1. Lecture 8 Ethics in Information Technology,

2. Objectives
What is ethics, and why is it important to act according to a code of principles?
Why is business ethics becoming increasingly important?
What are corporations doing to improve business ethics?
Why are corporations interested in fostering good business ethics?
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3. Objectives (continued)
What approach can you take to ensure ethical decision making?
What trends have increased the risk of using information technology unethically?
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4. Quote of the Day
It has become appallingly obvious that our technology has exceeded our humanity.  ~Albert Einstein

5. 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

6. 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

7. 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

8. 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!

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

10. 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

11. 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

12. Privacy Agenda Creating a national Do-Not-Call List
Chapter 9
Business Ethics and Technology
Privacy Agenda
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

13. 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

14. 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”

15. Phishing “trip”
May 19th 2008 International 'Phishing' Scam Busted A Romanian-based organized crime ring aimed at defrauding Internet users of Social Security and credit card data has been busted, resulting in charges against 38 people, officials said Monday. The so-called phishing scams sought to rip off thousands of consumers and hundreds of financial institutions, according to indictments unsealed in Los Angeles and New Haven, Conn. The two related cases marked the latest example of what the Justice Department describes as a growing worldwide threat posed by organized crime. The practice known as phishing typically involves sending fraudulent s that include links directing recipients to fake Web sites where they are asked to input sensitive data. Phishers may also include attachments that, when clicked, secretly install "spyware" that can capture personal information and send it to third parties over the Internet.

16. 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

17. 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
Telephone
Monitoring time spent, numbers called
Taping phone conversations
Video
Video surveillance against theft
Video surveillance to monitor employee performance

18. 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

19. Ten Commandments of Computer Ethics
Chapter 9
Business Ethics and Technology
Ten Commandments of Computer Ethics

20. Video 1

21. What is Ethics? Moral code Morality Set of rules
Establishes boundaries of generally accepted behavior
Different rules often have contradictions
Morality
Social conventions about right and wrong
Widely shared
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22. What is Ethics? (continued)
Morality may vary by:
Age
Cultural group
Ethnic background
Religion
Gender
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23. Definition of Ethics
Ethics - set of beliefs about right and wrong behavior
Ethical behavior conforms to generally accepted social norms
Virtues - Habits that incline people to do what is acceptable
Vices - Habits of unacceptable behavior
Value system - Scheme of moral values
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24. The Importance of Integrity
Integrity is a cornerstone of ethical behavior
People with integrity
Act in accordance with a personal code of principles
Extend to all people the same respect and consideration that you desire
Apply the same moral standards in all situations
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25. Ethics in the Business World
Risk is the product of multiplying the likelihood of an event by the impact of its occurrence
Risks associated with inappropriate behavior have increased due to
Globalization
Heightened vigilance by
Employees
Shareholders
Regulatory agencies
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26. Legal Overview: SOX - The Sarbanes-Oxley Act
Enacted in response to public outrage over several major accounting scandals
Section 404 requires that the CEO and CFO sign any SEC filing to attest to its accuracy
Public Company Accounting Oversight Board (PCAOB) provides oversight for auditors of public companies
IT organizations must build controls that ensure information stands up to audit scrutiny
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27. Why Fostering Good Business Ethics Is Important
Note: Slide on each item follows
To gain the goodwill of the community
To create an organization that operates consistently
To produce good business
To protect the organization and its employees from legal action
To avoid unfavorable publicity
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28. Gaining the Goodwill of the Community
Basic responsibilities to society
Declared in formal statement of company’s principles or beliefs
Include:
Making contributions to charitable organizations and nonprofit institutions
Providing benefits for employees in excess of legal requirements
Choosing economic opportunities that might be more socially desirable than profitable
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29. Gaining the Goodwill of the Community (continued)
Goodwill that socially responsible activities create can make it easier for corporations to conduct business
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30. Creating an Organization That Operates Consistently
Many business values include:
Operating with honesty and integrity, staying true to corporate principles
Operating according to standards of ethical conduct, in words and action
Treating colleagues, customers, and consumers with respect
Striving to be the best at what matters most to the company
Accepting personal responsibility for actions
Valuing diversity
Making decisions based on facts and principles
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31. Good Ethics Can Mean Good Business
Produce safe and effective products
Avoid costly recalls and lawsuits
Provide excellent service
Maintain customers
Develop and maintain strong employee relations
Suffer less turnover
Enjoy better employee morale
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32. Good Ethics Can Mean Good Business (continued)
Suppliers and other business partners prefer companies that operate in a fair and ethical manner
Bad ethics can lead to bad business results
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33. Protecting the Corporation and Its Employees from Legal Actions
U.S. Justice Department sentencing guidelines suggest more lenient treatment for convicted executives if their companies had ethics programs
Fines for criminal violations can be lowered by up to 80 percent if the organization has implemented an ethics management program and cooperates with authorities
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34. Avoiding Unfavorable Publicity
Public reputation of company strongly influences
Value of its stock
How consumers regard products and services
Degree of oversight received from government agencies
Amount of support and cooperation received from business partners
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35. Improving Corporate Ethics
Risks of unethical behavior are increasing
Improvement of business ethics is becoming more important
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36. Appointing a Corporate Ethics Officer
Corporate ethics definition includes
Ethical conduct
Legal compliance
Corporate social responsibility
Corporate ethics officer
Is a senior-level manager
Provides vision and direction in the area of business conduct
Tries to establish an environment that encourages ethical decision making
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37. Appointing a Corporate Ethics Officer (continued)
Responsibilities include:
Complete oversight of the ethics function
Collecting and analyzing data
Developing and interpreting ethics policy
Developing and administering ethics education and training
Overseeing ethics investigations
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38. Ethical Standards Set by Board of Directors
Board responsible for supervising management team
Directors of company are expected to
Conduct themselves according to the highest standards of personal and professional integrity
Set standard for company-wide ethical conduct
Ensure compliance with laws and regulations
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39. Establishing a Corporate Code of Ethics
Highlights an organization’s key ethical issues
Identifies overarching values and principles important to an organization
Focuses employees on areas of ethical risk
Cannot gain company-wide acceptance unless
Developed with employee participation
Fully endorsed by organization’s leadership
Must continually be applied to company’s decision making
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40. Corporate Satisfaction with their Codes of Ethics
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41. Conducting Social Audits
Identifies ethical lapses committed in the past
Sets directives for avoiding similar missteps in the future
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42. Requiring Employees to Take Ethics Training
Comprehensive ethics education program encourages employees to act responsibly and ethically
Often presented in small workshop formats
Principle-based decision making is based on principles in corporate code of ethics
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43. Including Ethical Criteria in Employee Appraisals
Some companies base a portion of employee performance evaluations on:
Treating others fairly and with respect
Operating effectively in a multicultural environment
Accepting personal accountability
Continually developing themselves and others
Operating openly and honestly with suppliers, customers, and other employees
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44. When Good Ethics Result in Short-Term Losses
Operating ethically does not always guarantee business success
Organizations that operate outside the United States
Deal with a “business as usual” climate
Are placed at a significant competitive disadvantage
Hope good ethics will prove to be good business in the long term
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45. Creating an Ethical Work Environment
Good employees sometimes make bad ethical choices
May be encouraged to do “whatever it takes” to get the job done
Employees must have a knowledgeable and potent resource available to discuss perceived unethical practices
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46. How Management Can Affect Employees’ Ethical Behaviour
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47. How Management Can Affect Employees’ Ethical Behaviour (continued)
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48. Manager’s Checklist
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49. 7 Steps to Ethical Decision Making
Get the facts
Identify stakeholders and their positions
Consider the consequences of a decision
Weigh various guidelines and principles
Develop and evaluate options
Review a decision
Evaluate the results of a decision
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50. Philosophical Theories for Ethical Decision Making
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51. Ethics in Information Technology
Public concern about the ethical use of information technology includes:
and Internet access monitoring
Peer-to-peer networks violation of copyright
Unsolicited
Hackers and identify theft
Plagiarism
Cookies and spyware
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52. Ethics in Information Technology (continued)
The general public has not realized the critical importance of ethics as applied to IT
Important technical decisions are often left to technical experts
General business managers must assume greater responsibility for these decisions
They must be able to make broad-minded, objective, ethical decisions based on technical savvy, business know-how, and a sense of ethics
They must also try to create a working environment in which ethical dilemmas can be discussed openly, objectively, and constructively
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53. Summary Ethics is a set of beliefs about right and wrong behavior
Ethics in business is becoming more important because the risks associated with inappropriate behavior have grown
Corporations want to protect themselves and their employees from legal action
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54. Summary (continued) 7-step approach to ethical decision making
Trends contributing to the risk of using information technology unethically include:
Growth of the Internet
Ability to capture and store vast amounts of personal data online
Greater reliance on information systems
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55. Video 2

56. THANKYOU