1

Project Report on

Management Information Systems for Tourism Hospitality OrganisationPrepared ByAnsuman Chattopadhyay (14PGP003)

Arijit Hawlader (14PGP007)

Avinash Baxla (14PGP009)

Choudhari Amit prakash (14PGP012)

Saunak Saha (14PGP0044)

Somal Kant (14PGP0043)

Praveen (14PGP0056)

Introduction to the ProjectThe hospitality industry includes a broad category of fields within the service industry including restaurants, theme parks, lodging and additional fields within the tourism industry. The basic purpose of this project is to explore a wider understanding of the use of Management information system and Information technology and various other emerging concerns for a globalised company like McDonald, Pizza Hut, and Burger King Etc. The project also explores the need of strategic Customer relationship management and the use of Enterprise resource planning in the attainment of the overall business strategy of an organization.Objectives of the Project To explore the nature and needManagement information system and Information technologyfor Tourism and Hospitality based organization To analyzeInformation technologyplans and policies of organization. To identify the emerging issues related toInformation technologyfor Tourism and Hospitality based organization To understand the need ofthe need of strategic Customer relationship management and the use of Enterprise resource planningfor attaining overall business strategy of an organizationResearch MethodologiesThis project makes an extensive use of secondary sources of data. The information has been collected through the official website of Mc Donalds, Pizza Hut, and Burger King etc, news and articles related to the hospitality industry and news and journals those company provided through various websites.Introduction to MISManagement information system, or MIS, broadly refers to a computer-based system that provides managers with the tools to organize evaluate and efficiently manage departments within an organization. In order to provide past, present and prediction information, a management information system can include softwarethat helps in decision making, data resources such as databases, thehardwareresources of a system,decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently.Role of MIS within Tourism and Hospitality contextManagement Information System is a general term for the computer systems in an enterprise that provides information about its business operations. It typically includes computerized systems to gather relevant data continuously, from both the internal and external environment of an organization. Its objective is to design and implement procedures, processes and routines that provide suitable detailed reports in an accurate, consistent and timely manner. For e.g: MIS application in McDonalds directs managers in the management of the employees and the ordering and tracking of hamburgers, buns, potatoes and soft drinks. Because restaurants are consistently busy throughout the day, the MIS is called upon to assist the manager in maximizing the scheduling of individuals to cook and serve the food. The MIS further helps track restaurants cash flow and guard against inaccuracy and waste.MIS are typically computer systems that are used for managing of five primary components: hardware, software, data and information for facilitating decision making, procedures for design, development and documentation of data, people in the form of individuals, groups or organization. In the most basic term, MIS is the term used to define how individuals, groups and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making.Management Information System relates to the organized and systematic:1)Collection2)Organization3)Distribution4)Storage of wide information5)Managerial Control and analysis of data and information pertaining to a business operation of an organization.Role of MISIn hospitality industries, the use of MIS is basically focused on the following areas:

1)Organization-wide information: for a customer-focused industry like tourism and hospitality, MIS provides a big picture regarding the overall organization wide information. It ensure updated and strategically important information in the form of data and reports2)Decision-making process: the output of MIS is available in the form of reports which can be used extensively in the decision-making in the organization. It also helps the organization to prepare strategically for the upcoming business endeavor.

3)Managerial control and analysis: Better formulated, integrated and centrally consolidated data and information provides a manager with an insight regarding the overall managerial process of an organization. It enables a manger to have a firm control over the managerial activities and process.4)Computer-based system: MIS being a computer based process enables a tourism and hospitality industry to provide a swift and effective service to its customers. Real time information about the organization is available which enables the organization to cater to the needs of the customers in a prompt and effective way.Importance of Management Information System for Hospitality and Tourism IndustryIndustries which are focused on service as a product offering, MIS enables it to provide information for a decision support process of management. It facilitated the organization to achieve the business goals in a most efficient manner. Since the decision making is not restricted to a particular level in globalised company, the MIS is expected to support all the levels of the management in conducting the business operations.1)It enables organizations to strength themselves and identify and address weaknesses due to the presence of revenue reports, employee performance report, sales report and so on.2)Availability of strategic reports at a right time will help organization to tap the opportunities at the real time and address the weakness, finally giving an organization a competitive advantage.3)Properly generated reports will help the management to identify the emerging challenges and thus prepare the company before hand to tackle with those challenges.4)Meaningful use of strategically formulated reports will enable global companies to maximize the benefit of the opportunity coming from the external environments and minimize the effects of the harmful events.5)MIS system also gives a big picture of the company and acts as a communication and planning tool.6)It also help to eliminate the delays and ineffectiveness in the handling of the customers as a updated report is available regarding the taste, preference of the customers.7)Similarly, organization can ensure that the effective management of customer data can help the company to perform direct marketing and various promotional activities.8)MIS also helps the Tourism and hospitality industry in strategic planning, management control, operational control and transaction processing by providing with appropriate reports and information.9)MIS also helps the junior management by facilitating with the operational data for planning, scheduled control and helps them further in decision-making at the operation level to correct an out of control situation.10)Besides assisting the middle level and the top level in execution of their tasks, MIS also plays the role of information generation, communication, problem identification and this finally assisting the decision-making. Hence MIS plays a vital role in the overall management, administration and operation of a global Tourism and Hospitality based organization.Use of IT System in an Organization to attain Competitive Advantage

Information technology can be used in various functions. Employee can keep relation with others by using a global virtual network.Various IT components can be used to enlarge service to the consumers. Different customized software and software components are can be used to improve effectiveness. A large section of distribution is also can be automated. Information Technology is also used in promotional activities. Through technology improvements such as FTPS help desk service, network and application consolidation and other technology achievements which are deeply enhanced and eventually gives benefit to millions of customers in global world.Use of IT system in an organization brings various opportunities to an organization. While ensuring that the company achieves various benefits from the use of IT system, the company also makes sure that such advantages add-up for attaining competitive advantage to the organization. Basically, IT system implementation in an organization provides following benefits that enables an organization to strengthen its core competencies. Globalization is the most basic benefit of IT system installment. Company can be empowered by IT system to span all over the world, with its target customers scattered throughout the globe. Lower operational cost can be ensured as MIS makes communication cheaper, quicker and more efficient. Use of internet has enabled direct communication from different part of the world in a most cost-effective way. Computerization of the business process has brought cost effectiveness by streaming business to make them extremely cost effective. It can help to increase productivity which ultimately gives rise to profit that means better pay and less strenuous working conditions. For a global company Hospitality and tourism based company like McDonal ds, Radisson, Burger King etc, the use of IT helps to bridge the cultural gap by helping people from different culture to communicate with one another, and allow for the exchange of views and ideas. Business never sleeps these days. For hospitality based industry accessibility is an important weapon to survive in the market. IT has made it possible for businesses to be open 24*7 all over the globe. People can access the service of a company in a country by sitting in another country. Use of modern and sophisticated IT system can enhance the customer service and providing a company an edge in what it offers hence ensuring competitiveness. IT helps to improve internal performance, infrastructure performance and thus increasing product quality at a reduced cost. It can help streamline and integrate channels to market, create new channels and integrate multiple channels. IT concepts and issues are ever emerging. Use of IT in training and knowledge sharing can enhance the performance of knowledge of workers and enhance organizational learning. It also helps to establish a strong rapport to customers, suppliers and other stakeholders thus ensuring effective supply chain and customer relationship.Type of Database and Data warehousing in Tourism and HospitalityThere are variety of Database management system used in a tourism and hospitality industry each of them providing unique advantages and disadvantages. The use of a particular database model is based on the need of the organization, its size, the volume of data to be mentioned, cost installation and so on.A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing. It usually contains historical data derived from transaction data, but it can include data from other sources. It separates analysis workload from transaction workload and enables an organization to consolidated data from several sources

Types of Database in Tourism and Hospitality Industry

1)Hierarchical databasesHierarchical Databases have been used for a long time. It is one of the oldest methods of organizing and storing data and it is still used use by Tourism and Hospitality based organizations for making travel reservations. This mode of database management is organized in pyramid fashion, forming a structure like that of branch of tree extending downwards. Related records are grouped together which form the higher level records and lower-level records. Hierarchical databases work by moving from the top down. A record search is conducted by starting at the top of the pyramid and working down through the tree from parent to child until appropriate child record is found.For a Tourism and Hospitality based industry, the advantage of Hierarchical model is that they can be accessed and updated rapidly because the tree-like structure and the relationships between records are predefined. However, this model of database is criticized as the relationship between the lower level records is not permitted if they are form different parents. Also this model of database management is so old and rigid that addition of a new field record requires that the entire database be redefined.2)Network databasesThis model of database is similar to hierarchical model in the use of hierarchical structure. However, there are few differences. Instead of looking upside-down tree, a network database looks more like an interconnected network of records. The advancement over drawback of Hierarchical model is that, each child or member at lower level can have more than one parent or owner. This model of database allows more connections between different types of data and hence is considered flexible and more useful. As like to the hierarchical model, network databases must be defined in advance.The major drawback in use of network model is the number of connections that can be made between records.3)Relational databasesHere the relationships between data files id relational rather than hierarchical. Relational databases connect data in different files by using common data elements or a key field. Data in relation databases is stored in different tables; each having a key filed that uniquely identifies each row. This model is more flexible as it allows the prompt search of data in a real time by making use of the unique key.For a tourism based industry use of relational database makes more sense as customer information can be linked to specific product information and can be accessed easily.4)Object-oriented databasesIt is more sophisticated as it makes uses of graphics, photographs audio and video etc. the model can be used to store data from a variety of media sources, such as photographs and text, and produce output in a multimedia format. Hospitality industry makes use of this mode to get incredible multimedia capability. Demerits that it brings are that it is more costly and many organizations are reluctant to install this model.Use of E-Commerce and MIS in the IndustryInformation is the lifeblood of an organization. At the contemporary time, more than other resources, organization seems to focus on the tactful collection and use of information for success in the short and long run. As because tourism is an information rich industry, organization focus on attaining quality information of not only the customer domain but the external environment and forces as a whole. In such connection, the development of internet services by players in the tourism industry assists with the goal of attaining valuable information as e-tourism offers opportunities for speedy communication and global access with minimal expense.The benefit of management of the information via the use of ecommerce and MIS is of paramount to the industry. Basically, among various industry sector hospitality and tourism industry has probably been the most affected industry by the internet. The industry depends on the distribution of information about its product and services. Also the industry makes use of internet based ecommerce tools and techniques to collect, record, and disseminate information about various stakeholders: customers, public, media, government, and so on.E-CommerceEcommerce is a new way of conducting, managing and executing business transactions using modern information technology. Basically, the internet is the main technology whereby all elements of a commercial transaction(advertising, production, purchase, payment and the delivery of the services) can be conducted on an interactive basis with more than one person, unconstrained by time and space, in a multimedia environment at a relatively low cost. It is a type of industry where buying and selling of product or service is conducted over electronic systems such as the internet and other computer networks. It makes use of technologies such as mobile commerce, electronic fund transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data collection systems. It makes use of set of technologies, applications, and business processes that link business, consumers, and communities for buying, selling, and delivering products and services. It is also used for integrating and optimizing processes within and between businesses.MISManagement Information System is a general term for the computer systems in an enterprise that provides information about its business operations. For eg: McDonald makes use of Transaction Process System to make tactful use of information about customers. Generally MIS details out an organized approach to the study of the information needs of an organizations management at every level in making operational, tactical and strategic decisions. Its objective is to design and implement procedures, processes and routines that provide suitable detailed reports in an accurate, consistent and timely manner.Benefits in Light of Attaining Short term and Long term Objectives

For information rich industry, use of ecommerce technologies helps speed up the flow of information and to eliminate unnecessary human interventions by executing routine business transactions quickly and accurately, 24 hours a day. For e.g.: MIS system is used to produce periodic reports such as daily list of employees and the hours they work, monthly expense report and so on. Some of them are as follows:

1.Expand Geographical ReachEcommerce enables an organization to acquire customers across the country and around the world. Making use of ecommerce typically means no limits as to whom and where we can sell our products. It enables an organization to go with: sell to anyone, anywhere, anytime.The global operation of organizations can be facilitated by ecommerce.2.24*7 OpenCustomer base can be increased by ensuring 24*7 accesses to its product offerings. Customer can access the product offerings of the hotels and other tourism based industry irrespective of time and location constraints. It allows us to have unlimited store hours, giving the customers 24 hours a day, 7 days a week access to shop and buy items. In addition, the cost attached to having of 24*7 open stories much less than maintaining a physical storefront, providing an additional benefit to the organization.3.Increase Customer SatisfactionCustomers will have an extra access to product updates, shipping details, billing information and more. Also as there is no boundaries, customers can shop from home, work, or anywhere they can make a connection. Also the product booking, purchase and shipments will be faster.4.Build Customer LoyaltyUse of ecommerce will help create an easier means for customers to purchase items also facilitating with a unique way to display and describe about the product offering in an informative, visual and interactive way. Company can enrich the customers loyalty each time as customer visit them, making ecommerce a great for improved customer satisfaction and visitor loyalty.5.Helps to Create New Relationship OpportunitiesUse of ecommerce will enable a location free access to the product offerings, the business will avail with the opportunity to establish new relationship with the customers and other stakeholders. Customers will know about the services available, product suppliers will request to add their products, and other business will approach to partner with the organization.6.Increase Brand or Product AwarenessBy reaching to the millions of customers all over the globe, displaying the site prominently to them will allow organization to enhance and strengthen brand name and this will also increase awareness about the product line.7.Potential to Increase Overall Business SalesWith a web site, a company can automatically become a global provider of goods and services, with an edge over the larger companies. As such internet acts as an effective channel to reach new customers. Organization has to make sure that its services are available 24*7 via its internet portal.8.Potential to Increase Company Profits and Decrease some CostsOpening an online extension of the business outlet is a great way of boosting sales and potentially profits. As there will be a large base of target customers throughout the world, the chance are high that the company will have large sales volume and hence higher profit margin.9.Facilitates easy dissemination of InformationDecision Support System makes use of the customers information to conclude to a valid and logical decision. The decision can be routine or of occasional type.Thus the use of MIS and e-commerce provides an organization with various advantages as mentioned above. Such advantages when tapped righteously, at a right time can enable an organization to achieve the short term goals which further add up to achieve the long term goals in an effective way.System Design Requirements of Tourism and Hospitality BusinessSystem analysis defines the system requirements and system design creates the ways to fulfill them. System design is the next step of system analysis which details out the identified criteria are to be implemented. For a giant hospitality and tourism based company, the need of a unique system design is a must. System design requirement specifies system specifications which are given below:

Input:Every process in a system demands input. The quality of the output solely depends in the nature and quality of the inputs and the processing systems. Every system needs some input. Here, input may define as a raw for the system. Customer order for beverages, drinks and lunches etc can be included into input of this companys system design. Quality of input must be ensured for an effective system design.

User interface:An interactive and easy interface between customer and company is essential. User interface means the interface between customer and company. The web portal can be regarded as user interface. User interface must be simple to use, logical and error free. Complex or sophisticated user interface may lower the customer satisfaction. Website should be easy to navigate, and easily accessible.

Design of database:Database is a collection of large volume of raw inputs that form information when processed. Design of database refers the use of logical data model with possible speed. Input data into database is very easy matter but maintaining them and acquiring them when necessary is not so easy. Tactical sorting and arrangement of the data for the future purpose is must. As such, organization must introduce an appropriate file and record to facilitate the use of database.

Processing:Conversion of the data into meaning information is a must. After getting input via the integration of user interface data are kept in database for processing. Data implementation by using various application modules is the main activity of processing. Data gathered form customer will not process automatically. Some kind of processing mechanism is needed for it. For example, Enterprise Resource Planning (ERP) makes use of various data of the enterprise system.

Output:Output is the processed form of the input that has been generated after passing through the system process and that has gone through certain value addition process. Output refers delivering asked service to customer and earns profit. In output, timing and quality are the major concerns. Availability of quality service (output) to its customer is necessary for any organization.Controlsystem:There must be some control mechanism to monitor the activities stated above. Control in each step of the conversion process is essential. For e.g.: Input must stay in determined limit and reasonable. Processing of input must be consistence with organizational procedures. Output may not always be of desired quality.

Security:The system should have some security mechanism to preserve data from various IT security issues like password hacking, unauthorized access etc. The system should integrate with anti-malware and anti-spyware and should have the ability of protecting itself from hackers trying in getting unauthorized access. For a company which stores wide level of customers information, the assurance of the safety of the customer data and information is required.

Documentation:Every process within the system should be documented. Documentation provides a way to skip form the problems when they arise in the near future. These can also be used as a reference whenever some sorts of changes or advancements are to be made. Documentation is the only solution for any system related problems whenever they rise. So, the system must have some documentation mechanism to record every process. It also helps organization to keep track on employees activities of related field.

Multinational Hospitality and Tourism based company must have a simple and easy to use system design with some unique competitive advantage. Basic, logical and easy to interface system design is vital for success at this contemporary world of competition and technological advancements.Use of IT to Support Customer Relation ManagementIT system can facilitate to maintain a database of information regarding the taste, preferences, economic capacity of customers and various other information. An organization constantly keeps on updating such variety of information. Keeping databases of an information enablesto identify who the target customers are, where they stay, what are their needs and preferences and so on. Identification of valuable information about the customers enables it to serve to their unique needs and wants in a prompt way and in an effective manner. A typical CRM is assisted and supported by IT system that enables a formation of CRM systems.Customer Relation Management (CRM) can keep a keen focus on customers as the key to success of a business. CRM used information technology to create a cross-functional enterprise systems that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interacts with a companys customers.Benefits of CRM for an organization:Use of CRM system inorganization ensures the availability of sales reps with the software tools and company data sources they need to support and manage their sales activities, and optimize cross-selling and up-selling. For e.g.: sales prospect and product information, product configuration, and sales quote generation capabilities. CRM can also givea real-time access to a single common view of the customers, enabling them to check on all aspects of a customers account status and history before scheduling their sales calls.Needless to say CRM also help marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailings. Then the CRM software helps marketing professionals capture and manage prospects and customer response data in the CRM database, and analyze the customer and business value of companys direct marketing campaigns. CRM also assists in the fulfillment of prospects and customer responses and requests by quickly scheduling sales contacts and providing appropriate information on products and services to them, while ensuring that the relevant data are captured for CRM database.A CRM system provides service reps with software tools and real-time access to the common customer database shared by sales and marketing professionals. CRM helps customer service managers create, assign, and manage requests for service by customers.Also, CRM allows business to identify and target their best customers-those who are the most profitable to the business-so they can be retained as lifelong customers for greater and more profitable services. It makes possible real-time customization and personalization of products and services based on customers wants needs, buying habits, and life cycles. CRM can also keep track of when a customer contacts the company, regardless of the contact point. And CRM system can enable a company to provide a consistent customer experience and superior service and support across all the contact points a customer chooses. All of these benefits would provide a strategic business value to a company and major customer value to its customers.Many companythese days make use of various technologies to support the CRM. The use of IT in Tourism and Hospitality industry is increasing at a speedy rate. For e.g: McDonald at present time has been installing WI-FI hotspots in most of their restaurants globally. This model targets more young and tech-people into the restaurants. Also company are using Electronic Payment Model which quickens the ordering and payments of food, putting in a system that shortens processing time, preparation time and payments.Role of Enterprise Resource Planning in Tourism and HospitalityEnterprise Resource PlanningEnterprise Resource Planning (ERP) is the technological backbone of e-commerce, and enterprise-wide transaction framework with links into sales order processing, inventory management and control, production and distribution planning and finance. ERP is a cross-functional enterprise system driven by an integrated suite of software module that supports the basic internal business processes of a company. For example, ERP for a tourism and hospitality industry will typically process data from and track the status of sales, inventory, delivery, shipping, and invoicing, as well as forecasting the human resources requirements.In tourism and hospitality industry, the use of ERP plays important role of running system on front. Whatever decision are made, mostly are through the system of ERP. ERP is supported by various other supports. This is the place where major decision making and their execution takes place.The installation of Enterprise Resource Planning (ERP)givesan integrated real-time view of its core business processes, such as production, order processing, and inventory management, tied together by Enterprise Resource Planning (ERP)application software and resources (such as cash, raw materials, and production capacity), and the status of commitments made by the business, no matter which department of unit of business has made an entry of the data. The installation of ERP requires the availability of ERP techniques like: EDI, AMS, CAD/CAM/CAE, DMS and so on.For a tourism and hospitality based industry, ERP implementation typically consists of integrated modules of manufacturing, distribution, sales, accounting, and human resource management applications. For example, during the production of service/product, ERP assist in material requirements planning, production planning, and capacity planning. Some of the sales and marketing processes supported by ERP are sales analysis, sales planning, and pricing analysis, while typical distribution applications include order management, purchasing, and logistics planning. ERP systems support many vital human resources processes, from personnel requirement planning to salary and benefits administration, and assist the execution of the most crucial financial record keeping and planning.Benefits of ERP to Tourism and Hospitality Industry

ERP when installed in an organization can bring immense benefit. Such benefits help globalised organizations in terms of significant business benefits. Many companies have created major business values via the use of ER.

Some of the benefits that ERP provides to Tourism and Hospitality industry like:

1)Quality and Efficiency:ERP creates a framework for integrating and improving a companys internal business processes those results in significant improvements in the quality and efficiency of customer service, production, and distribution of the product offering. The quality service offerings are enhanced at a lower cost.2)Decreased CostsMany tourism based companies make the use of ERP for decreasing the cost in the transaction processing and hardware, software, and IT support staff compared to the non integrated legacy system that were replaced by their new ERP systems.3)Decision SupportERP provide vital cross-functional information on business performance quickly to managers to significantly improve their ability make better decisions in a timely manner across the entire business enterprise.

4)Enterprise AgilitySimplicity can be ensured in operation via the use of ERP. For e.g.: Installment of ERP breaks down many hierarchical and departmental barriers of business processes, information systems, and informational resources. Thus results in more flexible organizational structures, managerial responsibilities, and work roles, and therefore a more agile and adaptive organization and human resource that can tap the business opportunities in an effective way. IT Security Issues within the Tourism and Hospitality IndustryThe use of the information technology in business presents major security challenges, poses serious ethical dilemmas, and affects the society as a whole in a different ways.The use of IT in businesses has had major impacts on society, and thus raises ethical issues in the areas of the crimes, privacy, secrecy, individual freedom, employment, and so on. Also IT issues bring concerns about the health, working conditions, etc.However, IT has had beneficial results as well as detrimental effects on the society and the people in each of the above mentioned areas, at the same time. For instance: computerization of the purchasing process may have the adverse effect of eliminating peoples job, but also have the beneficial results of improving working conditions and executing the designate tasks with higher efficiency and quality.Security issues in Hospitality and Tourism based industry are also in paramount numbers. For a giant company with its operation throughout the globe, the security regarding the non-disclosure of information, making use of customers information for different business proposes, making use of the personal contacts for other than business use, tracking the taste and preference of the customers, etc have been a major issues these day. More than this, sending of excess information to the customers regarding various products and service offerings, making frequents calls to them for the business surveys are also the emerging issues regarding the security of customers.The concerns of privacy and security issues in Tourism industry are debatable as companies go in using massive data and information of its customers for different purposed. The use of such information has been made not only in facilitating the customers with the purchase decision, but also for tracking the need and preference of the customers which has time and again brought constant threat to the privacy issue of the customers.Ethical and Privacy Issues on Use and Storage of Data.Ethical IssuesBusiness ethics is concerned with the numerous ethical questions that managers must confront as part of their daily business decision making. The issues of intellectual property rights, customer and employee privacy, security of company records, and workplace safety are highlighted because they have been major areas of ethical controversy in information technology.An employee working in an organization should accept the ethical responsibilities that come with the working activities. Such responsibilities involve properly informing the role of an employee as a vital human resource in the business systems. A manager working in an organization should be aware of his/her responsibilities to make decisions about business activities and the use of the information technologies, which may have ethical dimensions that must be considered.An employee should promote ethical uses of information technology in the workplace. The issues like: monitoring of an employee work activities and electronic mail electronically, letting employees use their work computers for private business or take home copies of software for their personal use, electronically accessing of the employees personnel records, selling of the customer information extracted from the transaction processing system to other companies etc, are always debatable. The most crucial things that guide the ethical and privacy issues in a business environment is thestockholder theorythat holds that mangers are agents of the stockholders, and their only responsibilities is to increase the profits of the business without violating the law or engaging in fraudulent practices. However, thesocial contract theorystates that companies have ethical responsibilities to all members of society, which allows corporations to exist based on a social contract.

Information technology has created ethical controversy in the areas of intellectual property rights, customer and employee privacy, security of company information and workplace safety.

Equity:Executive salaries comparable with, product pricing, Intellectual property rights, non competitive agreements

Rights:Corporate due process, employee health screening, sexual harassment, affirmative action, equal employment opportunity, shareholders interest, employment at will, whistle blowerHonesty:Employee conflicts of interest, security of company information, inappropriate gifts, advertising content, and government contract issues, financial and cash management process, business practices in foreign land.Exercise of corporate power:Product safety, environmental issues, disinvestment, corporate contributions, workplace safety and so on.Privacy IssuesInformation technology makes it technically and economically feasible to collect, store, integrate, interchange, and retrieve data and information quickly and easily. This characteristic has an important beneficial effect on the efficiency and effectiveness of computer based information systems. However the power of information technologies to store and retrieve information can have a negative impact in the Privacy issues of every individual.

Some of the Privacy issues generally faced by the use of IT are as follows:

Accessing individual private email conversations and computer records, and collecting and sharing information about individual gained from their visits to Internet websites and newsgroups Using customer information gained from many sources to market additional business services Collecting telephones numbers, email addresses, credit card numbers, and other personal information to build individual customer profiles, and so on.The Internet is notorious for giving it users a feeling of anonymity, when in actuality; they are highly visible and open to violations of their property. Most of the internet and it world wide web, email, chat, and newsgroup, are still a wide open, unsecured electronic frontier, with no tough rules on what information is personal and private. For e.g.: information about the Internet user is captured each time a user visits a website or newsgroup and recorded as a COOKIE FILE in the hard disk, which is accessed by the service provider later.Though there are various privacy issues because of the use of the IT, we can still take some precautions to minimize the effects out of such issues. For e.g.: sensitive emails can be protected by encryption, if both email parties use compatible encryption software built into their email programs. Newsgroup postings can be made privately by sending them through anonymous remailers that protect your identity when you add your comments to discussions. Also we can ask the Internet service provides or other service providers to not sell the name and other personal information to mailing list providers and other marketers. Also declining to reveal personal data and interest in online services and websites profiles can lessen the exposure in the electronic snooping.