 2- Objection to drug test and polygraph machine 
Unreliable
False results obtained in using inexpensive drug tests
False results obtained when responses recorded in polygraph are due to different kind of association
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17. 6.5: Big Data Analytics 6.5.1: Data Collection
Objective: Describe how big data analytics enables companies to profile and target consumers and the potential ethical issues with this process
6.5.1: Data Collection
Methods of data collection
Services provided by aggregators
6.5.2: Ethical Issues with Big Data
Lack of awareness
Difficulty of protection
Loss of privacy
6.5.1: Data Collection
Point 1- Methods of data collection
Cookies
Ad networks
Ad networks collaborate with aggregators
Point 2- Services provided by aggregators
Access to data
Consulting services
Risk mitigation services
6.5.2: Ethical Issues with Big Data
Point 1- Lack of awareness
A few people are aware
Occurs without much legal oversight
Individuals cannot take steps to protect
Consumers have little knowledge over the process
Point 2- Difficulty of protection
Free flow of information between different companies
Opting out is not effective with all aggregators
Point 3- Loss of privacy
Aggregators prepare the whole picture of an individual’s identity
It would become impossible for anyone to go online without their identity being known
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18. 6.6: Using the Internet (1 of 2)
Objective: Analyze the ethical issues associated with collecting and using information about consumers’ online activities, and the adequacy of the rules and principles created to protect Internet privacy
6.6.1: Information Collection
Google
Criticisms of Facebook’s privacy policy
6.6.2: Ethical Issues with Internet Use
Overview
Two problems
Three responses
6.6.1: Information Collection
Point 1- Google
Collect and utilize information by providing free services
Integrates user information from its different services
sent by Gmail users are used to target advertisements
Google instituted a unified privacy policy in 2012
Point 2- Criticisms of Facebook’s privacy policy
Information can be viewed by unauthorized users
Privacy settings are improper
Targets advertisements based on user information
Registration protocols help in gaining information away from its own site
6.6.2: Ethical Issues with Internet Use
Point 1- Overview
Internet is a public arena
Many practices of Internet companies violate our rights
We give up information to enjoy the benefit
Loss of privacy is a trade-off voluntarily made
Point 2- Two problems
Confining profiles
Threat to equality
Point 3- Three responses
First response made by those who worry about “dossier” society
Second response made by those who view personal data as property
Third response made by those who want to balance people’s concerns about privacy
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19. 6.6: Using the Internet (2 of 2)
Objective: Analyze the ethical issues associated with collecting and using information about consumers’ online activities, and the adequacy of the rules and principles created to protect Internet privacy
6.6.3: Protecting Privacy
Privacy rules
Protection principles
Implementing principles
6.6.3: Protecting Privacy
Point 1- Privacy rules
Fair information practices
Organization for Economic Cooperation and Development
European Union Privacy Directive
United States preferred piecemeal legal response
California codified the Online Privacy Act
Point 2- Protection principles
Notice/awareness
Choice/consent
Access/participation
Integrity/security
Enforcement/redress
Point 3- Implementing principles
Internet presents unique challenge in implementation
Who should be involved in implementing privacy standards?
What means should be used while implementing?
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20. Conclusion: Privacy Privacy a recent topic
Finding the right means is a challenge
Protecting privacy requires coordinated solution
Developing and implementing is a challenge until solutions are found
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