Ethical and Social Issues in theEthical and Social Issues in theDigital FirmDigital Firm

Chapter Four (10Chapter Four (10thth ed) ed)

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Chapter Five OutlineChapter Five OutlineI. I. IntroductionIntroduction A. Relate to questionsA. Relate to questions B. Meaning of ethicsB. Meaning of ethics C. Technological trends/ethical C. Technological trends/ethical

issuesissues D. L&L’s frameworkD. L&L’s frameworkII. Information rights/PrivacyII. Information rights/Privacy A. Privacy and its originsA. Privacy and its origins B. Fair information practicesB. Fair information practices C. Europe’s approachC. Europe’s approach D. Privacy and the InternetD. Privacy and the Internet E. Technical solutions E. Technical solutions F. Other privacy issuesF. Other privacy issues G. Levels of privacy issuesG. Levels of privacy issuesIII. Intellectual propertyIII. Intellectual property A. Concept examplesA. Concept examples B. Old protectorsB. Old protectors C. Protection for softwareC. Protection for software D. Other intellectual propertyD. Other intellectual property E. Levels of intellectual prop issuesE. Levels of intellectual prop issues

IVIV. Accountability, liability, . Accountability, liability, Control Control

A. Nature of the issuesA. Nature of the issues B. Liability for softwareB. Liability for software C. Liability for information C. Liability for information

servicesservices D. Levels of the issueD. Levels of the issueV. QualityV. Quality A. Software and dataA. Software and data B. Levels of the issueB. Levels of the issue VI. Quality of Life IssuesVI. Quality of Life Issues A. EmpowermentA. Empowerment B. Rapidity of changeB. Rapidity of change C. BoundariesC. Boundaries D. Dependence/vulnerabilityD. Dependence/vulnerability E. Computer crime and abuseE. Computer crime and abuse F. Negative consequencesF. Negative consequences

1. Reengineering1. Reengineering2. Health issues2. Health issues3. Equity and access3. Equity and access

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Chapter 5 and Our QuestionsChapter 5 and Our Questions

What ethical, criminal and security issues do What ethical, criminal and security issues do organizations face when using information organizations face when using information systems?systems? Describe the ethical concerns associated Describe the ethical concerns associated

with information privacy, accuracy, with information privacy, accuracy, intellectual property, and accessibilityintellectual property, and accessibility

Introduce the nature (and increased Introduce the nature (and increased potential of) computer crimepotential of) computer crime

Consider cross-border implications Consider cross-border implications regarding privacy of data and integrity of regarding privacy of data and integrity of InternetInternet

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What Are Ethics?What Are Ethics?

Ethics are principles of right and wrong that Ethics are principles of right and wrong that can be used by individuals acting as free can be used by individuals acting as free moral agents to make moral agents to make choiceschoices to guide their to guide their behaviorbehavior

Information technology is moving so fast Information technology is moving so fast that situations arise in which it is not clear that situations arise in which it is not clear what is ethical behaviorwhat is ethical behavior

Technology introduces capabilities that Technology introduces capabilities that were impossible several years ago. This is were impossible several years ago. This is particularly true with respect to information particularly true with respect to information technologies and biotechnologies technologies and biotechnologies

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What are the Main Features of What are the Main Features of Ethical Choice?Ethical Choice?

ResponsibilityResponsibility means that individuals means that individuals accept the potential costs, duties, and accept the potential costs, duties, and obligations for their decisionsobligations for their decisions

AccountabilityAccountability means that mechanisms means that mechanisms are in place to determine who is are in place to determine who is responsible for an action (social responsible for an action (social institutions)institutions)

LiabilityLiability concerns laws that permit concerns laws that permit individuals to recover damages done to individuals to recover damages done to them by other individuals or systems them by other individuals or systems (political institution)(political institution)

Due processDue process implies laws are well known implies laws are well known and there is an appeal process to ensure and there is an appeal process to ensure that laws are applied correctlythat laws are applied correctly

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

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Specific Technology Trends That Specific Technology Trends That Raise Ethical IssuesRaise Ethical Issues

Computing powerComputing power has been doubling every has been doubling every 18 months since early 80s enabling most 18 months since early 80s enabling most firms to utilize computers for their core firms to utilize computers for their core processesprocesses

Rapidly declining storage costsRapidly declining storage costs make it make it possible to collect/store huge amounts of possible to collect/store huge amounts of information on people at virtually no costinformation on people at virtually no cost

Advances in data analysisAdvances in data analysis technology allow technology allow firms to develop detailed profiles of firms to develop detailed profiles of individual behaviorindividual behavior

Networking advancesNetworking advances and the Internet and the Internet permit remote access and easy copyingpermit remote access and easy copying

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Nonobvious Relationship Awareness (NORA)

Figure 5-2

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Information Rights: Privacy Information Rights: Privacy and Freedom in an Information and Freedom in an Information

SocietySociety Privacy concept - an individual has the right to be Privacy concept - an individual has the right to be

left alone, free from surveillance or interference left alone, free from surveillance or interference from other individual, organizations, or the statefrom other individual, organizations, or the state

Basis of privacy protection in the USBasis of privacy protection in the US first amendment (free speech and association)first amendment (free speech and association) fourth amendment (protection from fourth amendment (protection from

unreasonable search)unreasonable search) Fair Information Practices (FIP) report from Fair Information Practices (FIP) report from

1973 is the basis for numerous Federal statutes1973 is the basis for numerous Federal statutes Legislation has been proposed to protect Legislation has been proposed to protect

personal information gathered over the personal information gathered over the InternetInternet

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FTC’s Fair Information PracticeFTC’s Fair Information Practice Principles* Principles*

Notice/awareness – disclosure of practices Notice/awareness – disclosure of practices before collecting databefore collecting data

Choice/consent – opt in/opt out for consumers Choice/consent – opt in/opt out for consumers Access/participation – consumers can review Access/participation – consumers can review

and contest data for accuracy and and contest data for accuracy and completenesscompleteness

Security – data collectors must take steps to Security – data collectors must take steps to secure data for accuracy and unauthorized secure data for accuracy and unauthorized useuse

Enforcement – there must be a mechanism in Enforcement – there must be a mechanism in place to enforce FIP principlesplace to enforce FIP principles

*These are guidelines not laws.*These are guidelines not laws.

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Europe’s Approach to Privacy Europe’s Approach to Privacy ProtectionProtection

Europe’s notion of informed consentEurope’s notion of informed consent Safe harbor and its impact on US businesses Safe harbor and its impact on US businesses

with European customerswith European customers American laws are designed to protect American laws are designed to protect

citizens from privacy violations from citizens from privacy violations from government agencies, but private business government agencies, but private business is largely immune.is largely immune.

Europe protects its citizens from abuse both Europe protects its citizens from abuse both government and private business government and private business

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The Internet and Privacy IssuesThe Internet and Privacy Issues

Monitoring and tracking is wide spreadMonitoring and tracking is wide spread Web retailers have created huge demand Web retailers have created huge demand

for consumer personal for consumer personal information/behavior datainformation/behavior data

Methods of data collectionMethods of data collection Customer registration and cookiesCustomer registration and cookies Web bugsWeb bugs SpywareSpyware

Opt-out and opt-in models of informed Opt-out and opt-in models of informed consentconsent

Industry self-regulationIndustry self-regulation Online Privacy Alliance (Truste)Online Privacy Alliance (Truste) Network Advertising InitiativeNetwork Advertising Initiative

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Technical Solutions to Protect Technical Solutions to Protect PrivacyPrivacy

Managing cookies (Internet Explorer)Managing cookies (Internet Explorer) Blocking pop ads based on user profilesBlocking pop ads based on user profiles Encrypting email or data (PGP)Encrypting email or data (PGP) Anonymous emailAnonymous email Platform for privacy preferences (P3P)Platform for privacy preferences (P3P)

To check for P3P with Internet Explorer, To check for P3P with Internet Explorer, click on View/Privacy reportclick on View/Privacy report

Try with Try with http://yahoo.com does use P3P, does use P3P, http://Amazon.com and and http://google.com do do notnot

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Other Issues Related to Privacy of Other Issues Related to Privacy of InformationInformation

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?  

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Levels of the Privacy IssuesLevels of the Privacy Issues

Ethical issues (individual)Ethical issues (individual) Under what conditions do you invade the Under what conditions do you invade the

privacy of others? Do you inform them privacy of others? Do you inform them beforehand?beforehand?

Social issues (society)Social issues (society) Expectations of privacyExpectations of privacy

Political (legislation)Political (legislation) What laws do we want to govern the What laws do we want to govern the

relations between record keepers and relations between record keepers and individuals? What data should the FBI be individuals? What data should the FBI be allowed to collect? allowed to collect?

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Property Rights: Intellectual Property Rights: Intellectual PropertyProperty

Intellectual property - intangible Intellectual property - intangible property created by individuals or property created by individuals or corporations which is subject to corporations which is subject to protections under trade secret, protections under trade secret, copyright, or patentcopyright, or patent

Challenges to intellectual property rightsChallenges to intellectual property rights copying programs (look and feel copying programs (look and feel

issues)issues) digital versions of books, video, and digital versions of books, video, and

audio make it easy to alter, copy, and audio make it easy to alter, copy, and transmittransmit

networks make it easy to copy and networks make it easy to copy and distribute to millionsdistribute to millions

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Protection for Intellectual Protection for Intellectual PropertyProperty

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

Patents: A grant to the creator of an invention A grant to the creator of an invention granting the owner an exclusive monopoly on granting the owner an exclusive monopoly on the ideas behind an invention for 20 yearsthe ideas behind an invention for 20 years

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Protection for SoftwareProtection for Software

Source and object code cannot be copiedSource and object code cannot be copied Purchase of software permits the purchaser Purchase of software permits the purchaser

to use the software, but creator retains titleto use the software, but creator retains title Underlying ideas of software are not Underlying ideas of software are not

protectedprotected Look and feel copyright infringementLook and feel copyright infringement

distinction between an idea and an distinction between an idea and an expression expression

merger of an idea and an expressionmerger of an idea and an expression

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Other Intellectual Property IssuesOther Intellectual Property Issues

MusicMusic NapsterNapster Other illegal file sharingOther illegal file sharing

MoviesMovies Content on Web pagesContent on Web pages Digital Millennium Copyright Act provides Digital Millennium Copyright Act provides

some protection because it makes it illegal some protection because it makes it illegal to make, distribute, or use devices that to make, distribute, or use devices that circumvent technology-based copyright circumvent technology-based copyright protectionprotection

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Levels of the Intellectual Levels of the Intellectual Property IssuesProperty 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 the ease of copying is making us a

society of lawbreakers; people freely society of lawbreakers; people freely admit to copyingadmit to copying

Political issues (laws)Political issues (laws) Can creators of digital products be Can creators of digital products be

protected by law?protected by law? Cultural clashes with Western ideas of Cultural clashes with Western ideas of

intellectual propertyintellectual property Software should be free or paid for Software should be free or paid for

voluntarily contributionsvoluntarily contributions

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Accountability, Liability, and Accountability, Liability, and ControlControl

New technology challenges existing liability New technology challenges existing liability law and social practices for holding individuals law and social practices for holding individuals and orgs accountable for the creation and sale and orgs accountable for the creation and sale of new IS/IT products and servicesof new IS/IT products and services

ExamplesExamples If a person is injured by a machine If a person is injured by a machine

controlled by software, who is liable?controlled by software, who is liable? Should electronic services like America-On-Should electronic services like America-On-

line be held accountable for offensive line be held accountable for offensive material on their Web site?material on their Web site?

If you outsource your information If you outsource your information processing, can you hold your external processing, can you hold your external vendor liable for damages to your vendor liable for damages to your customers?customers?

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Liability and SoftwareLiability and Software

Some software may be part of a machineSome software may be part of a machine Some software acts more like a book Some software acts more like a book

storing and displaying informationstoring and displaying information Software as a service (ATM)Software as a service (ATM) Difficult to hold software producer liable Difficult to hold software producer liable

when the product is considered like a bookwhen the product is considered like a book

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Liability of Electronic Information Liability of Electronic Information ServicesServices

Are such services liable for the content of their Are such services liable for the content of their transmissions?transmissions?

Telephone companies are not liable for their Telephone companies are not liable for their transmissionstransmissions

Radio and television are liable Radio and television are liable What should we do with respect to the What should we do with respect to the

Internet, America-On-line ? Internet, America-On-line ? What happens when one company provides What happens when one company provides

telephone, cable, and Internet access services telephone, cable, and Internet access services over one wire?over one wire?

Communications Decency ActCommunications Decency Act

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Levels of the Accountability, Levels of the Accountability, Liability, and Control IssuesLiability, and Control Issues

Ethical issue (individuals)Ethical issue (individuals) Are individuals and organizations that Are individuals and organizations that

create, produce, and sell information create, produce, and sell information systems morally responsible for the systems morally responsible for the consequences of their use? 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? What should our expectations be? Should the developer of the service be Should the developer of the service be responsible for harm or should the responsible for harm or should the organization that purchased the service organization that purchased the service be held accountable?be held accountable?

Political issues (laws)Political issues (laws) Should legislation impose liability or Should legislation impose liability or

restrict liability on service providers?restrict liability on service providers?

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Systems Quality: Data Quality and Systems Quality: Data Quality and System ErrorsSystem Errors

All software has bugs; not all bugs can be All software has bugs; not all bugs can be found before releasing software; seriousness found before releasing software; seriousness of remaining bugs is unknownof 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?

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Levels of the System Quality IssueLevels of the System Quality Issue

Ethical issue is: At what point do you Ethical issue is: At what point do you release software or services for release software or services for consumption by others?consumption by others?

Societal issue: What should society expect Societal issue: What should society expect about software and systems? Infallibility is about software and systems? Infallibility is unreasonable.unreasonable.

Political issue: Should there be laws Political issue: Should there be laws holding firms accountable/liable?holding firms accountable/liable? Should there be quality standards? Who Should there be quality standards? Who

develops themdevelops them??

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Quality of Life: Equity, Access, Quality of Life: Equity, Access, BoundariesBoundaries

Negative consequences of IS/ITNegative consequences of IS/IT Empowerment - much of the decentralization Empowerment - much of the decentralization

of decision making has been trivial; Is Big of decision making has been trivial; Is Big Brother really here?Brother really here?

Rapidity of changeRapidity of change Boundaries between family, work, and Boundaries between family, work, and

leisureleisure Dependence and vulnerabilityDependence and vulnerability Computer crime and abuseComputer crime and abuse

Abuse is the commission of acts involving Abuse is the commission of acts involving a computer that may not be illegal but are a computer that may not be illegal but are considered unethical (e.g., spam?)considered unethical (e.g., spam?)

Computer Fraud and Abuse Act of 1986Computer Fraud and Abuse Act of 1986

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Quality of Life: Equity, Access, Quality of Life: Equity, Access, Boundaries (continued)Boundaries (continued)

Negative consequences of IS/ITNegative consequences of IS/IT Technology and re-engineering job lossTechnology and re-engineering job loss Equity and access (do all members of Equity and access (do all members of

society have equal access to IS/IT)society have equal access to IS/IT) Health risksHealth risks

RSIRSI CVSCVS TechnostressTechnostress

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Conducting An Ethical AnalysisConducting An Ethical Analysis

Identify and clearly describe the factsIdentify and clearly describe the facts Define the conflict and identify the higher Define the conflict and identify the higher

order values involvedorder values involved Identify the stakeholdersIdentify the stakeholders Identify the options that you can reasonably Identify the options that you can reasonably

taketake Identify the potential consequences of your Identify the potential consequences of your

optionsoptions

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Management Actions Regarding IS Management Actions Regarding IS and Ethicsand Ethics

Most firms Most firms do not havedo not have an IS-specific code an IS-specific code of ethicsof ethics

Disagreement whether an IS-specific code is Disagreement whether an IS-specific code is needed or a more general code of ethicsneeded or a more general code of ethics

L&L recommend an IS-specific code of ethics L&L recommend an IS-specific code of ethics that addresses each of the five ethical that addresses each of the five ethical issuesissues

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Links Related to Privacy and Links Related to Privacy and EthicsEthics

The Electronic Privacy Information Center (The Electronic Privacy Information Center (EPIC))

This site shows how easy it is to get private This site shows how easy it is to get private information about people (information about people (stalkers))

This is the home page for Computer This is the home page for Computer Professionals for Social Responsibility (Professionals for Social Responsibility (CPSR))