Prihandoko, SKom, MIT, PhD

081310588353
Email: prihandoko@gmail.com

Ethics in
Information
Technology
Outline

• Objectives
• What is Ethics?
• Ethics in Business World
• Fostering good business practice
• Creating an ethical work environment
• Some approach in ethical decision
making
• Summary
Objectives

What is ethics, and Why is business What are

why is it important ethics becoming organizations doing
to act according to increasingly to improve their
a code of ethics? important? business ethics?

Ethics in Information Technology, Fourth Edition 3

Objectives (cont’d.)

What trends have

Why are organizations What approach can you increased the risk of
interested in fostering take to ensure ethical using information
good business ethics? decision making? technology in an
unethical manner?

Ethics in Information Technology, Fourth Edition 4

 • Dave works as a programmer for a large software
company. He writes and tests utility programs such as
compilers. His company operates two computing shifts:
during the day program development and online
applications are run; at night batch production jobs are
completed.
Case Study • Dave has access to workload data and learns that the
#1 : Use of evening batch runs are complementary to daytime
programming tasks ; that is, adding programming work
Computer during the night shift would not adversely affect
performance of the computer to other users.
Services • Dave comes back after normal hours to develop a
program to manage his own stock portfolio. His drain on
the system is minimal, and he uses very few expendable
supplies , such as printer paper.
• Is Dave's behaviour ethical?
Your responses (tulis di chat):
• Menggunakan fasilitas kantor
• Korupsi
• Etis jika dilakukan seijin atasan
• Tanpa ijin, tidak jujur
• Jika perusahaan tidak keberatan,
tidak mengapa
• Etis jika pekerjaan utama tidak
terganggu
• Mengganggu security
• Etis jika dave pembuat
perjanjian dg perusahaan
• Mengganggu karyawan lain
• Ada nilai lebih
• Etis jika rekan kerja tdk
keberatan
• Tidak etis, kuota kantor dan
listrik
Some of the ethical principles
involved in this case
o Ownership of resources . The company owns the
computing resources and provides them for its own
computing needs.
o Effect on others. Although unlikely , a flaw in Dave's
program could adversely affect other users, perhaps
even denying them service because of a system failure.
o Universalism principle. If Dave's action is acceptable, it
should also be acceptable for others to do the same.
However, too many employees working in the evening
could reduce system effectiveness.
o Possibility of detection, punishment. Dave does not
know whether his action would be wrong or right if
discovered by his company. If his company decided it
was improper use, Dave could be punished.
 8

Moral code

• Set of rules
• Establishes boundaries of generally
accepted behavior
What is Ethics? • Different rules often have contradictions

Morality

• Social conventions about right and wrong

• Widely shared
• Form basis for an established consensus

Ethics in Information Technology, Fourth Edition

 • Morality may vary by:
• Age
• Cultural group
What is Ethics? • Ethnic background
(cont’d.) • Religion
• Life experiences
• Education
• Gender

Ethics in Information Technology, Fourth Edition 9

 Definition of Ethics

Ethics • Set of beliefs about right and wrong behavior

Virtues • Habits that incline people to do what is acceptable

Vices • Habits of unacceptable behavior

Virtues and vices define

• Scheme of moral values
a personal value system
Ethics in Information Technology, Fourth Edition 10
 Integrity is a cornerstone of ethical behavior

People with integrity:

The • Act in accordance with a personal code of principles
Importance • Extend to all the same respect and consideration
• Apply the same moral standards in all situations
of Integrity Lack of integrity emerges if you apply moral standards
differently according to situation or people involved

Many ethical dilemmas are not as simple as right versus

wrong

Ethics in Information Technology, Fourth Edition 11

The Difference Between Morals, Ethics, and Laws

Morals: one’s personal beliefs about right and wrong

Ethics: standards or codes of behavior expected of an individual by a

group

Laws are enforced by a set of institutions

Law: system of rules that tells us Legal acts conform to the law

what we can and cannot do Moral acts conform to what an individual believes is the
right belief of right and wrong

Ethics in Information Technology, Fourth Edition 12

 • Both the likelihood and the negative impact
of inappropriate behavior have increased
• Several trends have increased the likelihood
of unethical behavior:
Ethics in the
Business • Globalization creating complex work
World
environments
• Organizations challenged to maintain
profits / revenue
• Heightened vigilance by:
• Employees
• Shareholders
• Regulatory agencies

Ethics in Information Technology, Fourth Edition 13

 To gain the goodwill of the community

Why Fostering To create an organization that operates

consistently
Good Business
Ethics Is To foster good business practices

Important
To protect organization/employees from legal
action

To avoid unfavorable publicity

 • Organizations have fundamental responsibilities
Gaining the to society
• Declared in formal statement of company’s
Goodwill principles or beliefs
• Include:
of the • Making contributions to charitable
Community organizations and nonprofit institutions
• Providing benefits for employees in
excess of legal requirements
• Choosing economic opportunities that
might be more socially desirable than
profitable

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Ethics in Information Technology, Fourth Edition
 Gaining the Goodwill of the Community (cont’d.)

Socially responsible activities Goodwill makes it easier for

create goodwill corporations to conduct business

Ethics in Information Technology, Fourth Edition 16

 Know what is
expected of them
Consistency ensures Can employ the

Creating an that employees:

organization’s
values to help
them in decision

Organization
making

That Operates Consistency also means that

Consistently shareholders, customers, suppliers,
and community know what they can
expect of the organization

Ethics in Information Technology, Fourth Edition 17

 • Many companies share the following values:
Creating an • Operate with honesty and integrity, staying true
to organizational principles
Organization • Operate according to standards of ethical
That conduct, in words and action
• Treat colleagues, customers, and consumers
Operates with respect
• Strive to be the best at what matters to the
Consistently company
(cont’d.) • Value diversity
• Make decisions based on facts and principles

Ethics in Information Technology, Fourth Edition 18

Fostering Good Business Practices

Good ethics means good Companies that:

business/improved profits
Produce safe and effective products
• Avoid costly recalls and lawsuits
Provide excellent service that retains customers
Develop and maintain strong employee relations
• Suffer lower turnover rates
• Enjoy better employee morale

Ethics in Information Technology, Fourth Edition 19

 Suppliers/business partners place
priority on working with companies that
operate in a fair and ethical manner
Fostering • Bad ethics means bad business/waning profits
Good
Business Bad ethics can lead to bad business
results
Practices
(cont’d.)
Bad ethics can have a negative impact on
employees

Ethics in Information Technology, Fourth Edition 20

Improving Corporate Ethics

• Characteristics of a successful ethics program

• Employees willing to seek advice about ethical issues
• Employees feel prepared to handle situations that could
lead to misconduct
• Employees are rewarded for ethical behavior
• Employees are not rewarded for success obtained through
questionable means
• Employees feel positive about their company
 • Corporate ethics officer
• Provides vision and leadership in
business conduct
• Should be well-respected, senior-level
Appointing a manager who reports directly to the
CEO
Corporate Ethics • Ensures ethical procedures are put in
place
Officer • Creates and maintains ethics culture
• Is responsible for key
knowledge/contact person for ethical
issues

Ethics in Information Technology, Fourth Edition 22

 • Donald works for the county records department as
a computer records clerk, where he has access to
files of property tax records.
• For a scientific study, a researcher, Ethel, has been
granted access to the numerical portion ”but not
Case Study the corresponding names ”of some records.

#2: Privacy • Ethel finds some information that she would like to
use, but she needs the names and addresses
Rights corresponding with certain properties.
• Ethel asks Donald to retrieve the names and
addresses so she can contact these people for more
information and for permission to do further study.
• Should Donald release the names and addresses?
Your responses:
 o Job responsibility. Donald's job is to manage individual
records, not to make determinations of appropriate use.
Policy decisions should be made by someone of higher
authority.
o Use. The records are used for legitimate scientific study, not
for profit or to expose sensitive data. (However, Ethel's
Some of the access is authorized only for the numerical data, not for the
private information relating property conditions to
individuals.)
ethical o Possible misuse. Although he believes Ethel's motives are
proper, Donald cannot guarantee that Ethel will use the
principles data only to follow up on interesting data items.
involved in o Confidentiality. Had Ethel been intended to have names and
addresses, they would have been given initially.
this case. o Tacit permission. Ethel has been granted permission to
access parts of these records for research purposes, so she
should have access to complete her research.
o Propriety. Because Ethel has no authority to obtain names
and addresses and because the names and addresses
represent the confidential part of the data, Donald should
deny Ethel's request for access.
Establishing a Corporate Code
of Ethics
• Code of ethics
• Highlights an organization’s key ethical issues
• Identifies overarching values and important
principles
• Focuses employees on areas of ethical risk
• Offers guidance for employees to recognize and
deal with ethical issues
• Provides mechanisms to report unethical
conduct
• Help employees abide by the law, follow
necessary regulations, and behave in an ethical
manner
Ethics in Information Technology, Fourth Edition 26
Establishing a Corporate
Code of Ethics (cont’d.)
Ethics in Information Technology, Fourth Edition 27
 Requiring Personal convictions improved through education
Employees to
Take Ethics
Training

Comprehensive ethics education program encourages

employees to act responsibly and ethically
Demonstration of recent
28 Often presented in small
workshop formats
Employees apply code of
ethics to hypothetical but
company decisions based
on principles from the
realistic case studies
code of ethics

Ethics in Information Technology, Fourth Edition

 • Only 43% of companies include ethical
Including conduct in employee’s performance
appraisal
Ethical Criteria • Ethical criteria include:
in Employee • Treating others fairly and with respect
• Operating effectively in a multicultural
Appraisals environment
• Accepting personal accountability
• Continually developing themselves and
others
• Operating openly and honestly with all
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Ethics in Information Technology, Fourth Edition
 • Good employees may make bad ethical
choices
• May be encouraged to do “whatever it
takes” to get the job done
Creating an • Employees need a knowledgeable
resource to discuss perceived unethical
Ethical Work practices
Environment • A manager
• Legal or Internal Audit Department
• Business Unit’s legal counsel
• Anonymously through internal Web site

Ethics in Information Technology, Fourth Edition 30

Creating an Ethical Work Environment (cont’d.)
Ethics in Information Technology, Fourth Edition

• Steps in a decision-making process

Including • Develop problem statement
• Identify alternatives
Ethical
• Evaluate and choose alternative
Considerations • Implement decision
in Decision • Evaluate results
Making • Success

32
Ethics in Information Technology, Fourth Edition

Develop a Problem
Statement
• Clear, concise description of the issue
• Answers these questions:
• What causes people to think there is a
problem?
• Who is directly affected by the problem?
• Is there anyone else affected?
• How often does it occur?
• What is the impact of the problem?
• How serious is the problem?
33
• Most critical step in decision-making process
 Example of a good problem statement:

• “Our product supply organization is continually

running out of stock of finished products, creating
Develop a an out-of-stock situation on over 15 percent of our
customer orders, resulting in over $300,000 in lost
Problem sales per month.”

Statement Examples of poor problem statements:

(cont’d.) • “We need to implement a new inventory control

system.” (possible solution, not a problem
statement)
• “We have a problem with finished product
inventory.” (not specific enough)

Ethics in Information Technology, Fourth Edition 34

 Enlist help to brainstorm alternative
solutions

Identify, Evaluate by weighing laws, guidelines,

and principles
Evaluate, and
Choose an Consider likely consequences of each
Alternative alternative

Be ethically and legally

defensible
Be consistent with policies and
Alternative selected code of ethics

must: Take into account impact on

others
Provide a good solution to
problem
Common Approaches
to Ethical Decision • Table 1-5 Four common approaches to ethical decision making
Making
 Virtue Ethics Approach

Virtue ethics • Focuses on concern with daily life in a community

• People guided by virtues to reach “right” decision
approach • More effective than following set of principles/rules

• Does not provide guide for action

Problems • Virtue cannot be worked out objectively; depends
on circumstances

Ethics in Information Technology, Fourth Edition 37

 Utilitarian approach

• Chooses action that has best overall

consequences
• Finds the greatest good by balancing all
interests
Utilitarian • Fits concept of value in economics and the
use of cost-benefit analysis
Approach
Problems

• Measuring and comparing values is often

difficult
• Predicting resulting benefits and harm is
difficult

Ethics in Information Technology, Fourth Edition 38

 Fairness approach

• Focuses on fair distribution of

benefits/burdens
• Guiding principle is to treat all people
Fairness the same
Approach
Problems

• Decisions can be influenced by personal

bias
• Others may consider the decision unfair

Ethics in Information Technology, Fourth Edition 39

 Common good approach

• Work together for common set of

values and goals
Common • Implement systems that benefit all
people
Good
Approach Problems

• Consensus is difficult
• Some required to bear greater costs
than others

Ethics in Information Technology, Fourth Edition 40

Diskusi
• Pendekatan apa yang dilakukan di perusahaan anda ?
• Tuliskan nama dan jawaban anda via chat
 Efficient, effective, timely implementation
Implement
Communication is key for people to accept
the change
decision
Implement Transition plan made easy and pain-free

the Decision
and
Evaluate the
Monitor results for desired effect
Results
Evaluate Observe impact on organization and
stakeholders
the results
Return to “Develop problem statement” step
if further refinements may be needed

Ethics in Information Technology, Fourth Edition 42

Ethics in Information Technology, Fourth Edition

• Public concern about the ethical use of

information technology includes:
• E-mail and Internet access monitoring
Ethics in • Downloading in violation of copyright
Information laws
• Unsolicited e-mail (spam)
Technology • Hackers and identify theft
• Students and plagiarism
• Cookies and spyware

43
 The general public does not
understand the critical importance of
ethics as applied to IT

Ethics in
Information
Technology Important decisions are often left to
technical experts
(cont’d.)
Making decisions
based on technical
savvy, business
General business know-how, and a
managers must assume sense of ethics
Creating an
greater responsibility environment where
ethical dilemmas can
for these decisions by: be discussed openly,
objectively, and
constructively
IEEE Code of
Ethics
ACM Code of Ethics
 Ten
Commandments
of Computer
Ethics
What Are the Ethics Problem in Your
Business?
•…
• ..
•…
 Summary

• Ethics is important because the risks associated with inappropriate

behavior have increased
• Organizations have at least five good reasons for encouraging employees
to act ethically
• To gain the good will of the community
• To create an organization that operates consistently
• To foster good business practices
• To protect the organization and its employees against legal action
• To avoid unfavorable publicity
Ethics in Information Technology, Fourth Edition 49
 Summary (cont’d.)

• Organizations require successful ethics programs

• The corporate ethics officer ensures that ethical procedures are installed
and followed
• Managers’ behaviors and expectations can strongly influence employees’
ethical behavior
• Most of us have developed a simple decision-making model that includes
five steps
• Ethical considerations must be incorporated into decision making

Ethics in Information Technology, Fourth Edition 50

Summary (cont’d.)

• Four common approaches to ethical decision making

• Virtue ethics approach
• Utilitarian approach
• Fairness approach
• Common good approach
Terima Kasih