chap 4 extra

8/17/2019 Chap 4 Extra

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Management Information SystemsManagement Information SystemsMANAGING THE DIGITAL FIRM, 12TH EDITION

ETHICAL AND SOCIALISSES IN INFORMATION

S!STEMS

C"a#ter $


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Management Information SystemsManagement Information Systems

• What ethical, social, and political issuesare raise% by information systems?

• What specic #rin&i#'es for conduct can beused to g(i%e et"i&a' %e&isions?

• Why do contemporary information systemstechnology and the Internet #ose

&"a''enges to the #rote&tion of in%i)i%(a'#ri)a&y an% inte''e&t(a' #ro#erty?

• How have information systems a*e&te%e)ery%ay 'ife?

Learning O+e&ti)es

CHA-TER $. ETHICAL AND SOCIAL ISSES ININFORMATION S!STEMS

© Prentice Hall 20112


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Management Information SystemsManagement Information SystemsCHA-TER $. ETHICAL AND SOCIAL ISSES IN

INFORMATION S!STEMS

• Google monitors (ser a&ti)ity on thousands ofsites; businesses monitor own sites tounderstand customers

• Demonstrates IT/s ro'e in organizing anddistributing information

• Illustrates the et"i&a' 0(estions inherent in

online information gathering

e"a)iora' Targeting an% !o(r -ri)a&y. !o(/re t"e Target



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Com#any Name Fa('t Fine

Barclays Ban !"#$%&'%(

)anipulating its submission for the"IB*+ benchmar interest rates

,'-&million

Gla.osmith/line ""#$%&'%(

0nlawful and criminal promotion ofcertain prescription drugs

,1 billion

Walmart Inc2 $%&'%( Bribes for receive building permit 0nderInvgtn

3iemens $%&&4( Bribes to German and 035 authorities 6

Galleon Group $%&''( 7rading insider information ,%8&million

)cinsey 9 #ompany "eaing insider Information $#:*( % yearsentenced

IB) $%&''( Bribes to /orean and #hinese

Government

6

Re&ent Eam#'es of fai'e% et"i&a' 3(%gment +y

Senior Managers




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• +ecent cases of failed ethical udgment inbusiness

– "ehman Brothers< )inerals )anagement3ervice< !=er

– In many< information systems used to burydecisions from public scrutiny

• :thics – !rinciples of rig"t an% 4rong that

individuals< acting as free moral agents< useto mae choices to g(i%e t"eir +e"a)iors

n%erstan%ing Et"i&a' an% So&ia' Iss(es Re'ate% to Systems




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• Information systems an% et"i&s

– Information systems raise ne4

et"i&a' 0(estions +e&a(se t"ey&reate o##ort(nities for.

• Intense social change< threateninge.isting distributions of power<

money< rights< and obligations• >ew inds of crime





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• Mo%e' for t"in5ing a+o(t et"i&a', so&ia',#o'iti&a' iss(es.

– So&iety as a &a'm #on%

– IT as ro&5 %ro##e% in #on%, &reating ri##'esof ne4 sit(ations not &o)ere% +y o'% r('es

– So&ia' an% #o'iti&a' instit(tions &annotres#on% o)ernig"t to t"ese ri##'es6it may

ta5e years to %e)e'o# eti0(ette,e#e&tations, 'a4s

• +euires understanding of ethics to mae choicesin legally gray areas





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THE RELATIONSHI-ET7EEN ETHICAL,SOCIAL, AND-OLITICAL ISSES INAN INFORMATIONSOCIET!

7he introduction of new informationtechnology has a ripple e@ect<raising new ethical< social< andpolitical issues that must be dealtwith on the individual< social< andpolitical levels2 7hese issues haveve moral dimensionsA informationrights and obligations< propertyrights and obligations< systemuality< uality of life< andaccountability and control2

FIGRE $81




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• Fi)e mora' %imensions of t"einformation age

'2 Information rights and obligations%2 !roperty rights and obligations

12 5ccountability and control

2 3ystem uality

82 Cuality of life





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• Key technology trends that raise ethicalissues

19 Do(+'ing of &om#(ter #o4er

• )ore organi=ations depend on computer systemsfor critical operations

29 Ra#i%'y %e&'ining %ata storage &osts

• *rgani=ations can easily maintain detaileddatabases on individuals

:9 Net4or5ing a%)an&es an% t"e Internet

• #opying data from one location to another andaccessing personal data from remote locations ismuch easier





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• ;ey te&"no'ogy tren%s t"at raiseet"i&a' iss(es


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• asi& &on&e#ts for et"i&a' ana'ysis

– Res#onsi+i'ity.• 5ccepting the potential costs< duties< and

obligations for decisions – A&&o(nta+i'ity.

• )echanisms for identifying responsible parties

– Lia+i'ity.•

!ermits individuals $and rms( to recoverdamages done to them

– D(e #ro&ess.• "aws are well nown and understood< with an

ability to appeal to higher authorities

Et"i&s in an Information So&iety




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• Et"i&a' ana'ysis. A >)e8ste# #ro&ess

'2 Identify and clearly describe t"e fa&ts

%2 Dene the confict or dilemma andidentify the higher-order valuesinvolved

12 Identify the sta5e"o'%ers

2 Identify the options that you canreasonably take

82 Identify the potential consequences ofyour options





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• Si Can%i%ate Et"i&a' -rin&i#'es

19 Go'%en R('e

• Do unto others as you would have them dounto you

29 Imman(e' ;ant/s Categori&a'Im#erati)e

• If an action is not right for everyone to tae<

it is not right for anyone:9 Des&artes/ R('e of C"ange

• If an action cannot be taen repeatedly < it isnot right to take at all





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• Si Can%i%ate Et"i&a' -rin&i#'es


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• -rofessiona' &o%es of &on%(&t

– -rom('gate% by associations of professionals

• :2g2 5)5< 5B5< 5I7!< 5#)

– !romises by professions to reg('atet"emse')es in the genera' interest ofso&iety

• Rea'84or'% et"i&a' %i'emmas

– *ne set of interests pitted against another

– :2g2 +ight of company to maimie#ro%(&ti)ity of worers vs2 worers right to useInternet for short #ersona' tas5s





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• -ri)a&y.

– #laim of individuals to be left alone< ree romsurveillance or intererence rom other

individuals, organi=ations< or state2 #laim to beable to control information about yourself

• In 9S9, #ri)a&y #rote&te% +y.

– irst 5mendment $freedom of speech(

– ourth 5mendment $unreasonable search andsei=ure(

– 5dditional federal statues $e2g2 !rivacy 5ct of'4E(

T"e Mora' Dimensions of Information Systems




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• Fair information #ra&ti&es. – et o principles governing the collection and

use of information

– Basis of most 0232 and :uropean privacy laws – Based on mutuality of interest between record

holder and individual

– +estated and e.tended by 7# in '44 to provideguidelines for protecting online privacy

– 0sed to drive changes in privacy legislation• #*!!5

• Gramm6"each6Bliley 5ct

• HI!55





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• FTC FI- #rin&i#'es.

'2 >oticeawareness $core principle(

%2 #hoiceconsent $core principle(

12 5ccessparticipation

2 3ecurity

82 :nforcement





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• Internet C"a''enges to -ri)a&y.

– Coo5ies• 7iny les downloaded by Web site to visitors hard drive

to help identiy visitor!s browser and track visits tosit e

• 5llow Web sites to %e)e'o# #ro>'es on )isitors

– 7e+ +ea&ons+(gs• 7iny graphics embedded in e6mail and Web pages to

monitor 4"o is rea%ing message

– S#y4are• 3urreptitiously insta''e% on (ser/s &om#(ter• )ay transmit user!s keystrokes or display unwanted

ads

• Googles collection of private data;

behavioral targeting




f i S


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HO7 COO;IES IDENTIF! 7E ISITORS

#ooies are written by a Web site on a visitors hard drive2 When the visitor returns to that Web site< the Web server reuests theID number from the cooie and uses it to access the data stored by that server on that visitor2 7he Web site can then use these

data to display personali=ed information2

FIGRE



f iM I f i S


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• 0232 allows businesses to gather transactioninormation and use this for other mar5eting#(r#oses

• *nline industry promotes sel-regulation overprivacy legislation

• However< e.tent of responsibility taen varies – 3tatements of information use –

*pt6out selection bo.es – *nline JsealsK of privacy principles

• )ost Web sites %o not "a)e any privacy policies




M I f i SM t I f ti S t


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• Te&"ni&a' so'(tions

– T"e -'atform for -ri)a&y -referen&es


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THE -:- STANDARD

!1! enables Web sites to translate their privacy policies into a standard format that can be read by the user s Web browsersoftware2 7he browser software evaluates the Web sites privacy policy to determine whether it is compatible with the users

privacy preferences2

FIGRE $8$



M t I f ti S tM t I f ti S t


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• -ro#erty rig"ts. Inte''e&t(a' #ro#erty

– Inte''e&t(a' #ro#erty. Intangi+'e #ro#erty ofany 5in% &reate% +y in%i)i%(a's or

&or#orations – T"ree main 4ays t"at #rote&t inte''e&t(a'

#ro#erty

19 Tra%e se&ret. Intellectual wor or productbelonging to business< not in the public domain

29 Co#yrig"t. 3tatutory grant protecting intellectualproperty from being copied for the life of theauthor< plus E& years

:9 -atents. Grants creator of invention an e.clusivemonopoly on ideas behind invention for %& years




M t I f ti S tM t I f ti S t


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• C"a''enges to inte''e&t(a' #ro#erty rig"ts – Digita' me%ia %i*erent from #"ysi&a' me%ia


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• A&&o(nta+i'ity, Lia+i'ity, Contro'

– Com#(ter8re'ate% 'ia+i'ity #ro+'ems

• If software fails< who is responsible?

– If seen as part of machine that inures or harms<software producer and operator may be liable

– If seen as similar to boo< diMcult to holdauthorpublisher responsible

– What should liability be if software seen asservice? Would this be similar to telephonesystems not being liable for transmittedmessages?




M t I f ti S tManagement Information Systems


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• System (a'ity. Data (a'ity an% SystemErrors

– 7"at is an a&&e#ta+'e, te&"no'ogi&a''y feasi+'e

'e)e' of system 0(a'ity• lawless software is economically unfeasible

– T"ree #rin&i#a' so(r&es of #oor system#erforman&e.

• 3oftware bugs< errors• Hardware or facility failures

• !oor input data uality $most common source ofbusiness system failure(




Management Information S stemsManagement Information Systems


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• (a'ity of 'ife. E0(ity, a&&ess, an% +o(n%aries

– Negati)e so&ia' &onse0(en&es of systems

• a'an&ing #o4er. 5lthough computing power

decentrali=ing< ey decision6maing remains centrali=ed• Ra#i%ity of &"ange. Businesses may not have enough

time to respond to global competition

• Maintaining +o(n%aries. #omputing< Internet uselengthens wor6day< infringes on family< personal time

• De#en%en&e an% )('nera+i'ity. !ublic and privateorgani=ations ever more dependent on computersystems






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• Com#(ter &rime an% a+(se – Com#(ter &rime. Commission of i''ega' a&ts

t"ro(g" (se of &om#(te or against a &om#(tersystem &om#(ter may +e o+e&t or instr(ment

of &rime – Com#(ter a+(se. net"i&a' a&ts, not i''ega'

• 3pamA High costs for businesses in dealing with spam

• Em#'oyment. – Reengineering 4or5 res('ting in 'ost o+s

• E0(ity an% a&&ess t"e %igita' %i)i%e. – Certain et"ni& an% in&ome gro(#s in t"e nite%

States 'ess 'i5e'y to "a)e &om#(ters or Interneta&&ess






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• Hea't" ris5s.

– Re#etiti)e stress in(ry


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• (siness Et"i&s

– Business ethics is concerned with the numerousethical uestions that managers must confront as

part of their daily business decision maing2

• Te&"no'ogi&a' Et"i&s

– 7he principles of ethical reuirements thatcompanies should meet to help ensure the ethical

implementation of information technologies andinformation systems in business2

Et"i&a' Res#onsi+i'ity of (siness -rofessiona's





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• -ro#ortiona'ity

– 7he good achieved by the technology mustoverweigh the harm or ris

• Informe% Consent

– 0nderstand and accept the riss

• 3(sti&e

–

7he benets and burdens of the technology shouldbe distributed fairly

• Minimie% Ris5

– 5voidance of all unnecessary ris

-rin&i#'es of Te&"no'ogy Et"i&s





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• Cy+er &rime

• Ha&5ing an% Cra&5ing

• Cy+er t"eft

• Cy+er8terrorism

• na(t"orie% (se at 4or5

• Soft4are #ri)a&y

• T"eft of inte''e&t(a' #ro#erty

• Com#(ter )ir(ses an% 4orms

• A%4are an% s#y4are






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• -ri)a&y La4

• Com#(ter Li+e' an% Censors"i#

•

Cy+er 'a4• Ot"er C"a''enges

• :mployment challenges

• #omputer challenges

• #hallenges in woring conditions

• #hallenges of individuality



chap 4 extra

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