5.1 © 2003 by prentice hall 5 5 ethical and social issues in the digital firm chapter

5.1 © 2003 by Prentice Hall

55

ETHICAL ANDETHICAL AND

SOCIAL ISSUESSOCIAL ISSUES

IN THE DIGITALIN THE DIGITAL

FIRMFIRM

Chapter


• What ethical, social, and political issues are What ethical, social, and political issues are raised by information systems?raised by information systems?

• Are there specific principles for conduct that Are there specific principles for conduct that can be used to guide decisions about ethical can be used to guide decisions about ethical dilemmas?dilemmas?

• Why does contemporary information systems Why does contemporary information systems technology pose challenges to the protection technology pose challenges to the protection of individual privacy and intellectual of individual privacy and intellectual property?property?

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 5 Ethical and Social Issues in the Digital FirmChapter 5 Ethical and Social Issues in the Digital Firm

OBJECTIVES


• How have information systems affected How have information systems affected everyday life?everyday life?

• How can organizations develop corporate How can organizations develop corporate policies for ethical conduct?policies for ethical conduct?

OBJECTIVES



• Understanding the moral risks of new Understanding the moral risks of new technologytechnology

• Establishing corporate ethics policies Establishing corporate ethics policies that include information systems issuesthat include information systems issues

MANAGEMENT CHALLENGES



• Principles of right and wrongPrinciples of right and wrong

• Can be used by individuals acting as free Can be used by individuals acting as free moral agents to make choices to guide moral agents to make choices to guide their behaviortheir behavior

UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS


Ethics


• Illustrates the dynamics connecting Illustrates the dynamics connecting ethical, social, and political issuesethical, social, and political issues

• Identifies the moral dimensions of the Identifies the moral dimensions of the “information society,” across individual, “information society,” across individual, social, and political levels of actionsocial, and political levels of action

A Model for Thinking about Ethical, Social, and Political Issues




• Information rights and obligationsInformation rights and obligations

• Property rightsProperty rights

• Accountability and controlAccountability and control

• System qualitySystem quality

• Quality of lifeQuality of life

Moral Dimensions of the Information Age




The Relationship between Ethical, Social, and Political Issues in an Information Society


Figure 5-1



• Computing power doubles every 18 Computing power doubles every 18 months:months: Dependence on computer Dependence on computer systemssystems

• Rapidly declining data storage Rapidly declining data storage costs:costs: Easy maintenance of individual Easy maintenance of individual databasedatabase

Key Technology Trends that Raise Ethical Issues




• Datamining advances:Datamining advances: Analysis of Analysis of vast quantities of datavast quantities of data

• Networking advances and the Networking advances and the Internet:Internet: Remotely accessing personal Remotely accessing personal

datadata

Key Technology Trends that Raise Ethical Issues




• Responsibility:Responsibility: Accepting the potential Accepting the potential costs, duties, and obligations for costs, duties, and obligations for decisionsdecisions

• Accountability: Accountability: Assessing responsibility Assessing responsibility for decisions made and actions takenfor decisions made and actions taken

Basic Concepts: Responsibility, Accountability, and Liability

ETHICS IN AN INFORMATION SOCIETY



• Liability: Liability: Permits individuals to recover Permits individuals to recover damagesdamages

• Due process:Due process: Laws are well-known and Laws are well-known and understood, with an ability to appeal to understood, with an ability to appeal to higher authoritieshigher authorities

Basic Concepts: Responsibility, Accountability, and Liability




• Golden rule:Golden rule: Do unto others as you Do unto others as you would have them do unto youwould have them do unto you

• Immanuel Kant’s categorical Immanuel Kant’s categorical imperative:imperative: If an action is not right for If an action is not right for everyone to take, then it is not right for everyone to take, then it is not right for anyoneanyone

Candidate Ethical Principles




• Descartes’ rule of change:Descartes’ rule of change: If an action If an action cannot be taken repeatedly, then it is not cannot be taken repeatedly, then it is not right to be taken at any timeright to be taken at any time

• Utilitarian principle: Utilitarian principle: Put values in rank Put values in rank order and understand consequences of order and understand consequences of various courses of actionvarious courses of action





• Risk aversion principle: Risk aversion principle: Take the Take the action that produces the least harm or action that produces the least harm or incurs the least costincurs the least cost

• Ethical “no free lunch” rule: Ethical “no free lunch” rule: All All tangible and intangible objects are owned tangible and intangible objects are owned by creator who wants compensation for by creator who wants compensation for the workthe work





• Promises by professions to regulate Promises by professions to regulate themselves in the general interest of themselves in the general interest of societysociety

• Promulgated by associations such as the Promulgated by associations such as the American Medical Association (AMA) and American Medical Association (AMA) and the American Bar Association (ABA)the American Bar Association (ABA)

Professional Codes of Conduct




Information system being used byInformation system being used by

organizations to:organizations to:

• Minimize drains on productivityMinimize drains on productivity

• Prevent wastage of resources for non-Prevent wastage of resources for non-business activitiesbusiness activities

Some Real-World Ethical Dilemmas




Information Rights: Privacy and Freedom in the Internet Age

• Privacy:Privacy: Claim of individuals to be left Claim of individuals to be left alone, free from surveillance or alone, free from surveillance or interference from other individuals, interference from other individuals, organizations, or the stateorganizations, or the state

• Fair information practices:Fair information practices: Set of Set of principles governing the collection and principles governing the collection and use of information on the basis of U.S. and use of information on the basis of U.S. and European privacy lawsEuropean privacy laws

THE MORAL DIMENSIONS OF INFORMATION SYSTEMS



U.S. Federal Privacy Laws

General Federal Privacy LawsGeneral Federal Privacy Laws• Freedom of Information Act, 1968 Freedom of Information Act, 1968 • Privacy Act of 1974Privacy Act of 1974• Electronic Communications Privacy Act of Electronic Communications Privacy Act of

19861986• Computer Matching and Privacy Protection Computer Matching and Privacy Protection

Act of 1988Act of 1988• Computer Security Act of 1987Computer Security Act of 1987• Federal Managers Financial Integrity Act of Federal Managers Financial Integrity Act of

19821982




The European Directive on Data Protection

Informed consent Informed consent

• Consent given with knowledge of all facts Consent given with knowledge of all facts needed to make a rational decisionneeded to make a rational decision




CookiesCookies

• Tiny files deposited on a hard driveTiny files deposited on a hard drive

• Used to identify the visitor and track visits to Used to identify the visitor and track visits to the Web sitethe Web site


Internet Challenges to Privacy



Web bugsWeb bugs

• Tiny graphic files embedded in e-mail Tiny graphic files embedded in e-mail messages and Web pages messages and Web pages

• Designed to monitor on-line Internet user Designed to monitor on-line Internet user behaviorbehavior





Opt-out modelOpt-out model

• Informed consent permitting the collection of Informed consent permitting the collection of personal information personal information

• Consumer specifically requests for the data Consumer specifically requests for the data not to be collectednot to be collected





Opt-in modelOpt-in model

• Informed consent prohibiting an organization Informed consent prohibiting an organization from collecting any personal information from collecting any personal information

• Individual has to approve information Individual has to approve information collection and usecollection and use





P3PP3P

• Platform for Privacy Preferences ProjectPlatform for Privacy Preferences Project

• Industry standard designed to give users Industry standard designed to give users more control over personal informationmore control over personal information

Technical Solutions




Technical Solutions




• Under what conditions should the privacy Under what conditions should the privacy of others be invaded? of others be invaded?

• What legitimaizes intruding into others’ What legitimaizes intruding into others’ lives through unobtrusive surveillance, lives through unobtrusive surveillance, through market research, or by whatever through market research, or by whatever means?means?

Ethical Issues




• Do we have to inform people that we are Do we have to inform people that we are eavesdropping? eavesdropping?

• Do we have to inform people that we are Do we have to inform people that we are using credit history information for using credit history information for employment screening purposes?employment screening purposes?



Ethical Issues


• Concerns the development of “expectations Concerns the development of “expectations of privacy” or privacy norms, as well as of privacy” or privacy norms, as well as public attitudespublic attitudes

Social Issues




• Concern the development of statutes Concern the development of statutes

• Govern the relations between record Govern the relations between record keepers and individualskeepers and individuals

Political Issues




• Intellectual property:Intellectual property: Intangible creations Intangible creations protected by lawprotected by law

• Trade secret:Trade secret: Intellectual work or product Intellectual work or product belonging to business, not in public domainbelonging to business, not in public domain

Property Rights: Intellectual Property




• Copyright:Copyright: Statutory grant protecting Statutory grant protecting intellectual property from getting copied for intellectual property from getting copied for 28 years28 years

• Patents:Patents: Legal document granting the owner Legal document granting the owner an exclusive monopoly on the ideas behind an exclusive monopoly on the ideas behind an invention for 20 yearsan invention for 20 years

Property Rights: Intellectual Property




• Ethical issues:Ethical issues: Production of intellectual Production of intellectual propertyproperty

• Social issues:Social issues: Current intellectual property Current intellectual property laws breaking downlaws breaking down

• Political issues: Political issues: Creation of new property Creation of new property protection measures protection measures

Challenges to Intellectual Property Rights




• Ethical issues:Ethical issues: Who is morally responsible Who is morally responsible for consequences of use?for consequences of use?

• Social issues:Social issues: What should society expect What should society expect and allow?and allow?

• Political issues:Political issues: To what extent should To what extent should government intervene, protect?government intervene, protect?

Accountability, Liability and Control




System Quality: Data Quality and System Errors


• Ethical issues:Ethical issues: At what point to release At what point to release the software/services for consumption?the software/services for consumption?

• Social issues:Social issues: Should people be Should people be encouraged to believe systems are encouraged to believe systems are infallible?infallible?

• Political Issues:Political Issues: Laws of responsibility Laws of responsibility and accountabilityand accountability



• Balancing power center versus Balancing power center versus periphery:periphery: Key policy decisions Key policy decisions centralized as in the pastcentralized as in the past

• Rapidity of change- Reduced Rapidity of change- Reduced response time to competition: response time to competition: Reduced normal social buffersReduced normal social buffers

Quality of Life: Equity, Access, and Boundaries




• Maintaining boundaries: Family, Maintaining boundaries: Family, work, and leisure: work, and leisure: “Do anything “Do anything anywhere” environment blurring anywhere” environment blurring boundaries between work and family timeboundaries between work and family time

• Dependence and vulnerability: Dependence and vulnerability: No No regulatory or standard-setting forcesregulatory or standard-setting forces





• Computer crime:Computer crime: Commission of illegal Commission of illegal acts through the use of a computer or acts through the use of a computer or against a computer systemagainst a computer system

• Computer abuse:Computer abuse: Commission of acts Commission of acts involving a computer that may not be involving a computer that may not be illegal but are considered unethicalillegal but are considered unethical





• Employment-Employment- Trickle-down Trickle-down technology and reengineering job technology and reengineering job loss: loss: Causes millions of middle-level Causes millions of middle-level managers and clerical workers to lose managers and clerical workers to lose their jobstheir jobs

• Equity and access- Increasing racial Equity and access- Increasing racial and social class cleavages: and social class cleavages: Society of Society of computer literate and skilled, versus computer literate and skilled, versus computer illiterate and unskilledcomputer illiterate and unskilled





Repetitive stress injury (RSI)Repetitive stress injury (RSI)

• Occupational disease Occupational disease

• Muscle groups are forced through Muscle groups are forced through repetitive actions with high-impact loads repetitive actions with high-impact loads or thousands of repetitions with low or thousands of repetitions with low impact loadsimpact loads

Health Risks: RSI, CVS, and Technostress




Carpal tunnel syndrome (CTS)Carpal tunnel syndrome (CTS)

• Type of RSI Type of RSI

• Pressure on the median nerve through the Pressure on the median nerve through the wrist’s bony carpal tunnel structure wrist’s bony carpal tunnel structure produces painproduces pain





Computer vision syndrome (CVS)Computer vision syndrome (CVS)

• Eyestrain condition Eyestrain condition

• Related to computer display screen usageRelated to computer display screen usage

• Symptoms include headaches, blurred Symptoms include headaches, blurred vision, and dry and irritated eyesvision, and dry and irritated eyes





TechnostressTechnostress

• Stress induced by computer useStress induced by computer use

• Symptoms include aggravation, hostility Symptoms include aggravation, hostility toward humans, impatience, and toward humans, impatience, and enervationenervation





• Information rights and obligationsInformation rights and obligations

• Property rights and obligationsProperty rights and obligations

• Accountability and controlAccountability and control

• System qualitySystem quality

• Quality of lifeQuality of life

Management Actions: A Corporate Code of Ethics




55

ETHICAL ANDETHICAL AND

SOCIAL ISSUESSOCIAL ISSUES

IN THE DIGITALIN THE DIGITAL

FIRMFIRM

Chapter

5.1 © 2003 by prentice hall 5 5 ethical and social issues in the digital firm chapter

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