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Chapter 5

Ethical Implications of

Ethical Implications of

Information Technology

Information Technology

MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod and George Schell

(2)

Socially Conscionable

Socially Conscionable

Citizens

Citizens

 MoralsMorals

Traditions of right and wrongTraditions 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

(3)

Pirated Software

Pirated Software

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

used or sold

used or sold

35% in U.S.35% in U.S.92% in Japan92% in Japan

– 99% in Thailand99% in Thailand

(4)

Laws Lag Behind

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

(5)

U.S. Computer Legislation

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 dataDealt 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

(6)

U.S. Computer Legislation

U.S. Computer Legislation

(cont.)

(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

(7)

U.S. Computer Legislation

U.S. Computer Legislation

(cont.)

(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 emailIncluded special section on email

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

(8)

Imposing an Ethics Culture

Imposing an Ethics Culture

 Corporate credoCorporate credo

– Succinct statement of values a firm seeks to upholdSuccinct 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

(9)

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

(10)

Example of a Corporate

Example of a Corporate

Credo

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

(11)

Ethics Audit

Ethics Audit

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

the purpose of learning how the manager’s

the purpose of learning how the manager’s

unit is carrying out the corporate credo

(12)

Computer Ethics

Computer Ethics

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

computer technology as well as

computer technology as well as

corresponding formulation and justification

corresponding formulation and justification

of policies for the ethical use of such

of policies for the ethical use of such

technology

(13)

Responsibility for

Responsibility for

Computer Ethics

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

society

Do something about this by formulating Do something about this by formulating

policies to ensure technology is being used in

policies to ensure technology is being used in

the right way

(14)

Importance of Computer

Importance of Computer

Ethics

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 doneComputers can change the way things are done  The invisibility factorThe invisibility factor

– Invisible programmingInvisible programming

(15)

Rights to the Computer

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

(16)

Rights to Information

Rights to Information

 Right to privacyRight to privacy

 Right to accuracyRight to accuracy

 Right to propertyRight to property

(17)

Social Contract of IS

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

(18)

Ethics and the CIO

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

unethically

Ethics breeds successEthics breeds success

Firms and managers have social responsibilitiesFirms and managers have social responsibilitiesManagers back up their ethics beliefs with Managers back up their ethics beliefs with

action

(19)

The CIO is Influenced by a

The CIO is Influenced by a

Hierarchy of Factors

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

Personal

pressures

(20)

CIOs Usually Do Not Act

CIOs Usually Do Not Act

Unethically

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.

(21)

Ethics and Success

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.

(22)

Ethics (cont.)

Ethics (cont.)

PercentPercent PercentPercent Question

Question AgreeAgree DisagreeDisagree

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

(23)

Corporate Social

Corporate Social

Responsibility

Responsibility

PercentPercent PercentPercent Question

Question AgreeAgree DisagreeDisagree

The socially responsible manager must

The socially responsible manager must

occasionally place the interests of society

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

economic power in our society means that they

have a social responsibility beyond the

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

As long as corporations generate acceptable

shareholder returns, managers have a social

shareholder returns, managers have a social

responsibility beyond the interests of

responsibility beyond the interests of

shareholders.

(24)

Achieving an Ethical

Achieving an Ethical

Computer Operation

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

issues as personal use of computer services and

proprietary rights to computer programs and data.

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.

termination, and civil action.

4.

(25)

Achieving an Ethical

Achieving an Ethical

Computer Operation (cont.)

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.

5-25

(26)

Achieving an Ethical

Achieving an Ethical

Computer Operation (cont.)

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

corporations show concern for the recovery of

alcoholics or drug offenders.

alcoholics or drug offenders.

9.

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

(27)

Ethics Perspective

Ethics Perspective

 Severe social problems exist because Severe social problems exist because

government and business organizations

government and business organizations

have failed to uphold the highest ethical

have failed to uphold the highest ethical

standards in computer use

standards in computer use

Invasion of privacyInvasion of privacySoftware piracySoftware piracy

(28)

An Information Services

An Information Services

Code of Conduct

Code of Conduct

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

precludes any form of dishonesty

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

situation

(29)

An Information Services

An Information Services

Code of Conduct (cont.)

Code of Conduct (cont.)

 Maintain courteous and professional Maintain courteous and professional

relations with users, associates, and

relations with users, associates, and

supervisors

supervisors

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

other employment policy

other employment policy

5-29

(30)

An Information Services

An Information Services

Code of Conduct (cont.)

Code of Conduct (cont.)

 Protect confidentiality of sensitive Protect confidentiality of sensitive

information about the organization’s

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

management of such company resources

such as personnel, computer use, outside

such as personnel, computer use, outside

services, travel, and entertainment

(31)

Summary

Summary

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

 Early yearsEarly years

No computer lawsNo computer laws

Easy to bypass regulationEasy 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

(32)

Summary [cont.]

Summary [cont.]

 Society places importance on computer Society places importance on computer

ethics

ethics

Logical malleabilityLogical malleability

Transforming ways of livingTransforming ways of living

– Processes are hidden from viewProcesses are hidden from view

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