ISPRSY_CHAPTER_I_Introduction_to_IT_Ethics.pptx

Introduction to ISPRSY
CHAPTER 1
ISPRSY
“Doing the Right thing, and
Making the Good Life
Better”
Carlos Hilado Memorial State University
College of Computer Studies

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Ethics: What Does It Really Mean?
 Derived from Greek word ‘Ethicos’ meaning Character or Manners.
Science of character of a person expressed as right or wrong conduct or action.
Set of moral principles prescribing code, explains what is good and right, or bad
and wrong.
Ethics: A code of behavior defined by the group to which an individual belongs.
Morals: Personal principles upon which an individual bases his or her decisions
about what is right and what is wrong.
Moral Code
– Set of rules
– Establishes boundaries of generally accepted behavior
– Different rules often have contradictions

Ethics: What Does It Really Mean?
Morality
– Social conventions about right and wrong
– Widely shared
– Form basis for an established consensus
A written, formal, and consistent set of rules prescribing righteous behavior,
accepted by a person or by a group of people. Did you know that your moral code
is heavily influenced by your culture? Morality refer to beliefs, principles, and
values about what is right and what is wrong, which are personal to each and
every individual.

Ethics by Definition
 Ethics – Set of beliefs about right and wrong behavior
 Virtues – Habits that incline people to do what is acceptable
 Vices – Habits of unacceptable behavior
 Virtues and vices define a personal value system – Scheme of moral values
 Ethics is based on well-founded standards of right and wrong that prescribe what
humans ought to do, usually in terms of rights, obligations, benefits to society,
fairness, or specific virtues.
 Virtues or kabutihan is a quality of being morally good (natural virtue, theological
virtue).
 Vices or bisyo masamang ugali bad form bad manners vice. kasamaan evil
wickedness

The Relationship Between Ethics and
Morals

Meaning of Ethics
Character
of a Man
Conduct of
a Person
Series of
Action
Moral Standards
Good or Bad, Right
or Wrong, Moral or
Immoral
Decided by Leads to
Taken
Together/
Considered
as
Requires
By which we can judge again

Objective of Ethics
 Studies human behavior and makes evaluative assessment about them as moral
or immoral.
 Establishes moral standards and norms of behavior.
 Makes judgment upon human behavior based on these standards and norms.
 Prescribes moral behavior and makes recommendations about how to or how not
to behave
 Expresses an opinion or attitude about human conduct in general

Integrity
 Acting in accordance with a personal code of principles.
 Extending the same respect and consideration that one expects to receive from
others.
 Applying the same moral codes in all situations.
 Consistency can be difficult to achieve in situations that conflict with one’s moral
standards.
 Inconsistency also occurs if one applies moral standards differently depending on
the situation or people involved.

The Importance of Integrity
 Integrity is a cornerstone of ethical behavior.
 People with integrity:
– Act in accordance with a personal code of principles
– Extend to all the same respect and consideration
– Apply the same moral standards in all situations
 Lack of integrity emerges if you apply moral standards differently according to
situation or people involved.
 Many ethical dilemmas are not as simple as right versus wrong.
 Integrity means following your moral or ethical convictions and doing the right
thing in all circumstances, even if no one is watching you. Having integrity
means you are true to yourself and would do nothing that demeans or dishonors
you.

Difference Between Morals,
Ethics, and & Laws
Morals Ethics Law
• Personal principles
an individual uses to
determine what is
right and what is
wrong
• Moral acts conform to
what an individual
believes to be the
right thing to do
• Code of behavior
that is defined by
the group to which
an individual
belongs
• System of rules,
enforced by a set of
institutions, that tells
us what we can and
cannot do
• Legal acts are acts
that conform to the
law

Sample Scenario
 Cybercrime Prevention Act of 2012, officially recorded as Republic Act No.
10175, is a law in the Philippines that was approved on September 12, 2012.
 Among the cybercrime offenses included in the bill are cybersquatting,
cybersex, child pornography, identity theft, illegal access to data and libel.
Onel De Guzman, the computer programmer charged with purportedly writing
the ILOVEYOU computer worm, was ultimately not prosecuted by Philippine
authorities due to a lack of legal basis for him to be charged under existing
Philippine laws at the time of his arrest.
FYI
The term cybersquatting refers to the unauthorized registration and use
of Internet domain names that are identical or similar to trademarks,
service marks, company names, or personal names.

Ethics in the Business World
 Trends that have increased the risk of unethical behavior:
o More complex work environments spanning diverse cultures make it more
difficult to apply principles and codes of ethics consistently.
o Today’s challenging economic climate has increased the pressure on
organizations to maintain revenue and profits.
 Heightened vigilance by employees, shareholders, and regulatory agencies has
increased the risk of financial loss and lawsuits for businesses that act unethically.

Business Ethics: What Does It Really
Mean?
 Comprises principles and standards that guide behavior in the world of business.
 According to John Donaldson “Business Ethics can be described as the
systematic study of moral (ethical) matters pertaining to business, industry or
related activities, institutions, or practices and beliefs. It is the systematic handling
of values in business and industry.”
 Business Ethics
1. Avoid breaking the criminal law in one’s work related activity
2. Avoid action that may result in civil law suits against the company
3. Avoid actions that are bad for the company image
 Businesses are especially concerned with these three things since they involve
loss of money and company reputation.

Common Unethical Acts...
1. Lying and withholding needed information
2. Abusive or intimidating behavior
3. Misreporting time worked
4. Discrimination and sexual harassment
5. Stealing
6. Breaking environmental and safety laws
7. Falsifying records
8. Drug or alcohol abuse
9. Giving or accepting bribes

Why Misconduct Is Not Reported...
1. Belief that nothing will be done
2. Fear of retaliation
3. Fear of being viewed as a troublemaker
 Why ethical behavior is important???
1. Business is a subsystem of society
2. Empowers all stakeholders concerned
3. Reduction in cost of friction with social environment
4. Important for organizations leaders because they influence the ethical climate for
the rest.

Why Ethical problems occur?
1. Personal gain
2. Individual values widely differ with organizational goals
3. Managers values and attitudes
4. Competitive pressures
5. Cross-Cultural contradictions

Bathsheba Syndrome
 Term used to describe the moral corruption of those in power.
 Refers to the biblical story of King David, who became corrupted by his power and
success.
 Moral corruption of people in power is often facilitated by a tendency for people to
look the other way when their leaders behave inappropriately.
“The empirical evidence for moral problems of leadership is quite old and documented in history
books, religious and philosophical texts, literature, and art. Consider, for example, the biblical story of
David and Bathsheba. King David is smitten by Bathsheba, the wife of one of his generals, and he
seduces her. David compounds his moral failure with one misdeed after another, until he eventually
orders Bathsheba’s husband killed—David is corrupted by his power. A leader acting immorally is not,
apparently, a new phenomenon in human societies.”

Who Is Responsible for Instances of
Misconduct?

Corporate Social Responsibility (CSR)
 Organization takes responsibility for the impact of its actions on:
o Shareholders
o Consumers
o Employees
o Community
o Environment
o Suppliers
 Supply chain sustainability: A component of CSR focused on developing and
maintaining a supply chain that meets the needs of the present without
compromising the ability of future generations to meet their needs

Reasons to Foster Corporate Social
Responsibility and Good Business Ethics
1. Gain the goodwill of the community
2. Create an organization that operates consistently
3. Foster good business practices
4. Protect the organization and its employees from
legal action
5. Avoid unfavorable publicity

Gain the goodwill of the community
Organizations have fundamental responsibilities to society
– Declared in formal statement of company’s principles or beliefs
– Include:
• Making contributions to charitable organizations and nonprofit institutions.
• Providing benefits for employees in excess of legal requirements.
• Choosing economic opportunities that might be more socially desirable than
profitable.
• Socially responsible activities create good will
• Good will makes it easier for corporations to conduct business

Create an organization that operates
consistently
 Consistency ensures that employees:
o Know what is expected of them
o Can employ the organization’s values to help them in decision making
 Consistency also means that shareholders, customers, suppliers, and community
know what they can expect of the organization.
• Many companies share the following values:
o Operate with honesty and integrity, staying true to organizational principles
o Operate according to standards of ethical conduct, in words and action
o Treat colleagues, customers, and consumers with respect
o Strive to be the best at what matters to the company
o Value diversity
o Make decisions based on facts and principles

Fostering Good Business Practices
 Good ethics means good business/improved profits
 Companies that:
o Produce safe and effective products
 Avoid costly recalls and lawsuits
o Provide excellent service that retains customers
o Develop and maintain strong employee relations
 Suffer lower turnover rates
 Enjoy better employee morale
 Suppliers/business partners place priority on working with companies that operate
in a fair and ethical manner
 Bad ethics means bad business/waning profits
o Bad ethics can lead to bad business results
o Bad ethics can have a negative impact on employees

Requiring Employees to Take Ethics
Training
 Personal convictions improved through education
 Comprehensive ethics education program encourages employees to act
responsibly and ethically
o Often presented in small workshop formats
o Employees apply code of ethics to hypothetical but realistic case studies
o Demonstration of recent company decisions based on principles from the code
of ethics
 Critical that training increase the percentage of employees who report incidents of
misconduct
 Employees must:
o Learn effective ways of reporting incidents
o Be reassured their feedback will be acted on without retaliation

Reducing the Risk of Unethical Behavior

Characteristics of a Successful Ethics
Program
 Employees are willing to seek advice about ethics-related issues.
 Employees feel prepared to handle situations that could lead to misconduct.
 Employees are rewarded for ethical behavior.
 The organization does not reward success obtained through questionable means.
 Employees feel positively about their company.

Ethical Standards Set by Board of
Directors
 Conduct themselves according to the highest standards of personal and
professional integrity
 Set the standard for company-wide ethical conduct
 Ensure compliance with laws and regulations
 Create an environment in which employees can:
o Seek advice about business conduct
o Raise issues
o Report misconduct

Corporate Code of Ethics
 A code of ethics:
o Highlights an organization’s key ethical issues
o Identifies the overarching values and principles important to the organization
and its decision making
 Organizational code of ethics should:
o Apply to directors, officers, and employees
o Focus employees on areas of ethical risk
o Offer guidance to help employees recognize and deal with ethical issues
o Provide mechanisms for reporting unethical conduct
o Foster a culture of honesty and accountability

Social Audit
 Organization reviews its ethical and social responsibility goals, and
communicates its goals for the upcoming year.
 Information is shared with:
o Employees
o Investors
o Market analysts
o Customers
o Suppliers
o Government agencies
o Community

Ethics Training for Employees
 A comprehensive ethics education program:
o Encourages employees to act ethically
o Shows employees examples of how to apply the code of ethics in real life
 Goals of ethics training:
o Encourage employees to report any misconduct
o Show employees effective ways of reporting incidents
o Reassure employees that such feedback will be acted on and that they will not
be subjected to retaliation

Ethical Criteria in Employee Appraisals
1. Treating others fairly and with respect
2. Operating effectively in a multicultural environment
3. Accepting personal accountability for meeting business needs
4. Continually developing others and themselves
5. Operating openly and honestly with suppliers, customers, and other employees

Manager’s Checklist for Establishing an
Ethical Work Environment
QUESTION YES NO
• Does your organization have a code of ethics?
• Do employees know how and to whom to report any infractions of the
code of ethics?
• Do employees feel that they can report violations of the code of ethics
safely and without fear of retaliation?
• Do employees feel that action will be taken against those who violate
the code of ethics?
• Do senior managers set an example by communicating the code of
ethics and using it in their own decision making?
• Do managers evaluate and provide feedback to employees on how
they operate with respect to the values and principles in the code of
ethics?
• Are employees aware of sanctions for breaching the code of ethics?
• Do employees use the code of ethics in their decision making?

Five-Step Ethical Decision-Making Process
1. Develop a problem statement
o A clear, concise description of the issue
o Don’t make assumptions; verify “facts”
2. Identify alternatives
o Enlist help of others
3. Choose alternative
o Defensible and consistent; consider impact on others
4. Implement decision
o Transition plan
5. Evaluate results
o Poor alternative?
o Bad implementation?

Concerns About the Ethical Use of
Information Technology
1. Surveillance of citizens by governments
2. Email and Internet access monitoring at work
3. Music and movies downloaded in violation of
copyright laws
4. Unsolicited email and text messages
5. Identify theft by hackers
6. Plagiarism by students
7. Cookies and spyware used to track users’ online purchases and activities

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