Chapter 5Ethical Implications of Ethical Implications of

Information TechnologyInformation Technology

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod and George Schell

Copyright 2001 Prentice-Hall, Inc.5-1

Socially Conscionable Socially Conscionable CitizensCitizens

MoralsMorals– Traditions of right and wrongTraditions of right and wrong

EthicsEthics– Suite of guiding beliefs, standards, or ideals Suite of guiding beliefs, standards, or ideals

that promote an individual or communitythat promote an individual or community LawsLaws

– Formal rules of conduct that a sovereign Formal rules of conduct that a sovereign authority imposes on its citizensauthority imposes on its citizens

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Pirated SoftwarePirated Software

Software that is illegally copied and then Software that is illegally copied and then used or soldused or sold– 35% in U.S.35% in U.S.– 92% in Japan92% in Japan– 99% in Thailand99% in Thailand

Some cultures encourage sharingSome cultures encourage sharing

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Laws Lag BehindLaws Lag Behind

First computer crimeFirst computer crime– In 1966, a programmer used computer code to keep In 1966, a programmer used computer code to keep

his checking account from being flagged as his checking account from being flagged as overdrawn. overdrawn.

– When the bank discovered the crime the When the bank discovered the crime the programmer could not be charged with a computer programmer could not be charged with a computer crime because no computer crime law existed. crime because no computer crime law existed.

– He was charged with making false bank records.He was charged with making false bank records.

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U.S. Computer LegislationU.S. Computer Legislation

Freedom of Information Act of 1966Freedom of Information Act of 1966– Gave citizens and organizations the right to Gave citizens and organizations the right to

access data held by the federal governmentaccess data held by the federal government Fair Credit Reporting Act of 1970Fair Credit Reporting Act of 1970

– Dealt with handling of credit dataDealt with handling of credit data Right to Federal Privacy Act of 1978Right to Federal Privacy Act of 1978

– Limited government’s ability to search bank Limited government’s ability to search bank recordsrecords

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U.S. Computer Legislation U.S. Computer Legislation (cont.)(cont.)

Small Business Computer Security and Small Business Computer Security and Education Act (1984) Education Act (1984) – Advises Congress on matters relating to computer Advises Congress on matters relating to computer

crime against small businessescrime against small businesses Counterfeit Access Device and Computer Counterfeit Access Device and Computer

Fraud and Abuse ActFraud and Abuse Act– Makes it a crime to gain unauthorized information Makes it a crime to gain unauthorized information

pertaining to national security or foreign relations pertaining to national security or foreign relations and provides other protectionand provides other protection

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U.S. Computer Legislation U.S. Computer Legislation (cont.)(cont.)

In 1986, Electronic Communications Privacy In 1986, Electronic Communications Privacy Act was rewritten to cover digital, data, and Act was rewritten to cover digital, data, and video communicationsvideo communications– Included special section on emailIncluded special section on email

Computer Matching and Privacy Act of 1988 Computer Matching and Privacy Act of 1988 – Restricts government’s right to match computer Restricts government’s right to match computer

files for the purpose of determining eligibility for files for the purpose of determining eligibility for government programs or identifying debtorsgovernment programs or identifying debtors

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Imposing an Ethics CultureImposing an Ethics Culture Corporate credoCorporate credo

– Succinct statement of values a firm seeks to upholdSuccinct statement of values a firm seeks to uphold Ethics programsEthics programs

– System of multiple activities designed to provide System of multiple activities designed to provide employees with direction in carrying out corporate employees with direction in carrying out corporate credocredo

Tailored corporate codesTailored corporate codes– Codes of ethics for a particular organization or Codes of ethics for a particular organization or

industryindustry

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2. Establishethics

programs

3. Establish corporate

ethics code

1. Establishcorporate

credo

Top-level Management

Imposes the Ethics Culture

In a Top-down Manner

An EthicsCulture

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Example of a Corporate Example of a Corporate CredoCredo

Commitment to customer: The first commitment is to provide our customers withquality products and services that are innovative and technologically responsive to their current requirementsat appropriate prices. To perform these tasks with integrityrequires that we maintain confidentiality and protectcustomer privacy, promote customer satisfaction, andserve customer needs. We strive to serve qualifiedcustomers and industries that are socially responsibleaccording to broadly accepted community and companystandards.

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Ethics AuditEthics Audit

Internal auditor meets with a manager for Internal auditor meets with a manager for the purpose of learning how the manager’s the purpose of learning how the manager’s unit is carrying out the corporate credounit is carrying out the corporate credo

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Computer EthicsComputer Ethics

Analysis of the nature and social impact of Analysis of the nature and social impact of computer technology as well as computer technology as well as corresponding formulation and justification corresponding formulation and justification of policies for the ethical use of such of policies for the ethical use of such technologytechnology

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Responsibility for Responsibility for Computer EthicsComputer Ethics

CIO holds primary responsibilityCIO holds primary responsibility CIO Must:CIO Must:

– Be aware of how the computer is affecting Be aware of how the computer is affecting societysociety

– Do something about this by formulating Do something about this by formulating policies to ensure technology is being used in policies to ensure technology is being used in the right waythe right way

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Importance of Computer Importance of Computer EthicsEthics

Logical malleabilityLogical malleability– Ability to program computer to do anything you want Ability to program computer to do anything you want

it to doit to do The transformation factorThe transformation factor

– Computers can change the way things are doneComputers can change the way things are done The invisibility factorThe invisibility factor

– Invisible programmingInvisible programming– Invisible complex calculationsInvisible complex calculations– Invisible abuseInvisible abuse

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Rights to the ComputerRights to the Computer

Right to computer accessRight to computer access Right to computer skillsRight to computer skills Right to computer specialistsRight to computer specialists Right to computer decision makingRight to computer decision making

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Rights to InformationRights to Information

Right to privacyRight to privacy

Right to accuracyRight to accuracy

Right to propertyRight to property

Right to accessRight to access

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Social Contract of ISSocial Contract of IS• The computer will not be used to unduly invade The computer will not be used to unduly invade

a person’s privacya person’s privacy• Every measure will be taken to ensure the Every measure will be taken to ensure the

accuracy of computer processingaccuracy of computer processing• The sanctity of intellectual property will be The sanctity of intellectual property will be

protectedprotected• The computer will be made accessible to society The computer will be made accessible to society

so that its members can avoid the indignities of so that its members can avoid the indignities of information illiteracy and deprivationinformation illiteracy and deprivation

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Ethics and the CIOEthics and the CIO

Perceptions of the CIO’s EthicsPerceptions of the CIO’s Ethics– Do not take advantage of opportunities to act Do not take advantage of opportunities to act

unethicallyunethically– Ethics breeds successEthics breeds success– Firms and managers have social responsibilitiesFirms and managers have social responsibilities– Managers back up their ethics beliefs with Managers back up their ethics beliefs with

actionaction

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The CIO is Influenced by aThe CIO is Influenced by aHierarchy of FactorsHierarchy of Factors

Office of theCIO

LawsLaws

CorporateCorporateethics cultureethics culture

SocialSocialpressurepressure

ProfessionalProfessionalcodes of ethicscodes of ethics

PersonalPersonalpressurespressures

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CIOs Usually Do Not Act CIOs Usually Do Not Act UnethicallyUnethically

There are many opportunities for 47.5 37.7 MIS managers in my company to engage in unethical behavior.

MIS managers in my company 19.7 80.3 engage in behaviors that I consider to be unethical.

Question Agree Disagree

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Ethics and SuccessEthics and Success

PercentPercent PercentPercent

QuestionQuestion AgreeAgree DisagreeDisagree

Successful MIS managers in my company are Successful MIS managers in my company are

generally more ethical than unsuccessful generally more ethical than unsuccessful

managers. managers. 73.8 13.1 73.8 13.1

In order to succeed in my company it is In order to succeed in my company it is

often necessary to compromise one's ethics. often necessary to compromise one's ethics. 18.0 75.4 18.0 75.4

Successful managers in my company withhold Successful managers in my company withhold

information that is detrimental to their information that is detrimental to their

self-interest. self-interest. 21.3 50.8 21.3 50.8

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Ethics (cont.)Ethics (cont.) PercentPercent PercentPercent

QuestionQuestion AgreeAgree DisagreeDisagree

Successful managers in my company make Successful managers in my company make

rivals look bad in the eyes of important rivals look bad in the eyes of important

people in my company. people in my company. 23.0 59.0 23.0 59.0

Successful managers in my company look for Successful managers in my company look for

a scapegoat when they feel they may be a scapegoat when they feel they may be

associated with failure. associated with failure. 23.0 67.2 23.0 67.2

Successful managers in my company take Successful managers in my company take

credit for the ideas and accomplishments credit for the ideas and accomplishments

of others. of others. 16.4 75.416.4 75.4

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Corporate Social Corporate Social ResponsibilityResponsibility

PercentPercent PercentPercent

QuestionQuestion AgreeAgree DisagreeDisagree

The socially responsible manager must The socially responsible manager must

occasionally place the interests of society occasionally place the interests of society

over the interests of the company. over the interests of the company. 68.9 21.3 68.9 21.3

The fact that corporations have great The fact that corporations have great

economic power in our society means that they economic power in our society means that they

have a social responsibility beyond the have a social responsibility beyond the

interests of the shareholders. interests of the shareholders. 96.7 3.3 96.7 3.3

As long as corporations generate acceptable As long as corporations generate acceptable

shareholder returns, managers have a social shareholder returns, managers have a social

responsibility beyond the interests of responsibility beyond the interests of

shareholders. shareholders. 70.5 16.470.5 16.45-23

Achieving an Ethical Achieving an Ethical Computer OperationComputer Operation

1. 1. Formulate a code of conduct.Formulate a code of conduct.

2. 2. Establish rules of procedure relating to such Establish rules of procedure relating to such issues as personal use of computer services and issues as personal use of computer services and proprietary rights to computer programs and data.proprietary rights to computer programs and data.

3. 3. Make clear the sanctions that will be taken Make clear the sanctions that will be taken against offenders-such as reprimands, against offenders-such as reprimands, termination, and civil action.termination, and civil action.

4. 4. Recognize ethical behavior.Recognize ethical behavior.

5-24Parker’s 10-Step Action Plan

Achieving an Ethical Achieving an Ethical Computer Operation (cont.)Computer Operation (cont.)5. 5. Focus attention on ethics by means of such Focus attention on ethics by means of such

programs as training sessions and required reading.programs as training sessions and required reading.

6. 6. Promote computer crime laws by keeping Promote computer crime laws by keeping employees informed.employees informed.

7. 7. Keep a formal record that establishes accountability Keep a formal record that establishes accountability of each information specialist for her or his actions, of each information specialist for her or his actions, and also minimizes the temptations for violations and also minimizes the temptations for violations by means of such programs as ethics audits.by means of such programs as ethics audits.

5-25Parker’s 10-Step Action Plan

Achieving an Ethical Achieving an Ethical Computer Operation (cont.)Computer Operation (cont.)

8. 8. Encourage the use of rehabilitation programs that Encourage the use of rehabilitation programs that treat ethics violators in the same way that treat ethics violators in the same way that corporations show concern for the recovery of corporations show concern for the recovery of alcoholics or drug offenders.alcoholics or drug offenders.

9. 9. Encourage participation in professional societies.Encourage participation in professional societies.

10. 10. Set an example.Set an example.

5-26Parker’s 10-Step Action Plan

Ethics PerspectiveEthics Perspective

Severe social problems exist because Severe social problems exist because government and business organizations government and business organizations have failed to uphold the highest ethical have failed to uphold the highest ethical standards in computer usestandards in computer use– Invasion of privacyInvasion of privacy– Software piracySoftware piracy

CIOs can make a differenceCIOs can make a difference

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An Information Services An Information Services Code of ConductCode of Conduct

Conduct all activities in a manner that Conduct all activities in a manner that precludes any form of dishonestyprecludes any form of dishonesty

Avoid any act that compromises integrityAvoid any act that compromises integrity Avoid any act that might create a dangerous Avoid any act that might create a dangerous

situationsituation Not use alcohol or drugs while at workNot use alcohol or drugs while at work

5-28See Figure 5.4

An Information Services An Information Services Code of Conduct (cont.)Code of Conduct (cont.)

Maintain courteous and professional Maintain courteous and professional relations with users, associates, and relations with users, associates, and supervisorssupervisors

Adhere to the no-solicitation rule and any Adhere to the no-solicitation rule and any other employment policyother employment policy

5-29See Figure 5.4

An Information Services An Information Services Code of Conduct (cont.)Code of Conduct (cont.)

Protect confidentiality of sensitive Protect confidentiality of sensitive information about the organization’s information about the organization’s competitive position, trade secrets, or assetscompetitive position, trade secrets, or assets

Exercise sound business practice in the Exercise sound business practice in the management of such company resources management of such company resources such as personnel, computer use, outside such as personnel, computer use, outside services, travel, and entertainmentservices, travel, and entertainment

5-30See Figure 5.4

SummarySummary

Morals, laws, and ethics govern behaviorMorals, laws, and ethics govern behavior Early yearsEarly years

– No computer lawsNo computer laws– Easy to bypass regulationEasy to bypass regulation

Executives impose ethical cultureExecutives impose ethical culture Computer ethics require executive to put Computer ethics require executive to put

proper policies in placeproper policies in place

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Summary [cont.]Summary [cont.]

Society places importance on computer Society places importance on computer ethicsethics– Logical malleabilityLogical malleability– Transforming ways of livingTransforming ways of living– Processes are hidden from viewProcesses are hidden from view

Societal rights in relation to the computerSocietal rights in relation to the computer

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