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Ethics in Information Technology, Second Edition Chapter 8Employer/Employee Issues

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*ObjectivesWhat are contingent workers, and how are they frequently employed in the information technology industry?

What key ethical issues are associated with the use of contingent workers, including H-1B visa holders and offshore outsourcing companies?


Ethics in Information Technology, Second Edition*Objectives (continued)What is whistle-blowing, and what ethical issues are associated with it?

What is an effective whistle-blowing process?


Ethics in Information Technology, Second Edition*Use of Nontraditional WorkersBureau of Labor Statistics (BLS) develops 10-year projections ofEconomic growthEmployment by industry and occupationComposition of labor forcePeriod from 2002 to 2012Employment growth will be concentrated in the service-providing sector of the economy9 out of 10 positions in health and IT


Ethics in Information Technology, Second Edition*Industries with Fastest Employment Growth (20022012)


Ethics in Information Technology, Second Edition*Industries with Fastest Employment Growth (20022012) (continued)


Ethics in Information Technology, Second Edition*Use of Nontraditional Workers (continued)Number of computer science candidatesDropped 33%Number of masters candidatesDropped 25%IT firms are concerned about the shortfallTurn to nontraditional sources includingContingent workersH-1B workersOutsourced offshore workers


Ethics in Information Technology, Second Edition*Contingent WorkersInclude: Independent contractorsWorkers brought in through employment agenciesOn-call or day laborersOn-site workers provided by contract firmsRepresents 4 to 7 percent of the U.S. workforceNeeded for pronounced fluctuations in staffing needsWorkers are there for the life of the project only


Ethics in Information Technology, Second Edition*Contingent Workers (continued)SourcesTemporary helpEmployee leasingFirms that provide temporary help Recruit, train, and test their employees in a wide range of job categories and skill levels Assign them to clients


Ethics in Information Technology, Second Edition*Contingent Workers (continued)Employee leasingBusiness outsources all or part of its workforce to a professional employer organizationSubject to special regulations regarding workers compensation and unemployment insuranceCoemployment relationshipTwo employers have actual or potential legal rights and duties with respect to the same employee or group of employees


Ethics in Information Technology, Second Edition*Contingent Workers (continued)Advantages of using contingent workersBusiness does not pay for benefitsCan continually adjust the number of contingent workers to stay consistent with its business needsDoes not customarily incur training costs


Ethics in Information Technology, Second Edition*Contingent Workers (continued)Disadvantages of using contingent workersMay lack a strong relationship with the firmLow commitment to the company and its projects High turnover rateWorkers gain valuable practical experience working within a companys structure and cultureLost when workers depart at the projects completion


Ethics in Information Technology, Second Edition*Contingent Workers (continued)When deciding to use contingent workersRecognize the trade-off between Completing a single project quickly and cheaplyDeveloping people in the organizationWhen staffing is truly temporaryUse of contingent workers is a good approachThink twice about using contingent workers When they are likely to learn corporate processes and strategies that are key to the companys success


Ethics in Information Technology, Second Edition*Contingent Workers (continued)Deciding to use contingent workersCan raise ethical and legal issuesPotential liability for Withholding payroll taxesPayment of employee retirement benefits and health insurance premiumsAdministration of workers compensation


Ethics in Information Technology, Second Edition*Contingent Workers (continued)Deciding when to use contingent workersContingent workers can be viewed as permanent employees by Internal Revenue ServiceLabor DepartmentStates worker compensation and unemployment agenciesVizcaino v. Microsoft lawsuitEmployers must exercise care in the treatment of contingent workers


Ethics in Information Technology, Second Edition*Managers Checklist for the Use of Contingent Employees


Ethics in Information Technology, Second Edition*H-1B WorkersTemporary working visa Granted by the U.S. Citizenship and Immigration Services (USCIS) For people who work in specialty occupationsMeet critical business needs Obtain essential technical skills and knowledge not readily found in the United StatesEmployers must pay H-1B workers the prevailing wage for U.S. workers to do equivalent jobs


Ethics in Information Technology, Second Edition*H-1B Workers (continued)Maximum continuous period of six yearsAfter six years the foreign worker must remain outside the United States for one year before another H-1B petition can be approvedMake up less than 0.1 percent of the U.S. workforceNearly 40 percent are employed as computer programmers


Ethics in Information Technology, Second Edition*H-1B Workers (continued)Top five source countriesIndia ChinaCanadaUnited KingdomPhilippinesCongress sets a federal cap on the number of H-1B visasApplies only to certain IT professionals at private technology companies


Ethics in Information Technology, Second Edition*H-1B Workers (continued)Continued use of H-1B Symptom of a larger, more fundamental problemUnited States is not developing sufficient IT employees with the right skills to meet corporate needs


Ethics in Information Technology, Second Edition*Number of H-1B Visas Granted by USCIS


Ethics in Information Technology, Second Edition*H-1B Workers (continued)English as a second languageWorkers are not fluent in English May find it difficult and uncomfortable to participateMay create their own cliquesStop trying to acclimateCan hurt a project teams morale and lead to divisionManagers and coworkers shouldStrive to help improve H-1B workers English skills and cultural understandingBe sensitive to heritage and needs


Ethics in Information Technology, Second Edition*H-1B Workers (continued)H-1B application processPerson must have a job offer from an employer who is also willing to offer sponsorshipApplication has two stagesLabor Condition Attestation (LCA) H-1B visa applicationIf the H-1B contingent makes up more than 15 percent of a workforce, a company must prove that it first tried to find U.S. workers before it can hire more H-1Bs


Ethics in Information Technology, Second Edition*H-1B Workers (continued)American Competitiveness in the Twenty-First Century Act Allows current H-1B holders to start working for employers as soon as their petitions are filedUsing H-1B workers instead of U.S. workers lessens the incentive for U.S. companies to educate and develop their own workforces


Ethics in Information Technology, Second Edition*H-1B Workers (continued)Potential exploitation of H-1B workersSalary abuseRecent study found H1-B workers are paid an average of $13,000 less than U.S. workers in the same jobWhat happens at the end of the six-year visa term?


Ethics in Information Technology, Second Edition*Offshore OutsourcingOutsourcingCompanies receive services from an outside organization with expertise in providing a specific functionRationale Lower costsObtain strategic flexibilityFocus on core competencies


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Variation of outsourcingWork done by an organization whose employees are in a foreign countryCompanies can save up to 70 percent on some projectsIncreasing in IT industryCommon to use offshore outsourcing for major programming projects


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Contract programming is flourishing in BrazilBulgariaCanada ChinaIreland IsraelMalaysia MaltaMexico


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Contract programming is flourishing in The PhilippinesPoland RussiaSingapore


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)IndiaRich talent poolEnglish-speaking citizenryLow labor costsBest source of programming skills outside Europe and North AmericaExports software to more than 100 countries Companies now employ more than 400,000 software engineers


Ethics in Information Technology, Second Edition*Leading Countries for Providing Offshore IT Services


Ethics in Information Technology, Second Edition*Partial List of Offshore IT Outsourcing Firms


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Pros and consLow wagesIncreasing due to demandDramatically speeds up development effortsMake progress on a project around the clockAdditional time to select an offshore vendor Additional costs for travel and communicationsSame ethical issues as H1-B and contingent workersDifficulty of communicating directly with people over long distances


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Five basic prerequisites:Expertise in technologies involved in the projectProject manager who speaks the employer companys native languageLarge staff availableGood telecommunications setupGood on-site managers available from outsourcing partner


Ethics in Information Technology, Second Edition*Offshore Outsourcing (continued)Tends to upset domestic staffCultural differences can cause misunderstandingsPotential compromise of customer data


Ethics in Information Technology, Second Edition*Whistle-BlowingEffort to attract public attention to a negligent, illegal, unethical, abusive, or dangerous act by a company that threatens the public interestWhistle-blower Usually has special information based onPersonal expertise Position of employment within the offending organization


Ethics in Information Technology, Second Edition*Whistle-Blowing (continued)Whistle-blower May not be an employee But a person with special knowledge gained from reliable sourcesRisks own career Might even affect lives of friends and family


Ethics in Information Technology, Second Edition*Protection for Whistle-BlowersProtection laws allow employees to alert the proper authorities to employer actions that are unethical, illegal, or unsafe, or that violate specific public policiesNo comprehensive federal lawEach law has different Filing provisionsAdministrative and judicial remediesStatutes of limitations


Ethics in Information Technology, Second Edition*Legal Overview: False Claims ActAlso known as Lincoln LawEnacted during the Civil WarGoalEntice whistle-blowers to come forward By offering them a share of the money recoveredQui tam provisionViolators liable for three times the dollar amount that the government is defraudedProvides strong whistle-blower protection


Ethics in Information Technology, Second Edition*Protection for Whistle-Blowers (continued)Laws that encourage the reporting of any wrongdoing that would damage the environmentClean Air ActToxic Substances Control ActClean Water ActSafe Drinking Water ActComprehensive Environmental Response, Compensation, and Liability Act


Ethics in Information Technology, Second Edition*Protection for Whistle-Blowers (continued)Energy Reorganization ActSafeguards workers in nuclear power and nuclear weapons industriesMany states have created laws to prevent workers from being fired because of the employees participation in protected activities


Ethics in Information Technology, Second Edition*Dealing with a Whistle-Blowing SituationAssess the seriousness of the situationBegin documentationAttempt to address the situation internallyConsider escalation within the companyAssess the implications of becoming a whistle-blowerUse experienced resources to develop an action planExecute the action planLive with the consequencesVery serious consequences for the individual and the company


Ethics in Information Technology, Second Edition*SummaryContingent workforce includes Independent contractorsWorkers brought in through employment agenciesOn-call or day laborersOn-site workers provided by contract firmsWhistle-blowing Employees effort to attract public attention to negligent, illegal, unethical, abusive, or dangerous acts by his or her company


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