School of Engineering and Technology Legal and Ethical Issues I (63244 ) PREPARED BY: SAMI BENAMER (MSc CS) Reference: ETHICS IN INFORMATION TECHNOLOGY- 6 Edition BY George W. Reynolds LEARNING OBJECTIVES As you read this chapter, consider the following questions: 1. What measures can organizations take to improve their business ethics? 2. How can you include ethical considerations in your decision making? 3. What trends have increased the risk that information technology will be used in an unethical manner? HOW ORGANIZATIONS CAN IMPROVE THEIR ETHICS ▪ Research by the Ethics Resource Center (ERC) found that 86 percent of the employees in companies with a well- implemented ethics and compliance program are likely to perceive a strong ethical culture within the company. ▪ while less than 25 percent of employees in companies with little to no program are likely to perceive a culture that promotes integrity in the workplace. ▪ A well-implemented ethics and compliance program and a strong ethical culture can, in turn, lead to less pressure on employees to misbehave and a decrease in observed misconduct. ▪ It also creates an environment in which employees are more comfortable reporting instances of misconduct, partly because there is less fear of potential retaliation by management against reporters (for example, reduced hours, transfer to less desirable jobs, and delays in promotions). HOW ORGANIZATIONS CAN IMPROVE THEIR ETHICS 1. Appoint a Corporate Ethics Officer ▪ A corporate ethics officer (also called a corporate compliance officer) provides an organization with vision and leadership in the area of business conduct. This individual “aligns the practices of a workplace with the stated ethics and beliefs of that workplace, holding people accountable to ethical standards. 2. Require the Board of Directors to Set and Model High Ethical Standards ▪ The board of directors is responsible for the careful and responsible management of an organization. In a for-profit organization, the board’s primary objective is to oversee the organization’s business activities and management for the benefit of all stakeholders, including shareholders, employees, customers, suppliers, and the community. HOW ORGANIZATIONS CAN IMPROVE THEIR ETHICS 3. Establish a Corporate Code of Ethics ▪ A code of ethics is a statement that highlights an organization’s key ethical issues and identifies the main values and principles that are important to the organization and its decision making. ▪ Codes of ethics frequently include a set of formal, written statements about the purpose of an organization, its values, and the principles that should guide its employees’ actions. ▪ An organization’s code of ethics applies to its directors, officers, and employees, and it should focus employees on areas of ethical risk relating to their role in the organization, offer guidance to help them recognize and deal with ethical issues, and provide mechanisms for reporting unethical conduct and fostering a culture of honesty and accountability within the organization. HOW ORGANIZATIONS CAN IMPROVE THEIR ETHICS 4. Conduct Social Audits ▪ An increasing number of organizations conduct regular social audits of their policies and practices. In a social audit, an organization reviews how well it is meeting its ethical and social responsibility goals and communicates its new goals for the upcoming year. ▪ This information is shared with employees, shareholders, investors, market analysts, customers, suppliers, government agencies, and the communities in which the organization operates. 5. Require Employees to Take Ethics Training ▪ The ancient Greek philosophers believed that personal convictions about right and wrong behavior could be improved through education. ▪ Thus, an organization’s code of ethics must be promoted and continually communicated within the organization, from the top to the bottom. Organizations can do this by showing the employees examples of how to apply the code of ethics in real life. One approach is through a comprehensive ethics education program that encourages employees to act responsibly and ethically. HOW ORGANIZATIONS CAN IMPROVE THEIR ETHICS 6. Include Ethical Criteria in Employee Assessments
▪ Managers can help employees to meet performance expectations by monitoring employee
behavior and providing feedback; increasingly, managers are including ethical conduct as part of an employee’s performance appraisal. 7. Create an Ethical Work Environment
▪ Most employees want to perform their jobs successfully and ethically, but good employees sometimes make bad ethical choices. ▪ Employees in highly competitive workplaces often feel pressure from aggressive competitors, cutthroat suppliers, unrealistic budgets, tight deadlines, and bonus incentives. ▪ Employees may also be encouraged to do “whatever it takes” to get the job done. In such environments, some employees may feel pressure to engage in unethical conduct to meet management’s expectations, especially if the organization has no corporate code of ethics and no strong examples of senior management practicing ethical behavior. INCLUDINGE THICAL CONSIDERATIONS IN DECISION MAKING ▪ We are all faced with difficult decisions in our work and in our personal life. Most of us have developed a decision-making process that we execute automatically, without thinking about the steps we go through. For many of us, the process generally follows the steps INCLUDINGE THICAL CONSIDERATIONS IN DECISION MAKING 1. Develop Problem Statement ▪ A problem statement is a clear, concise description of the issue that needs to be addressed. ▪ A good problem statement answers the following questions: What do people observe that causes them to think there is a problem? Who is directly affected by the problem? Is anyone else affected? How often does the problem occur? What is the impact of the problem? How serious is the problem? 2. Identify Alternatives ▪ During this stage of decision making, it is ideal to enlist the help of others, including stakeholders, to identify several alternative solutions to the problem. ▪ Brainstorming with others will increase your chances of identifying a broad range of alternatives and determining the best solution. INCLUDINGE THICAL CONSIDERATIONS IN DECISION MAKING 3. Choose Alternative ▪ Once a set of alternatives has been identified, the group must evaluate them based on numerous criteria, such as effectiveness of addressing the issue, the extent of risk associated with each alternative, cost, and time to implement. ▪ An alternative that sounds attractive but that is not possible will not help solve the problem. 4. Implement the Decision ▪ Once an alternative is selected, it should be implemented in an efficient, effective, and timely manner. ▪ This is often much easier said than done, because people tend to resist change. ▪ In fact, the bigger the change, the greater is the resistance to it. ▪ Communication is the key to helping people accept a change. INCLUDINGE THICAL CONSIDERATIONS IN DECISION MAKING 5. Evaluate the Results ▪ After the solution to the problem has been implemented, monitor the results to see if the desired effect was achieved and observe its impact on the organization and the various stakeholders. ▪ Were the success criteria fully met? Were there any unintended consequences? This evaluation may indicate that further refinements are needed. If so, return to the problem development step, refine the problem statement as necessary, and work through the process again. ETHICS IN INFORMATION TECHNOLOGY ▪ Trends have increased the risk that information technology will be used in an unethical
manner ▪ The growth of the internet and social networks
▪ The ability to capture, store, and analyze vast amounts of personal data
▪ A greater reliance on information systems in all aspects of life
▪ The importance of ethics and human values has been underemphasized
ETHICS IN INFORMATION TECHNOLOGY Here are some examples that raise public concern about the ethical use of information technology: ▪ Governments around the world have implemented various systems that enable the surveillance of their citizens and are struggling to achieve the proper balance between privacy and security. ▪ Many employees have their email and Internet access monitored while at work, as employers struggle to balance their need to manage important company assets and work time with employees’ desire for privacy and self-direction. ▪ Millions of people have downloaded music and movies at no charge and in clear violation of copyright laws at great expense to the owners of those copyrights. ETHICS IN INFORMATION TECHNOLOGY ▪ Organizations contact millions of people worldwide through unsolicited email (spam) and text messages in an extremely low cost, but intrusive marketing approach. ▪ Hackers break into databases of financial and retail institutions to steal customer information and then use it to commit identity theft opening new accounts and charging purchases to unsuspecting victims. ▪ Students around the world have been caught downloading material from the web and plagiarizing content for their term papers. ▪ Websites plant cookies or spyware on visitors’ hard drives to track their online purchases and activities. SUMMARY, PART 1 ▪ What measures can organizations take to improve their business ethics? ▪ Appoint a corporate ethics officer. ▪ Require the board of directors to set and model high ethical standards. ▪ Establish a corporate code of ethics. ▪ Conduct social audits. ▪ Require employees to take ethics training. ▪ Include ethical criteria in employee appraisals. ▪ Create and ethical work environment. SUMMARY, PART 2 ▪ How can you include ethical considerations in your decision making? ▪ Use a five-step model for decision making: ▪ Define the problem ▪ Identify alternatives ▪ Choose an alternative ▪ Implement the decision ▪ Monitor the results ▪ Incorporate ethical considerations into decision making: ▪ Weigh laws, guidelines, and principals. ▪ Consider the impact of the decision. SUMMARY, PART 3 ▪ What trends have increased the risk that information technology will be used in an unethical manner? ▪ The growth of the Internet and social networks ▪ The ability to capture, store, and analyze vast amounts of personal data ▪ A greater reliance on information systems in all aspects of life ▪ The importance of ethics and human values has been underemphasized
