5.1 © 2003 by Prentice Hall 5 5 ETHICAL AND SOCIAL ISSUES IN THE DIGITAL FIRM Chapter

5.2 © 2003 by Prentice Hall What ethical, social, and political issues are raised by information systems?What ethical, social, and political issues are raised by information systems? Are there specific principles for conduct that can be used to guide decisions about ethical dilemmas?Are there specific principles for conduct that can be used to guide decisions about ethical dilemmas? Why does contemporary information systems technology pose challenges to the protection of individual privacy and intellectual property?Why does contemporary information systems technology pose challenges to the protection of individual privacy and intellectual property? Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm OBJECTIVES

5.3 © 2003 by Prentice Hall How have information systems affected everyday life?How have information systems affected everyday life? How can organizations develop corporate policies for ethical conduct?How can organizations develop corporate policies for ethical conduct? OBJECTIVES Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.4 © 2003 by Prentice Hall Understanding the moral risks of new technologyUnderstanding the moral risks of new technology Establishing corporate ethics policies that include information systems issuesEstablishing corporate ethics policies that include information systems issues MANAGEMENT CHALLENGES Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.5 © 2003 by Prentice Hall Principles of right and wrongPrinciples of right and wrong Can be used by individuals acting as free moral agents to make choices to guide their behaviorCan be used by individuals acting as free moral agents to make choices to guide their behavior UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm Ethics

5.6 © 2003 by Prentice Hall Illustrates the dynamics connecting ethical, social, and political issuesIllustrates the dynamics connecting ethical, social, and political issues Identifies the moral dimensions of the “information society,” across individual, social, and political levels of actionIdentifies the moral dimensions of the “information society,” across individual, social, and political levels of action A Model for Thinking about Ethical, Social, and Political Issues UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.7 © 2003 by Prentice Hall Information rights and obligationsInformation rights and obligations Property rightsProperty rights Accountability and controlAccountability and control System qualitySystem quality Quality of lifeQuality of life Moral Dimensions of the Information Age UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.8 © 2003 by Prentice Hall The Relationship between Ethical, Social, and Political Issues in an Information Society UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Figure 5-1 Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.9 © 2003 by Prentice Hall Computing power doubles every 18 months: Dependence on computer systemsComputing power doubles every 18 months: Dependence on computer systems Rapidly declining data storage costs: Easy maintenance of individual databaseRapidly declining data storage costs: Easy maintenance of individual database Key Technology Trends that Raise Ethical Issues UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.10 © 2003 by Prentice Hall Datamining advances: Analysis of vast quantities of dataDatamining advances: Analysis of vast quantities of data Networking advances and the Internet: Remotely accessing personal dataNetworking advances and the Internet: Remotely accessing personal data Key Technology Trends that Raise Ethical Issues UNDERSTANDING ETHICAL AND SOCIAL ISSUES RELATED TO SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.11 © 2003 by Prentice Hall Responsibility: Accepting the potential costs, duties, and obligations for decisionsResponsibility: Accepting the potential costs, duties, and obligations for decisions Accountability: Assessing responsibility for decisions made and actions takenAccountability: Assessing responsibility for decisions made and actions taken Basic Concepts: Responsibility, Accountability, and Liability ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.12 © 2003 by Prentice Hall Liability: Permits individuals to recover damagesLiability: Permits individuals to recover damages Due process: Laws are well-known and understood, with an ability to appeal to higher authoritiesDue process: Laws are well-known and understood, with an ability to appeal to higher authorities Basic Concepts: Responsibility, Accountability, and Liability ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.13 © 2003 by Prentice Hall Golden rule: Do unto others as you would have them do unto youGolden rule: Do unto others as you would have them do unto you Immanuel Kant’s categorical imperative: If an action is not right for everyone to take, then it is not right for anyoneImmanuel Kant’s categorical imperative: If an action is not right for everyone to take, then it is not right for anyone Candidate Ethical Principles ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.14 © 2003 by Prentice Hall Descartes’ rule of change: If an action cannot be taken repeatedly, then it is not right to be taken at any timeDescartes’ rule of change: If an action cannot be taken repeatedly, then it is not right to be taken at any time Utilitarian principle: Put values in rank order and understand consequences of various courses of actionUtilitarian principle: Put values in rank order and understand consequences of various courses of action Candidate Ethical Principles ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.15 © 2003 by Prentice Hall Risk aversion principle: Take the action that produces the least harm or incurs the least costRisk aversion principle: Take the action that produces the least harm or incurs the least cost Ethical “no free lunch” rule: All tangible and intangible objects are owned by creator who wants compensation for the workEthical “no free lunch” rule: All tangible and intangible objects are owned by creator who wants compensation for the work Candidate Ethical Principles ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.16 © 2003 by Prentice Hall Promises by professions to regulate themselves in the general interest of societyPromises by professions to regulate themselves in the general interest of society Promulgated by associations such as the American Medical Association (AMA) and the American Bar Association (ABA)Promulgated by associations such as the American Medical Association (AMA) and the American Bar Association (ABA) Professional Codes of Conduct ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.17 © 2003 by Prentice Hall Information system being used by organizations to: Minimize drains on productivityMinimize drains on productivity Prevent wastage of resources for non- business activitiesPrevent wastage of resources for non- business activities Some Real-World Ethical Dilemmas ETHICS IN AN INFORMATION SOCIETY Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.18 © 2003 by Prentice Hall Information Rights: Privacy and Freedom in the Internet Age Privacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or the statePrivacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or the state Fair information practices: Set of principles governing the collection and use of information on the basis of U.S. and European privacy lawsFair information practices: Set of principles governing the collection and use of information on the basis of U.S. and European privacy laws THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.19 © 2003 by Prentice Hall U.S. Federal Privacy Laws General Federal Privacy Laws Freedom of Information Act, 1968Freedom of Information Act, 1968 Privacy Act of 1974Privacy Act of 1974 Electronic Communications Privacy Act of 1986Electronic Communications Privacy Act of 1986 Computer Matching and Privacy Protection Act of 1988Computer Matching and Privacy Protection Act of 1988 Computer Security Act of 1987Computer Security Act of 1987 Federal Managers Financial Integrity Act of 1982Federal Managers Financial Integrity Act of 1982 THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.20 © 2003 by Prentice Hall The European Directive on Data Protection Informed consent Consent given with knowledge of all facts needed to make a rational decisionConsent given with knowledge of all facts needed to make a rational decision THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.21 © 2003 by Prentice Hall Cookies Tiny files deposited on a hard driveTiny files deposited on a hard drive Used to identify the visitor and track visits to the Web siteUsed to identify the visitor and track visits to the Web site THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Internet Challenges to Privacy Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.22 © 2003 by Prentice Hall Web bugs Tiny graphic files embedded in messages and Web pagesTiny graphic files embedded in messages and Web pages Designed to monitor on-line Internet user behaviorDesigned to monitor on-line Internet user behavior THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Internet Challenges to Privacy Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.23 © 2003 by Prentice Hall Opt-out model Informed consent permitting the collection of personal informationInformed consent permitting the collection of personal information Consumer specifically requests for the data not to be collectedConsumer specifically requests for the data not to be collected THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Internet Challenges to Privacy Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.24 © 2003 by Prentice Hall Opt-in model Informed consent prohibiting an organization from collecting any personal informationInformed consent prohibiting an organization from collecting any personal information Individual has to approve information collection and useIndividual has to approve information collection and use THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Internet Challenges to Privacy Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.25 © 2003 by Prentice Hall P3P Platform for Privacy Preferences ProjectPlatform for Privacy Preferences Project Industry standard designed to give users more control over personal informationIndustry standard designed to give users more control over personal information Technical Solutions THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.26 © 2003 by Prentice Hall Technical Solutions THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.27 © 2003 by Prentice Hall Under what conditions should the privacy of others be invaded?Under what conditions should the privacy of others be invaded? What legitimaizes intruding into others’ lives through unobtrusive surveillance, through market research, or by whatever means?What legitimaizes intruding into others’ lives through unobtrusive surveillance, through market research, or by whatever means? Ethical Issues THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.28 © 2003 by Prentice Hall Do we have to inform people that we are eavesdropping?Do we have to inform people that we are eavesdropping? Do we have to inform people that we are using credit history information for employment screening purposes?Do we have to inform people that we are using credit history information for employment screening purposes? THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm Ethical Issues

5.29 © 2003 by Prentice Hall Concerns the development of “expectations of privacy” or privacy norms, as well as public attitudesConcerns the development of “expectations of privacy” or privacy norms, as well as public attitudes Social Issues THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.30 © 2003 by Prentice Hall Concern the development of statutesConcern the development of statutes Govern the relations between record keepers and individualsGovern the relations between record keepers and individuals Political Issues THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.31 © 2003 by Prentice Hall Intellectual property: Intangible creations protected by lawIntellectual property: Intangible creations protected by law Trade secret: Intellectual work or product belonging to business, not in public domainTrade secret: Intellectual work or product belonging to business, not in public domain Property Rights: Intellectual Property THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.32 © 2003 by Prentice Hall Copyright: Statutory grant protecting intellectual property from getting copied for 28 yearsCopyright: Statutory grant protecting intellectual property from getting copied for 28 years Patents: Legal document granting the owner an exclusive monopoly on the ideas behind an invention for 20 yearsPatents: Legal document granting the owner an exclusive monopoly on the ideas behind an invention for 20 years Property Rights: Intellectual Property THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.33 © 2003 by Prentice Hall Ethical issues: Production of intellectual propertyEthical issues: Production of intellectual property Social issues: Current intellectual property laws breaking downSocial issues: Current intellectual property laws breaking down Political issues: Creation of new property protection measuresPolitical issues: Creation of new property protection measures Challenges to Intellectual Property Rights THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.34 © 2003 by Prentice Hall Ethical issues: Who is morally responsible for consequences of use?Ethical issues: Who is morally responsible for consequences of use? Social issues: What should society expect and allow?Social issues: What should society expect and allow? Political issues: To what extent should government intervene, protect?Political issues: To what extent should government intervene, protect? Accountability, Liability and Control THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.35 © 2003 by Prentice Hall System Quality: Data Quality and System Errors THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Ethical issues: At what point to release the software/services for consumption?Ethical issues: At what point to release the software/services for consumption? Social issues: Should people be encouraged to believe systems are infallible?Social issues: Should people be encouraged to believe systems are infallible? Political Issues: Laws of responsibility and accountabilityPolitical Issues: Laws of responsibility and accountability Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.36 © 2003 by Prentice Hall Balancing power center versus periphery: Key policy decisions centralized as in the pastBalancing power center versus periphery: Key policy decisions centralized as in the past Rapidity of change- Reduced response time to competition: Reduced normal social buffersRapidity of change- Reduced response time to competition: Reduced normal social buffers Quality of Life: Equity, Access, and Boundaries THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.37 © 2003 by Prentice Hall Maintaining boundaries: Family, work, and leisure: “Do anything anywhere” environment blurring boundaries between work and family timeMaintaining boundaries: Family, work, and leisure: “Do anything anywhere” environment blurring boundaries between work and family time Dependence and vulnerability: No regulatory or standard-setting forcesDependence and vulnerability: No regulatory or standard-setting forces Quality of Life: Equity, Access, and Boundaries THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.38 © 2003 by Prentice Hall Computer crime: Commission of illegal acts through the use of a computer or against a computer systemComputer crime: Commission of illegal acts through the use of a computer or against a computer system Computer abuse: Commission of acts involving a computer that may not be illegal but are considered unethicalComputer abuse: Commission of acts involving a computer that may not be illegal but are considered unethical Quality of Life: Equity, Access, and Boundaries THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.39 © 2003 by Prentice Hall Employment- Trickle-down technology and reengineering job loss: Causes millions of middle-level managers and clerical workers to lose their jobsEmployment- Trickle-down technology and reengineering job loss: Causes millions of middle-level managers and clerical workers to lose their jobs Equity and access- Increasing racial and social class cleavages: Society of computer literate and skilled, versus computer illiterate and unskilledEquity and access- Increasing racial and social class cleavages: Society of computer literate and skilled, versus computer illiterate and unskilled THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm Quality of Life: Equity, Access, and Boundaries

5.40 © 2003 by Prentice Hall Repetitive stress injury (RSI) Occupational diseaseOccupational disease Muscle groups are forced through repetitive actions with high-impact loads or thousands of repetitions with low impact loadsMuscle groups are forced through repetitive actions with high-impact loads or thousands of repetitions with low impact loads Health Risks: RSI, CVS, and Technostress THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.41 © 2003 by Prentice Hall Carpal tunnel syndrome (CTS) Type of RSIType of RSI Pressure on the median nerve through the wrist’s bony carpal tunnel structure produces painPressure on the median nerve through the wrist’s bony carpal tunnel structure produces pain Health Risks: RSI, CVS, and Technostress THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.42 © 2003 by Prentice Hall Computer vision syndrome (CVS) Eyestrain conditionEyestrain condition Related to computer display screen usageRelated to computer display screen usage Symptoms include headaches, blurred vision, and dry and irritated eyesSymptoms include headaches, blurred vision, and dry and irritated eyes Health Risks: RSI, CVS, and Technostress THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.43 © 2003 by Prentice Hall Technostress Stress induced by computer useStress induced by computer use Symptoms include aggravation, hostility toward humans, impatience, and enervationSymptoms include aggravation, hostility toward humans, impatience, and enervation Health Risks: RSI, CVS, and Technostress THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.44 © 2003 by Prentice Hall Information rights and obligationsInformation rights and obligations Property rights and obligationsProperty rights and obligations Accountability and controlAccountability and control System qualitySystem quality Quality of lifeQuality of life Management Actions: A Corporate Code of Ethics THE MORAL DIMENSIONS OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 5 Ethical and Social Issues in the Digital Firm

5.45 © 2003 by Prentice Hall 5 5 ETHICAL AND SOCIAL ISSUES IN THE DIGITAL FIRM Chapter