MIS Chapter 4

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MIS Chapter 4

  1. 1. Management InformationSystemsCourse Code 51458byDr. Muath AsmarFaculty of Economics andAdministrative Sciences
  2. 2. Management Information SystemsManagement Information SystemsMANAGING THE DIGITAL FIRM, 12THEDITIONETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMSChapter 4
  3. 3. Management Information SystemsManagement Information Systems• What ethical, social, and political issues are raisedby information systems?• What specific principles for conduct can be used toguide ethical decisions?• Why do contemporary information systemstechnology and the Internet pose challenges to theprotection of individual privacy and intellectualproperty?• How have information systems affected everydaylife?Learning ObjectivesCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20113
  4. 4. Management Information SystemsManagement Information Systems• Recent cases of failed ethical judgment in business– Lehman Brothers, Minerals Management Service,Pfizer– In many, information systems used to bury decisionsfrom public scrutiny• Ethics– Principles of right and wrong that individuals, actingas free moral agents, use to make choices to guidetheir behaviorsUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20114
  5. 5. Management Information SystemsManagement Information Systems• Information systems and ethics–Information systems raise new ethicalquestions because they createopportunities for:• Intense social change, threateningexisting distributions of power, money,rights, and obligations• New kinds of crimeUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20115
  6. 6. Management Information SystemsManagement Information Systems• Model for thinking about ethical, social, politicalissues:– Society as a calm pond– IT as rock dropped in pond, creating ripples of newsituations not covered by old rules– Social and political institutions cannot respondovernight to these ripples—it may take years todevelop etiquette, expectations, laws• Requires understanding of ethics to make choices inlegally gray areasUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20116
  7. 7. Management Information SystemsManagement Information SystemsUnderstanding Ethical and Social Issues Related to SystemsTHE RELATIONSHIPBETWEEN ETHICAL,SOCIAL, ANDPOLITICAL ISSUES INAN INFORMATIONSOCIETYThe introduction of newinformation technology has aripple effect, raising newethical, social, and politicalissues that must be dealt withon the individual, social, andpolitical levels. These issueshave five moral dimensions:information rights andobligations, property rights andobligations, system quality,quality of life, andaccountability and control.FIGURE 4-1CHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20117
  8. 8. Management Information SystemsManagement Information Systems• Five moral dimensions of theinformation age1. Information rights and obligations2. Property rights and obligations3. Accountability and control4. System quality5. Quality of lifeUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20118
  9. 9. Management Information SystemsManagement Information Systems• Key technology trends that raise ethical issues1. Doubling of computer power• More organizations depend on computer systems forcritical operations1. Rapidly declining data storage costs• Organizations can easily maintain detailed databaseson individuals1. Networking advances and the Internet• Copying data from one location to another andaccessing personal data from remote locations is mucheasierUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 20119
  10. 10. Management Information SystemsManagement Information Systems• Key technology trends that raise ethical issues (cont.)4. Advances in data analysis techniques• Companies can analyze vast quantities of data gatheredon individuals for:– Profiling» Combining data from multiple sources to create dossiersof detailed information on individuals– Nonobvious relationship awareness (NORA)» Combining data from multiple sources to find obscurehidden connections that might help identify criminals orterroristsUnderstanding Ethical and Social Issues Related to SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201110
  11. 11. Management Information SystemsManagement Information SystemsUnderstanding Ethical and Social Issues Related to SystemsNONOBVIOUSRELATIONSHIPAWARENESS (NORA)NORA technology can takeinformation about people fromdisparate sources and findobscure, nonobviousrelationships. It mightdiscover, for example, that anapplicant for a job at a casinoshares a telephone numberwith a known criminal andissue an alert to the hiringmanager.FIGURE 4-2CHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201111
  12. 12. Management Information SystemsManagement Information Systems• Basic concepts for ethical analysis– Responsibility:• Accepting the potential costs, duties, and obligations fordecisions– Accountability:• Mechanisms for identifying responsible parties– Liability:• Permits individuals (and firms) to recover damages done tothem– Due process:• Laws are well known and understood, with an ability toappeal to higher authoritiesEthics in an Information SocietyCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201112
  13. 13. Management Information SystemsManagement Information Systems• Ethical analysis: A five-step process1. Identify and clearly describe the facts2. Define the conflict or dilemma and identify thehigher-order values involved3. Identify the stakeholders4. Identify the options that you can reasonablytake5. Identify the potential consequences of youroptionsEthics in an Information SocietyCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201113
  14. 14. Management Information SystemsManagement Information Systems• Six Candidate Ethical Principles1. Golden Rule• Do unto others as you would have them do unto you1. Immanuel Kant’s Categorical Imperative• If an action is not right for everyone to take, it is notright for anyone1. Descartes’ Rule of Change• If an action cannot be taken repeatedly, it is not rightto take at allEthics in an Information SocietyCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201114
  15. 15. Management Information SystemsManagement Information Systems• Six Candidate Ethical Principles (cont.)4. Utilitarian Principle• Take the action that achieves the higher or greatervalue4. Risk Aversion Principle• Take the action that produces the least harm or leastpotential cost4. Ethical “no free lunch” Rule• Assume that virtually all tangible and intangible objectsare owned by someone unless there is a specificdeclaration otherwiseEthics in an Information SocietyCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201115
  16. 16. Management Information SystemsManagement Information Systems• Professional codes of conduct– Promulgated by associations of professionals• E.g. AMA, ABA, AITP, ACM– Promises by professions to regulate themselves inthe general interest of society• Real-world ethical dilemmas– One set of interests pitted against another– E.g. Right of company to maximize productivity ofworkers vs. workers right to use Internet for shortpersonal tasksEthics in an Information SocietyCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201116
  17. 17. Management Information SystemsManagement Information Systems• Privacy:– Claim of individuals to be left alone, free fromsurveillance or interference from other individuals,organizations, or state. Claim to be able to controlinformation about yourself• In U.S., privacy protected by:– First Amendment (freedom of speech)– Fourth Amendment (unreasonable search andseizure)– Additional federal statues (e.g. Privacy Act of 1974)The Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201117
  18. 18. Management Information SystemsManagement Information Systems• Fair information practices:– Set of principles governing the collection and use ofinformation– Basis of most U.S. and European privacy laws– Based on mutuality of interest between record holderand individual– Restated and extended by FTC in 1998 to provideguidelines for protecting online privacy– Used to drive changes in privacy legislation• COPPA• Gramm-Leach-Bliley Act• HIPAAThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201118
  19. 19. Management Information SystemsManagement Information Systems• Fair Information Practices principles:1. Notice/awareness (core principle)2. Choice/consent (core principle)3. Access/participation4. Security5. EnforcementThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201119
  20. 20. Management Information SystemsManagement Information Systems• European Directive on Data Protection:– Requires companies to inform people when theycollect information about them and disclose how itwill be stored and used.– Requires informed consent of customer– EU member nations cannot transfer personal data tocountries with no similar privacy protection (e.g. U.S.)– U.S. businesses use safe harbor framework• Self-regulating policy to meet objectives of governmentlegislation without involving government regulation orenforcement.The Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201120
  21. 21. Management Information SystemsManagement Information Systems• Internet Challenges to Privacy:– Cookies• Tiny files downloaded by Web site to visitor’s hard drive to helpidentify visitor’s browser and track visits to site• Allow Web sites to develop profiles on visitors– Web beacons/bugs• Tiny graphics embedded in e-mail and Web pages to monitor whois reading message– Spyware• Surreptitiously installed on user’s computer• May transmit user’s keystrokes or display unwanted ads• Google’s collection of private data; behavioraltargetingThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201121
  22. 22. Management Information SystemsManagement Information SystemsThe Moral Dimensions of Information SystemsHOW COOKIES IDENTIFY WEB VISITORSCookies are written by a Web site on a visitor’s hard drive. When the visitor returns to that Web site, the Webserver requests the ID number from the cookie and uses it to access the data stored by that server on thatvisitor. The Web site can then use these data to display personalized information.FIGURE 4-3CHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201122
  23. 23. Management Information SystemsManagement Information Systems• U.S. allows businesses to gather transactioninformation and use this for other marketingpurposes• Online industry promotes self-regulation overprivacy legislation• However, extent of responsibility taken varies– Statements of information use– Opt-out selection boxes– Online “seals” of privacy principles• Most Web sites do not have any privacy policiesThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201123
  24. 24. Management Information SystemsManagement Information Systems• Technical solutions– The Platform for Privacy Preferences (P3P)• Allows Web sites to communicate privacy policiesto visitor’s Web browser – user• User specifies privacy levels desired in browsersettings• E.g. “medium” level accepts cookies from first-party host sites that have opt-in or opt-out policiesbut rejects third-party cookies that use personallyidentifiable information without an opt-in policyThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201124
  25. 25. Management Information SystemsManagement Information SystemsThe Moral Dimensions of Information SystemsTHE P3P STANDARDP3P enables Web sites to translate their privacy policies into a standard format that can be read by theuser’s Web browser software. The browser software evaluates the Web site’s privacy policy to determinewhether it is compatible with the user’s privacy preferences.FIGURE 4-4CHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201125
  26. 26. Management Information SystemsManagement Information Systems• Property rights: Intellectual property– Intellectual property: Intangible property of any kindcreated by individuals or corporations– Three main ways that protect intellectual property1. Trade secret: Intellectual work or product belongingto business, not in the public domain2. Copyright: Statutory grant protecting intellectualproperty from being copied for the life of the author,plus 70 years3. Patents: Grants creator of invention an exclusivemonopoly on ideas behind invention for 20 yearsThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201126
  27. 27. Management Information SystemsManagement Information Systems• Challenges to intellectual property rights– Digital media different from physical media (e.g.books)• Ease of replication• Ease of transmission (networks, Internet)• Difficulty in classifying software• Compactness• Difficulties in establishing uniqueness• Digital Millennium Copyright Act (DMCA)– Makes it illegal to circumvent technology-basedprotections of copyrighted materialsThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201127
  28. 28. Management Information SystemsManagement Information Systems• Accountability, Liability, Control– Computer-related liability problems• If software fails, who is responsible?– If seen as part of machine that injures or harms,software producer and operator may be liable– If seen as similar to book, difficult to holdauthor/publisher responsible– What should liability be if software seen as service?Would this be similar to telephone systems notbeing liable for transmitted messages?The Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201128
  29. 29. Management Information SystemsManagement Information Systems• System Quality: Data Quality and System Errors– What is an acceptable, technologically feasible level ofsystem quality?• Flawless software is economically unfeasible– Three principal sources of poor system performance:• Software bugs, errors• Hardware or facility failures• Poor input data quality (most common source ofbusiness system failure)The Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201129
  30. 30. Management Information SystemsManagement Information Systems• Quality of life: Equity, access, and boundaries– Negative social consequences of systems• Balancing power: Although computing powerdecentralizing, key decision-making remainscentralized• Rapidity of change: Businesses may not have enoughtime to respond to global competition• Maintaining boundaries: Computing, Internet uselengthens work-day, infringes on family, personal time• Dependence and vulnerability: Public and privateorganizations ever more dependent on computersystemsThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201130
  31. 31. Management Information SystemsManagement Information Systems• Computer crime and abuse– Computer crime: Commission of illegal acts through useof compute or against a computer system – computermay be object or instrument of crime– Computer abuse: Unethical acts, not illegal• Spam: High costs for businesses in dealing with spam• Employment:– Reengineering work resulting in lost jobs• Equity and access – the digital divide:– Certain ethnic and income groups in the United Statesless likely to have computers or Internet accessThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201131
  32. 32. Management Information SystemsManagement Information Systems• Health risks:– Repetitive stress injury (RSI)• Largest source is computer keyboards• Carpal Tunnel Syndrome (CTS)– Computer vision syndrome (CVS)– Technostress– Role of radiation, screen emissions, low-levelelectromagnetic fieldsThe Moral Dimensions of Information SystemsCHAPTER 4: ETHICAL AND SOCIAL ISSUES ININFORMATION SYSTEMS© Prentice Hall 201132

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