1. 1 Business Ethics and Technology Business and Society: Ethics and Stakeholder Management, 7e Carroll & Buchholtz Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved Prepared by Deborah Baker Texas Christian University Chapter 9

2. 2 Chapter 9 Learning Outcomes 1. Identify the role that technology plays in business. 2. Gain an understanding of the technological environment and its characteristics that influence business ethics and stakeholders. 3. Identify the benefits and side effects of technology in business. 4. Gain an appreciation of society’s intoxication with technology and the consequences of this intoxication. 5. Learn to differentiate between information technology and biotechnology and their ethical implications. 6. Identify the ethical issues involved in biotechnology and present arguments on both sides of the issues.

3. 3 Chapter 9 Outline  Technology and the Technological Environment  Characteristics of Technology  Ethics and Technology  Information Technology  Biotechnology  Summary  Key Terms  Discussion Questions

4. 4 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?

5. 5 Technology and the Technological Environment Technology The totality of the means employedto provide objects necessary forhuman sustenance and comfort

6. 6 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

7. 7 Side Effects of Technology Side Effects and Challenges of Technology  Environmental pollution  Depletion of natural resources  Technological unemployment  Creation of unsatisfying jobs http://www.ethix.org @

8. 8 Ethics and Technology Key Issues Technological Determinism Ethical Lag

9. 9 Symptoms of Society’s Intoxication with Technology 1. We favor the quick fix 2. We fear and worship technology 3. We blur the distinction between what is real and fake 4. We accept violence as normal 5. We love technology as a toy 6. We live our lives distanced and distracted Find the Right Balance!

10. 10 Information Technology Biotechnology Electronic Commerce Computer technology in the workplace Information Technology

11. 11 Electronic Commerce Key Issues in e-Commerce Ethics  Access  Intellectual property  Privacy and informed consent  Protection of children  Security of information  Trust

12. 12 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

13. 13 Invasion of Privacy Posed by the Internet  Cookies  Spam  Identity Theft

14. 14  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 Government’s Involvement

15. 15  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 Privacy Agenda of the FTC Figure 9-2

16. 16 Business Initiatives to Protect Privacy Ethical leadership Privacy policies Chief privacy officers Data security

17. 17  Pornography  Gambling  Web-based music services  Intellectual property  Monitoring technology  “Phishing” Questionable Businesses and Practices

18. 18 Employee Impression of Technology The Workplace and Computer 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

19. 19 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

20. 20 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

21. 21 Ten Commandments of Computer Ethics Figure 9-3

22. 22 Biotechnology Bioethics A field that has emerged to dealwith ethical issues embedded inthe use of biotechnology Proceduralism The use of elaborate protocols toensure that classical safeguards,such as informed consent, are notviolated

23. 23 Realms of Biotechnology Genetically Modified Foods Genetic Engineering

24. 24 Genetic Engineering Stem cell research Cloning Genetic testing and profiling

25. 25 Nonprofit Bioethics Organizations American Society for Bioethics + Humanities http://www.asbh.org American Society for Bioethics + Humanities http://www.asbh.org GE Food Alert Campaign Center http://www.gefoodalert.org GE Food Alert Campaign Center http://www.gefoodalert.org Do No Harm: The Coalition of Americans for Research Ethics http://www.stemcellresearch.org Do No Harm: The Coalition of Americans for Research Ethics http://www.stemcellresearch.org Council for Responsible Genetics http://www.gene-watch.org Council for Responsible Genetics http://www.gene-watch.org Bioethics.net http://www.bioethics.net Bioethics.net http://www.bioethics.net National Human Genome Research Institute http://www.genome.gov National Human Genome Research Institute http://www.genome.gov Figure 9-4

26. 26 Genetically Modified Foods Safety issues Labeling issues

27. 27 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