1. Ethical and Social Issues in the Digital Firm Chapter Four (10 th ed)

2. 2 Chapter Five Outline I. Introduction A. Relate to questions A. Relate to questions B. Meaning of ethics B. Meaning of ethics C. Technological trends/ethical issues C. Technological trends/ethical issues D. L&L’s framework D. L&L’s framework II. Information rights/Privacy A. Privacy and its origins A. Privacy and its origins B. Fair information practices B. Fair information practices C. Europe’s approach C. Europe’s approach D. Privacy and the Internet D. Privacy and the Internet E. Technical solutions E. Technical solutions F. Other privacy issues F. Other privacy issues G. Levels of privacy issues G. Levels of privacy issues III. Intellectual property A. Concept examples A. Concept examples B. Old protectors B. Old protectors C. Protection for software C. Protection for software D. Other intellectual property D. Other intellectual property E. Levels of intellectual prop issues E. Levels of intellectual prop issues IV. Accountability, liability, Control A. Nature of the issues A. Nature of the issues B. Liability for software B. Liability for software C. Liability for information services C. Liability for information services D. Levels of the issue D. Levels of the issue V. Quality A. Software and data A. Software and data B. Levels of the issue B. Levels of the issue VI. Quality of Life Issues VI. Quality of Life Issues A. Empowerment A. Empowerment B. Rapidity of change B. Rapidity of change C. Boundaries C. Boundaries D. Dependence/vulnerability D. Dependence/vulnerability E. Computer crime and abuse E. Computer crime and abuse F. Negative consequences F. Negative consequences 1. Reengineering 2. Health issues 3. Equity and access

3. 3 Chapter 5 and Our Questions What ethical, criminal and security issues do organizations face when using information systems? What ethical, criminal and security issues do organizations face when using information systems? Describe the ethical concerns associated with information privacy, accuracy, intellectual property, and accessibility Describe the ethical concerns associated with information privacy, accuracy, intellectual property, and accessibility Introduce the nature (and increased potential of) computer crime Introduce the nature (and increased potential of) computer crime Consider cross-border implications regarding privacy of data and integrity of Internet Consider cross-border implications regarding privacy of data and integrity of Internet

4. 4 What Are Ethics? Ethics are principles of right and wrong that can be used by individuals acting as free moral agents to make choices to guide their behavior Ethics are principles of right and wrong that can be used by individuals acting as free moral agents to make choices to guide their behavior Information technology is moving so fast that situations arise in which it is not clear what is ethical behavior Information technology is moving so fast that situations arise in which it is not clear what is ethical behavior Technology introduces capabilities that were impossible several years ago. This is particularly true with respect to information technologies and biotechnologies Technology introduces capabilities that were impossible several years ago. This is particularly true with respect to information technologies and biotechnologies

5. 5 What are the Main Features of Ethical Choice? Responsibility means that individuals accept the potential costs, duties, and obligations for their decisions Responsibility means that individuals accept the potential costs, duties, and obligations for their decisions Accountability means that mechanisms are in place to determine who is responsible for an action (social institutions) Accountability means that mechanisms are in place to determine who is responsible for an action (social institutions) Liability concerns laws that permit individuals to recover damages done to them by other individuals or systems (political institution) Liability concerns laws that permit individuals to recover damages done to them by other individuals or systems (political institution) Due process implies laws are well known and there is an appeal process to ensure that laws are applied correctly Due process implies laws are well known and there is an appeal process to ensure that laws are applied correctly

6. 6 Understanding Ethical And Social Issues Related To Systems (Laudon & Laudon framework)

7. 7 Specific Technology Trends That Raise Ethical Issues Computing power has been doubling every 18 months since early 80s enabling most firms to utilize computers for their core processes Computing power has been doubling every 18 months since early 80s enabling most firms to utilize computers for their core processes Rapidly declining storage costs make it possible to collect/store huge amounts of information on people at virtually no cost Rapidly declining storage costs make it possible to collect/store huge amounts of information on people at virtually no cost Advances in data analysis technology allow firms to develop detailed profiles of individual behavior Advances in data analysis technology allow firms to develop detailed profiles of individual behavior Networking advances and the Internet permit remote access and easy copying Networking advances and the Internet permit remote access and easy copying

8. 8 Nonobvious Relationship Awareness (NORA) Figure 5-2

9. 9 Information Rights: Privacy and Freedom in an Information Society Privacy concept - an individual has the right to be left alone, free from surveillance or interference from other individual, organizations, or the state Privacy concept - an individual has the right to be left alone, free from surveillance or interference from other individual, organizations, or the state Basis of privacy protection in the US Basis of privacy protection in the US first amendment (free speech and association) first amendment (free speech and association) fourth amendment (protection from unreasonable search) fourth amendment (protection from unreasonable search) Fair Information Practices (FIP) report from 1973 is the basis for numerous Federal statutes Fair Information Practices (FIP) report from 1973 is the basis for numerous Federal statutes Legislation has been proposed to protect personal information gathered over the Internet Legislation has been proposed to protect personal information gathered over the Internet

10. 10 FTC’s Fair Information Practice Principles* Notice/awareness – disclosure of practices before collecting data Notice/awareness – disclosure of practices before collecting data Choice/consent – opt in/opt out for consumers Choice/consent – opt in/opt out for consumers Access/participation – consumers can review and contest data for accuracy and completeness Access/participation – consumers can review and contest data for accuracy and completeness Security – data collectors must take steps to secure data for accuracy and unauthorized use Security – data collectors must take steps to secure data for accuracy and unauthorized use Enforcement – there must be a mechanism in place to enforce FIP principles Enforcement – there must be a mechanism in place to enforce FIP principles *These are guidelines not laws. *These are guidelines not laws.

11. 11 Europe’s Approach to Privacy Protection Europe’s notion of informed consent Europe’s notion of informed consent Safe harbor and its impact on US businesses with European customers Safe harbor and its impact on US businesses with European customers American laws are designed to protect citizens from privacy violations from government agencies, but private business is largely immune. American laws are designed to protect citizens from privacy violations from government agencies, but private business is largely immune. Europe protects its citizens from abuse both government and private business Europe protects its citizens from abuse both government and private business

12. 12 The Internet and Privacy Issues Monitoring and tracking is wide spread Monitoring and tracking is wide spread Web retailers have created huge demand for consumer personal information/behavior data Web retailers have created huge demand for consumer personal information/behavior data Methods of data collection Methods of data collection Customer registration and cookies Customer registration and cookies Web bugs Web bugs Spyware Spyware Opt-out and opt-in models of informed consent Opt-out and opt-in models of informed consent Industry self-regulation Industry self-regulation Online Privacy Alliance (Truste) Online Privacy Alliance (Truste) Network Advertising Initiative Network Advertising Initiative

13. 13 Technical Solutions to Protect Privacy Managing cookies (Internet Explorer) Managing cookies (Internet Explorer) Blocking pop ads based on user profiles Blocking pop ads based on user profiles Encrypting email or data (PGP) Encrypting email or data (PGP) Anonymous email Anonymous email Platform for privacy preferences (P3P) Platform for privacy preferences (P3P) To check for P3P with Internet Explorer, click on View/Privacy report To check for P3P with Internet Explorer, click on View/Privacy report Try with http://yahoo.com does use P3P, http://Amazon.com and http://google.com do not Try with http://yahoo.com does use P3P, http://Amazon.com and http://google.com do nothttp://yahoo.com http://Amazon.comhttp://google.comhttp://yahoo.com http://Amazon.comhttp://google.com

14. 14 Other Issues Related to Privacy of Information Under what conditions should the privacy of others be invaded? Under what conditions is it legitimate to intrude into others’ lives through unobtrusive surveillance, through market research, or by whatever means? 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?

15. 15 Levels of the Privacy Issues Ethical issues (individual) Ethical issues (individual) Under what conditions do you invade the privacy of others? Do you inform them beforehand? Under what conditions do you invade the privacy of others? Do you inform them beforehand? Social issues (society) Social issues (society) Expectations of privacy Expectations of privacy Political (legislation) Political (legislation) What laws do we want to govern the relations between record keepers and individuals? What data should the FBI be allowed to collect? What laws do we want to govern the relations between record keepers and individuals? What data should the FBI be allowed to collect?

16. 16 Property Rights: Intellectual Property Intellectual property - intangible property created by individuals or corporations which is subject to protections under trade secret, copyright, or patent Intellectual property - intangible property created by individuals or corporations which is subject to protections under trade secret, copyright, or patent Challenges to intellectual property rights Challenges to intellectual property rights copying programs (look and feel issues) copying programs (look and feel issues) digital versions of books, video, and audio make it easy to alter, copy, and transmit digital versions of books, video, and audio make it easy to alter, copy, and transmit networks make it easy to copy and distribute to millions networks make it easy to copy and distribute to millions

17. 17 Protection for Intellectual Property Protection of intellectual property is protected: Protection of intellectual property is protected: Trade secret: Intellectual work or product belonging to business, not in the public domain Copyright: Statutory grant protecting intellectual property from being copied for the life of the author, plus 70 years A grant to the creator of an invention granting the owner an exclusive monopoly on the ideas behind an invention for 20 years Patents: A grant to the creator of an invention granting the owner an exclusive monopoly on the ideas behind an invention for 20 years

18. 18 Protection for Software Source and object code cannot be copied Source and object code cannot be copied Purchase of software permits the purchaser to use the software, but creator retains title Purchase of software permits the purchaser to use the software, but creator retains title Underlying ideas of software are not protected Underlying ideas of software are not protected Look and feel copyright infringement Look and feel copyright infringement n distinction between an idea and an expression n merger of an idea and an expression

19. 19 Other Intellectual Property Issues Music Music Napster Napster Other illegal file sharing Other illegal file sharing Movies Movies Content on Web pages Content on Web pages Digital Millennium Copyright Act provides some protection because it makes it illegal to make, distribute, or use devices that circumvent technology-based copyright protection Digital Millennium Copyright Act provides some protection because it makes it illegal to make, distribute, or use devices that circumvent technology-based copyright protection

20. 20 Levels of the Intellectual Property Issues Ethical issue (individuals) Ethical issue (individuals) Should you copy? Should you copy? Social issue (society) Social issue (society) the ease of copying is making us a society of lawbreakers; people freely admit to copying the ease of copying is making us a society of lawbreakers; people freely admit to copying Political issues (laws) Political issues (laws) Can creators of digital products be protected by law? Can creators of digital products be protected by law? Cultural clashes with Western ideas of intellectual property Cultural clashes with Western ideas of intellectual property Software should be free or paid for voluntarily contributions Software should be free or paid for voluntarily contributions

21. 21 Accountability, Liability, and Control New technology challenges existing liability law and social practices for holding individuals and orgs accountable for the creation and sale of new IS/IT products and services New technology challenges existing liability law and social practices for holding individuals and orgs accountable for the creation and sale of new IS/IT products and services Examples Examples n If a person is injured by a machine controlled by software, who is liable? n Should electronic services like America-On- line be held accountable for offensive material on their Web site? n If you outsource your information processing, can you hold your external vendor liable for damages to your customers?

22. 22 Liability and Software Some software may be part of a machine Some software may be part of a machine Some software acts more like a book storing and displaying information Some software acts more like a book storing and displaying information Software as a service (ATM) Software as a service (ATM) Difficult to hold software producer liable when the product is considered like a book Difficult to hold software producer liable when the product is considered like a book

23. 23 Liability of Electronic Information Services Are such services liable for the content of their transmissions? Are such services liable for the content of their transmissions? Telephone companies are not liable for their transmissions Telephone companies are not liable for their transmissions Radio and television are liable Radio and television are liable What should we do with respect to the Internet, America-On-line ? What should we do with respect to the Internet, America-On-line ? What happens when one company provides telephone, cable, and Internet access services over one wire? What happens when one company provides telephone, cable, and Internet access services over one wire? Communications Decency Act Communications Decency Act

24. 24 Levels of the Accountability, Liability, and Control Issues Ethical issue (individuals) Ethical issue (individuals) Are individuals and organizations that create, produce, and sell information systems morally responsible for the consequences of their use? Are individuals and organizations that create, produce, and sell information systems morally responsible for the consequences of their use? If so under what conditions? If so under what conditions? Social issue (society) Social issue (society) What should our expectations be? Should the developer of the service be responsible for harm or should the organization that purchased the service be held accountable? What should our expectations be? Should the developer of the service be responsible for harm or should the organization that purchased the service be held accountable? Political issues (laws) Political issues (laws) Should legislation impose liability or restrict liability on service providers? Should legislation impose liability or restrict liability on service providers?

25. 25 Systems Quality: Data Quality and System Errors All software has bugs; not all bugs can be found before releasing software; seriousness of remaining bugs is unknown All software has bugs; not all bugs can be found before releasing software; seriousness of remaining bugs is unknown No database is without errors. In fact, most consumer and government personal information databases have errors ranging from 10-20% of the data records being either inaccurate, incomplete, or ambiguous. How should decision makers treat this kind of information in order to be fair to data subjects?

26. 26 Levels of the System Quality Issue Ethical issue is: At what point do you release software or services for consumption by others? Ethical issue is: At what point do you release software or services for consumption by others? Societal issue: What should society expect about software and systems? Infallibility is unreasonable. Societal issue: What should society expect about software and systems? Infallibility is unreasonable. Political issue: Should there be laws holding firms accountable/liable? Political issue: Should there be laws holding firms accountable/liable? Should there be quality standards? Who develops them? Should there be quality standards? Who develops them?

27. 27 Quality of Life: Equity, Access, Boundaries Negative consequences of IS/IT Negative consequences of IS/IT Empowerment - much of the decentralization of decision making has been trivial; Is Big Brother really here? Empowerment - much of the decentralization of decision making has been trivial; Is Big Brother really here? Rapidity of change Rapidity of change Boundaries between family, work, and leisure Boundaries between family, work, and leisure Dependence and vulnerability Dependence and vulnerability Computer crime and abuse Computer crime and abuse Abuse is the commission of acts involving a computer that may not be illegal but are considered unethical (e.g., spam?) Abuse is the commission of acts involving a computer that may not be illegal but are considered unethical (e.g., spam?) Computer Fraud and Abuse Act of 1986 Computer Fraud and Abuse Act of 1986

28. 28 Quality of Life: Equity, Access, Boundaries (continued) Negative consequences of IS/IT Negative consequences of IS/IT Technology and re-engineering job loss Technology and re-engineering job loss Equity and access (do all members of society have equal access to IS/IT) Equity and access (do all members of society have equal access to IS/IT) Health risks Health risks RSI RSI CVS CVS Technostress Technostress

29. 29 Conducting An Ethical Analysis Identify and clearly describe the facts Identify and clearly describe the facts Define the conflict and identify the higher order values involved Define the conflict and identify the higher order values involved Identify the stakeholders Identify the stakeholders Identify the options that you can reasonably take Identify the options that you can reasonably take Identify the potential consequences of your options Identify the potential consequences of your options

30. 30 Management Actions Regarding IS and Ethics Most firms do not have an IS-specific code of ethics Most firms do not have an IS-specific code of ethics Disagreement whether an IS-specific code is needed or a more general code of ethics Disagreement whether an IS-specific code is needed or a more general code of ethics L&L recommend an IS-specific code of ethics that addresses each of the five ethical issues L&L recommend an IS-specific code of ethics that addresses each of the five ethical issues

31. 31 Links Related to Privacy and Ethics The Electronic Privacy Information Center (EPIC) The Electronic Privacy Information Center (EPIC)EPIC This site shows how easy it is to get private information about people (stalkers) This site shows how easy it is to get private information about people (stalkers)stalkers This is the home page for Computer Professionals for Social Responsibility (CPSR) This is the home page for Computer Professionals for Social Responsibility (CPSR)CPSR