chap05[1].ppt 97KB May 20 2010 09:29:46 PM

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Chapter 5

Ethical Implications of

Information Technology

MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod and George Schell

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Socially Conscionable

Citizens

 MoralsMorals

– _{Traditions of right and wrong}_{Traditions of right and wrong}

 EthicsEthics

– _{Suite of guiding beliefs, standards, or ideals that}_{Suite of guiding beliefs, standards, or ideals that} promote an individual or community

promote an individual or community

 LawsLaws

– _{Formal rules of conduct that a sovereign}_{Formal rules of conduct that a sovereign} authority imposes on its citizens

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Pirated Software

 Software that is illegally copied and then Software that is illegally copied and then

used or sold

– _{35% in U.S.}_{35% in U.S.} – _{92% in Japan}_{92% in Japan}

– 99% in Thailand_{99% in Thailand}

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Laws Lag Behind

 First computer crimeFirst computer crime

– In 1966, a programmer used computer code to keep _{In 1966, a programmer used computer code to keep} his checking account from being flagged as

his checking account from being flagged as overdrawn.

overdrawn.

– _{When the bank discovered the crime the}_{When the bank discovered the crime the}

programmer could not be charged with a computer programmer could not be charged with a computer

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U.S. Computer Legislation

 Freedom of Information Act of 1966Freedom of Information Act of 1966

– _{Gave citizens and organizations the right to}_{Gave citizens and organizations the right to} access data held by the federal government access data held by the federal government

 Fair Credit Reporting Act of 1970Fair Credit Reporting Act of 1970

– _{Dealt with handling of credit data}_{Dealt with handling of credit data}

 Right to Federal Privacy Act of 1978Right to Federal Privacy Act of 1978

– _{Limited government’s ability to search bank}_{Limited government’s ability to search bank} records

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U.S. Computer Legislation

(cont.)

 Small Business Computer Security and Small Business Computer Security and

Education Act (1984) Education Act (1984)

– _{Advises Congress on matters relating to computer}_{Advises Congress on matters relating to computer} crime against small businesses

crime against small businesses

 Counterfeit Access Device and Computer Fraud Counterfeit Access Device and Computer Fraud

and Abuse Act and Abuse Act

– _{Makes it a crime to gain unauthorized information}_{Makes it a crime to gain unauthorized information} pertaining to national security or foreign relations pertaining to national security or foreign relations

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U.S. Computer Legislation

(cont.)

 In 1986, Electronic Communications In 1986, Electronic Communications

Privacy Act was rewritten to cover digital, Privacy Act was rewritten to cover digital,

data, and video communications data, and video communications

– _{Included special section on email}_{Included special section on email}

 Computer Matching and Privacy Act of 1988 Computer Matching and Privacy Act of 1988

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Imposing an Ethics Culture

 Corporate credoCorporate credo

– Succinct statement of values a firm seeks to uphold_{Succinct statement of values a firm seeks to uphold}  Ethics programsEthics programs

– _{System of multiple activities designed to provide}_{System of multiple activities designed to provide} employees with direction in carrying out corporate employees with direction in carrying out corporate credo

credo

 Tailored corporate codesTailored corporate codes

– _{Codes of ethics for a particular organization or}_{Codes of ethics for a particular organization or} industry

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2. Establish ethics programs

3. Establish corporate ethics code 1. Establish

corporate credo

Top-level Management

Imposes the Ethics Culture

In a Top-down Manner

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Example of a Corporate

Credo

Commitment to customer:

The first commitment is to provide our customers with quality products and services that are innovative and technologically responsive to their current requirements at appropriate prices. To perform these tasks with integrity requires that we maintain confidentiality and protect

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Ethics Audit

 Internal auditor meets with a manager for Internal auditor meets with a manager for

the purpose of learning how the manager’s

unit is carrying out the corporate credo

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Computer Ethics

 Analysis of the nature and social impact of Analysis of the nature and social impact of

computer technology as well as

corresponding formulation and justification

of policies for the ethical use of such

technology

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Responsibility for

Computer Ethics

 CIO holds primary responsibilityCIO holds primary responsibility

 CIO Must:CIO Must:

– _{Be aware of how the computer is affecting}_{Be aware of how the computer is affecting}

society

– _{Do something about this by formulating}_{Do something about this by formulating}

policies to ensure technology is being used in

the right way

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Importance of Computer

Ethics

 Logical malleabilityLogical malleability

– Ability to program computer to do anything you want it _{Ability to program computer to do anything you want it} to do

to do

 The transformation factorThe transformation factor

– Computers can change the way things are done_{Computers can change the way things are done}  The invisibility factorThe invisibility factor

– Invisible programming_{Invisible programming}

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Rights to the Computer

 Right to computer accessRight to computer access

 Right to computer skillsRight to computer skills

 Right to computer specialistsRight to computer specialists

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Rights to Information

 Right to privacyRight to privacy

 Right to accuracyRight to accuracy

 Right to propertyRight to property

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Social Contract of IS

• The computer will not be used to unduly invade _{The computer will not be used to unduly invade}

a person’s privacy a person’s privacy

• Every measure will be taken to ensure the _{Every measure will be taken to ensure the}

accuracy of computer processing accuracy of computer processing

• The sanctity of intellectual property will be _{The sanctity of intellectual property will be}

protected protected

• The computer will be made accessible to society _{The computer will be made accessible to society}

so that its members can avoid the indignities of so that its members can avoid the indignities of

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Ethics and the CIO

 Perceptions of the CIO’s EthicsPerceptions of the CIO’s Ethics

– Do not take advantage of opportunities to act _{Do not take advantage of opportunities to act}

unethically

– _{Ethics breeds success}_{Ethics breeds success}

– _{Firms and managers have social responsibilities}_{Firms and managers have social responsibilities} – _{Managers back up their ethics beliefs with}_{Managers back up their ethics beliefs with}

action

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The CIO is Influenced by a

Hierarchy of Factors

Office of the CIO Laws Laws Corporate Corporate ethics culture ethics culture Social Social pressure pressure Professional Professional

codes of ethics

codes of ethics

Personal

pressures

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CIOs Usually Do Not Act

Unethically

There are many opportunities for 47.5 37.7 MIS managers in my company to

engage in unethical behavior.

MIS managers in my company 19.7 80.3 engage in behaviors that I

consider to be unethical.

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Ethics and Success

Percent

Percent PercentPercent

Question

Question AgreeAgree DisagreeDisagree

Successful MIS managers in my company are Successful MIS managers in my company are generally more ethical than unsuccessful

generally more ethical than unsuccessful managers.

managers. 73.8 13.1 73.8 13.1

In order to succeed in my company it is In order to succeed in my company it is

often necessary to compromise one's ethics.

often necessary to compromise one's ethics. 18.0 75.4 18.0 75.4

Successful managers in my company withhold Successful managers in my company withhold information that is detrimental to their

information that is detrimental to their self-interest.

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Ethics (cont.)

PercentPercent PercentPercent Question

Successful managers in my company make Successful managers in my company make rivals look bad in the eyes of important rivals look bad in the eyes of important people in my company.

people in my company. 23.0 59.0 23.0 59.0

Successful managers in my company look for Successful managers in my company look for a scapegoat when they feel they may be

a scapegoat when they feel they may be associated with failure.

associated with failure. 23.0 67.2 23.0 67.2

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Corporate Social

Responsibility

PercentPercent PercentPercent Question

The socially responsible manager must

occasionally place the interests of society

over the interests of the company.

over the interests of the company. 68.9 21.3 68.9 21.3

The fact that corporations have great

The fact that corporations have great

economic power in our society means that they

have a social responsibility beyond the

interests of the shareholders.

interests of the shareholders. 96.7 3.3 96.7 3.3

As long as corporations generate acceptable

shareholder returns, managers have a social

responsibility beyond the interests of

shareholders.

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Achieving an Ethical

Computer Operation

1.

1. Formulate a code of conduct.Formulate a code of conduct. 2.

2. Establish rules of procedure relating to such Establish rules of procedure relating to such

issues as personal use of computer services and

proprietary rights to computer programs and data.

3.

3. Make clear the sanctions that will be taken Make clear the sanctions that will be taken against offenders-such as reprimands,

against offenders-such as reprimands,

termination, and civil action.

4.

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Achieving an Ethical

Computer Operation (cont.)

5.

5. Focus attention on ethics by means of such Focus attention on ethics by means of such

programs as training sessions and required reading. programs as training sessions and required reading. 6.

6. Promote computer crime laws by keeping Promote computer crime laws by keeping employees informed.

employees informed. 7.

7. Keep a formal record that establishes accountability Keep a formal record that establishes accountability of each information specialist for her or his actions, of each information specialist for her or his actions,

and also minimizes the temptations for violations by and also minimizes the temptations for violations by

means of such programs as ethics audits. means of such programs as ethics audits.

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Achieving an Ethical

Computer Operation (cont.)

8.

8. Encourage the use of rehabilitation programs that Encourage the use of rehabilitation programs that treat ethics violators in the same way that

treat ethics violators in the same way that

corporations show concern for the recovery of

alcoholics or drug offenders.

9.

9. Encourage participation in professional societies.Encourage participation in professional societies. 10.

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Ethics Perspective

 Severe social problems exist because Severe social problems exist because

government and business organizations

have failed to uphold the highest ethical

standards in computer use

– _{Invasion of privacy}_{Invasion of privacy} – _{Software piracy}_{Software piracy}

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An Information Services

Code of Conduct

 Conduct all activities in a manner that Conduct all activities in a manner that

precludes any form of dishonesty

 Avoid any act that compromises integrityAvoid any act that compromises integrity

 Avoid any act that might create a dangerous Avoid any act that might create a dangerous

situation

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An Information Services

Code of Conduct (cont.)

 Maintain courteous and professional Maintain courteous and professional

relations with users, associates, and

supervisors

 Adhere to the no-solicitation rule and any Adhere to the no-solicitation rule and any

other employment policy

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An Information Services

Code of Conduct (cont.)

 Protect confidentiality of sensitive Protect confidentiality of sensitive

information about the organization’s

competitive position, trade secrets, or assets

competitive position, trade secrets, or assets  Exercise sound business practice in the Exercise sound business practice in the

management of such company resources

such as personnel, computer use, outside

services, travel, and entertainment

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Summary

 Morals, laws, and ethics govern behaviorMorals, laws, and ethics govern behavior

 Early yearsEarly years

– _{No computer laws}_{No computer laws}

– _{Easy to bypass regulation}_{Easy to bypass regulation}

 Executives impose ethical cultureExecutives impose ethical culture

 Computer ethics require executive to put Computer ethics require executive to put

proper policies in place

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Summary [cont.]

 Society places importance on computer Society places importance on computer

ethics

– _{Logical malleability}_{Logical malleability}

– _{Transforming ways of living}_{Transforming ways of living}

– Processes are hidden from view_{Processes are hidden from view}