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Business Ethics and Technology

Chapter 9Professor Craig Diamond

BA 385October 28, 2009

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Outline of Topics

Technology and the Technological Environment Technology Benefits and Downsides Ethics and Technology Information Technology

• E-commerce (focus on privacy issues)• Computers in the workplace

Biotechnology• Genetic engineering• Genetically modified foods

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Technology and the Technological Environment

TechnologyThe totality of the means employed to provide objects necessary for human sustenance and comfort

Technological environment – one of the four segments of the macroenvironment (Ch.1) in society (other three are social, economic, political)

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Benefits of Technology

Increased production of goods and services

Reduced amount of labor needed to produce goods and services

Made labor easier and safer

Increased productivity

Increased standard of living

Increased life expectancy

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Side Effects and Challenges of Technology

Environmental pollution

Depletion of natural resources

Technological unemployment• machines replacing humans

Creation of unsatisfying jobs• Monotonous tasks, and handling data rather

than actual things

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Ethics and Technology

Key IssuesKey Issues

Technological Determinism

Ethical Lag

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Society’s Intoxication with Technology

1. We need the quick fix

2. We fear and worship technology

3. We blur the distinction between what is real and fake

4. We accept violence as normal

5. We love technology as a toy

6. We live our lives distanced and distracted

From the book, High Tech, High Touch...

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Electronic Commerce

Key Issues in e-Commerce Ethics

Access (“Digital Divide”) Intellectual property Privacy and informed consent Protection of children Security of information

90% of e-commerce is business-to-business

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Potential Threats to PrivacyPosed by the Internet

Identity theft Unintentionally revealing information Lost / stolen personal information Fake Web sites Government distribution of information Broadcasting information over the Internet Victim of spying Cyberstalker

2001 public poll: 24% of consumers were “very concerned” and 49% “somewhat concerned” about

Internet privacy.

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Invasion of PrivacyPosed by the Internet

Cookies• 2001 poll: only 10% of users blocked cookies, and over

50% did not know what cookies were

Spam

Identity Theft

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Governing legislation• Financial Services Modernization Act of 1999• Fair Credit Reporting Act• Children’s Online Privacy Protection Act

1999 Act• Included “opt-out”• Many groups lobbied for “opt-in”• Many intentional barriers to “opt-out”

Federal Trade Commission• Main agency that deals with consumer privacy issues

Government’s Involvement

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Business Initiatives to Protect Privacy

Ethical leadershipEthical leadership

Privacy policiesPrivacy policies

Chief privacy officersChief privacy officers

Data securityData security

Protecting privacy of customers...

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Pornography Gambling Web-based music services Downloading movies and other intellectual property Monitoring technology “Phishing”

Questionable Businesses and Practices

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Employee Views of Technology is Positive Employee Views of Technology is Positive

The Workplace and Computer Technology

Expands job-related knowledge

Increases productivity during work and commuting times

Improves communication with clients and customers

Relieves job stress

Improved time management

Expanded professional networks

Development of a competitive edge

Balance of work and family needs

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Surveillance

Computers

Monitoring website employee computer files Blocking access to inappropriate websites Storing and reviewing e-mail

Telephone

Monitoring time spent, numbers called Taping phone conversations

Video

Video surveillance against theft Video surveillance to monitor employee

performance

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Driving while Using Cell Phone

Many studies have shown it is dangerous

Should companies have policies that limit or prohibit cell phone use while driving?

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Unethical Employee Activities

Created a dangerous situation by using new technology while driving (19%)

Blamed error on technological glitch (14%)

Copied company software for home use (13%)

Used office equipment to shop on the Internet (13%)

Used office equipment to search for job (11%)

Accessed private files without permission (6%)

Intruded on co-workers’ privacy (6%)

Visited porn Web sites (5%)

Survey results...

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Biotechnology

Bioethics Ethical issues related to the use of biotechnology

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Realms of Biotechnology

GeneticallyModified Foods

GeneticallyModified Foods

Genetic EngineeringGenetic Engineering

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Genetic Engineering

Stem cell researchStem cell research

CloningCloning

Genetic testing and profilingGenetic testing and profiling

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Stem Cell Research

Controversy surrounds the use of embryonic stem cells in research• involves destruction of human embryo

Bush Administration severely limited research using embryonic stem cells, even though public opinion favored it

Obama issued executive order reversing Bush decision (March 2009)

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Cloning

Animal and plant cloning• Cloning animals for food is controversial

Human cloning (controversial)• Therapeutic cloning – used to create stem cells as

source of replacement tissue• Fear of two class society – those who can afford to be

“perfected” and those that cannot

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Genetic Testing and Profiling

Involves having DNA information on people• potential for invasion of privacy in how the information

can be used

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Genetically Modified Foods

Safety issuesSafety issues

Labeling issuesLabeling issues