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Business & Society Business & Society Ethics, Sustainability, and Stakeholder Management Eighth Edition Archie B. Carroll Ann K. Buchholtz © 2012 South-Western, a part of Cengage Learning 1
Chapter 9 Business Ethics and Technology © 2012 South-Western, a part of Cengage Learning 2
Learning Outcomes © 2012 South-Western, a part of Cengage Learning 1.Identify the role that technology plays in our business lives. 2.Gain an understanding of the technological environment and the characteristics of technology that influence business ethics and stakeholders. 3.Identify the benefits and side effects of technology in business. 4.Gain an appreciation of society’s intoxication with technology and the consequences of this intoxication. 5.Learn to differentiate between information technology and biotechnology and their ethical implications for management. 6.Identify the ethical issues involved in biotechnology and present arguments on both sides of the issues. 3
Chapter Outline Technology and the Technological Environment Characteristics of Technology Technology and Ethics Information Technology Biotechnology Summary Key Terms 4 © 2012 South-Western, a part of Cengage Learning
Technology The new generation of young people is called the iGeneration– technology is part of their DNA. Young people have no technological off switch New technologies to benefit businesses like social networking Security issues like in-store surveillance cameras to monitor customers © 2012 South-Western, a part of Cengage Learning 5
Technology and the Technological Environment Technology The totality of the means employed to provide objects necessary for human sustenance and comfort. A scientific method used to achieve a practical purpose. Technological environment The total set of technology-based advancements or progress taking place in society. 6 © 2012 South-Western, a part of Cengage Learning
Characteristics of Technology Benefits of Technology Increase production of goods and services Reduce amount of labor needed to produce goods and services Make labor easier and safer Increased productivity Higher standard of living Increased life expectancy It can be difficult to spread the benefits of technology beyond the developed world. 7 © 2012 South-Western, a part of Cengage Learning
Challenges of Technology Side Effects of Technology Environmental pollution Depletion of natural resources Technological unemployment Creation of unsatisfying jobs 8 © 2012 South-Western, a part of Cengage Learning
Technology and Ethics Two Key Issues Technological determinism What can be developed will be developed. Ethical lag Occurs when the speed of technological change far exceeds that of ethical development. 9 © 2012 South-Western, a part of Cengage Learning
Symptoms of Society’s Technology Intoxication 1.We favor the quick fix. 2.We fear and worship technology. 3.We blur the distinction between what is real and fake. 4.We accept violence as normal. 5.We love technology as a toy. 6.We live our lives distanced and distracted. Find the right balance! 10 © 2012 South-Western, a part of Cengage Learning
Information Technology 11 © 2012 South-Western, a part of Cengage Learning
Electronic Commerce Electronic commerce Also called e-commerce, e-business, or Web- based marketing. The Internet has reshaped the way business is conducted. Key issues in e-commerce ethics Access Intellectual property Privacy and informed consent Protection of children Security of information Trust 12 © 2012 South-Western, a part of Cengage Learning
Invasion of Privacy via E-Commerce Identity theft Unintentionally revealing information Lost/stolen personal information Fake Web sites Government distribution of information Broadcasting information over the Internet Victim of spying Cyberstalking 13 © 2012 South-Western, a part of Cengage Learning
Invasion of Privacy via E-Commerce (continued) Cookies Identification tags that Web sites drop on our personal computer hard drives so they can recognize repeat visitors the next time we visit their Web sites. Spam Unsolicited commercial . It is sent through "open-relays" to millions of persons. Identity Theft Tampering with one’s financial accounts. 14 © 2012 South-Western, a part of Cengage Learning
Government’s Involvement The Financial Services Modernization Act of 1999 Made it possible for consumers to get all financial services from one company. Convenient, but empowered these companies to develop detailed portraits of their customers Other legislation FTC Act Gramm-Leach-Bliley Act Fair Credit Reporting Act Children’s Online Privacy Protection Act The government has been criticized for not doing enough to protect consumers. 15 © 2012 South-Western, a part of Cengage Learning
Business Initiatives with Privacy Protection 16 © 2012 South-Western, a part of Cengage Learning
Questionable Businesses and Practices Electronic commerce has made possible many questionable businesses and practices. Pornography Gambling Illegal Web-based downloading of music, movies, books, and other copyrighted materials Problems with intellectual property protection Monitoring technology “Phishing” 17 © 2012 South-Western, a part of Cengage Learning
The Workplace and Computer Technology Employees generally like technology in the workplace Expands job-related knowledge Increases productivity during normal work hours and commuting time Improves communication with clients and customers Relieves job stress Improved time management Expanded professional networks Development of a competitive edge Balance of work and family needs 18 © 2012 South-Western, a part of Cengage Learning
Surveillance Surveillance raises questions about privacy violations. Computers Monitoring website connections Storing and reviewing employee computer files Blocking access to inappropriate websites Telephone Monitoring time spent, numbers called Taping phone conversations Video Video surveillance against theft Surveillance to monitor employee performance 19 © 2012 South-Western, a part of Cengage Learning
Social Media and Surveillance Employers may monitor social media usage and check employee’s social media pages. Some employers even monitor employees’ Internet access from hotel rooms while on business trips. Employees have been terminated: After employers read their Facebook and MySpace pages. For posting inappropriate videos on websites like YouTube. 20 © 2012 South-Western, a part of Cengage Learning
Biometrics The use of body measurements, such as eye scans, fingerprints, or palm prints for determining and confirming identity. An explosion of applications in the commercial use of biometrics. Not much focus on the legal ethical risks yet. 21 © 2012 South-Western, a part of Cengage Learning
Unethical Employee Activities Related to Technology Created a dangerous situation by using new technology while driving Wrongly blamed error on technological glitch Copied company software for home use Used office equipment to shop on the Internet Used office equipment to search for job Accessed private files without permission Intruded on co-workers’ privacy Visited porn Web sites 22 © 2012 South-Western, a part of Cengage Learning
Ten Commandments of Computer Ethics 23 © 2012 South-Western, a part of Cengage Learning
Biotechnology Involves using biology to discover, develop, manufacture, market, and sell products and services. Bioethics A field that deals with the ethical issues embedded in the commercial use of biotechnology. Proceduralism is a primary tool for bioethicists. It is using protocols to ensure that classical safeguards are not violated. 24 © 2012 South-Western, a part of Cengage Learning
Realms of Biotechnology 25 © 2012 South-Western, a part of Cengage Learning Genetic Engineering Genetically Modified Foods
Genetic Engineering 26 © 2012 South-Western, a part of Cengage Learning
Genetically Modified Foods Also referred to as genetically engineered foods (GEFs). Fear over health and environmental effects. Major U.S. crops that are genetically modified: Sugar beets (95%) Soybeans (91%) Cotton (88%) Corn (85%) Most Americans consume genetically modified foods every day. 27 © 2012 South-Western, a part of Cengage Learning
Labeling of GMFs One of the most frequently discussed issues with GMFs is labeling. FDA does not mandate GMF labeling in the U.S. The Non-GMO Project believes that people have the right to make informed choices about whether they consume GMF products. 28 © 2012 South-Western, a part of Cengage Learning
Key Terms Bioethics Biometrics Biotechnology Chief Privacy Officer Cloning Cookies Electronic commerce Embryonic stems cells Ethical lag Genetic engineering Genetic profiling Genetic testing Genetically engineered foods (GEFs) Genetically modified foods (GMFs) Information technology Phishing Spam Surveillance Technological determinism Technological environment Technology Therapeutic cloning © 2012 South-Western, a part of Cengage Learning 29
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