Chapter 7 Computer, Ethics and Business Technology

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Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
26% of firms reported they had fired workers due to misusing the Internet 25% reported they had fired employees for misuse of their corporate email accounts 6% of the respondents reported that they had fired employees for misuse of the corporate telephone
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Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
76% reported they had monitored employees computers to determine which Web sites had been selected 65% of the firms stated they used software to block connections to inappropriate websites 36% monitored keystrokes, amount of time spent on the computer and the content
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Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
50% saved and reviewed computer files of their employees 55% retained and reviewed email messages sent and received by their employees 80% notified their employees they were monitoring these things

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Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
82% told the employees they were saving and receiving their computer files 86% told employees that their email was being monitored 89% told their employees that access to certain Web sites was blocked

Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall

7-5

Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
84% of the firms had a formal email policy in place 81% had a personal Internet use policy 42% had a personal instant messenger use policy 34% had a policy that explained when employees could access the Internet for personal use during company time 23% of the firms had a policy pertaining to the use of personal postings on corporate blogs 20% had a policy pertaining to the use of personal blogs during company time

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7-6

Information Technology Ethical Issues

Importance can be seen through an AMA/ePolicy Institute survey:
20% have had email subpoenaed for legal cases 13% had to address workplace lawsuits that were the result of employee email

Copyright 2009 Pearson Education, Inc. publishing as Prentice Hall

7-7

Management Issues for Information Technology

Agent for stockholders utilize technology to enhance level of competitiveness Ensure rights and needs of other stakeholders are not sacrificed to maximize the firms level of profitability
Privacy, ownership, control, accuracy, security

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7-8

Policy Areas to Address Technology Management Issues

Data Policy
A declaration to the stakeholders of their commitment to being good stewards of the data Privacy, control, accuracy, security

Intellectual Rights Policy

Clearly spell out what intellectual property is owned by the employee and what is owned by the firm Standard to say that since the employee is using assets of the firm, any intellectual property developed in the workplace belongs to the firm

Workers Rights Policy

Explain what conditions the employees may be subject to during their employment with the firm type of monitoring, type of information collected pertaining to the employee, identification of private and public information
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Privacy of Employees
Email
Consider that most email messages are not private 1986 Electronic Communications Privacy Act: employers can consider email messages as corporate property www.enronemail.com 515,000 emails have become public documents Many users are inexperienced or lack understanding Vague or nonexistent policies exist

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7-10

Costs and Benefits of Using Email

Benefits
Cost benefits Efficiency Documentation Access to resources Monitoring

Costs
Offensive communications Frivolous use Information overload

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7-11

Types of Computer Monitoring

Software
Allows the employer to see what is on the computer screen in an employees office or allows the employer to view the information stored on the hard drive Allows the employer to determine how long a computer has been idle Suggests that the employee is not doing his job
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Is an invasion of privacy justifiable by an employer?

Criteria to consider:
1. For what purpose is the undocumented personal knowledge sought? 2. Is this purpose a legitimate and important one? 3. Is the knowledge sought through invasion of privacy relevant to its justifying purpose? 4. Is invasion of privacy the only or the least offensive means of obtaining the knowledge? 5. What restrictions or procedural restraints have been placed on the privacy-invading techniques? 6. How will the personal knowledge be protected once it has been acquired?

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Telephone Monitoring
1986 Electronic Communications Privacy Act allows monitoring of business related phone calls If the phone call is personal in nature, the monitoring must cease, but if told that personal calls are prohibited, the calls can be monitored Cell phones create even further issues
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Privacy of Customers
Companies employ technology that allows them to make inferences about customers that many may not even know the company is making Companies use business intelligence systems: monitor what kinds of products are ordered, how much is being spent and how often the customer makes purchases
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The Challenge of Technology - Ethical Issues Facing Internet Usage

Security transactions Illegal activity (fraud, hacking, etc) Privacy Honesty/truthfulness Judged by same standards as other mediums Pornography Product warranty Plagiarism Targeting children Unsolicited email False advertising

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7-16

Government Regulations Being Considered by Congress

Consumer Privacy Protection Act Electronic Privacy Protection Act The Privacy and Identity Protection Act The Notice of Electronic Monitoring Act The Consumer Internet Privacy Enhancement Act The Secure Online Communication Enforcement Act Childrens Privacy Protection and Parental Empowerment Act
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Types of Internet Fraud

Auction and Retail Schemes Business opportunity or work at home schemes Identity theft and fraud - Phishing Market manipulation schemes Credit card schemes

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7-18

Phishing
Use of email to try to mimic a legal, legitimate company to fish for personal or financial information from individuals May even contain computer viruses in the emails Could be committing: identity theft, wire fraud, credit card fraud, bank fraud, computer fraud
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Operation Web Snare

June 1, 2004 until August 26, 2004 FBI tried to target and convict cyber criminals
Criminal spam, phishing, spoofed or hijacked accounts, international reshipping schemes, cyber extortion, auction fraud, credit card fraud, intellectual property rights fraud, computer intrusions or hacking, economic espionage or theft or trade secrets, international money laundering, identity theft
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Types of Fraud Targeted in Operation Web Snare

Criminal spam Phishing Spoofed or hijacked accounts International reshipping schemes Cyber extortion Auction fraud Credit card fraud Intellectual property rights fraud Computer intrusions or hacking Economic espionage or theft of trade secrets International money laundering Identity theft More traditional online crimes
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Internet Attacks
Cyber terrorism: the use of computer technology to commit terrorism crimes Vulnerable industries: defense contractors, medical and health care companies, pharmaceutical companies, financial institutions Spyware: software that can be loaded onto a computer so the computer operations can be monitored by an outside party without the consent of the computer user
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The USA Patriot Act

Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and obstruct Terrorism Act

Provides expanded government authority over electronic communications and the use of compute and monetary transactions Designed to monitor the activities of financial institutions broadly defined
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