1 Business Ethics and Technology Chapter 9 Professor Craig Diamond BA 385 October 28, 2009

2 Outline of Topics  Technology and the Technological Environment  Technology Benefits and Downsides  Ethics and Technology  Information Technology E-commerce (focus on privacy issues) Computers in the workplace  Biotechnology Genetic engineering Genetically modified foods

3 Technology and the Technological Environment Technology The totality of the means employedto provide objects necessary forhuman sustenance and comfort Technological environment – one of the four segments of the macroenvironment (Ch.1) in society (other three are social, economic, political)

4 Benefits of Technology  Increased production of goods and services  Reduced amount of labor needed to produce goods and services  Made labor easier and safer  Increased productivity  Increased standard of living  Increased life expectancy

5 Side Effects and Challenges of Technology  Environmental pollution  Depletion of natural resources  Technological unemployment machines replacing humans  Creation of unsatisfying jobs Monotonous tasks, and handling data rather than actual things

6 Ethics and Technology Key Issues Technological Determinism Ethical Lag

7 Society’s Intoxication with Technology 1. We need 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 From the book, High Tech, High Touch...

8 Electronic Commerce Key Issues in e-Commerce Ethics  Access (“Digital Divide”)  Intellectual property  Privacy and informed consent  Protection of children  Security of information 90% of e-commerce is business-to-business

9 Potential Threats to Privacy Posed by the Internet  Identity theft  Unintentionally revealing information  Lost / stolen personal information  Fake Web sites  Government distribution of information  Broadcasting information over the Internet  Victim of spying  Cyberstalker 2001 public poll: 24% of consumers were “very concerned” and 49% “somewhat concerned” about Internet privacy.

10 Invasion of Privacy Posed by the Internet  Cookies 2001 poll: only 10% of users blocked cookies, and over 50% did not know what cookies were  Spam  Identity Theft

11  Governing legislation Financial Services Modernization Act of 1999 Fair Credit Reporting Act Children’s Online Privacy Protection Act  1999 Act Included “opt-out” Many groups lobbied for “opt-in” Many intentional barriers to “opt-out”  Federal Trade Commission Main agency that deals with consumer privacy issues Government’s Involvement

12 Business Initiatives to Protect Privacy Ethical leadership Privacy policies Chief privacy officers Data security Protecting privacy of customers...

13  Pornography  Gambling  Web-based music services  Downloading movies and other intellectual property  Monitoring technology  “Phishing” Questionable Businesses and Practices

14 Employee Views of Technology is Positive The Workplace and Computer Technology  Expands job-related knowledge  Increases productivity during work and commuting times  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

15 Surveillance Computers  Monitoring website employee computer files  Blocking access to inappropriate websites  Storing and reviewing Telephone  Monitoring time spent, numbers called  Taping phone conversations Video  Video surveillance against theft  Video surveillance to monitor employee performance

16 Driving while Using Cell Phone  Many studies have shown it is dangerous  Should companies have policies that limit or prohibit cell phone use while driving?

17 Unethical Employee Activities  Created a dangerous situation by using new technology while driving (19%)  Blamed error on technological glitch (14%)  Copied company software for home use (13%)  Used office equipment to shop on the Internet (13%)  Used office equipment to search for job (11%)  Accessed private files without permission (6%)  Intruded on co-workers’ privacy (6%)  Visited porn Web sites (5%) Survey results...

18 Biotechnology Bioethics Ethical issues related tothe use of biotechnology

19 Realms of Biotechnology Genetically Modified Foods Genetic Engineering

20 Genetic Engineering Stem cell research Cloning Genetic testing and profiling

21 Stem Cell Research  Controversy surrounds the use of embryonic stem cells in research involves destruction of human embryo  Bush Administration severely limited research using embryonic stem cells, even though public opinion favored it  Obama issued executive order reversing Bush decision (March 2009)

22 Cloning  Animal and plant cloning Cloning animals for food is controversial  Human cloning (controversial) Therapeutic cloning – used to create stem cells as source of replacement tissue Fear of two class society – those who can afford to be “perfected” and those that cannot

23 Genetic Testing and Profiling  Involves having DNA information on people potential for invasion of privacy in how the information can be used

24 Genetically Modified Foods Safety issues Labeling issues