brown_mit7_ch15

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MANAGING INFORMATION TECHNOLOGY
7th EDITION
CHAPTER 15
SOCIAL, ETHICAL AND LEGAL ISSUES
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SOCIAL, ETHICAL AND LEGAL ISSUES
• IT is influencing societies across the globe
• Despite its benefits, there are also a number of
negative social impacts, such as:
-
Loss of personal privacy and identity theft
Increased intellectual property violations
E-mail spam
Computer viruses and worms that destroy data on personal
as well as corporate computers
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THE LEGAL ENVIRONMENT
• Purpose of Legislation
- To constrain behavior within a society so that there is minimal
harm to its members and its needs are met
- IT is evolving so rapidly that laws inevitably lag behind
- Both needs and harms also differ across nations
Note: Examples of several recent U.S. laws that impact information
security management are discussed in Chapter 14
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ETHICAL ISSUES
• IT is having a growing effect on our lives and can give rise to
ethical issues
– Managers who determine how IT is used are also responsible for
the ethical implications of their decisions
• Potential consequences of unethical behavior
– For an individual employee
- Loss of reputation
- Loss of employment or career
– For an organization
- Loss of reputation
- Business survival
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IDENTIFYING ETHICAL PROBLEMS
– The first step is to recognize that a decision or action
has ethical implications
– These questions can be used to identify potential
ethical problems:
•
•
•
•
Is this fair to everyone that will be affected?
Would I want my mother to know about this?
Would I care if everyone knew about this?
What would be the result if everyone did this?
– IT-related ethical problems have the potential to
impact many stakeholders
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ANALYZING ETHICAL PROBLEMS
– There is no universally accepted way to determine
whether an action is justified or unethical
– Many basic ethical principles have come from religious
traditions and philosophers
– Ethical issues may also be viewed differently
depending on culture
• Example: In some countries, bribery is not considered
unethical
APEC attempt to
ban bribes
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EXAMPLE: CODE OF ETHICS
Professional Association Example:
The IEEE-CS and ACM have jointly developed a comprehensive
code of ethics for the software engineering profession
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ANALYZING ETHICAL PROBLEMS
– Ethical reasoning is seldom difficult, but some problems are so
complex that the decision is not obvious
– In these complex situations, there are usually many alternative
actions to consider
– In organizations: Managers should identify ethical problems and
include all parties who are affected by the decision
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SOCIAL ISSUES
• Privacy
• Identity Theft
• Intellectual Property Rights
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PRIVACY
Textbook definition of Privacy:
The ability to control access to information about ourselves
• An individual might give permission to collect and use certain
personal information in exchange for some benefit or business
transaction
• Privacy is invaded when information is used in ways the
individual never intended or explicitly agreed to
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PRIVACY
Why is Privacy a business issue?
• Personal information can be extremely valuable to marketers, and
many companies spend significant funds on obtaining it
• Credit cards, customer loyalty cards, warranty cards, and
sweepstakes are all used to collect personal information
• U.S. citizens differ widely in their attitude toward personal
privacy. On average, U.S. surveys suggest that:
- 25% of individuals are not concerned with privacy issues
- 50% are willing to consider trading some personal privacy for
other benefits
- 25% are quite sensitive to loss of privacy
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E- COMMERCE PRIVACY CONCERNS
• The growth of IT, especially the Web, has increased the
potential for Privacy violations
• One method of obtaining information about consumers is
through the use of cookies
Cookies: A small file created by a Web browser that can
identify the user to a particular Web site
• The effects of cookies on an individual’s Privacy can vary,
depending on how they are used by companies on the Internet
– For example, Amazon.com uses cookies to identify users and then
deliver personalized content based on the user’s prior purchases
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E- COMMERCE PRIVACY CONCERNS
Example: ESPN.com cookie
Variable Name
Value
Host Name
Flag
Expiration Date
Creation Date
DMSEG
2948220784574D0C&K03429&4459DBDF&4723
espn.go.com/
1024
2699591168
31381317
463312832
29912808
*
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E- COMMERCE PRIVACY CONCERNS
• Cookies can also be used to develop more comprehensive
profiles of an individual’s interests and preferences
• DoubleClick: A company that builds user profiles
- Company places advertisements for business clients on
thousands of Web sites
- First time a user visits any of these Web sites, a cookie is
created by the Web browser
- The cookie will then identify the user on any subsequent
visits to Web sites with DoubleClick advertising
- Through this mechanism, a detailed profile of browsing
behavior and preferences can be compiled
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WEB PORTAL PRIVACY CONCERNS
• Privacy concerns also increase when Web portals are involved:
- In 2001, privacy advocates raised concerns about the strategic
alliance between DoubleClick and Abacus Direct, a direct
marketing company with information on 88 million households,
because the deal would link the two companies’ databases
- In 2007, the purchase of DoubleClick by Google raised similar
concerns over the merging of Google’s data on individual’s
Internet searches and DoubleClick’s data on the same individual,
collected from specific web sites
- In 2006, three months of search queries by AOL members
were available to the public
AOL Web Search queries
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SOCIAL NETWORKING PRIVACY CONCERNS
Facebook
• Initial company policy was that information would be shared
only within the user’s group of friends. However, over the
years the company has changed its policy, sometimes without
pre-warning its users.
• Facebook generates revenues through advertisements, and the
disclosure of personal information gives advertisers a greater
ability to target relevant users
– Example: Photographers can target future brides based on
age, gender, engagement status and location
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SPYWARE CONCERNS
Spyware is one of the most rapidly growing types of software that
covertly gathers a user’s personal information without the user’s
knowledge; this is also referred to as “social engineering.”
-
Spyware is usually hidden inside of other programs, such as screensavers and
file sharing software
-
Sometimes hidden software to reduce copyright violations and “piracy” of a
major company’s products can “backfire”
SONY spyware gone wrong
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WORKPLACE PRIVACY
• Outside of the financial industry, there are no laws in the U.S.
regulating the collection and sharing of personal data
• Many organizations now post privacy policies, but even these do not
always explain how an individual’s personal information is used
– Since corporations have the right to view employee email
messages, employees should assume that their email messages
are not private
• Managers should note that actions that employees perceive to violate
their personal privacy can result in negative views of the company
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U.S. PRIVACY LAWS
– The Fair Credit Reporting Act
- Regulates disclosure of credit application data and credit
histories
– The Privacy Act
- Restricts a government agency from gathering information
for one purpose and using it for another or sharing it with
another agency
– The Family Education Rights and Privacy Act
- Protects the privacy of students by restricting access to their
grade and disciplinary information
– The Electronic Communications Privacy Act
- Prohibits unauthorized access to e-mail
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U.S. PRIVACY LAWS
– The Video Protection Privacy Act
- Prohibits videotape service providers from disclosing
information about video rentals
– The Driver’s Privacy Protection Act
- Prohibits states from selling driver’s license information
– The Health Insurance Portability and Accountability Act
- HIPAA protects an individual’s personal health information
from unauthorized disclosure
– The Children’s Online Privacy Protection Act
- Prohibits collecting information from children under the age
of 13 unless their parents authorize it
– Gramm-Leach-Bliley Act
- Provides some privacy protections against the sale of
financial information
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PRIVACY LAWS
• The U.S position on Privacy differs from the European
position; these differences need to be recognized by
organizations when data is transferred across European borders
United States
Some European Countries
• Lack of protection of data about individuals
collected by businesses and government
• An unrestricted flow of data among companies
• A market-driven view of people as consumers
under which data are seen as a saleable, usable
commodity that belongs to the corporations
• Reliant on self-regulation by companies to
respect an individual’s privacy
• Regulated by specific pieces of legislation (i.e., by
sector) that relate to particular aspects of
privacy, but not to privacy generally
• Protective of personal rights with respect to data
about individuals
• Restrictive regarding the flow of personal data
out of the country of origin, except to other
countries honoring certain privacy principles
• Having a view of the people as citizens who are
in control of their personal data
• Regulated by general laws, principles,
procedures, and standards adopted to oversee
the collection of data by governmental agencies
established for this purpose
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IDENTITY THEFT
Identity Theft
“Someone appropriating your personal information without your
knowledge to commit fraud or theft” - FTC
• Resolving the effects of identity theft takes 30-40 hours
on average, but can also take months or years
• In 2009, 11.1 million U.S. adults were affected by
Identity Theft, an increase of 12% over 2008
– Total fraud amount increased by 12.5% to 54 billion
– Average victim spent 21 hours and $343 resolving the crime
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PREVENTING IDENTITY THEFT
– Protect your national ID numbers (U.S. Social Security Number)
- Do not reveal it to anyone unless you know that it is necessary
- Do not carry your Social Security card or number in your wallet
– Protect your credit cards
- Carry as few cards as possible
- Keep them in sight when being handled by others
– Protect your computer by using a firewall and installing antivirus and
antispyware software
– Do not throw bills & credit card offers into the trash; shred them instead
– Check your credit card bills and bank statements carefully
– Check Credit Reports frequently
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INTELLECTUAL PROPERTY RIGHTS
Intellectual Property (IP)
Any product of the human mind, such as an idea, an invention,
a literary creation, a work of art, a business method, an
industrial process, a chemical formula, a computer program,
or a presentation
• The key difference between intellectual and physical property
is that the product can be shared without the owner losing it
• What can be “owned” differs from society to society, but many
nations recognize the importance of laws to protect IP
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INTELLECTUAL PROPERTY RIGHTS
• IP laws typically grant ownership rights for a limited time under the
belief that IP should eventually be in the public domain:
Copyrights: Give the owner control over the duplication of
copyrighted intellectual property
Patents: Give the owner the exclusive right to the manufacture and
use of a new design or method
• However, IP laws were developed with tangible products in mind:
Since IT separates the content from the medium that contains it,
new laws are required, but legislation lags behind the technology.
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SOFTWARE COPYRIGHTS
• U.S. Copyright laws make it illegal to copy and use software
without the software vendor’s permission
• For most software, the copyright owners do not sell the
software itself, but only the right to use under certain specified
conditions
• When that right is violated, the copyright has been violated
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SOFTWARE PIRACY
– In 2009, an estimated 43% of installed software worldwide was
pirated, which cost the software industry an estimated $ 51
billion
– Software piracy rates vary by country and region
• In some developing countries, governments do not monitor
software piracy
– In 2009, countries with >80% software piracy included Armenia,
Vietnam, Venezuela, Pakistan, and Indonesia; China decreased its
piracy rate, but that year it was estimated to be 79%
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DIGITAL ENTERTAINMENT PIRACY
– Piracy of music and videos is growing internationally
– CD piracy rates vary widely across countries
- U.S., Japan, and Western Europe have the lowest piracy rates
- Indonesia and Paraguay have the highest piracy rates (>90%)
– The International Federation of the Phonographic Industry
(IFPI) represents the international recording industry
against piracy
• Despite iTunes and other music download services for a low fee,
estimates are that 95% of music is pirated (IFPI, 2009)
• Today, the piracy of videos (TV shows and movies) is growing
much faster than music piracy
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DIGITAL ENTERTAINMENT PIRACY
• In the U.S. the Recording Industry Association of America (RIAA)
and then the Motion Picture Association of America (MPAA)
launched legal and marketing efforts designed to stop the piracy of
music and movies
RIAA advertisement
MPAA advertisement
• Music and file sharing gained widespread popularity with the advent
of Napster that enabled file sharing through a peer-to-peer (P2P)
network with a centralized index
- In 2003, the RIAA began filing lawsuits against individuals who were
file sharing on P2P networks; Napster was sued, shut down, and then
changed its business model to a legal subscription provider
- Some recent lawsuits have been controversial because the plaintiffs
have included children and people without computers
RIAA suit controversies
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OTHER SOCIAL ISSUES
• Digital Divide = the gap between those with access to
information technology and those without
- IT has become so essential to modern economic activity that those
who do not have access are precluded from some economic benefits
- Internet access in Africa, Latin America, and Middle East grew about
1000% between 2000 and 2010
- The gap is also diminishing in developed countries like the U.S.
• Freedom of Speech
- Use of the Internet has led to renewed controversy in U.S. between
right to freedom of speech and the right of society to protect itself
Is there information that is so harmful or dangerous that for the good of
society it should be prohibited from being posted on the Internet?
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OTHER SOCIAL ISSUES
• Hazards of Inaccuracy
- Maintaining accuracy is costly and time consuming
Who should pay for the impacts of data inaccuracies?
• Impacts on Workers
- Global outsourcing of knowledge work is enabled by IT
Are workers merely one factor of production or are they worthy of
further consideration because they are citizens of a specific country?
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THE FUTURE
• Computers will continue to get faster, more powerful
and less costly
What will individuals and organizations do with all the increased
IT power that will be available for less and less money?
• Expert systems, neural networks and artificial
intelligence are still evolving as substitutes for human
brainpower
To what extent will human lives be improved?
To what extent will there be unintended negative consequences?
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COPYRIGHT
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior written permission of the
publisher. Printed in the United States of America.
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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