Chapter 4

ETHICAL AND SOCIAL ISSUES IN

INFORMATION SYSTEMS
 Learning Objectives

• 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 everyday
life?
Understanding Ethical and Social Issues Related
to Systems
• Recent cases of failed ethical judgment in business
– Walmart Inc. (2012) Walmart executives in Mexico
accused of paying millions in bribes to Mexican
officials in order to receive building permits. Under
investigation by the Department of Justice.
• Ethics
– Principles of right and wrong that individuals use to
make choices to guide their behaviors
Understanding Ethical and Social Issues Related
to Systems
• Information systems and ethics
– Information systems raise new ethical
questions because they create
opportunities for:
• Intense social change, threatening
existing distributions of power, money,
rights, and obligations
• New kinds of crime
Understanding Ethical and Social Issues Related
to Systems
• 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 etiquette, expectations, politically correct
attitudes, approved rules and laws
• You may be forced to act in a legal gray areas
 Understanding Ethical and Social Issues Related
to Systems

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. These issues
have five moral dimensions: information
rights and obligations, property rights
and obligations, system quality, quality of
life, and accountability and control.
Understanding Ethical and Social Issues Related
to Systems
• Five moral dimensions of the information age
1. Information rights and obligations
– Internet and digital firm technologies make it easier than ever to
assemble, integrate, and distribute information, unleashing new concerns
about the appropriate use of customer information, the protection of
personal privacy

2. Property rights and obligations

– Intellectual property is considered to be intangible property created by
individuals or corporations. Information technology has made it
difficult to protect intellectual property.

3. Accountability and control

– Who can and will be held accountable and liable for the harm done to
individual and collective information and property rights?
Understanding Ethical and Social Issues Related
to Systems
4. System quality
• What standards of data and system quality should we
demand to protect individual rights and the safety of
society?

5. Quality of life:
• Cultural value, computer crimes. Which institutions
should we protect from violation? Which cultural
values and practices are supported by the new
information technology?
Understanding Ethical and Social Issues Related
to Systems
• Key technology trends that raise ethical issues
1. Computing power doubles every 18 months
• More organizations depend on computer systems for
critical operations.
2. Data storage costs rapidly decline
• Organizations can easily maintain detailed databases on
individuals. the violation of individual privacy both cheap
and effective.
3. Networking advances
• Copying data from one location to another and accessing
personal data from remote locations are much easier
4. Mobile device growth Impact
• Individual cell phones may be tracked without user consent
or knowledge.
Understanding Ethical and Social Issues Related
to Systems
• Key technology trends that raise ethical issues (cont.)
5. Data analysis advances
• Companies can analyze vast quantities of data gathered on
individuals to develop detailed profiles of individual
behavior./ highly detailed personal info.
– Profiling
» Combining data from multiple sources to create dossiers of
detailed information on individuals
– Nonobvious relationship awareness (NORA) (more powerful
profiling capabilities.)
» Combining data from multiple sources and correlate
relationships to find obscure hidden connections that might
help identify criminals or terrorists
 Ethics in an Information Society

• Basic concepts for ethical analysis: Ethical choices are

decisions made by individuals who are responsible for the
consequences of their actions.
– Responsibility: the key element of the ethical action
• Accepting the potential costs, and obligations for decisions
– Accountability: feature of a system
• System Mechanisms for identifying responsible parties
– Liability: laws
• feature of political systems Permits individuals (and firms) to
recover damages done to them by others (systems,
organizations…)
– Due process:
• Laws are well known and understood, with an ability to appeal to
higher authorities to ensure that the laws applied correctly / low-
governed society
 Ethics in an Information Society

• Ethical analysis: A five-step process

1. Identify and clearly describe the facts: who did what to
whom, and where, when, and how.
2. Define the conflict or dilemma (freedom, privacy,
property rights)
3. Identify the stakeholders : who have invested in the
situation, and usually who have vocal opinions. Find out
the identity of these groups and what they want.
4. Identify the options that you can reasonably take
5. Identify the potential consequences of your options:
Some options may be ethically correct but disastrous
from other points of view.
 Ethics in an Information Society
• Six Candidate Ethical Principles: Once your analysis is
complete, what ethical principles or rules should you use to
make a decision?
1. Golden Rule
• Do unto others as you would have them do unto you.
• “Treating People As You'd Like to Be Treated”
• Is your company using unlicensed software although your
company itself sells software?
2. Immanuel Kant’s Categorical Imperative
• If an action is not right for everyone to take, it is not right for
anyone.
• Ask yourself “If everyone did this, could the organization, or
society, survive?”
3. Descartes’ Rule of Change
• If an action cannot be taken repeatedly, it is not right to take at all
• This is the slippery-slope rule: An action may bring about a small
change now that is acceptable, but if it is repeated, it would bring
unacceptable changes in the long run.
 Ethics in an Information Society

• Six Candidate Ethical Principles (cont.)

4. Utilitarian Principle
• Take the action that achieves the higher or greater value. Should
customers using your Web site be asked to opt in or opt out of the
possible sale of their personal data to other companies?
5. Risk Aversion Principle
• Take the action that produces the least harm or least potential
cost
6. Ethical “no free lunch” Rule
• Assume that all property and information belong to someone.
This principle is primarily applicable to intellectual property that
should not be taken without just compensation. Has your company
used unlicensed software? Or hired a group of IT workers from a
competitor?
 Ethics in an Information Society

• Professional codes of conduct

– These professional groups take responsibility for the
partial regulation of their professions by determining
entrance qualifications and competence. When you
present technological alternatives to managers who do
not know the right questions to ask, do you tell them all
they need to know to make informed choices?
• Real-world ethical dilemmas
– E.g. Right of company to maximize productivity of
workers vs. workers right to use Internet for short
personal tasks
The Moral Dimensions of Information Systems

• INFORMATION RIGHTS: PRIVACY AND FREEDOM IN

THE INTERNET AGE
• 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.
– Information technology and systems threaten
individual claims to privacy by making the invasion
of privacy cheap, profitable, and effective.
The Moral Dimensions of Information Systems

• Fair information practices FIP:

– Set of principles governing the collection and use of
information about individuals
– Basis of most U.S. privacy laws
– Based on mutuality of interest between record holder
and individual
– Restated and extended by FTC in 1998 to provide
guidelines for protecting online privacy
– Children’s Online Privacy Protection Act (COPPA),
requiring Web sites to obtain parental permission before
collecting information on children under the age of 13.
The Moral Dimensions of Information Systems
• European Directive on Data Protection:
– EU protections of privacy are far more powerful than the
United States
– Requires companies to inform people when they collect
information about them and disclose how it will be stored and
used.
– Requires informed consent of customer
– the EU’s new proposed rules have a strong emphasis on
regulating tracking, enforcing transparency, limiting data
retention periods, and obtaining user consent.
– EU member nations cannot transfer personal data to countries
with no similar privacy protection (e.g. U.S.)
– The new rules would apply to all companies providing services
in Europe, and require Internet companies like Amazon,
Facebook, Apple, Google, and others to obtain explicit consent
from consumers about the use of their personal data,
 The Moral Dimensions of 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.
• keep a record of users’ online clickstream and report this data
back to whomever owns the tracking file
– Spyware
• Secretly installed on user’s computer
• May transmit user’s keystrokes or display unwanted ads
• Most experts believe that Google possesses the largest collection
of personal information in the world—more data on more people
than any government agency. The nearest competitor is Facebook.
The Moral Dimensions of Information Systems

HOW COOKIES IDENTIFY WEB VISITORS

Cookies are written by a Web site on a visitor’s hard drive. When the visitor returns to that Web site, the Web server requests the ID
number from the cookie and uses it to access the data stored by that server on that visitor. The Web site can then use these data to
display personalized information.
The Moral Dimensions of Information Systems

• U.S. allows businesses to gather transaction

information and use this for other marketing purposes
• without obtaining the informed consent of the
individual whose information is being used
• Online industry promotes self-regulation over privacy
legislation for protecting the consumers.
• However, extent of responsibility taken varies
– Opt-out model of informed consent
– Opt-in is no collection of user information.
– Most Web sites do not have any privacy policies
The Moral Dimensions of Information Systems

• Technical solutions
– technical solutions have failed to protect users from
being tracked.
– Many browsers have Do Not Track options, the
browser will send a request to Web sites requesting
the user’s behavior not be tracked.
– Online advertising industries Web sites argue that
they are not obligated to follow users’ requests to Do
Not Track.
– iPhone Becomes iTrack
The Moral Dimensions of Information Systems
• Property rights: Intellectual property
– Intellectual property: Intangible property of any kind
created by individuals or corporations.
– Information technology has made it difficult to protect
intellectual property because computerized information
can be so easily copied or distributed on networks.

– Three main ways that protect intellectual property

1. Trade secret: Intellectual work or product belonging to
business, not in the public domain (a formula, device, or
compilation of Data). Protect the actual idea and the
manifestation.
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
The Moral Dimensions of Information Systems
• Challenges to intellectual property rights
– Digital media different from physical media (e.g.
books)
• Ease of replication
• Ease of transmission (networks, Internet).
• Ease of alteration
• Illegal file sharing
• the rate of global software piracy climbed to 42 percent
in 2011, representing $63 billion in global losses from
software piracy
• Worldwide, for every $100 worth of legitimate software
sold that year, an additional $75 worth was obtained
illegally (Business Software Alliance, 2012).
The Moral Dimensions of Information Systems
• ACCOUNTABILITY, LIABILITY, AND CONTROL

– If a person is injured by a machine controlled, in part, by

software, who should be held accountable and, therefore, held
liable?
– What about the Internet? If you outsource your information
processing, can you hold the external vendor liable for injuries
done to your customers?
– Who is liable for any economic harm caused to individuals or
businesses that could not access their e-mail during this three-
day period? If consumers pay for cell phone service, come to
rely on it, and then are denied service for a significant period of
time, is the cell phone provider liable for damages?
– Target retailer hacking issues
The Moral Dimensions of Information Systems

• System Quality: Data Quality and System Errors

– What is an acceptable, technologically feasible level of system
quality?
– At what point should system managers say, “Stop testing, we’ve
done all we can to perfect this software. Ship it!”
• 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)
 The Moral Dimensions of Information Systems
• Quality of life: Equity, access, and boundaries (Negative social
consequences of systems)
– Balancing power: Although computing power decentralizing, key
decision-making remains centralized.
– power has become more centralized into the hands of a few
private monopoly markets.
– Google, Apple, Yahoo, Amazon, and Microsoft have come to
dominate the collection and analysis of personal private
information of all citizens
– Rapidity of change: Businesses may not have enough time to
respond to global competition and may be wiped out in a year, along
with your job.
– Maintaining boundaries: Computing, Internet use lengthens work-
day, infringes on family, personal time
– Dependence and vulnerability: Public and private organizations ever
more dependent on computer systems
The Moral Dimensions of Information Systems

– Computer crime and abuse

– Computer crime: Commission of illegal acts through use of
compute or against a computer system – computer may be object
or instrument of crime
– Computer abuse: Unethical acts, not illegal
– Spam: High costs for businesses in dealing with spam ( for
products not widely approved in most civilized societies).
– Employment:
– Reengineering work resulting in lost jobs
– Equity and access – the digital divide:
– Does everyone have an equal opportunity to participate in the
digital age?
The Moral Dimensions of Information Systems
• Health risks:
– Repetitive stress injury (RSI)
• occurs when muscle groups are forced through repetitive
actions often with high-impact loads (such as working at a
computer keyboard).
– Computer vision syndrome (CVS) refers to any eyestrain
condition related to display screen use in desktop computers,
laptops, e-readers, smartphones, and handheld video games.
(Its symptoms include headaches, blurred vision, and dry and
irritated eyes)
– Role of radiation, screen emissions.
– Technostress: stress induced by computer and cell phone use
(aggravation, hostility toward humans, impatience, and fatigue)