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Ethical Challenges in Management

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Ethical Responsibility

The use of IT presents major security challenges, poses serious ethical questions, and affects society in significant ways.

IT raises ethical issues in the areas of..CrimePrivacyIndividualityEmployment HealthWorking conditions

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Ethical Responsibility (continued)

But, IT has had beneficial results as well.

So as managers, it is our responsibility to minimize the detrimental effects and optimize the beneficial effects.

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Ethical Responsibility (continued)

Business EthicsBasic categories of ethical issues

Employee privacySecurity of company recordsWorkplace safety

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Ethical Responsibility (continued)

Theories of corporate social responsibilityStockholder theory

Managers are agents of the stockholders. Their only ethical responsibility is to increase profit without violating the law or engaging in fraud

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Ethical Responsibility (continued)

Theories of corporate social responsibility (continued)Social Contract Theory

Companies have ethical responsibilities to all members of society, which allow corporations to exist based on a social contract

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Ethical Responsibility (continued)

Theories of corporate social responsibility (continued)

First condition – companies must enhance economic satisfaction of consumers and employees

Second condition – avoid fraudulent practices, show respect for employees as human beings, and avoid practices that systematically worsen the position of any group in society

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Ethical Responsibility (continued)

Theories of corporate social responsibility (continued)Stakeholder theory

Managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders.StockholdersEmployeesCustomersSuppliersLocal community

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Ethical Responsibility (continued)

Theories of corporate social responsibility (continued)

Sometimes stakeholders are considered to includeCompetitorsGovernment agencies and special

interest groupsFuture generations

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Ethical Responsibility (continued)

Technology EthicsFour Principles

ProportionalityGood must outweigh any harm or riskMust be no alternative that achieves the

same or comparable benefits with less harm or risk

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Ethical Responsibility (continued)

Technology Ethics (continued)Informed consent

Those affected should understand and accept the risks

JusticeBenefits and burdens should be

distributed fairly

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Ethical Responsibility (continued)

Technology Ethics (continued)Minimized Risk

Even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk

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Ethical Responsibility (continued)

Ethical Guidelines

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Ethical Responsibility (continued)

Ethical guidelines (continued)Responsible end users

Act with integrityIncrease their professional competenceSet high standards of personal

performanceAccept responsibility for their workAdvance the health, privacy, and general

welfare of the public

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Computer Crime

Association of Information Technology Professionals (AITP) definition includesThe unauthorized use, access, modification,

and destruction of hardware, software, data, or network resources

Unauthorized release of informationUnauthorized copying of software

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Computer Crime (continued)

AITP guidelines (continued)Denying an end user his/her own hardware,

software, data, or network resourcesUsing or conspiring to use computer or

network resources to illegally obtain info or tangible property

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Computer Crime (continued)

HackingThe obsessive use of computers, or the

unauthorized access and use of networked computer systems

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Computer Crime (continued)

Cyber TheftInvolves unauthorized network entry and

the fraudulent alteration of computer databases

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Computer Crime (continued)

Unauthorized use at workAlso called time and resource theftMay range from doing private consulting or

personal finances, to playing video games, to unauthorized use of the Internet on company networks

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Computer Crime (continued)

Software PiracyUnauthorized copying of software

Software is intellectual property protected by copyright law and user licensing agreements

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Computer Crime (continued)

Piracy of intellectual propertyOther forms of intellectual property covered

by copyright lawsMusicVideosImagesArticlesBooksOther written works

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Computer Crime (continued)

Computer viruses and wormsVirus

A program that cannot work without being inserted into another program

WormA distinct program that can run unaided

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Privacy Issues

IT makes it technically and economically feasible to collect, store, integrate, interchange, and retrieve data and information quickly and easily.Benefit – increases efficiency and

effectivenessBut, may also have a negative effect on

individual’s right to privacy

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Privacy Issues (continued)

Examples of important privacy issuesAccessing private e-mail and computer

records & sharing information about individuals gained from their visits to websites and newsgroups

Always knowing where a person is via mobile and paging services

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Privacy Issues (continued)

Examples of important privacy issues (continued)Using customer information obtained from

many sources to market additional business services

Collecting personal information to build individual customer profiles

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Privacy Issues (continued)

Privacy on the InternetUsers of the Internet are highly visible and

open to violations of privacyUnsecured with no real rulesCookies capture information about you

every time you visit a siteThat information may be sold to third

parties

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Privacy Issues (continued)

Privacy on the Internet (continued)Protect your privacy by

Encrypting your messagesAsk your ISP not to sell your information

to mailing list providers and other marketers

Decline to reveal personal data and interests online

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Privacy Issues (continued)

Computer matchingComputer profiling and matching personal

data to that profileMistakes can be a major problem

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Privacy Issues (continued)

Privacy lawsAttempt to enforce the privacy of computer-

based files and communicationsElectronic Communications Privacy ActComputer Fraud and Abuse Act

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Privacy Issues (continued)

Computer Libel and CensorshipThe opposite side of the privacy debate

Right to know (freedom of information)Right to express opinions (freedom of

speech)Right to publish those opinions (freedom

of the press)SpammingFlaming

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Other Challenges

EmploymentNew jobs have been created and

productivity has increased, yet there has been a significant reduction in some types of jobs as a result of IT.

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Other Challenges (continued)

Computer MonitoringConcerns workplace privacy

Monitors individuals, not just workIs done continually. May be seen as violating

workers’ privacy & personal freedomWorkers may not know that they are being

monitored or how the information is being usedMay increase workers’ stress levelMay rob workers of the dignity of their work

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Other Challenges (continued)

Working ConditionsIT has eliminated many monotonous,

obnoxious tasks, but has created others

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Other Challenges (continued)

IndividualityComputer-based systems criticized as

impersonal systems that dehumanize and depersonalize activities

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Health Issues

Job stressMuscle damageEye strainRadiation exposureAccidentsSome solutions

Ergonomics (human factors engineering)Goal is to design healthy work

environments

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Health Issues (continued)

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Societal Solutions

Beneficial effects on societySolve human and social problems

Medical diagnosisComputer-assisted instructionGovernmental program planningEnvironmental quality controlLaw enforcementCrime controlJob placement

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Section II

Security Management

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Tools of Security Management

GoalMinimize errors, fraud, and losses in the e-

business systems that interconnect businesses with their customers, suppliers, and other stakeholders

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Tools of Security Management (continued)

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Internetworked Security Defenses

EncryptionPasswords, messages, files, and other data is

transmitted in scrambled form and unscrambled for authorized users

Involves using special mathematical algorithms to transform digital data in scrambled code

Most widely used method uses a pair of public and private keys unique to each individual

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Internetworked Security Defenses (continued)

FirewallsServes as a “gatekeeper” system that

protects a company’s intranets and other computer networks from intrusionProvides a filter and safe transfer pointScreens all network traffic for proper

passwords or other security codes

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Internetworked Security Defenses (continued)

Denial of Service DefensesThese assaults depend on three layers of

networked computer systemsVictim’s websiteVictim’s ISPSites of “zombie” or slave computers

Defensive measures and security precautions must be taken at all three levels

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Internetworked Security Defenses (continued)

E-mail Monitoring“Spot checks just aren’t good enough

anymore. The tide is turning toward systematic monitoring of corporate e-mail traffic using content-monitoring software that scans for troublesome words that might compromise corporate security.”

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Internetworked Security Defenses (continued)

Virus DefensesProtection may accomplished through

Centralized distribution and updating of antivirus software

Outsourcing the virus protection responsibility to ISPs or to telecommunications or security management companies

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Other Security Measures

Security codesMultilevel password system

Log onto the computer systemGain access into the systemAccess individual files

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Other Security Measures (continued)

Backup FilesDuplicate files of data or programsFile retention measuresSometimes several generations of files are

kept for control purposes

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Other Security Measures (continued)

Security MonitorsPrograms that monitor the use of computer

systems and networks and protect them from unauthorized use, fraud, and destruction

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Other Security Measures (continued)

Biometric SecurityMeasure physical traits that make each individual

uniqueVoiceFingerprintsHand geometrySignature dynamicsKeystroke analysisRetina scanningFace recognition and Genetic pattern analysis

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Other Security Measures (continued)

Computer Failure ControlsPreventive maintenance of hardware and

management of software updatesBackup computer systemCarefully scheduled hardware or software

changesHighly trained data center personnel

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Other Security Measures (continued)

Fault Tolerant SystemsComputer systems that have redundant

processors, peripherals, and softwareFail-overFail-safeFail-soft

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Other Security Measures (continued)

Disaster RecoveryDisaster recovery plan

Which employees will participate and their duties

What hardware, software, and facilities will be used

Priority of applications that will be processed

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System Controls and Audits

Information System ControlsMethods and devices that attempt to ensure

the accuracy, validity, and propriety of information system activities

Designed to monitor and maintain the quality and security of input, processing, and storage activities

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System Controls and Audits (continued)

Auditing Business SystemsReview and evaluate whether proper and

adequate security measures and management policies have been developed and implemented

Testing the integrity of an application’s audit trail