Name :Lilian Mahlavira

Reg number : R203991P

Course Code: BEM 304

Question: Examine the impact of technology on business ethics.

INTRODUCTION

Business ethics is the study of business situations, activities, and decisions where issues of right
and wrong are addressed. It is the application of a moral framework to the way organizations do
business. Business ethics tries to answer questions such as ‘What is the ethical way to conduct
business?’ and ‘What are the moral responsibilities of businesses?’” (International Business
Ethics Institute, n.d.). These business ethics can be affected by technology either positively or
negatively in terms of privacy and data protection, transparency and accountability , cyber
security , Environmental Impact and Automation and Job Displacement.

Privacy and data Protection

As stated by Brown and Wilson (2020), “Technology has played a significant role in the
transformation of business ethics by enhancing privacy protection. For example, technology has
enabled the development of privacy-enhancing technologies (PETs) such as encryption,
anonymization, and privacy policies. These PETs have helped to create a more transparent and
accountable business environment, giving individuals greater control over their personal data”.
These increased security measures has reduced the risk of privacy breaches and also
unauthorized access to some confidential information. However that same technology is prone
to some threats in terms of privacy for example it leads to some unethical issues such as Cyber
stalking. While PETs have the potential to improve privacy and promote ethical business
practices, there are also ethical concerns associated with their use. PETs can potentially protect
the privacy of individuals by limiting the amount of information that is collected and shared, on
the other hand, PETs can also infringe on individuals’ privacy rights , for example by tracking
users without their knowledge or consent ( Chen& Zhang 2021). For example the scandal of
Facebook and a Cambridge in 2018 where it tempered with customers data without their
knowledge.

Transparency and accountability

Technology has increased transparency in the business world, allowing for more open
communication between businesses and consumers. Social media and the internet make it easier
for consumers to share their experiences with businesses, both positive and negative , resulting
in greater need for ethical Behavior. There is also an improvement in terms of accountability as
there are some digital records which can be traced back to the business if they happen to be
practicing unethical behaviors , also social media has enabled whistleblowers to expose
unethical practices Hence forcing companies to practice ethical Behaviors as a way of
protecting their reputation . According to ( Sousa-Silva & Sarmento , 2017), "On the one hand,
technology has made it easier for businesses to share information with the public, and to be held
accountable for their actions. On the other hand, technology has created new challenges for
transparency, including the spread of inaccurate information and the potential for abuse. These
challenges can be caused by rapid expansion of social media and the lack of c measures or
controls over the information which can be posted. For example, employees or even former
employees might post negative information about a company which can ruin it’s reputation .

Cyber security

Technology has led to a number of advancements in cyber security, including the development of
new security protocols, the use of artificial intelligence, and the expansion of ethical standards
for technology usage. One example of a new security protocol is the implementation of two-
factor authentication, which requires users to enter a code from their phone or a physical security
token in addition to their password to access their account. This is considered to be much more
secure than traditional passwords alone, as it requires an additional piece of information that only
the user should have access to (Cangemi, 2019) . This kind of data protection makes it difficult
for unauthorized individuals to access personal information or business information . However
not only did technology improved Cyber security but it also created new challenges and
vulnerabilities such as hacking tools and black markets . According to ( Carter, 2018),
technology has negatively affected cyber security in business ethics is through the creation of a
"black market" for cyber crime. This black market has made it easier for criminals to obtain tools
and services that they can use to commit cyber crime, such as malware, botnets, and stolen
credentials. The black market has also made it easier for criminals to sell stolen data and access
to compromised systems. As a result this has made it difficult for businesses to protect their
information and even themselves.

Environmental Impact
Technology has helped companies to optimize supply chains, to use fewer materials and energy.
In addition , recycling and re-usage of materials was made easier with technology and has also
helped businesses to monitor and improve their environmental impact . According to an article
by World Economic Forum, 2022, “Zimbabwe has shown how businesses can benefit from the
use of technology to improve the environment. For example, the Chisumbanje sugar estate has
installed a ‘waste-to-energy’ plant that converts bagasse, the fibrous residue left over from sugar
production, into electricity. This has reduced the estate’s reliance on the national grid, while also
lowering its carbon footprint. This has shown how businesses are practicing good ethical
practices of being environmentally friendly through the use of technology. However not only
did technology improved environment but it also led to some of the challenges which includes
electronic e- waste , carbon footprint , just to mention a few as a result Dahl,2019 stated
that ,with the increased use of fossil fuels, the production of electronic waste, and the release of
greenhouse gases, can lead to climate changes.

Automation and Job Displacement

Automation technologies can lead to the replacement of certain jobs and also can lead to job
losses for quite number of workers , as a result this has raised ethical issues concerning the
people who are being affected by automation and job displacement. According to (Hook, &
Mobasseri, (2017), “Automation has the potential to improve efficiency, but it can also
negatively affect worker well-being. Policies should be put in place to balance the efficiency
gains from automation with the negative impacts on workers. This could include a guaranteed
minimum income, job training and education programs, and workplace redesign to reduce the
negative impacts of automation on worker well-being. Additionally, companies should consider
the ethical implications of their automation decisions and aim to design automation systems that
are beneficial for workers.”

Conclusion

In a nutshell, technology brought quite a number positive changes which impacted business
ethics to a greater extend but on the other hand it brought also a number of ethical issues which
are questioned and can have negative impact on the morals and values of people and how they
make their decisions.

Reference

Brown, L., & Wilson, R. (2020). The Impact of Technology on Business Ethics: How
Technology Enhances Privacy Protection. Harvard Business Review, 98(1), 73-79. Retrieved
from the ProQuest database.

Cangemi, J. (2019). The Impact of Technology on Cybersecurity. Harvard Business Review,

October 2019 Issue. Retrieved from https://hbr.org/2019/10/the-impact-of-technology-on-
cybersecurity.

Carter, B. J. (2018). How technology is harming cybersecurity. Harvard Business Review.

Retrieved from https://hbr.org/2018/03/how-technology-is-harming-cybersecurity.

Chen, H., & Zhang, L. (2021). Privacy-Enhancing Technologies and Business Ethics: A Review
of the Literature. Harvard Business Review, 100(1), 17-29. Retrieved from the ProQuest
database.

Dahl, M. (2019). The effects of technology on the environment. In L. Smith (Ed.), The ethics of
business in the digital age (pp. 21-31). New York, NY: Routledge.

Hook, C. C., & Mobasseri, S. (2017). Ethical considerations in the age of automation:
Balancingefficiency and worker well-being. Journal of Business Ethics, 148(3), 575-594.
https://doi.org/10.1007/s10551-017-3652-5

International Business Ethics Institute. (n.d.). What is Business Ethics? Retrieved from
http://www.business-ethics.org/what-is-business-ethics/

Sousa-Silva, R., & Sarmento, M. (2017). The impact of technology on transparency in business
ethics. In L. Goel, A. Mellis & R. Laufer (Eds.), Oxford handbook of business and professional
ethics (pp. 627-637). Oxford, UK: Oxford University Press.
World Economic Forum. (2022). Zimbabwe’s sugar estate is using waste-to-energy technology to
reduce its carbon footprint. Retrieved from https://www.weforum.org/agenda