Management Information Systems
Management Information Systems
MANAGING THE DIGITAL FIRM, 12TH
EDITION
ETHICAL AND SOCIAL ISSUES IN
INFORMATION SYSTEMS
Chapter 4
Management Information Systems
Management Information Systems
• Ethics : the principles of right or wrong
• Information systems raise new ethical questions for both
individuals and societies, because-
ISs create opportunities for intense social change
• threatening existing distributions of power, money, rights, and obligations
 ISs can be used to achieve social progress and also to commit
crimes
• So, the development of IT produces benefits to many and costs
for others
Ethical and Social Issues Related to Systems
2
Management Information Systems
Management Information Systems
Any Bangladeshi firms that failed ethical judgment
by senior managers?
3
Management Information Systems
Management Information Systems
Understanding Ethical and Social Issues Related to Systems
Figure: The Relationship Between Ethical, Social, And Political Issues In An Information Society
4
Management Information Systems
Management Information Systems
•Five moral dimensions of the information age
1. Information rights and obligations
2. Property rights and obligations
3. Accountability and control
4. System quality
5. Quality of life
Understanding Ethical and Social Issues Related to Systems
5
Management Information Systems
Management Information Systems
1. Information Rights & Obligations
•Privacy:
• Claim of individuals to be left alone, free from surveillance or
interference from others
• Claim to be able to control information about yourself
2. Property rights: Intellectual property
–Intellectual property: Intangible property of any kind
created by individuals or corporations
–Trade secret, patent, copy right
Five moral dimensions of the information age
6
Management Information Systems
Management Information Systems
3. Accountability, Liability, Control
–If software fails, who is responsible?
 If seen as, part of machine that injures or harms, software producer and
operator may be liable
4.System Quality: Data Quality and System Errors
–What is an acceptable, technologically feasible level of
system quality?
 Flawless software is economically unfeasible
Five moral dimensions of the information age
7
Management Information Systems
Management Information Systems
5. Quality of life: Equity, access, and boundaries
•Negative social consequences of systems
• Computer crime and abuse
• Illegal acts through use of compute system
• Computer abuse
• Employment
• Reengineering work resulting in lost jobs
• Health Risks
Five moral dimensions of the information age
8
Management Information Systems
Management Information Systems
•Key technology trends that raise ethical issues
1. Doubling of computer power
• More organizations depend on computer systems for critical
operations
2. Rapidly declining data storage costs
• Organizations can easily maintain detailed databases on individuals
3. Networking advances and the Internet
• Copying data from one location to another and accessing personal
data from remote locations is much easier
9
Understanding Ethical and Social Issues Related to Systems
Management Information Systems
Management Information Systems
•Key technology trends that raise ethical issues
4. Advances in data analysis techniques
• Companies can analyze vast quantities of data gathered on
individuals for profiling
5. Mobile device growth impact
• Individuals cell phone may be tracked without user consent
10
Understanding Ethical and Social Issues Related to Systems
Management Information Systems
Management Information Systems
•Ethical analysis: A five-step process
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
Ethics in an Information Society
11
Management Information Systems
Management Information Systems
•Real-world ethical dilemmas(example)
• One set of interests is pitted (eroded) against another
• Many companies monitor what their employees are doing on the
internet (wasting resources for non-business activities) vs. workers
right to use Internet for short personal tasks
• Telephone companies are using IT to reduce the sizes of their
workforces (HR), and automating the customer responses
• Facebook monitors its subscribers and then sells the information of
those subscribers to advertisers
12
Ethics in an Information Society
Management Information Systems
Management Information Systems
•Internet Challenges to Privacy
• Cookies
• Tiny files downloaded by Web site to visitor’s hard drive to help
identify visitor’s browser and track visits to site
• Allow Web sites to develop profiles on visitors
• Web beacons/bugs
• Tiny graphics embedded in e-mail and Web pages to monitor who is
reading message
• Spyware
• Secretly installed on user’s computer
• May transmit user’s keystrokes or display unwanted ads
• Google’s collection of private data; behavioral targeting
13
Challenges to Privacy and Intellectual Property
Management Information Systems
Management Information Systems
•Challenges to intellectual property rights
• Digital media different from physical media (e.g. books)
• Ease of replication
• Ease of transmission (networks, Internet)
• Difficulty in classifying software
• Compactness
• Difficulties in establishing uniqueness
14
Challenges to Privacy and Intellectual Property
Management Information Systems
Management Information Systems
Intellectual property
–Three main ways that protect intellectual property
1. Trade secret: Intellectual work or product belonging to business,
not in the public domain
2. Copyright: Statutory grant protecting intellectual property from
being copied for the life of the author, plus 70 years
3. Patents: Grants creator of invention an exclusive monopoly on
ideas behind invention for 20 years (16yrs in BD)
15
Solutions for Protecting Intellectual Property
Management Information Systems
Management Information Systems
•Fair information practices (FIP)
• Set of principles governing the collection and use of
information
• Based on mutuality of interest between record holder and
individuals
• Records or information should not be used without
individuals consent
• Basis of most U.S. and European privacy laws
16
Solutions for Protecting Intellectual Property
Management Information Systems
Management Information Systems
Government/Industry Legislation
• Government allows businesses to gather transaction
information and use this for other marketing purposes
• Online industry also promotes self-regulation over privacy
legislation
• Extent of responsibility taken varies
• Statements of information use
• Opt-out selection boxes (informed consent)
• Online “seals” of privacy principles
Most Web sites do not have any privacy policies
17
Solutions for Protecting Intellectual Property
Management Information Systems
Management Information Systems
• Technical solutions
• The Platform for Privacy Preferences (P3P)
• Allows Web sites to communicate privacy policies to
visitor’s Web browser
• User specifies privacy levels desired in browser settings
• E.g. “medium” level accepts cookies from first-party host sites
that have opt-in or opt-out policies
• but rejects third-party cookies that use personally identifiable
information without an opt-in policy
18
Solutions for Protecting Privacy and Intellectual Property

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Ethics in Information System - Management Information System

  • 1. Management Information Systems Management Information Systems MANAGING THE DIGITAL FIRM, 12TH EDITION ETHICAL AND SOCIAL ISSUES IN INFORMATION SYSTEMS Chapter 4
  • 2. Management Information Systems Management Information Systems • Ethics : the principles of right or wrong • Information systems raise new ethical questions for both individuals and societies, because- ISs create opportunities for intense social change • threatening existing distributions of power, money, rights, and obligations  ISs can be used to achieve social progress and also to commit crimes • So, the development of IT produces benefits to many and costs for others Ethical and Social Issues Related to Systems 2
  • 3. Management Information Systems Management Information Systems Any Bangladeshi firms that failed ethical judgment by senior managers? 3
  • 4. Management Information Systems Management Information Systems Understanding Ethical and Social Issues Related to Systems Figure: The Relationship Between Ethical, Social, And Political Issues In An Information Society 4
  • 5. Management Information Systems Management Information Systems •Five moral dimensions of the information age 1. Information rights and obligations 2. Property rights and obligations 3. Accountability and control 4. System quality 5. Quality of life Understanding Ethical and Social Issues Related to Systems 5
  • 6. Management Information Systems Management Information Systems 1. Information Rights & Obligations •Privacy: • Claim of individuals to be left alone, free from surveillance or interference from others • Claim to be able to control information about yourself 2. Property rights: Intellectual property –Intellectual property: Intangible property of any kind created by individuals or corporations –Trade secret, patent, copy right Five moral dimensions of the information age 6
  • 7. Management Information Systems Management Information Systems 3. Accountability, Liability, Control –If software fails, who is responsible?  If seen as, part of machine that injures or harms, software producer and operator may be liable 4.System Quality: Data Quality and System Errors –What is an acceptable, technologically feasible level of system quality?  Flawless software is economically unfeasible Five moral dimensions of the information age 7
  • 8. Management Information Systems Management Information Systems 5. Quality of life: Equity, access, and boundaries •Negative social consequences of systems • Computer crime and abuse • Illegal acts through use of compute system • Computer abuse • Employment • Reengineering work resulting in lost jobs • Health Risks Five moral dimensions of the information age 8
  • 9. Management Information Systems Management Information Systems •Key technology trends that raise ethical issues 1. Doubling of computer power • More organizations depend on computer systems for critical operations 2. Rapidly declining data storage costs • Organizations can easily maintain detailed databases on individuals 3. Networking advances and the Internet • Copying data from one location to another and accessing personal data from remote locations is much easier 9 Understanding Ethical and Social Issues Related to Systems
  • 10. Management Information Systems Management Information Systems •Key technology trends that raise ethical issues 4. Advances in data analysis techniques • Companies can analyze vast quantities of data gathered on individuals for profiling 5. Mobile device growth impact • Individuals cell phone may be tracked without user consent 10 Understanding Ethical and Social Issues Related to Systems
  • 11. Management Information Systems Management Information Systems •Ethical analysis: A five-step process 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 Ethics in an Information Society 11
  • 12. Management Information Systems Management Information Systems •Real-world ethical dilemmas(example) • One set of interests is pitted (eroded) against another • Many companies monitor what their employees are doing on the internet (wasting resources for non-business activities) vs. workers right to use Internet for short personal tasks • Telephone companies are using IT to reduce the sizes of their workforces (HR), and automating the customer responses • Facebook monitors its subscribers and then sells the information of those subscribers to advertisers 12 Ethics in an Information Society
  • 13. Management Information Systems Management Information Systems •Internet Challenges to Privacy • Cookies • Tiny files downloaded by Web site to visitor’s hard drive to help identify visitor’s browser and track visits to site • Allow Web sites to develop profiles on visitors • Web beacons/bugs • Tiny graphics embedded in e-mail and Web pages to monitor who is reading message • Spyware • Secretly installed on user’s computer • May transmit user’s keystrokes or display unwanted ads • Google’s collection of private data; behavioral targeting 13 Challenges to Privacy and Intellectual Property
  • 14. Management Information Systems Management Information Systems •Challenges to intellectual property rights • Digital media different from physical media (e.g. books) • Ease of replication • Ease of transmission (networks, Internet) • Difficulty in classifying software • Compactness • Difficulties in establishing uniqueness 14 Challenges to Privacy and Intellectual Property
  • 15. Management Information Systems Management Information Systems Intellectual property –Three main ways that protect intellectual property 1. Trade secret: Intellectual work or product belonging to business, not in the public domain 2. Copyright: Statutory grant protecting intellectual property from being copied for the life of the author, plus 70 years 3. Patents: Grants creator of invention an exclusive monopoly on ideas behind invention for 20 years (16yrs in BD) 15 Solutions for Protecting Intellectual Property
  • 16. Management Information Systems Management Information Systems •Fair information practices (FIP) • Set of principles governing the collection and use of information • Based on mutuality of interest between record holder and individuals • Records or information should not be used without individuals consent • Basis of most U.S. and European privacy laws 16 Solutions for Protecting Intellectual Property
  • 17. Management Information Systems Management Information Systems Government/Industry Legislation • Government allows businesses to gather transaction information and use this for other marketing purposes • Online industry also promotes self-regulation over privacy legislation • Extent of responsibility taken varies • Statements of information use • Opt-out selection boxes (informed consent) • Online “seals” of privacy principles Most Web sites do not have any privacy policies 17 Solutions for Protecting Intellectual Property
  • 18. Management Information Systems Management Information Systems • Technical solutions • The Platform for Privacy Preferences (P3P) • Allows Web sites to communicate privacy policies to visitor’s Web browser • User specifies privacy levels desired in browser settings • E.g. “medium” level accepts cookies from first-party host sites that have opt-in or opt-out policies • but rejects third-party cookies that use personally identifiable information without an opt-in policy 18 Solutions for Protecting Privacy and Intellectual Property

Editor's Notes

  • #2: Like other technologies, IT can be used to achieve social progress, but it can also be used to commit crimes So, the development of IT will produce benefits to many and costs for others
  • #4: Model for thinking about ethical, social, 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 manners, expectations, laws Requires understanding of ethics to make choices in legally gray areas
  • #12: E.g. Right of company to maximize productivity of workers vs. workers right to use Internet for short personal tasks