Ethics in Information Technology, Second Edition*Ethics in Information Technology, Second EditionChapter 1An Overview of Ethics

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*ObjectivesWhat is ethics, and why is it important to act according to a code of principles?

Why is business ethics becoming increasingly important?

What are corporations doing to improve business ethics?

Why are corporations interested in fostering good business ethics?Book Page 2

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Objectives (continued)What approach can you take to ensure ethical decision making?

What trends have increased the risk of using information technology unethically?Book Page 2

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*What is Ethics?Moral codeSet of rules Establishes boundaries of generally accepted behaviorDifferent rules often have contradictionsMoralitySocial conventions about right and wrongWidely sharedBook Page 3

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*What is Ethics? (continued)Morality may vary by:AgeCultural groupEthnic backgroundReligionGender

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Definition of EthicsEthics - set of beliefs about right and wrong behaviorEthical behavior conforms to generally accepted social normsVirtues - Habits that incline people to do what is acceptableVices - Habits of unacceptable behaviorValue system - Scheme of moral valuesBook Page 3-4

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*The Importance of IntegrityIntegrity is a cornerstone of ethical behaviorPeople with integrity Act in accordance with a personal code of principlesExtend to all people the same respect and consideration that you desireApply the same moral standards in all situationsBook Page 4

Ethics in Information Technology, Second Edition

The Difference Between Morals, Ethics, and LawsMorals are ones personal beliefs about right and wrong, while the term ethics describe standards or codes of behavior expected of an individual by a group (nation, organization, profession) to which an individual belongs.Law is a system of rules that tells us what we can and cannot do. Laws are enforced by a set of institutions (the police, courts, law-making bodies). Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Ethics in the Business WorldRisk is the product of multiplying the likelihood of an event by the impact of its occurrenceRisks associated with inappropriate behavior have increased due toGlobalizationHeightened vigilance by EmployeesShareholders Regulatory agencies

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Ethics in the Business World (continued)Recent scandals in IT companiesWorldComQwest Communications International Inc.Adelphia Communications Corp.Computer Associates (CA)Book Page 5-6

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Legal Overview: SOX - The Sarbanes-Oxley ActEnacted in response to public outrage over several major accounting scandalsSection 404 requires that the CEO and CFO sign any SEC filing to attest to its accuracyPublic Company Accounting Oversight Board (PCAOB) provides oversight for auditors of public companiesIT organizations must build controls that ensure information stands up to audit scrutinyBook Page 6-7

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Why Fostering Good Business Ethics Is ImportantNote: Slide on each item followsTo gain the goodwill of the communityTo create an organization that operates consistentlyTo produce good businessTo protect the organization and its employees from legal actionTo avoid unfavorable publicityBook Page 8

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Gaining the Goodwill of the CommunityBasic responsibilities to societyDeclared in formal statement of companys principles or beliefsInclude:Making contributions to charitable organizations and nonprofit institutionsProviding benefits for employees in excess of legal requirementsChoosing economic opportunities that might be more socially desirable than profitableBook Page 8-9

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Gaining the Goodwill of the Community (continued)Goodwill that socially responsible activities create can make it easier for corporations to conduct business

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Creating an Organization That Operates ConsistentlyMany business values include:Operating with honesty and integrity, staying true to corporate principlesOperating according to standards of ethical conduct, in words and actionTreating colleagues, customers, and consumers with respectStriving to be the best at what matters most to the companyAccepting personal responsibility for actionsValuing diversityMaking decisions based on facts and principlesBook Page 9

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Good Ethics Can Mean Good BusinessProduce safe and effective products Avoid costly recalls and lawsuitsProvide excellent service Maintain customersDevelop and maintain strong employee relations Suffer less turnoverEnjoy better employee moraleBook Page 9

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Good Ethics Can Mean Good Business (continued)Suppliers and other business partners prefer companies that operate in a fair and ethical mannerBad ethics can lead to bad business results

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Protecting the Corporation and Its Employees from Legal ActionsU.S. Justice Department sentencing guidelines suggest more lenient treatment for convicted executives if their companies had ethics programsFines for criminal violations can be lowered by up to 80 percent if the organization has implemented an ethics management program and cooperates with authorities

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Avoiding Unfavorable PublicityPublic reputation of company strongly influences Value of its stockHow consumers regard products and servicesDegree of oversight received from government agenciesAmount of support and cooperation received from business partnersBook Page 10

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Improving Corporate EthicsRisks of unethical behavior are increasingImprovement of business ethics is becoming more important

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Appointing a Corporate Ethics OfficerCorporate ethics definition includesEthical conductLegal complianceCorporate social responsibilityCorporate ethics officer Is a senior-level manager Provides vision and direction in the area of business conductTries to establish an environment that encourages ethical decision makingBook Page 11

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Appointing a Corporate Ethics Officer (continued)Responsibilities include:Complete oversight of the ethics functionCollecting and analyzing dataDeveloping and interpreting ethics policyDeveloping and administering ethics education and trainingOverseeing ethics investigationsBook Page 11

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Ethical Standards Set by Board of DirectorsBoard responsible for supervising management teamDirectors of company are expected to Conduct themselves according to the highest standards of personal and professional integritySet standard for company-wide ethical conduct Ensure compliance with laws and regulationsBook Page 11-12

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Establishing a Corporate Code of EthicsCode of ethics: Highlights an organizations key ethical issues Identifies overarching values and principles important to an organizationFocuses employees on areas of ethical riskCannot gain company-wide acceptance unless Developed with employee participation Fully endorsed by organizations leadershipMust continually be applied to companys decision makingBook Page 12

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Corporate Satisfaction with their Codes of EthicsBook Page 13

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Conducting Social AuditsSocial auditIdentifies ethical lapses committed in the past Sets directives for avoiding similar missteps in the future

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Requiring Employees to Take Ethics TrainingComprehensive ethics education program encourages employees to act responsibly and ethicallyOften presented in small workshop formatsPrinciple-based decision making is based on principles in corporate code of ethicsBook Page 14

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Including Ethical Criteria in Employee AppraisalsSome companies base a portion of employee performance evaluations on: Treating others fairly and with respectOperating effectively in a multicultural environmentAccepting personal accountabilityContinually developing themselves and othersOperating openly and honestly with suppliers, customers, and other employeesBook Page 14

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*When Good Ethics Result in Short-Term LossesOperating ethically does not always guarantee business successOrganizations that operate outside the United StatesDeal with a business as usual climateAre placed at a significant competitive disadvantageHope good ethics will prove to be good business in the long termBook Page 15

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Creating an Ethical Work EnvironmentGood employees sometimes make bad ethical choicesMay be encouraged to do whatever it takes to get the job doneEmployees must have a knowledgeable and potent resource available to discuss perceived unethical practices

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Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*How Management Can Affect Employees Ethical BehaviourBook Page 16

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*How Management Can Affect Employees Ethical Behaviour (continued)Book Page 16

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Managers ChecklistBook Page 16

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*7 Steps to Ethical Decision MakingDevelop a Problem StatementIdentify alternativesEvaluate and choose alternativeImplement DecisionEvaluate the Results

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Ethics in Information Technology, Second Edition

Develop a Problem Statement

A problem statement is a clear concise, description of the issue that needs to be addressed. Development of a problem is the most critical step in decision-making process. Gather and analyze facts to develop a good problem statementSeek information and opinions from a variety of people to broaden frame of referenceCareful not to make assumptions about the situation.

Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Identify alternatives

It is ideal to enlist the help of others, including stakeholders, to identify alternative solutions to the problemBrainstorming with just another one person will reduce your chances of identifying a broad range of alternatives and determining the best solution Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Evaluate and choose alternative

Once a set of alternatives of been identified, the group attempts to evaluate them based on numerous criteriaEffectiveness at addressing the issueThe extent of risk associated with each alternative, cost, and time to implementAn alternative that sounds attractive but that is not feasible will not help solve the problemAs part of the evaluation process, weigh various laws, guidelines, and principles, that may apply.

Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Philosophical Theories for Ethical Decision MakingBook Page 18-20

Ethics in Information Technology, Second Edition

Implement Decision

Once the alternatives is selected, it should be implemented in an efficient, effective, and timely manner.This much easier said than done, since people tent to resist change.In fact, the bigger the change, the greater is the resistance to it.Communication is the key to helping people accept a change.Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Evaluate the Results

After the solution to the problem has been implemented, monitor the results to see if the desired effect was achieved, and observe its impact on the organization and various stakeholders.Ethics in Information Technology, Second Edition*

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Ethics in Information TechnologyPublic concern about the ethical use of information technology includes:E-mail and Internet access monitoringPeer-to-peer networks violation of copyrightUnsolicited e-mailHackers and identify theftPlagiarismCookies and spywareBook Page 20

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Ethics in Information Technology (continued)The general public has not realized the critical importance of ethics as applied to ITImportant technical decisions are often left to technical expertsGeneral business managers must assume greater responsibility for these decisionsThey must be able to make broad-minded, objective, ethical decisions based on technical savvy, business know-how, and a sense of ethicsThey must also try to create a working environment in which ethical dilemmas can be discussed openly, objectively, and constructivelyBook Page 20

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*An Overview of This TextChapter 2 Ethics is important to IT professionals and IT usersChapter 3 Computer crimeChapter 4 Personal data privacy Employee monitoringBook Page 21

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*An Overview of This Text (continued)Chapter 5 Internet communications Freedom of expressionChapter 6 Protection of intellectual property rights through patents, copyrights, and trade secretsChapter 7 Software development processBook Page 21

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*An Overview of This Text (continued)Chapter 8 Use of nontraditional employeesImplications of whistle-blowingChapter 9 Impact of IT on societyBook Page 21

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*SummaryEthics is a set of beliefs about right and wrong behaviorEthics in business is becoming more important because the risks associated with inappropriate behavior have grown Corporations want to protect themselves and their employees from legal actionBook Page 22

Ethics in Information Technology, Second Edition

Ethics in Information Technology, Second Edition*Summary (continued)5-step approach to ethical decision makingTrends contributing to the risk of using information technology unethically include:Growth of the InternetAbility to capture and store vast amounts of personal data onlineGreater reliance on information systemsBook Page 22

Ethics in Information Technology, Second Edition

****People are sometimes uncertain about which rule to follow. For instance, if you witness a friend copy someone elses answers while taking an exam, you might be caught in a conflict between loyalty to your friend and the value of telling the truth.*There is widespread agreement on the immorality of murder, theft and arson, but other behaviors that are accepted in one culture might be unacceptable in another. Even within the same society, people can have strong disagreements over important moral issues. In the US, issues such as abortion, the death penalty and gun control are continuously debated and both sides feel that their arguments are on solid moral ground.*For example, attitudes toward software piracy that is, the practice of illegally making copies of software or enabling others to access software to which they are not entitled range from strong opposition to acceptance of the practice as a standard approach to conducting business.*For example, you might believe it is important to do as your employer requests while also believing that you should be fairly compensated for your work. Thus, if your employer insists that you do not report the overtime hours that you have worked due to budget constraints, a moral conflict arises. You can do as your employer requests or you can insist on being fairly compensated, but you cannot do both. In this situation, you may be forced to compromise one of your principles and act with an apparent lack of integrity.For example you might consider it morally acceptable to tell a little white lie to spare a friend some pain or embarrassment, but would you lie to a work colleague or customer about a business issue to avoid unpleasantness? *************The Ethics Resource Center has define the following characteristics of a successful ethics program:Employees are willing to seek advice about ethics issues.Employees feel prepared to handle situations that could be lead to misconduct.Employees are rewarded for ethical behavior.The organization does not reward success obtained through questionable means.Employees feel positively about their company.*Specific responsibilities include:Responsibility for compliance Responsibility for creating and maintaining the ethics cultureResponisbility for being a key knowledge and contact person*********************