CH 12 Pssi

2e
Chapter 12
Ethical, Legal,
and Social
Issues of
Informational
Technology
Information Technology for Managers

George W. Reynolds
Strayer University
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
• What are some of the ethical, legal, and social
issues raised by the use of information technology?
• As a manager, what can you do to help your
organization cope with these issues?
2
What is Ethics?
3
Ethics
• Set of beliefs about right and wrong behavior
• Ethical behavior conforms to generally accepted
social norms
• Doing what is ethical can be difficult in certain
situations
4
Morals, Ethics, and Laws
Morals
• One’s personal beliefs about right and wrong
Ethics
• Standards or codes of behaviour expected of an

individual by a group to which an individual belongs
Law
• System of rules that states what can be done and

what cannot be
5
Code of Ethics
• States the principles and core values that are
essential to a professional’s work
• Guidelines devised by the Association for
Computing Machinery (ACM)
– Contribute to society and human well-being
– Avoid harm to others
– Be honest and trustworthy
– Be fair and take action not to discriminate
Information Technology for Managers

6
Code of Ethics (continued)
– Honor property rights including copyrights and
patents
– Give proper credit for intellectual property
– Respect the privacy of others
– Honor confidentiality
7
Figure 12.2 - Steps Involved in the
Decision-Making Process
8
Figure 12.3 - Factors to Weigh in
Decision Making
9
Privacy
10
First and Fourth Amendments
• First Amendment
– Adopted to guarantee Americans’ rights to freedom
of religion, freedom of expression, and freedom to
assemble
– Plays an important role if data is being gathered to
track the movement of groups of people
• Fourth Amendment
– Adopted to protect the people from unreasonable
searches and seizures of properties
– Violation occurs if data is gathered without obtaining
a warrant
11
Figure 12.4 - Sources of Gathering
Information
12
Privacy of Stakeholders
• Approaches to balance the needs of stakeholders
– New laws, technical solutions, and privacy policies
– Reasonable limits on government and business
access to personal information
– New information and communication technologies
must be designed to protect privacy
13
Data Brokers
• Companies that create profiles on people
– Based on aggregated data from arrest records,
business directories, social media networks, and
other public records
• Doxing: Gathering information about an individual
using information from data brokers
– Bad characters threaten to expose their victims’
personal details unless a form of ransom is paid
14
Treating Customer Data Responsibly
• Code of Fair Information Practices
– Defines five widely accepted core principles
concerning fair information practices of privacy
protection
• Notice/Awareness
• Choice/Consent
• Access/Participation
• Integrity/Security
• Enforcement/Redress
15
(continued 1)
• 1980 Organization for Economic Cooperation
and Development (OECD) privacy guidelines
– Represent the international consensus regarding the
collection and management of personal information
• European Union Data Protection Directive
– Prohibits the transfer of personal data to non-
European Union nations that do not meet the
European adequacy standard for privacy protection
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(continued 2)
• Chief Privacy Officer (CPO): Defines,
implements, and oversees a set of data privacy
policies
– Ensures that the organization does not violate state
and federal government regulations
17
Establishing an Effective Data Privacy
Program
• Organization should:
– Conduct a thorough assessment to document the
sensitive information collected and the details
surrounding it
– Define a comprehensive data privacy program that
meets all data privacy policies and government
requirements
– Develop a data breach response plan to be
implemented in the event of such an incident
– Update the data privacy program based on the
ongoing changes in regulatory requirements
18
Workplace Monitoring
• IT usage policy
– Establishes boundaries of acceptable behavior
– Enables management to take action against violators
– Organizations monitor workers to ensure compliance
• Fourth Amendment of the Constitution
– Protects citizens from unreasonable searches by the
government
– Used to protect the privacy of government
employees
19
Workplace Monitoring (continued)
– Cannot be used to control how a private employer
treats its employees
• Public sector employees have far greater privacy
rights than those in private industry
• State privacy statutes tend to favor employers over
employees
20
Social Networking and Privacy
• Social networks encourage members to create a
user profile
– Involves name, photo, and other personal data
• Terms of Use policy: Decides a network’s level of
privacy
– Includes clauses permitting the network operator to
collect and store data on users or even share it with
third parties
21
Privacy Issues in Social Networking
• Information is shared by the operator with other
members of a social network
– Law enforcement, the press, and the public
• Data breaches
– Email addresses of the users are obtained
– Login credentials are obtained through malware
downloaded into the computers
22
Internet Censorship
23
Internet Censorship (continued)
• Control or suppression of the publishing or
accessing of information on the Internet
• Forms
– Limiting access to certain Web sites or allowing
access to only modified content
– Rejecting the use of certain key words in search
engine searches
– Tracking and monitoring the Internet activities of
individuals and harassing or jailing them for their
Internet use
24
Figure 12.6 - Support for Internet
Freedom Linked to Internet Usage
Source: “Support for Internet Freedom Linked to Internet Usage,” Pew Research Center, March 18, 2014, www.pewglobal
.org/2014/03/19/emerging-and-developing-nations-want-freedom-on-the-internet/internet-censorship-opinions2.
25
Internet Access
26
Internet Access: Barriers and Solutions
• Digital divide
– Describes the distance between those who do and
those who don’t have access to modern information
and technology
– Exists everywhere
• Country to country, within countries, and among all
age groups and economic classes
• Education Rate (E-Rate) program
– Advances educational resources by making
broadband Internet available to schools
27
(continued 1)
• Net neutrality
– ISPs should treat all Internet traffic running on their
wired or wireless broadband networks the same
– FCC sets the rules to govern net neutrality
• Internet of Things (IoT)
– Network of physical objects embedded with sensors,
processors, software, and network connectivity
– Capable of exchanging data with the manufacturer,
operator, and other connected devices
28
(continued 2)
• Internet of Everything (IoE)
– Encompasses machine-to-machine, people-to-
people, and people-to-machine connections
– Devices supported by IoE will exceed 50 billion by
the end of 2020
29
Figure 12.7 - Estimated Growth of the
Internet of Everything
Source: Greenough, John, “The Internet of Everything: 2015 [Slide Deck],” Business Insider, March 25, 2015,
www.businessinsider.com/internet-of-everything-2015-bi-2014-12?op=1.
30
Summary
• Ethics
– Set of beliefs about right and wrong behavior
– Treat customer data responsibly
• Decision-making process
– Gather information
– Develop a problem statement
– Consult those involved and other appropriate
resources
– Identify, weigh, and choose options
31
Summary (continued 1)
• The First Amendment to the U.S. Constitution was
adopted to guarantee Americans’ rights to freedom
of religion, freedom of expression, and freedom to
assemble
• The Fourth Amendment was adopted to protect the
people from unreasonable searches and seizures
of properties by the government
• Organizations should appoint an executive to
define, implement, and oversee a set of data
privacy policies
32
Summary (continued 2)
• Organizations have an information technology
usage policy to protect against employee abuses
that reduce worker productivity
• Internet censorship is the control or suppression of
the publishing or accessing of information on the
Internet
– Net neutrality is the principal that ISPs should be
required to treat all Internet traffic uniformly
• Many issues need to be sorted before IoT becomes
a reality
33

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2e

Information Technology for Managers

• One’s personal beliefs about right and wrong

• Standards or codes of behaviour expected of an

• System of rules that states what can be done and

Information Technology for Managers

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