Business Ethics and Technology

1. 0 Business Ethics and Technology Chapter9 Professor Craig Diamond BA 385 October 28, 2009

2. 0 Outline of Topics • Technology and the Technological Environment • Technology Benefits and Downsides • Ethics and Technology • Information Technology • E-commerce (focus on privacy issues) • Computers in the workplace • Biotechnology • Genetic engineering • Genetically modified foods

3. The totality of the means employed to provide objects necessary for human sustenance and comfort Technology 0 Technology and the Technological Environment Technological environment – one of the four segments of the macroenvironment (Ch.1) in society (other three are social, economic, political)

4. 0 Benefits of Technology • Increased production of goods and services • Reduced amount of labor needed to produce goods and services • Made labor easier and safer • Increased productivity • Increased standard of living • Increased life expectancy

5. 0 Side Effects and Challenges of Technology • Environmental pollution • Depletion of natural resources • Technological unemployment • machines replacing humans • Creation of unsatisfying jobs • Monotonous tasks, and handling data rather than actual things

6. 0 Ethics and Technology Key Issues Technological Determinism Ethical Lag

7. 0 Society’s Intoxication with Technology • We need the quick fix • We fear and worship technology • We blur the distinction between what is real and fake • We accept violence as normal • We love technology as a toy • We live our lives distanced and distracted From the book, High Tech, High Touch...

8. KeyIssues in e-Commerce Ethics 0 Electronic Commerce • Access (“Digital Divide”) • Intellectual property • Privacy and informed consent • Protection of children • Security of information 90% of e-commerce is business-to-business

9. 0 Potential Threats to PrivacyPosed by the Internet • Identity theft • Unintentionally revealing information • Lost / stolen personal information • Fake Web sites • Government distribution of information • Broadcasting information over the Internet • Victim of spying • Cyberstalker 2001 public poll: 24% of consumers were “very concerned” and 49% “somewhat concerned” about Internet privacy.

10. 0 Invasion of PrivacyPosed by the Internet • Cookies • 2001 poll: only 10% of users blocked cookies, and over 50% did not know what cookies were • Spam • Identity Theft

11. 0 Government’s Involvement • Governing legislation • Financial Services Modernization Act of 1999 • Fair Credit Reporting Act • Children’s Online Privacy Protection Act • 1999 Act • Included “opt-out” • Many groups lobbied for “opt-in” • Many intentional barriers to “opt-out” • Federal Trade Commission • Main agency that deals with consumer privacy issues

12. Ethical leadership Privacy policies Chief privacy officers Data security 0 Business Initiatives to Protect Privacy Protecting privacy of customers...

13. 0 Questionable Businesses and Practices • Pornography • Gambling • Web-based music services • Downloading movies and other intellectual property • Monitoring technology • “Phishing”

14. Employee Views of Technology is Positive 0 The Workplace and Computer Technology • Expands job-related knowledge • Increases productivity during work and commuting times • Improves communication with clients and customers • Relieves job stress • Improved time management • Expanded professional networks • Development of a competitive edge • Balance of work and family needs

15. 0 Surveillance Computers • Monitoring website employee computer files • Blocking access to inappropriate websites • Storing and reviewing e-mail Telephone • Monitoring time spent, numbers called • Taping phone conversations Video • Video surveillance against theft • Video surveillance to monitor employee performance

16. Driving while Using Cell Phone • Many studies have shown it is dangerous • Should companies have policies that limit or prohibit cell phone use while driving?

17. 0 Unethical Employee Activities • Created a dangerous situation by using new technology while driving (19%) • Blamed error on technological glitch (14%) • Copied company software for home use (13%) • Used office equipment to shop on the Internet (13%) • Used office equipment to search for job (11%) • Accessed private files without permission (6%) • Intruded on co-workers’ privacy (6%) • Visited porn Web sites (5%) Survey results...

18. Ethical issues related to the use of biotechnology Bioethics 0 Biotechnology

19. 0 Realms of Biotechnology Genetic Engineering GeneticallyModified Foods

20. Stem cell research Cloning Genetic testing and profiling 0 Genetic Engineering

21. Stem Cell Research • Controversy surrounds the use of embryonic stem cells in research • involves destruction of human embryo • Bush Administration severely limited research using embryonic stem cells, even though public opinion favored it • Obama issued executive order reversing Bush decision (March 2009)

22. Cloning • Animal and plant cloning • Cloning animals for food is controversial • Human cloning (controversial) • Therapeutic cloning – used to create stem cells as source of replacement tissue • Fear of two class society – those who can afford to be “perfected” and those that cannot

23. Genetic Testing and Profiling • Involves having DNA information on people • potential for invasion of privacy in how the information can be used

24. 0 Genetically Modified Foods Safety issues Labeling issues