This document is a chapter about the ethical and social impacts of information systems. It covers topics such as privacy, intellectual property, accountability, system quality, and how technology affects quality of life. The chapter also discusses management challenges in dealing with these issues and proposes implementing a corporate code of ethics.

1. c h a p t e r
15
ETHICAL & SOCIAL
IMPACT OF
INFORMATION
SYSTEMS
15.1 © 2002 by Prentice Hall

2. LEARNING OBJECTIVES
• ANALYZE ETHICAL, SOCIAL,
POLITICAL ISSUES RAISED BY
INFORMATION SYSTEMS
• IDENTIFY, APPLY MORAL
DIMENSIONS OF INFORMATION
SOCIETY
*
15.2 © 2002 by Prentice Hall

3. LEARNING OBJECTIVES
• APPLY ETHICAL ANALYSIS
• EXAMINE ETHICAL PRINCIPLES
FOR CONDUCT
• DESIGN CORPORATE POLICIES
FOR ETHICAL CONDUCT
*
15.3 © 2002 by Prentice Hall

4. MANAGEMENT CHALLENGES
• UNDERSTAND ETHICAL & SOCIAL
ISSUES RELATED TO SYSTEMS
• ETHICS IN AN INFORMATION
SOCIETY
• MORAL DIMENSION OF
INFORMATION SYSTEMS
*
15.4 © 2002 by Prentice Hall

5. ETHICS
PRINCIPLES OF RIGHT AND WRONG
USED BY INDIVIDUALS
AS FREE MORAL AGENTS
TO GUIDE BEHAVIOR
*
15.5 © 2002 by Prentice Hall

6. ETHICAL, SOCIAL & POLITICAL ISSUES
INFORMATION POLITICAL ISSUES PROPERTY
RIGHTS & RIGHTS &
OBLIGATIONS OBLIGATIONS
SOCIAL ISSUES
ETHICAL ISSUES
INFORMATION
&
TECHNOLOGY
INDIVIDUAL
ACCOUNTABILITY SYSTEM
& CONTROL QUALITY
SOCIETY
POLITY
15.6 QUALITY OF LIFE © 2002 by Prentice Hall

7. MORAL DIMENSIONS OF THE
INFORMATION AGE
• INFORMATION RIGHTS &
OBLIGATIONS
• PROPERTY RIGHTS
• ACCOUNTABILITY & CONTROL
• SYSTEM QUALITY
• QUALITY OF LIFE
*
15.7 © 2002 by Prentice Hall

8. TECHNOLOGY TRENDS & ETHICAL
ISSUES
• COMPUTING POWER DOUBLES EVERY 18
MONTHS
• DECLINING COSTS OF DATA STORAGE
• DATA MINING ADVANCES
• NETWORKING ADVANCES & INTERNET
*
15.8 © 2002 by Prentice Hall

9. ETHICS IN AN INFORMATION
SOCIETY
• RESPONSIBILITY: Accepting costs,
duties, obligations for decisions
• ACCOUNTABILITY: Assessing
responsibilities for decisions & actions
• LIABILITY: Must pay for legal damages
• DUE PROCESS: Insures laws are applied
properly
*
15.9 © 2002 by Prentice Hall

10. ETHICS IN AN INFORMATION
SOCIETY
ETHICAL ANALYSIS:
• IDENTIFY, DESCRIBE FACTS
• DEFINE CONFLICT, IDENTIFY VALUES
• IDENTIFY STAKEHOLDERS
• IDENTIFY OPTIONS
• IDENTIFY POTENTIAL CONSEQUENCES
*
15.10 © 2002 by Prentice Hall

11. ETHICS IN AN INFORMATION
SOCIETY
ETHICAL PRINCIPLES:
• TREAT OTHERS AS YOU WANT TO BE TREATED
• IF ACTION NOT RIGHT FOR EVERYONE, NOT
RIGHT FOR ANYONE (KANT)
• IF ACTION NOT REPEATABLE, NOT RIGHT AT
ANY TIME (DESCARTES)
• PUT VALUE ON OUTCOMES, UNDERSTAND
CONSEQUENCES
• INCUR LEAST HARM OR COST
• NO FREE LUNCH
15.11 *
© 2002 by Prentice Hall

12. INFORMATION RIGHTS
PRIVACY: Right to be left alone
FAIR INFORMATION PRACTICES (FIP):
• NO SECRET PERSONAL RECORDS
• INDIVIDUALS CAN ACCESS, AMEND
INFORMATION ABOUT THEM
• USE INFO ONLY WITH PRIOR CONSENT
• MANAGERS ACCOUNTABLE FOR
DAMAGE DONE BY SYSTEMS
• GOVERNMENTS CAN INTERVENE
*
15.12 © 2002 by Prentice Hall

13. U.S. FEDERAL PRIVACY LAWS
GENERAL FEDERAL PRIVACY LAWS:
FREEDOM OF INFORMATION ACT, 1968
PRIVACY ACT OF 1974
ELECTRONIC COMMUNICATIONS PRIVACY ACT OF
1986
COMPUTER MATCHING AND PRIVACY
PROTECTION ACT OF 1988
COMPUTER SECURITY ACT OF 1987
FEDERAL MANAGERS FINANCIAL INTEGRITY ACT
OF 1982
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15.13 © 2002 by Prentice Hall

14. U.S. FEDERAL PRIVACY LAWS
PRIVACY LAWS AFFECTING PRIVATE
INSTITUTIONS:
FAIR CREDIT REPORTING ACT, 1970
FAMILY EDUCATION RIGHTS & PRIVACY ACT OF
1978
RIGHT TO FINANCIAL PRIVACY ACT OF 1978
PRIVACY PROTECTION ACT OF 1980
CABLE COMMUNICATIONS POLICY ACT OF 1984
ELECTRONIC COMMUNICATIONS PRIVACY ACT OF
1997
*
15.14 © 2002 by Prentice Hall

15. U.S. FEDERAL PRIVACY LAWS
MORE PRIVACY LAWS AFFECTING PRIVATE
INSTITUTIONS:
VIDEO PRIVACY PROTECTION ACT OF 1988
CONSUMER INTERNET PRIVACY PROTECTION
ACT OF 1997
COMMUNICATIONS PRIVACY & CONSUMER
EMPOWERMENT ACT OF 1997
DATA PRIVACY ACT OF 1997
CONSUMER INTERNET PRIVACY PROTECTION
ACT OF 1999
*
15.15 © 2002 by Prentice Hall

16. ACCOUNTABILITY, LIABILITY &
CONTROL
ETHICAL ISSUES: Who is morally
responsible for consequences of
use?
SOCIAL ISSUES: What should society
expect and allow?
POLITICAL ISSUES: To what extent
should government intervene,
protect?
15.16 * © 2002 by Prentice Hall

17. INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY: Intangible
creations protected by law
TRADE SECRET: Intellectual work or
product belonging to business, not in
public domain
COPYRIGHT: Statutory grant protecting
intellectual property from copying by
others for 28 years
*
15.17 © 2002 by Prentice Hall

18. INTELLECTUAL PROPERTY
TRADE MARK: Legally registered mark,
device, or name to distinguish one’s
goods
PATENT: Legal document granting owner
exclusive monopoly on an invention for 17
years
*
15.18 © 2002 by Prentice Hall

19. SYSTEM QUALITY:
DATA QUALITY &
SYSTEM ERRORS
ETHICAL ISSUES: When is software or
service ready for release?
SOCIAL ISSUES: Can people trust quality of
software, services, data?
POLITICAL ISSUES: Should congress or
industry develop standards for software,
hardware, data quality?
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15.19 © 2002 by Prentice Hall

20. QUALITY OF LIFE
CENTRALIZATION VS. DECENTRALIZATION
RAPID CHANGE: Reduced response time to
competition
MAINTAINING BOUNDARIES: Family, work,
leisure
DEPENDENCE AND VULNERABILITY
COMPUTER CRIME & ABUSE
*
15.20 © 2002 by Prentice Hall

21. QUALITY OF LIFE
EMPLOYMENT: Trickle-down
technology; reengineering job loss
EQUITY & ACCESS: Increasing racial
& social class cleavages
HEALTH RISKS
*
15.21 © 2002 by Prentice Hall

22. QUALITY OF LIFE
HEALTH RISKS:
• REPETITIVE STRESS INJURY (RSI)
• CARPAL TUNNEL SYNDROME (CTS)
• COMPUTER VISION SYNDROME (CVS)
• TECHNOSTRESS: Irritation, hostility,
impatience, enervation, fear
• VDT RADIATION
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15.22 © 2002 by Prentice Hall

23. INTERNET CRIME & ABUSE
• HACKING: Access to proprietary data
• JAMMING: Tie up host computer
• MALICIOUS SOFTWARE: Viruses disable
computer
• SNIFFING: Intercept data passing through
system, e.g. credit card data
• SPOOFING: Fraudulent misrepresentation
*
15.23 © 2002 by Prentice Hall

24. MANAGEMENT ACTIONS: A
CORPORATE CODE OF ETHICS
INFORMATION RIGHTS &
OBLIGATIONS
PROPERTY RIGHTS & OBLIGATIONS
ACCOUNTABILITY & CONTROL
SYSTEM QUALITY
QUALITY OF LIFE
*
15.24 © 2002 by Prentice Hall

25. c h a p t e r
15
ETHICAL & SOCIAL
IMPACT OF
INFORMATION
SYSTEMS
15.25 © 2002 by Prentice Hall