Laudon - Mis16 - PPT - ch04 - KL - CE

Management Information Systems:
Managing the Digital Firm

Sixteenth Edition
Chapter 4
Ethical and Social Issues in
Information Systems
Copyright © 2020, 2018, 2016 Pearson Education, Inc. All Rights Reserved
Learning Objectives
1. What ethical, social, and political issues are raised by
information systems?
2. What specific principles for conduct can be used to guide
ethical decisions?
3. Why do contemporary information systems technology
and the Internet pose challenges to the protection of
individual privacy and intellectual property?
4. How have information systems affected laws for
establishing accountability, liability, and the quality of
everyday life?
5. How will MIS help my career?
Key Terms
• Accountability, 129 • Liability, 129
• Carpal tunnel syndrome (CTS), 149 • Nonobvious relationship awareness
• Computer abuse, 146 (NORA), 128
• Computer crime, 145 • Opt-in, 137
• Computer vision syndrome (CVS), 150 • Opt-out, 137
• Cookies, 135 • Patent, 139
• Copyright, 138 • Privacy, 132
• Digital divide, 147 • Profiling, 127
• Digital Millennium Copyright Act (DMCA), 141 • Repetitive stress injury (RSI), 149
• Due process, 129 • Responsibility, 129
• Ethical no-free-lunch rule, 130 • Risk aversion principle, 130
• Ethics, 124 • Safe harbour, 134
• Fair Information Practices (FIP), 132 • Slippery slope rule, 130
• General Data Protection Regulation (GDPR), • Spam, 146
134 • Spyware, 136
• Golden Rule, 130 • Trade secret, 140
• Immanuel Kant’s categorical imperative, 130 • Trademarks, 140
• Information rights, 126 • Utilitarian principle, 130
• Informed consent, 134 • Web beacons, 136
• Intellectual property, 138
Video Cases
• Case 1: What Net Neutrality Means for You
– https://www.youtube.com/watch?v=hxz7PYlFvdI
– https://www.youtube.com/watch?v=zq-2Yk5OgKc
– https://www.youtube.com/watch?v=HqXKEgTYZBQ
– https://www.youtube.com/watch?v=wtt2aSV8wdw
• Case 2: Facebook and Google Privacy: What Privacy?

– https://www.youtube.com/watch?v=37NvsMuSMTo
– https://www.youtube.com/watch?v=CjLHuhOTnaI
– https://www.https://www.youtube.com/watch?v=CjLHuhOTnaIyoutube.com/watch?v=dTF8_DwDjW4
• Case 3: United States v. Terrorism: Data Mining for Terrorists and Innocents
– https://www.youtube.com/watch?v=4lKpD7MC22I&t=11s
– https://www.youtube.com/watch?v=I6UuWrVzys4
– https://www.youtube.com/watch?v=GoM4jIZbTtQ
• Instructional Video: Viktor Mayer-Schönberger on the Right to Be Forgotten

– https://www.youtube.com/watch?v=9Xpk26bJ7FU
– https://www.youtube.com/watch?v=y-_vRBBiSa4
– https://www.youtube.com/watch?v=fxrUgTL8THE
Are Cars Becoming Big Brother on
Wheels? (1 of 3)
• Problem
– Opportunities from new technology
– Undeveloped legal environment
• Solutions & Current situation
– Develop big data strategy
– Develop privacy policies
– Collect car-generated data
– Analyze car/driver data
– Smartphones, event data recorders
– In-car diagnostics/navigation/entertainment
Wheels? (2 of 3)
• Vehicle and driver
monitoring systems
• Demonstrates how
technological innovations
can be a double-edged
sword
• Illustrates how IT systems
create consumer benefits
and costs
Wheels? (3 of 3)
1. Does analyzing big data from motor vehicles create an ethical dilemma? Why or why not?
2. Should there be new privacy laws to protect personal data collected from cars? Why or why not?
What Ethical, Social, and Political
Issues are Raised by Information
Systems? (1 of 2)
• Recent cases of failed ethical judgment
in business
– Wells Fargo, Deerfield Management,
General Motors, Takata Corporation
– In many, information systems used
to conceal decisions from public
scrutiny
• Ethics
– Principles of right and wrong that
individuals, acting as free moral
agents, use to make choices to
guide their behaviors
What Ethical, Social, and Political
Issues are Raised by Information
Systems? (2 of 2)
• Information systems raise new
ethical questions because they
create opportunities for:
– Intense social change,
threatening existing
distributions of power, money,
rights, and obligations
• New opportunities for crime
• New kinds of crimes
A Model for Thinking About Ethical,
Social, and Political Issues
• Society as a calm pond
• IT as rock dropped in pond, creating ripples of new
situations not covered by old rules
• Social and political institutions cannot respond overnight to
these ripples—it may take years to develop etiquette,
expectations, laws
– Requires understanding of ethics to make choices in
legally gray areas
Figure 4.1 The Relationship Between
Ethical, Social, and Political Issues in
an Information Society
Five Moral Dimensions of the
Information Age
• Information rights and
obligations
• Property rights and
obligations
• Accountability and control
• System quality
• Quality of life
Key Technology Trends That Raise
Ethical Issues
• Computing power doubles every
18 months
• Data storage costs rapidly
decline
• Data analysis advances
• Networking advances
• Mobile device growth impact
Advances in Data Analysis
Techniques
• Profiling
– Combining data from multiple
sources to create dossiers of
detailed information on
individuals
• Nonobvious relationship awareness
(NORA)
– Combining data from multiple
sources to find obscure hidden
connections that might help
identify criminals or terrorists
Figure 4.2 Nonobvious Relationship
Awareness (NORA)
Basic Concepts: Responsibility,
Accountability, and Liability
• Responsibility
– Accepting the potential costs, duties,
and obligations for decisions
• Accountability
– Mechanisms for identifying
responsible parties
• Liability
– Permits individuals (and firms) to
recover damages done to them
• Due process
– Laws are well-known and understood,
with an ability to appeal to higher
authorities
Ethical Analysis
• Five-step process for ethical analysis
1. Identify and clearly describe the facts.
2. Define the conflict or dilemma and identify the higher-
order values involved.
3. Identify the stakeholders.
4. Identify the options that you can reasonably take.
5. Identify the potential consequences of your options.
Candidate Ethical Principles (1 of 2)
• Golden Rule
– Do unto others as you would have them do unto you
• Immanuel Kant’s Categorical Imperative
– If an action is not right for everyone to take, it is not
right for anyone
• Slippery Slope Rule
– If an action cannot be taken repeatedly, it is not right to
take at all
Candidate Ethical Principles (2 of 2)
• Utilitarian Principle
– Take the action that achieves
the higher or greater value
• Risk Aversion Principle
– Take the action that produces
the least harm or potential cost
• Ethical “No Free Lunch” Rule
– Assume that virtually all tangible
and intangible objects are
owned by someone unless
there is a specific declaration
otherwise
Professional Codes of Conduct
• Promulgated by associations of
professionals
– American Medical
Association (AMA)
– American Bar Association
(ABA)
– Association for Computing
Machinery (ACM)
• Promises by professions to
regulate themselves in the
general interest of society
Real-World Ethical Dilemmas
• One set of interests pitted against
another
• Examples
– Using voice recognition software
to reduce the size of customer
support staff to lower costs versus
employers’ responsibility of labor
welfare
– Monitoring employees: Right of
company to maximize productivity
of workers versus workers’ desire
to use Internet for short personal
tasks
Information Rights: Privacy and
Freedom in the Internet Age (1 of 3)
• Privacy
– Claim of individuals to be left alone, free from
surveillance or interference from other
individuals, organizations, or state; claim to be
able to control information about yourself
• In the United States, privacy protected by:
– First Amendment (freedom of speech and
association)
– Fourth Amendment (unreasonable search and
seizure)
– Additional federal statues (e.g., Privacy Act of
1974)
• Fair information practices (FIP)
– Set of principles governing the collection and use of
information
▪ Basis of most U.S. and European privacy laws
– Used to drive changes in privacy legislation
▪ COPPA
▪ Gramm-Leach-Bliley Act
▪ HIPAA
• FTC FIP principles
– Notice/awareness (core
principle)
– Choice/consent (core
principle)
– Access/participation
– Security
– Enforcement
EU General Data Protection
Regulation (GDPR)
• Requires unambiguous explicit informed consent of
customer
• EU member nations cannot transfer personal data to
countries without similar privacy protection
– Applies across all EU countries to any firms operating
in EU or processing data on EU citizens or residents
– Strengthens right to be forgotten
• Privacy Shield: All countries processing EU data must
conform to GDPR requirements
• Heavy fines: 4% of global daily revenue
Internet Challenges to Privacy (1 of 2)
• Cookies
– Identify browser and track visits to site
– customize content for each visitor’s interests
• Web beacons (web bugs)
– Tiny graphics embedded in e-mails and web
pages
– Monitor who is reading email message or
visiting site
• Spyware
– Surreptitiously installed on user’s computer
– May transmit user’s keystrokes or display
unwanted ads
• Google services and behavioral targeting
Internet Challenges to Privacy (2 of 2)
• The United States allows businesses to gather transaction
information and use this for other marketing purposes.
• Opt-out vs. opt-in model
• Online industry promotes self-regulation over privacy
legislation.
– Complex/ambiguous privacy statements
– Opt-out models selected over opt-in
– Online “seals” of privacy principles
Figure 4.3 How Cookies Identify Web
Visitors
1. The Web server reads the user's Web browser and determines the operating system,
browser name, version number, Internet address, and other information.
2. The server transmits a tiny text file with user identification information called a cookie,
which the user's browser receives and stores on the user's computer.
3. When the user returns to the Web site, the server requests the contents of any cookie
it deposited previously in the user's computer.
4. The Web server reads the cookie, identifies the visitor, and calls up data on the user.
Technical Solutions
• Solutions include:
– Email encryption
– Anonymity tools
– Anti-spyware tools
• Overall, technical solutions have failed to protect users
from being tracked from one site to another
– Browser features
▪ “Private” browsing
▪ “Do not track” options
Epic
Property Rights: Intellectual Property
(1 of 2)
• Intellectual property
– Tangible and intangible
products of the mind
created by individuals or
corporations
• Protected in four main ways:
– Copyright
– Patents
– Trademarks
– Trade secret
Property Rights: Intellectual Property
(1 of 2)
• Intellectual property
– Tangible and intangible
products of the mind
created by individuals or
corporations
• Protected in four main ways:
– Copyright
– Patents
– Trademarks
– Trade secret
Challenges to Intellectual Property
Rights
• Digital media different from
physical media
– Ease of replication
– Ease of transmission
(networks, Internet)
– Ease of alteration
– Compactness
– Difficulties in establishing
uniqueness
• Legislations to stop copy right
infringers
Computer-Related Liability Problems
• If software fails, who is responsible?
• If seen as part of a machine that injures or harms, software
producer and operator may be liable
• If seen as similar to book, difficult to hold author/publisher
responsible
• If seen as a service, would this be similar to telephone
systems not being liable for transmitted messages?
System Quality: Data Quality and
System Errors
• What is an acceptable, technologically feasible level of
system 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 of
business system failure)
Quality of Life: Equity, Access,
Boundaries (1 of 4)
• Negative social consequences of systems
• Balancing power: center versus periphery
• Rapidity of change: reduced response time to competition
• Maintaining boundaries: family, work, and leisure
• Dependence and vulnerability
Boundaries (2 of 4)
• Computer crime and abuse
– Computer crime
– Computer abuse
– Spam
• Employment
– Trickle-down technology
– Reengineering job loss
Boundaries (3 of 4)
• Equity and access
– The digital divide
• Health risks
– Repetitive stress
injury (RSI)
– Carpal tunnel
syndrome (CTS)
Boundaries (4 of 4)
• Health risks
– Computer vision
syndrome (C VS)
– Technostress
Interactive Session: Organizations:
Will Automation Kill Jobs?
• Identify the problem described ASSIGNMENT !!
in this case study. In what sense
is it an ethical dilemma? ufuk.turen@ostimteknik.edu.tr
• Should more tasks be

automated? Why or why not?
Explain your answer.
• Can the problem of automation
reducing cognitive skills be
solved? Explain your answer.
Interactive Session: Technology: How
Harmful Are Smartphones?
• Identify the problem described in ASSIGNMENT !!
this case study. In what sense is it BY MIDTERM
an ethical dilemma? uturen-lau@eul.edu.tr
• Should restrictions be placed on

children’s and teenagers’
smartphone use? Why or why not?
• Can the problem of smartphones
reducing cognitive skills be solved?
Why or why not? Explain your
answer.
• Have children? What's your policy?
How Will MIS Help My Career?
• The Organization: Pinnacle Air Force Base
• Position Description: Junior privacy analyst
• Job Requirements
• Interview Questions
• Author Tips
Assignments
• Please answer the questions of 2 Case studies
– Organizations: Will Automation Kill Jobs?(page 148)
– Technology: How Harmful Are Smartphones?(page 151)
• Please answer Review Questions at the end of Ch-4 (page 154)
• Please use your own words and understanding while preparing your
work and sent your word document to my e-mail address by
29.10.2022 @1500.
• ufuk.turen@ostimteknik.edu.tr
• THIS CONCLUDES THE SESSION
• PENDING YOUR QUESTIONS
• MANY THANKS FOR YOUR ATTENTION
• SEE YOU NEXT WEEK

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Management Information Systems:

Managing the Digital Firm

• Case 2: Facebook and Google Privacy: What Privacy?

• Instructional Video: Viktor Mayer-Schönberger on the Right to Be Forgotten

• Should more tasks be

• Should restrictions be placed on

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