This chapter discusses the ethical implications of information technology. It covers how morals, laws, and ethics govern behavior, and how early computer laws lagged behind issues that arose. Executives play a key role in imposing an ethical culture through corporate creeds, ethics programs, and codes of conduct. The chapter emphasizes the importance of computer ethics given computers' ability to transform society and complete invisible processes. It also examines societal rights in relation to access and use of computer technology.

1. Chapter 5
Ethical Implications ofEthical Implications of
Information TechnologyInformation Technology
MANAGEMENT INFORMATION SYSTEMS 8/E
Raymond McLeod and George Schell
Copyright 2001 Prentice-Hall, Inc.
5-1

2. Socially Conscionable CitizensSocially Conscionable Citizens
MoralsMorals
– Traditions of right and wrongTraditions of right and wrong
EthicsEthics
– Suite of guiding beliefs, standards, or ideals thatSuite of guiding beliefs, standards, or ideals that
promote an individual or communitypromote an individual or community
LawsLaws
– Formal rules of conduct that a sovereign authorityFormal rules of conduct that a sovereign authority
imposes on its citizensimposes on its citizens
5-2

3. Pirated SoftwarePirated Software
Software that is illegally copied and then usedSoftware that is illegally copied and then used
or soldor sold
– 35% in U.S.35% in U.S.
– 92% in Japan92% in Japan
– 99% in Thailand99% in Thailand
Some cultures encourage sharingSome cultures encourage sharing
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4. Laws Lag BehindLaws Lag Behind
First computer crimeFirst computer crime
– In 1966, a programmer used computer code to keepIn 1966, a programmer used computer code to keep
his checking account from being flagged ashis checking account from being flagged as
overdrawn.overdrawn.
– When the bank discovered the crime theWhen the bank discovered the crime the
programmer could not be charged with a computerprogrammer could not be charged with a computer
crime because no computer crime law existed.crime because no computer crime law existed.
– He was charged with making false bank records.He was charged with making false bank records.
5-4

5. U.S. Computer LegislationU.S. Computer Legislation
Freedom of Information Act of 1966Freedom of Information Act of 1966
– Gave citizens and organizations the right to accessGave citizens and organizations the right to access
data held by the federal governmentdata held by the federal government
Fair Credit Reporting Act of 1970Fair Credit Reporting Act of 1970
– Dealt with handling of credit dataDealt with handling of credit data
Right to Federal Privacy Act of 1978Right to Federal Privacy Act of 1978
– Limited government’s ability to search bank recordsLimited government’s ability to search bank records
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6. U.S. Computer Legislation (cont.)U.S. Computer Legislation (cont.)
Small Business Computer Security andSmall Business Computer Security and
Education Act (1984)Education Act (1984)
– Advises Congress on matters relating to computerAdvises Congress on matters relating to computer
crime against small businessescrime against small businesses
Counterfeit Access Device and Computer FraudCounterfeit Access Device and Computer Fraud
and Abuse Actand Abuse Act
– Makes it a crime to gain unauthorized informationMakes it a crime to gain unauthorized information
pertaining to national security or foreign relationspertaining to national security or foreign relations
and provides other protectionand provides other protection
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7. U.S. Computer Legislation (cont.)U.S. Computer Legislation (cont.)
In 1986, Electronic Communications PrivacyIn 1986, Electronic Communications Privacy
Act was rewritten to cover digital, data, andAct was rewritten to cover digital, data, and
video communicationsvideo communications
– Included special section on emailIncluded special section on email
Computer Matching and Privacy Act of 1988Computer Matching and Privacy Act of 1988
– Restricts government’s right to match computerRestricts government’s right to match computer
files for the purpose of determining eligibility forfiles for the purpose of determining eligibility for
government programs or identifying debtorsgovernment programs or identifying debtors
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8. Imposing an Ethics CultureImposing an Ethics Culture
Corporate credoCorporate credo
– Succinct statement of values a firm seeks to upholdSuccinct statement of values a firm seeks to uphold
Ethics programsEthics programs
– System of multiple activities designed to provideSystem of multiple activities designed to provide
employees with direction in carrying out corporateemployees with direction in carrying out corporate
credocredo
Tailored corporate codesTailored corporate codes
– Codes of ethics for a particular organization orCodes of ethics for a particular organization or
industryindustry
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9. 2. Establish
ethics
programs
3. Establish
corporate
ethics code
1. Establish
corporate
credo
Top-level Management
Imposes the Ethics Culture
In a Top-down Manner
An Ethics
Culture
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10. Example of a Corporate CredoExample of a Corporate Credo
Commitment to customer:
The first commitment is to provide our customers with
quality products and services that are innovative and
technologically responsive to their current requirements
at appropriate prices. To perform these tasks with integrity
requires that we maintain confidentiality and protect
customer privacy, promote customer satisfaction, and
serve customer needs. We strive to serve qualified
customers and industries that are socially responsible
according to broadly accepted community and company
standards.
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11. Ethics AuditEthics Audit
Internal auditor meets with a manager for theInternal auditor meets with a manager for the
purpose of learning how the manager’s unit ispurpose of learning how the manager’s unit is
carrying out the corporate credocarrying out the corporate credo
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12. Computer EthicsComputer Ethics
Analysis of the nature and social impact ofAnalysis of the nature and social impact of
computer technology as well as correspondingcomputer technology as well as corresponding
formulation and justification of policies for theformulation and justification of policies for the
ethical use of such technologyethical use of such technology
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13. Responsibility forResponsibility for
Computer EthicsComputer Ethics
CIO holds primary responsibilityCIO holds primary responsibility
CIO Must:CIO Must:
– Be aware of how the computer is affecting societyBe aware of how the computer is affecting society
– Do something about this by formulating policies toDo something about this by formulating policies to
ensure technology is being used in the right wayensure technology is being used in the right way
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14. Importance of Computer EthicsImportance of Computer Ethics
Logical malleabilityLogical malleability
– Ability to program computer to do anything youAbility to program computer to do anything you
want it to dowant it to do
The transformation factorThe transformation factor
– Computers can change the way things are doneComputers can change the way things are done
The invisibility factorThe invisibility factor
– Invisible programmingInvisible programming
– Invisible complex calculationsInvisible complex calculations
– Invisible abuseInvisible abuse
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15. Rights to the ComputerRights to the Computer
Right to computer accessRight to computer access
Right to computer skillsRight to computer skills
Right to computer specialistsRight to computer specialists
Right to computer decision makingRight to computer decision making
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16. Rights to InformationRights to Information
Right to privacyRight to privacy
Right to accuracyRight to accuracy
Right to propertyRight to property
Right to accessRight to access
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17. Social Contract of ISSocial Contract of IS
• The computer will not be used to unduly invadeThe computer will not be used to unduly invade
a person’s privacya person’s privacy
• Every measure will be taken to ensure theEvery measure will be taken to ensure the
accuracy of computer processingaccuracy of computer processing
• The sanctity of intellectual property will beThe sanctity of intellectual property will be
protectedprotected
• The computer will be made accessible toThe computer will be made accessible to
society so that its members can avoid thesociety so that its members can avoid the
indignities of information illiteracy andindignities of information illiteracy and
deprivationdeprivation 5-17

18. Ethics and the CIOEthics and the CIO
Perceptions of the CIO’s EthicsPerceptions of the CIO’s Ethics
– Do not take advantage of opportunities to actDo not take advantage of opportunities to act
unethicallyunethically
– Ethics breeds successEthics breeds success
– Firms and managers have social responsibilitiesFirms and managers have social responsibilities
– Managers back up their ethics beliefs with actionManagers back up their ethics beliefs with action
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19. The CIO is Influenced by aThe CIO is Influenced by a
Hierarchy of FactorsHierarchy of Factors
Office of the
CIO
LawsLaws
CorporateCorporate
ethics cultureethics culture
SocialSocial
pressurepressure
ProfessionalProfessional
codes of ethicscodes of ethics
PersonalPersonal
pressurespressures
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20. CIOs Usually Do Not Act UnethicallyCIOs Usually Do Not Act Unethically
There are many opportunities for 47.5 37.7
MIS managers in my company to
engage in unethical behavior.
MIS managers in my company 19.7 80.3
engage in behaviors that I
consider to be unethical.
Question Agree Disagree
5-20

21. Ethics and SuccessEthics and Success
PercentPercent PercentPercent
QuestionQuestion AgreeAgree DisagreeDisagree
Successful MIS managers in my company areSuccessful MIS managers in my company are
generally more ethical than unsuccessfulgenerally more ethical than unsuccessful
managers.managers. 73.8 13.173.8 13.1
In order to succeed in my company it isIn order to succeed in my company it is
often necessary to compromise one's ethics.often necessary to compromise one's ethics. 18.0 75.418.0 75.4
Successful managers in my company withholdSuccessful managers in my company withhold
information that is detrimental to theirinformation that is detrimental to their
self-interest.self-interest. 21.3 50.821.3 50.8
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22. Ethics (cont.)Ethics (cont.)
PercentPercent PercentPercent
QuestionQuestion AgreeAgree DisagreeDisagree
Successful managers in my company makeSuccessful managers in my company make
rivals look bad in the eyes of importantrivals look bad in the eyes of important
people in my company.people in my company. 23.0 59.023.0 59.0
Successful managers in my company look forSuccessful managers in my company look for
a scapegoat when they feel they may bea scapegoat when they feel they may be
associated with failure.associated with failure. 23.0 67.223.0 67.2
Successful managers in my company takeSuccessful managers in my company take
credit for the ideas and accomplishmentscredit for the ideas and accomplishments
of others.of others. 16.4 75.416.4 75.4
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23. Corporate Social ResponsibilityCorporate Social Responsibility
PercentPercent PercentPercent
QuestionQuestion AgreeAgree DisagreeDisagree
The socially responsible manager mustThe socially responsible manager must
occasionally place the interests of societyoccasionally place the interests of society
over the interests of the company.over the interests of the company. 68.9 21.368.9 21.3
The fact that corporations have greatThe fact that corporations have great
economic power in our society means that theyeconomic power in our society means that they
have a social responsibility beyond thehave a social responsibility beyond the
interests of the shareholders.interests of the shareholders. 96.7 3.396.7 3.3
As long as corporations generate acceptableAs long as corporations generate acceptable
shareholder returns, managers have a socialshareholder returns, managers have a social
responsibility beyond the interests ofresponsibility beyond the interests of
shareholders.shareholders. 70.5 16.470.5 16.4 5-23

24. Achieving an EthicalAchieving an Ethical
Computer OperationComputer Operation
1.1. Formulate a code of conduct.Formulate a code of conduct.
2.2. Establish rules of procedure relating to such issues asEstablish rules of procedure relating to such issues as
personal use of computer services and proprietarypersonal use of computer services and proprietary
rights to computer programs and data.rights to computer programs and data.
3.3. Make clear the sanctions that will be taken againstMake clear the sanctions that will be taken against
offenders-such as reprimands, termination, and civiloffenders-such as reprimands, termination, and civil
action.action.
4.4. Recognize ethical behavior.Recognize ethical behavior.
5-24Parker’s 10-Step Action Plan

25. Achieving an EthicalAchieving an Ethical
Computer Operation (cont.)Computer Operation (cont.)
5.5. Focus attention on ethics by means of such programsFocus attention on ethics by means of such programs
as training sessions and required reading.as training sessions and required reading.
6.6. Promote computer crime laws by keeping employeesPromote computer crime laws by keeping employees
informed.informed.
7.7. Keep a formal record that establishes accountabilityKeep a formal record that establishes accountability
of each information specialist for her or his actions,of each information specialist for her or his actions,
and also minimizes the temptations for violations byand also minimizes the temptations for violations by
means of such programs as ethics audits.means of such programs as ethics audits.
5-25
Parker’s 10-Step Action Plan

26. Achieving an EthicalAchieving an Ethical
Computer Operation (cont.)Computer Operation (cont.)
8.8. Encourage the use of rehabilitation programs that treatEncourage the use of rehabilitation programs that treat
ethics violators in the same way that corporations showethics violators in the same way that corporations show
concern for the recovery of alcoholics or drug offenders.concern for the recovery of alcoholics or drug offenders.
9.9. Encourage participation in professional societies.Encourage participation in professional societies.
10.10. Set an example.Set an example.
5-26Parker’s 10-Step Action Plan

27. Ethics PerspectiveEthics Perspective
Severe social problems exist becauseSevere social problems exist because
government and business organizations havegovernment and business organizations have
failed to uphold the highest ethical standards infailed to uphold the highest ethical standards in
computer usecomputer use
– Invasion of privacyInvasion of privacy
– Software piracySoftware piracy
CIOs can make a differenceCIOs can make a difference
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28. An Information ServicesAn Information Services
Code of ConductCode of Conduct
Conduct all activities in a manner that precludesConduct all activities in a manner that precludes
any form of dishonestyany form of dishonesty
Avoid any act that compromises integrityAvoid any act that compromises integrity
Avoid any act that might create a dangerousAvoid any act that might create a dangerous
situationsituation
Not use alcohol or drugs while at workNot use alcohol or drugs while at work
5-28See Figure 5.4

29. An Information ServicesAn Information Services
Code of Conduct (cont.)Code of Conduct (cont.)
Maintain courteous and professional relationsMaintain courteous and professional relations
with users, associates, and supervisorswith users, associates, and supervisors
Adhere to the no-solicitation rule and any otherAdhere to the no-solicitation rule and any other
employment policyemployment policy
5-29See Figure 5.4

30. An Information ServicesAn Information Services
Code of Conduct (cont.)Code of Conduct (cont.)
Protect confidentiality of sensitive informationProtect confidentiality of sensitive information
about the organization’s competitive position,about the organization’s competitive position,
trade secrets, or assetstrade secrets, or assets
Exercise sound business practice in theExercise sound business practice in the
management of such company resources suchmanagement of such company resources such
as personnel, computer use, outside services,as personnel, computer use, outside services,
travel, and entertainmenttravel, and entertainment
5-30See Figure 5.4

31. SummarySummary
Morals, laws, and ethics govern behaviorMorals, laws, and ethics govern behavior
Early yearsEarly years
– No computer lawsNo computer laws
– Easy to bypass regulationEasy to bypass regulation
Executives impose ethical cultureExecutives impose ethical culture
Computer ethics require executive to put properComputer ethics require executive to put proper
policies in placepolicies in place
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32. Summary [cont.]Summary [cont.]
Society places importance on computer ethicsSociety places importance on computer ethics
– Logical malleabilityLogical malleability
– Transforming ways of livingTransforming ways of living
– Processes are hidden from viewProcesses are hidden from view
Societal rights in relation to the computerSocietal rights in relation to the computer
5-32