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Organizations, Management, and
the Networked Enterprise
Lecturer : Setiabudi Sakaria M.Kom
SLIDE 3:
Ethical and Social Issues
in Information Systems
Chapter 4
Ethical and Social Issues in
Information Systems
Learning Objectives
After reading this chapter , you will be
able to answer the following questions:
• What ethical, social, and political
issues are raised by information
systems?
• What specific principles for conduct
can be used to guide ethical
decisions?
• Why do contemporary information
systems technology and the Internet
pose challenges to the protection of
individual privacy and intellectual
property?
• How have information systems
affected laws for establishing
accountabilityand liability and the
quality of everyday life?
CHAPTER CASES
The Dark Side of Big Data
The summary of chapter opening case
Technology can be
many benefits :
• the ability to combat
disease and crime and to
achieve major cost
savings and efficiencies
for business.
• And digital technology
creates new opportunities
for invading your privacy
and using information
that could cause you
harm.
Big data and ethical
dilemmas
• Developments in data
management technology
and analytics have
created opportunities for
organizations to use big
data to improve
operations and decision
making
• big data is also taking
benefits away from
individuals. Individuals
might be subject to job
discrimination, racial
profiling
As a manager, you will need to be sensitive to both the positive and negative
impacts of information systems for your firm, employees, and customers. You
will need to learn how to resolve ethical dilemmas involving information
systems
What ethical, social, and political issues
are raised by information systems?
RECENT EXAMPLES OF
FAILED ETHICAL
JUDGMENT
BY SENIOR MANAGERS
What ethical, social, and political issues
are raised by information systems?
• Ethics refers to the principles
of right and wrong that
individuals, acting as free
moral agents, use to make
choices to guide their
behaviors.
• Information systems raise new
ethical questions for both
individuals and societies
because they create
opportunities for intense social
change and, thus, threaten
existing distributions of power,
money, rights, and obligations.
• Ethical issues in
information systems have
been given new urgency
by the rise of the Internet
and e-commerce
• Internet and digital firm
technologies make it
easier than ever to
assemble, integrate, and
distribute information,
without the protection of
personal privacy, and
intellectual property.
A Model for Thinking About Ethical, Social, and
Political Issues
THE RELATIONSHIP BETWEEN ETHICAL, SOCIAL,
AND POLITICAL ISSUES IN AN INFORMATION
SOCIETY
• The introduction of new information
technology has a ripple effect: raising
new ethical social and political issues
that must be dealt with on the
individual, social, and political levels.
• Five moral dimensions:
• information rights and obligations,
• property rights and obligations,
• system quality,
• quality of life
• accountability and control
Five Moral Dimensions of the Information Age
The major ethical, social, and political issues that
information systems raise include the following moral
dimensions.
• Information rights and obligations What information rights do
individuals and organizations possess with respect to themselves?
What can they protect?
• Property rights and obligations How will traditional intellectual
property rights be protected in a digital society in which tracing and
accounting for ownership are difficult and ignoring such property
rights is so easy?
• Accountability and control Who can and will be held accountable
and liable for the harm done to individual and collective information
and property rights?
• System quality What standards of data and system quality should
we demand to protect individual rights and the safety of society?
• Quality of life What values should be preserved in an information-
and knowledge- based society? Which institutions should we
protect from violation? Which cultural values and practices does the
new information technology support?
Key Technology Trends that Raise Ethical Issues
TECHNOLOGY TRENDS THAT RAISE ETHICAL ISSUES • Advances in data storage
techniques and rapidly declining
storage costs have been responsible
for the multiplying databases on
individuals—employees, customers,
and potential customers—
maintained by private and public
organizations.
• Advances in data analysis techniques
for large pools of data are another
technological trend that heightens
ethical concerns because companies
and government agencies can find out
highly detailed personal information
about individuals.
What specific principles for conduct can be
used to guide ethical decisions?
• A data analysis technology called
nonobvious relationship
awareness (NORA) has given both
the government and the private
sector even more powerful
profiling capabilities.
• NORA can take information about
people from many disparate
sources, such as employment
applications, telephone records,
customer listings, and wanted
lists, and correlate relationships
to find obscure connections that
might help identify criminals or
terrorists
• NORA technology scans
data and extracts
information instantly
discover a man at an
airline ticket counter
who shares a phone
number with a known
terrorist before that
person boards an
airplane.
• Data remotely by using
small desktop machines,
mobile devices, and
cloud servers, permitting
an invasion of privacy on
a scale and with a
precision heretofore
unimaginable.
NONOBVIOUS RELATIONSHIP
AWARENESS (NORA)
Basic Concepts: Responsibility, Accountability,
and Liability
• Ethical choices are decisions made by
individuals who are responsible for the
consequences of their actions. Responsibility is
a key element of ethical action. Responsibility
means that you accept the potential costs,
duties, and obligations for the decisions you
make.
• Accountability is a feature of systems and social
institutions; it means that mechanisms are in
place to determine who took action and who is
responsible.
• Liability extends the concept of
responsibility further to the area of laws.
Liability is a feature of political systems in
which a body of laws is in place that permits
individuals to recover the damages done to
them by other actors, systems, or
organizations.
Ethical Analysis
When confronted with a situation that seems to present ethical
issues, how should you analyze it? The following five-step process
should help.
• Identify and describe the facts clearly
• Find out who did what to whom and where, when, and
how.
• Define the conflict or dilemma and identify the higher-order
values involved
• Ethical, social, and political issues always reference higher
values. The parties to a dispute all claim to be pursuing
higher values (e.g., freedom, privacy, protection of
property, and the free enterprise system).
• Identify the stakeholders
• Every ethical, social, and political issue has stakeholders:
players in the game who have an interest in the outcome,
who have invested in the situation, and usually who have
vocal opinions.
• Identify the options that you can reasonably take
• You may find that none of the options satisfy all the
interests involved but that some options do a better job
than others.
• Identify the potential consequences of your options
• Some options may be ethically correct but disastrous from
other points of view.
Some Real-World Ethical Dilemmas
• Many companies monitor what their
employees are doing on the Internet
to prevent them from wasting
company resources on non business
activities.
• Facebook monitors its subscribers and
then sells the information to
advertisers and app developers (see
the chapter -ending case study).
• Business owners might feel
obligated to monitor employee e-
mail and Internet use to minimize
drains on productivity
Why do contemporary information systems technology and
the Internet pose challenges to the protection of individual
privacy and intellectual property?
• Privacy is the claim of individuals to be left alone,
free from surveillance or interference from other
individuals or organizations, including the state
• The claim to privacy is protected in the United
States, Canadian, and German constitutions in a
variety of ways and in other countries through
various statutes. In the United States, the claim to
privacy is protected primarily by the First
Amendment guarantees of freedom of speech and
association
• Most American and European privacy law is based
on a regime called Fair Information Practices (FIP)
first set forth in a report written in 1973
Information Rights: Privacy and Freedom in the
Internet Age
FEDERAL PRIVACY LAWS IN THE
UNITED STATES
Thanks

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SLIDE 3 Ethical and Social Issues in Information Systems.pdf

  • 1. Organizations, Management, and the Networked Enterprise Lecturer : Setiabudi Sakaria M.Kom SLIDE 3: Ethical and Social Issues in Information Systems
  • 2. Chapter 4 Ethical and Social Issues in Information Systems Learning Objectives After reading this chapter , you will be able to answer the following questions: • What ethical, social, and political issues are raised by information systems? • What specific principles for conduct can be used to guide ethical decisions? • Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property? • How have information systems affected laws for establishing accountabilityand liability and the quality of everyday life? CHAPTER CASES The Dark Side of Big Data
  • 3. The summary of chapter opening case Technology can be many benefits : • the ability to combat disease and crime and to achieve major cost savings and efficiencies for business. • And digital technology creates new opportunities for invading your privacy and using information that could cause you harm. Big data and ethical dilemmas • Developments in data management technology and analytics have created opportunities for organizations to use big data to improve operations and decision making • big data is also taking benefits away from individuals. Individuals might be subject to job discrimination, racial profiling As a manager, you will need to be sensitive to both the positive and negative impacts of information systems for your firm, employees, and customers. You will need to learn how to resolve ethical dilemmas involving information systems
  • 4. What ethical, social, and political issues are raised by information systems? RECENT EXAMPLES OF FAILED ETHICAL JUDGMENT BY SENIOR MANAGERS
  • 5. What ethical, social, and political issues are raised by information systems? • Ethics refers to the principles of right and wrong that individuals, acting as free moral agents, use to make choices to guide their behaviors. • Information systems raise new ethical questions for both individuals and societies because they create opportunities for intense social change and, thus, threaten existing distributions of power, money, rights, and obligations. • Ethical issues in information systems have been given new urgency by the rise of the Internet and e-commerce • Internet and digital firm technologies make it easier than ever to assemble, integrate, and distribute information, without the protection of personal privacy, and intellectual property.
  • 6. A Model for Thinking About Ethical, Social, and Political Issues THE RELATIONSHIP BETWEEN ETHICAL, SOCIAL, AND POLITICAL ISSUES IN AN INFORMATION SOCIETY • The introduction of new information technology has a ripple effect: raising new ethical social and political issues that must be dealt with on the individual, social, and political levels. • Five moral dimensions: • information rights and obligations, • property rights and obligations, • system quality, • quality of life • accountability and control
  • 7. Five Moral Dimensions of the Information Age The major ethical, social, and political issues that information systems raise include the following moral dimensions. • Information rights and obligations What information rights do individuals and organizations possess with respect to themselves? What can they protect? • Property rights and obligations How will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership are difficult and ignoring such property rights is so easy? • Accountability and control Who can and will be held accountable and liable for the harm done to individual and collective information and property rights? • System quality What standards of data and system quality should we demand to protect individual rights and the safety of society? • Quality of life What values should be preserved in an information- and knowledge- based society? Which institutions should we protect from violation? Which cultural values and practices does the new information technology support?
  • 8. Key Technology Trends that Raise Ethical Issues TECHNOLOGY TRENDS THAT RAISE ETHICAL ISSUES • Advances in data storage techniques and rapidly declining storage costs have been responsible for the multiplying databases on individuals—employees, customers, and potential customers— maintained by private and public organizations. • Advances in data analysis techniques for large pools of data are another technological trend that heightens ethical concerns because companies and government agencies can find out highly detailed personal information about individuals.
  • 9. What specific principles for conduct can be used to guide ethical decisions? • A data analysis technology called nonobvious relationship awareness (NORA) has given both the government and the private sector even more powerful profiling capabilities. • NORA can take information about people from many disparate sources, such as employment applications, telephone records, customer listings, and wanted lists, and correlate relationships to find obscure connections that might help identify criminals or terrorists • NORA technology scans data and extracts information instantly discover a man at an airline ticket counter who shares a phone number with a known terrorist before that person boards an airplane. • Data remotely by using small desktop machines, mobile devices, and cloud servers, permitting an invasion of privacy on a scale and with a precision heretofore unimaginable. NONOBVIOUS RELATIONSHIP AWARENESS (NORA)
  • 10. Basic Concepts: Responsibility, Accountability, and Liability • Ethical choices are decisions made by individuals who are responsible for the consequences of their actions. Responsibility is a key element of ethical action. Responsibility means that you accept the potential costs, duties, and obligations for the decisions you make. • Accountability is a feature of systems and social institutions; it means that mechanisms are in place to determine who took action and who is responsible. • Liability extends the concept of responsibility further to the area of laws. Liability is a feature of political systems in which a body of laws is in place that permits individuals to recover the damages done to them by other actors, systems, or organizations. Ethical Analysis When confronted with a situation that seems to present ethical issues, how should you analyze it? The following five-step process should help. • Identify and describe the facts clearly • Find out who did what to whom and where, when, and how. • Define the conflict or dilemma and identify the higher-order values involved • Ethical, social, and political issues always reference higher values. The parties to a dispute all claim to be pursuing higher values (e.g., freedom, privacy, protection of property, and the free enterprise system). • Identify the stakeholders • Every ethical, social, and political issue has stakeholders: players in the game who have an interest in the outcome, who have invested in the situation, and usually who have vocal opinions. • Identify the options that you can reasonably take • You may find that none of the options satisfy all the interests involved but that some options do a better job than others. • Identify the potential consequences of your options • Some options may be ethically correct but disastrous from other points of view.
  • 11. Some Real-World Ethical Dilemmas • Many companies monitor what their employees are doing on the Internet to prevent them from wasting company resources on non business activities. • Facebook monitors its subscribers and then sells the information to advertisers and app developers (see the chapter -ending case study). • Business owners might feel obligated to monitor employee e- mail and Internet use to minimize drains on productivity
  • 12. Why do contemporary information systems technology and the Internet pose challenges to the protection of individual privacy and intellectual property? • Privacy is the claim of individuals to be left alone, free from surveillance or interference from other individuals or organizations, including the state • The claim to privacy is protected in the United States, Canadian, and German constitutions in a variety of ways and in other countries through various statutes. In the United States, the claim to privacy is protected primarily by the First Amendment guarantees of freedom of speech and association • Most American and European privacy law is based on a regime called Fair Information Practices (FIP) first set forth in a report written in 1973 Information Rights: Privacy and Freedom in the Internet Age FEDERAL PRIVACY LAWS IN THE UNITED STATES