Ethical and social issues in the digital firm

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5 Chapter 5 Ethical and Social Issues in the Digital Firm 5.1 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا هه . 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? . Why does contemporary information systems technology pose challenges to the protection of individual privacy and intellectual property? ©0006 by Prevace “I 5.2 

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0 موی ات ما بط مب يفا سوه How have information systems affected everyday life? How can organizations develop corporate policies for ethical conduct? ©0006 by Prevace “I 55 

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0 موی ات ما بط مب يفا Oe Ola ree 1. Understanding the moral risks of new technology 2. Establishing corporate ethics policies that include information systems issues 5.4 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا CRC Roel MERC te ar ® Oocel Por Thichtoy bout Ciicd, Govid, wad Policd Issues * Ethics: Principles of right and wrong that can be used by individuals acting as free moral agents to make choices to guide their behavior * View shock of new information technology as a “rock thrown into a pond.” 55 ©0008 by Prevece ‏ادنلا"‎ 

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هو ای مود و ما و ‎ag‏ ۱ CRC Roel MERC te ar Dhe rehtocehip betwee ehicd, sortd, ocd pohicd baer ia ‏رت مس‎ ماه وضو 4 سبه ‎ty Preece Wd‏ 2006© 5.6 

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0 موی ات ما بط مب يفا CRC Roel MERC te ar ord Onrewtow oP te kPorwton Or * Information rights and obligations * Property rights and obligations * Accountability and control ° System quality * Quality of life اما عبط با ۵66069 57 

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0 موی ات ما بط مب يفا CRC Roel MERC te ar Key Teckwbw Treads to Ruse Chicd ‏حصحها‎ ‎* Computing power doubles every month * Rapidly declining data storage costs * Data analysis advances ¢ Networking advances and the Internet 58 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا CRC Roel MERC te ar Key Teckwbw Treads to Ruse Chicd ‏حصحها‎ * Profiling: use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals * NORA (nonobvious relationship awareness): new data analysis technique for even more powerful profiling 5.9 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا CRC Roel MERC te ar 5.10 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ی * Responsibility ¢ Accountability * Liability ¢ Due process اما عبط با ۵66069 5.11 

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0 موی ات ما بط مب يفا ی Owe Cowepe Information technologies are filtered through social institutions, organizations, individuals Responsibility falls on institutions, organizations, and individuals who choose to use the technology In an ethical, political society, individuals and others can recover damages done to them through a set of laws ©0006 by Prevace “I 1 5.12 

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0 موی ات ما بط مب يفا ی Cted Onder Five-step Process for Analysis Identify and describe clearly the facts . Define the conflict and identify the higher-order values involved Identify the stakeholders Identify reasonable options Identify potential consequences of these options ©0006 by Prevace “I S 5.13 

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0 موی ات ما بط مب يفا ی حصا © لس ‎Candidate Ethical Principles‏ The “Golden Rule” Kant’s Categorical Imperative Descarte’s rule of change The Utilitarian Principle The Risk Aversion Principle Ethical “no free lunch” rule ©0006 by Prevace “I ع ات ات ده 

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0 موی ات ما بط مب يفا ی @roPessirad Onder oP ‏اسلمه0‎ Codes of ethics: promises by professions to regulate themselves in the general interest of society. Promulgated by professional associations such as American Medical Association (AMA). Association of Computing Machinery (ACM) “General Moral Imperatives” include honoring property rights and respecting privacy. ©0006 by Prevace “I 5.15 

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0 موی ات ما بط مب يفا ی Gowe Red-Oorkt Chicd Oiewwer Competing values: one set of interests pitted against another E-mail monitoring at the workplace Use of new technology to reduce workforce and lower costs ©0006 by Prevace “I 5.16 

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0 موی ات ما بط مب يفا ل ل ل الك 4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy Privacy: Claim of individuals to be left alone, free from surveillance or interference from other individuals, organizations, or the state. Protected primarily in United States by First Amendment, Fourth Amendment, and Privacy Act of 1974 Today, most U.S. federal privacy laws apply only to federal government, not to private sector ©0006 by Prevace “I 5.17 

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0 موی ات ما بط مب يفا ل ل ل الك Cederd Pray Lav ta he Outed Grier General Federal Privacy Laws Freedom of Information Act, 1966 Privacy Act of 1974 Electronic Communications Privacy Act of 1986 Computer Matching and Privacy Protection Act of 1988 Computer Security Act of 1987 Federal Managers Financial Integrity Act of 1982 ©0006 by Prevace “I 5.18 

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0 موی ات ما بط مب يفا ل ل ل الك Cederd Pray Lav ta he Outed Grier Privacy Laws Affecting Private Institutions Fair Credit Reporting Act of 1970 Family Educational Rights and Privacy Act of 1974 Right to Financial Privacy Act of 1978 Privacy Protection Act of 1980. Cable Communications Policy Act of 1984 Electronic Communications Privacy Act of 1986 Video Privacy Protection Act of 1988 The Health Insurance Portability and Accountability Act of 1996 Children’s Online Privacy Protection Act of 1998 ‏یز‎ Modernization Act (Gramm-Leach-Bliley Act) of 5.19 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ل ل ل الك 4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy Fair Information Practices (FIP) Set of principles governing the collection and use of information about individuals, set forth in 1973 federal government report Forms basis of most American and European privacy law Extended in 1998 by FTC to provide guidelines for online privacy ©0008 by Preece ‏ادنلا"‎ 5.20 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy ‎Federal Trade Commission Fair Information Practices Principles ‎Notice/Awareness (core principle) Choice/Consent (core principle) Access/Participation ‎Security ‎Enforcement ‏الت ا ا ‏ما سم ‎by‏ 0008© 5 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy ‎European Commission’s ‎Directive on Data Protection (1998) ‎More stringent than the United States ‎Requires companies to inform people of data collection and storage ‎Customers must provide informed consent ‎Disallows transferring of data to countries without similar laws ‎U.S. “safe harbor” developed with U.S. Department of Commerce ‎©0008 by Preece ‏ادنلا"‎ ‎5.22 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎SPorwdios Rights: Privacy wed Preedow ta the Intercet Bye Internet Challenges to Privacy ‎Computer systems able to monitor, capture, store communications passing through ‎Monitoring tools Cookies ‎Web bugs Spyware ‎©0006 by Prevace “I ‎5.23 

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هو ای مود و ما و ‎ag‏ ۱ ل ل ل الك Cookie 931032944 Previous buyer Welcome back Jane Doe! 0 Server |. The Web server reads the user's Web browser and determines the operating system, browser name, version number, Internet address, and other information. 2. The server transmits a tiny text file with user identification information called a cookie, which the user's browser receives and stores on the user's computer hard drive. 3. When the user returns to the Web site, the server requests the contents of any cookie it deposited previously in the user's computer. 4, The Web server reads the cookie, identifies the visitor and calls up data on the user. rue 9-3 5.24 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy ‎ ‎U.S. Online Industry Self-Regulation ‎Statements of information use Opt-out model ‎Opt-in model ‎Online Privacy Alliance ‎Network Advertising Initiative (NAI) ‎©0008 by Preece ‏ادنلا"‎ ‎5.25 

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0 موی ات ما بط مب يفا ل ل ل الك SPorwdios Rights: Privacy wed Preedow ta the ‏اصمسجاها‎ Bye Technical Solutions Platform for Privacy Preferences (P3P) Automatic communication of privacy policies between e-commerce site and visitor Only works with Web sites who have translated policies into P3P format ©0006 by Prevace “I 5.26 

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هو ای مود و ما و ‎ag‏ ۱ ل ل ل الك Te POP Grandad ۱ ‏و‎ Request for Web page User Server 1. The user with a P3P web browsing software requests a Web page. 2. The Web server returns the Web page along with a compact version of the Web site's policy and a pointer to the full P3P policy. If the Web site is not P3P compliant, no P3P data are returned. 3. The user's Web browsing software compares the response from the Web site with the user's privacy preferences. If the Web site does not have a P3P policy or the policy does not match the privacy levels established by the user, it warns the user or rejects the cookies from the Web site. Otherwise, the Web page loads normally. rue OF ©0006 by Prevace “I 5.27 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎4kPorentios Right: Privagy und Preedow ta the Tetercet Boe Privacy Protection Tools ‎Managing Cookies Blocking ads ‎Secure e-mail or data Anonymous e-mail Anonymous surfing ‎©0006 by Prevace “I ‎5.28 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy ‎Ethical Issues ‎٠ Under what conditions should privacy be invaded? ‎٠ What legitimates unobtrusive surveillance? ‎5.29 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ل ل ل الك 4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy Social Issues “Expectations of privacy”, privacy norms. Should people have expectations of privacy while using e-mail, cellular phones, bulletin boards, postal system, etc.? Do expectations of privacy extend to criminal conspirators? ©0006 by Prevace “I 5.30 

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0 موی ات ما بط مب يفا ل ل ل الك 4kPorwntion Ricks: Privagy ond Preedow ta the Inert Oy Political Issues Statutes to govern relationship between record keepers and individuals Should FBI monitor e-mail? Should e-commerce sites maintain personal data about individuals ©0006 by Prevace “I 5.31 

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0 موی ات ما بط مب يفا ‎sae eS eas ake ad‏ ل للك ‎Property Rights: Intelertud Property‏ ‎Intellectual Property‏ ‎٠ Intangible property created by individuals or corporations ‎٠ Protected under three different legal traditions: trade secret, copyright, and patent law ‎5.32 ©0008 by Preece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ل ل ل الك Property Right: Tetelertidl Property Trade Secret Any intellectual work product used for a business purpose; cannot be based on information in public domain Protects both ideas in product as well as product itself Applies to software with unique elements, procedures, compilations Difficult to prevent ideas in the work from falling into public domain after distribution ©0006 by Prevace “I 5.33 

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0 موی ات ما بط مب يفا ل ل ل الك Property Right: Tetelertidl Property Copyright Statutory grant that protects creators of intellectual property from having work copied for the life of author plus 70 years; 95 years for corporate-owned property Computer Software Copyright Act provides protection for program code and product copies sold in commerce Does not protect underlying ideas behind work ©0006 by Prevace “I 5.34 

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0 موی ات ما بط مب يفا ل ل ل الك Property Right: Tetelertidl Property Patents Grants exclusive monopoly on ideas behind invention for 20 years Ensures inventors receive full rewards for labor; but prepares for widespread use by providing detailed documents Applies to underlying concept of software Stringent criteria of nonobviousness, originality, and novelty; lengthy application process ©0006 by Prevace “I 5.35 

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0 موی ات ما بط مب يفا ل ل ل الك Property Right: Tetelertidl Property Challenges to Intellectual Property Rights Digital media easy to replicate Difficulties establishing uniqueness Compactness of product Proliferation of electronic networks, including Internet, World Wide Web File-sharing software Web site construction and framing ©0006 by Prevace “I 5.36 

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0 موی ات ما بط مب يفا ل ل ل الك Oho cure | ‏رومستظ وم‎ 9۴ a Deb poe i deg fem, We ate per PHOTOGRAPH و مس 5.37 ©0008 by Preece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎Property Rights: “Tetelevtd Property Digital Millenium Copyright Act (1998) ٠ Implements World Intellectual ‎Property Organization treaty ‎٠ Makes it illegal to circumvent technology-based protections of copyrighted materials ‎5.38 ©0008 by Preece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ل ل ل الك Property Right: “Tielevhd Property Ethical Issues: Is there value in protecting intellectual property when it is so easily copied and distributed? Social Issues: Routine illegal file-sharing creating society of lawbreakers Political issues: New protection measures needed to protect investments made by creators ©0006 by Prevace “I 5.39 

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0 موی ات ما بط مب يفا ل ل ل الك ‎Licbity, ord Ovcirol‏ يك ‎Ethical issues: Who is morally responsible for consequences of use of hardware or software? ‎Social issues: What should society expect and allow of service-providing information systems? ‎Political issues: To what extent should government intervene, protect service providers and users? ‎©0006 by Prevace “I ‎5.40 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎Grady: Dota Qudiy od Opstew Brrore‏ حور ‎Ethical issues: At what point should software/services be released for consumption? ‎Social issues: Should people be encouraged to believe systems are infallible? ‎Political Issues: Laws of responsibility and accountability ‎©0006 by Prevace “I ‎5.41 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎Quay oF LPe: quip, Boveve, wd Bruker ‎Negative Social Costs of Information Technology ‎٠ Balancing power: Key policy decisions still centralized ‎٠ Rapidity of change: More efficient marketplace reduces response time to competition ‏ما سم ‎by‏ 0008© 5 

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0 موی ات ما بط مب يفا ل ل ل الك Quay oF LPe: quip, Boveve, wd Bruker Maintaining boundaries: Ubiquitous computing weakening traditional boundaries between family or leisure and work Dependence and vulnerability: Vulnerable to system failures; no standards as with other public-utility technologies ©0006 by Prevace “I 5.43 

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0 موی ات ما بط مب يفا ل ل ل الك Quay oF LPe: quip, Boveve, wd Bruker Computer 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 unethical, i.e. spamming Computer forensics: scientific collection and analysis of data held on or retrieved from computer storage media to be used as evidence in court of law ©0006 by Prevace “I 5.44 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎ ‎Quay oF LPe: quip, Boveve, wd Bruker ‎Internet Crime and Abuse * Spamming ٠ Hacking ٠ Jamming ٠ Malicious software * Sniffing * Spoofing ‎5.45 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎Orndow va Oucngeoet ‎Can the Spamming Monster Be Tamed? ‎Is spamming an important management decision? Why or why not? ‏ما سم ‎by‏ 0008© 526 

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0 موی ات ما بط مب يفا ل ل ل الك Quay oF LPe: quip, Boveve, wd Bruker Employment: reengineering work possibly leading to job losses; offshore outsourcing Equity and Access: Will inequitable distribution of access to information system resources lead to digital divide? Health risks: repetitive stress injury (RSI); carpal tunnel syndrome (CTS); computer vision syndrome (CVS); technostress; radiation from display screens ©0006 by Prevace “I 5.47 

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0 موی ات ما بط مب يفا ‎ass el oa‏ ل مر( ‎Ordo oa Orquctraious ‎Offshore Outsourcing: Good or Bad? ‎Does offshore outsourcing create an ethical dilemma? Why or why not? ‎5.48 ©0008 by Prevece ‏ادنلا"‎ 

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0 موی ات ما بط مب يفا ل ل ل الك Ovaxpwrd Oriow: 8 Cprporde Orde oP Chee Information rights and obligations Property rights and obligations System quality Quality of life Accountability and control ©0006 by Prevace “I 5.49 

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0 موی ات ما بط مب يفا 3 Genny Orr Privacy: Over Terrortew Okun te Debuts? Do the increase surveillance power and capability of the U.S. government present an ethical dilemma? Explain your answer. Apply an ethical analysis to the issue of the U.S. government's use of information technology to ensure public safety and U.S. citizens’ privacy rights. What are the ethical, social, and political issues raised by the U.S. government creating massive databases to collect personal data on individuals and profile them? ©0006 by Prevace “I 5.50 

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0 موی ات ما بط مب يفا 3 Genny Orr Privacy: Over Terrortew Okun te Debuts? How effective are electronic eavesdropping and massive databases as terrorism and crime-prevention tools? Explain your answer. State your views on ways to solve the problems of collecting the key data the U.S. government needs to combat terrorism without interfering with individual privacy. ©0006 by Prevace “I 5.51 

Chapter 5 Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethical and Social Issues in the Digital Firm 5.1 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Objectives 1. What ethical, social, and political issues are raised by information systems? 2. Are there specific principles for conduct that can be used to guide decisions about ethical dilemmas? 3. Why does contemporary information systems technology pose challenges to the protection of individual privacy and intellectual property? 5.2 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Objectives 4. How have information systems affected everyday life? 5. How can organizations develop corporate policies for ethical conduct? 5.3 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Management Challenges 1. Understanding the moral risks of new technology 2. Establishing corporate ethics policies that include information systems issues 5.4 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems A Model for Thinking About Ethical, Social, and Political Issues • Ethics: Principles of right and wrong that can be used by individuals acting as free moral agents to make choices to guide their behavior • View shock of new information technology as a “rock thrown into a pond.” 5.5 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems The relationship between ethical, social, and political issues in an information society Figure 5-1 5.6 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems Moral Dimensions of the Information Age • Information rights and obligations • Property rights and obligations • Accountability and control • System quality • Quality of life 5.7 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems Key Technology Trends that Raise Ethical Issues • Computing power doubles every month • Rapidly declining data storage costs • Data analysis advances • Networking advances and the Internet 5.8 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems Key Technology Trends that Raise Ethical Issues • Profiling: use of computers to combine data from multiple sources and create electronic dossiers of detailed information on individuals • NORA (nonobvious relationship awareness): new data analysis technique for even more powerful profiling 5.9 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Understanding Ethical and Social Issues Related to Systems Nonobvious relationship awareness (NORA) Figure 5-2 5.10 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Basic Concepts • Responsibility • Accountability • Liability • Due process 5.11 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Basic Concepts 1. Information technologies are filtered through social institutions, organizations, individuals 2. Responsibility falls on institutions, organizations, and individuals who choose to use the technology 3. In an ethical, political society, individuals and others can recover damages done to them through a set of laws 5.12 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Ethical Analysis Five-step Process for Analysis 1. Identify and describe clearly the facts 2. Define the conflict and identify the higher-order values involved 3. Identify the stakeholders 4. Identify reasonable options 5. Identify potential consequences of these options 5.13 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Ethical Analysis Candidate Ethical Principles 1. 2. 3. 4. 5. 6. 5.14 The “Golden Rule” Kant’s Categorical Imperative Descarte’s rule of change The Utilitarian Principle The Risk Aversion Principle Ethical “no free lunch” rule © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Professional Codes of Conduct • Codes of ethics: promises by professions to regulate themselves in the general interest of society. • Promulgated by professional associations such as American Medical Association (AMA). • Association of Computing Machinery (ACM) “General Moral Imperatives” include honoring property rights and respecting privacy. 5.15 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Ethics in an Information Society Some Real-World Ethical Dilemmas • Competing values: one set of interests pitted against another • E-mail monitoring at the workplace • Use of new technology to reduce workforce and lower costs 5.16 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems 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 state. • Protected primarily in United States by First Amendment, Fourth Amendment, and Privacy Act of 1974 • Today, most U.S. federal privacy laws apply only to federal government, not to private sector 5.17 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Federal Privacy Laws in the United States General Federal Privacy Laws • • • • • • 5.18 Freedom of Information Act, 1966 Privacy Act of 1974 Electronic Communications Privacy Act of 1986 Computer Matching and Privacy Protection Act of 1988 Computer Security Act of 1987 Federal Managers Financial Integrity Act of 1982 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Federal Privacy Laws in the United States Privacy Laws Affecting Private Institutions • • • • • • • • • • 5.19 Fair Credit Reporting Act of 1970 Family Educational Rights and Privacy Act of 1974 Right to Financial Privacy Act of 1978 Privacy Protection Act of 1980 Cable Communications Policy Act of 1984 Electronic Communications Privacy Act of 1986 Video Privacy Protection Act of 1988 The Health Insurance Portability and Accountability Act of 1996 Children’s Online Privacy Protection Act of 1998 Financial Modernization Act (Gramm-Leach-Bliley Act) of 1999 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Fair Information Practices (FIP) • Set of principles governing the collection and use of information about individuals, set forth in 1973 federal government report • Forms basis of most American and European privacy law • Extended in 1998 by FTC to provide guidelines for online privacy 5.20 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Federal Trade Commission Fair Information Practices Principles 1. 2. 3. 4. 5. 5.21 Notice/Awareness (core principle) Choice/Consent (core principle) Access/Participation Security Enforcement © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age European Commission’s Directive on Data Protection (1998) • • • • • 5.22 More stringent than the United States Requires companies to inform people of data collection and storage Customers must provide informed consent Disallows transferring of data to countries without similar laws U.S. “safe harbor” developed with U.S. Department of Commerce © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Internet Challenges to Privacy • • • • • 5.23 Computer systems able to monitor, capture, store communications passing through Monitoring tools Cookies Web bugs Spyware © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems How cookies identify Web visitors Figure 5-3 5.24 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age U.S. Online Industry Self-Regulation • • • • • 5.25 Statements of information use Opt-out model Opt-in model Online Privacy Alliance Network Advertising Initiative (NAI) © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Technical Solutions • Platform for Privacy Preferences (P3P) • Automatic communication of privacy policies between e-commerce site and visitor • Only works with Web sites who have translated policies into P3P format 5.26 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems The P3P Standard Figure 5-4 5.27 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Privacy Protection Tools • • • • • 5.28 Managing Cookies Blocking ads Secure e-mail or data Anonymous e-mail Anonymous surfing © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Ethical Issues • Under what conditions should privacy be invaded? • What legitimates unobtrusive surveillance? 5.29 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Social Issues • “Expectations of privacy”, privacy norms. • Should people have expectations of privacy while using e-mail, cellular phones, bulletin boards, postal system, etc.? • Do expectations of privacy extend to criminal conspirators? 5.30 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Information Rights: Privacy and Freedom in the Internet Age Political Issues • Statutes to govern relationship between record keepers and individuals • Should FBI monitor e-mail? • Should e-commerce sites maintain personal data about individuals 5.31 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Intellectual Property • Intangible property created by individuals or corporations • Protected under three different legal traditions: trade secret, copyright, and patent law 5.32 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Trade Secret • Any intellectual work product used for a business purpose; cannot be based on information in public domain • Protects both ideas in product as well as product itself • Applies to software with unique elements, procedures, compilations • Difficult to prevent ideas in the work from falling into public domain after distribution 5.33 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Copyright • Statutory grant that protects creators of intellectual property from having work copied for the life of author plus 70 years; 95 years for corporate-owned property • Computer Software Copyright Act provides protection for program code and product copies sold in commerce • Does not protect underlying ideas behind work 5.34 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Patents • Grants exclusive monopoly on ideas behind invention for 20 years • Ensures inventors receive full rewards for labor; but prepares for widespread use by providing detailed documents • Applies to underlying concept of software • Stringent criteria of nonobviousness, originality, and novelty; lengthy application process 5.35 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Challenges to Intellectual Property Rights • • • • • • 5.36 Digital media easy to replicate Difficulties establishing uniqueness Compactness of product Proliferation of electronic networks, including Internet, World Wide Web File-sharing software Web site construction and framing © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Who owns the pieces? Anatomy of a Web page Figure 5-5 5.37 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property Digital Millenium Copyright Act (1998) • Implements World Intellectual Property Organization treaty • Makes it illegal to circumvent technology-based protections of copyrighted materials 5.38 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Property Rights: Intellectual Property • Ethical Issues: Is there value in protecting intellectual property when it is so easily copied and distributed? • Social Issues: Routine illegal file-sharing creating society of lawbreakers • Political issues: New protection measures needed to protect investments made by creators 5.39 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Accountability, Liability, and Control • Ethical issues: Who is morally responsible for consequences of use of hardware or software? • Social issues: What should society expect and allow of service-providing information systems? • Political issues: To what extent should government intervene, protect service providers and users? 5.40 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems System Quality: Data Quality and System Errors • Ethical issues: At what point should software/services be released for consumption? • Social issues: Should people be encouraged to believe systems are infallible? • Political Issues: Laws of responsibility and accountability 5.41 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Quality of Life: Equity, Access, and Boundaries Negative Social Costs of Information Technology • Balancing power: Key policy decisions still centralized • Rapidity of change: More efficient marketplace reduces response time to competition 5.42 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Quality of Life: Equity, Access, and Boundaries • Maintaining boundaries: Ubiquitous computing weakening traditional boundaries between family or leisure and work • Dependence and vulnerability: Vulnerable to system failures; no standards as with other public-utility technologies 5.43 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Quality of Life: Equity, Access, and Boundaries • Computer 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 unethical, i.e. spamming • Computer forensics: scientific collection and analysis of data held on or retrieved from computer storage media to be used as evidence in court of law 5.44 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Quality of Life: Equity, Access, and Boundaries Internet Crime and Abuse • • • • • • 5.45 Spamming Hacking Jamming Malicious software Sniffing Spoofing © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Window on Management Can the Spamming Monster Be Tamed? Is spamming an important management decision? Why or why not? 5.46 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Quality of Life: Equity, Access, and Boundaries • Employment: reengineering work possibly leading to job losses; offshore outsourcing • Equity and Access: Will inequitable distribution of access to information system resources lead to digital divide? • Health risks: repetitive stress injury (RSI); carpal tunnel syndrome (CTS); computer vision syndrome (CVS); technostress; radiation from display screens 5.47 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Window on Organizations Offshore Outsourcing: Good or Bad? Does offshore outsourcing create an ethical dilemma? Why or why not? 5.48 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm The Moral Dimensions of Information Systems Management Actions: A Corporate Code of Ethics • • • • • 5.49 Information rights and obligations Property rights and obligations System quality Quality of life Accountability and control © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Chapter 5 Case Study Security Versus Privacy: Does Terrorism Change the Debate? 1. Do the increase surveillance power and capability of the U.S. government present an ethical dilemma? Explain your answer. 2. Apply an ethical analysis to the issue of the U.S. government’s use of information technology to ensure public safety and U.S. citizens’ privacy rights. 3. What are the ethical, social, and political issues raised by the U.S. government creating massive databases to collect personal data on individuals and profile them? 5.50 © 2005 by Prentice Hal Essentials of Management Information Systems, 6e Chapter 5 Ethical and Social Issues in the Digital Firm Chapter 5 Case Study Security Versus Privacy: Does Terrorism Change the Debate? 4. How effective are electronic eavesdropping and massive databases as terrorism and crime-prevention tools? Explain your answer. 5. State your views on ways to solve the problems of collecting the key data the U.S. government needs to combat terrorism without interfering with individual privacy. 5.51 © 2005 by Prentice Hal