Ethics in Information
Technology
Chapter 1
An Overview of Ethics
1
Objectives
• What is ethics, and why is it important to act
according to a code of principles?
• Why is business ethics becoming increasingly
important?
• What are corporations doing to improve business
ethics?
• Why are corporations interested in fostering good
business ethics?
2
Objectives (continued)
• What approach can you take to ensure ethical
decision making?
• What trends have increased the risk of using
information technology unethically?
Ethics in Information Technology, Second Edition 3
What is Ethics?
• Moral code
– Set of rules
– Establishes boundaries of generally accepted
behavior
– Different rules often have contradictions
• Morality
– Social conventions about right and wrong
– Widely shared
4
What is Ethics? (continued)
• Morality may vary by:
– Age
– Cultural group
– Ethnic background
– Religion
– Gender
5
Definition of Ethics
• Ethics is a set of beliefs about right and wrong
behavior
• Ethical behavior conforms to generally accepted
social norms
• Virtues
– Habits that incline people to do what is acceptable
• Vices
– Habits of unacceptable behavior
• Value system
– Scheme of moral values
6
The Importance of Integrity
• Integrity is a cornerstone of ethical behavior
• People with integrity
– Act in accordance with a personal code of principles
– Extend to all people the same respect and
consideration that you desire
– Apply the same moral standards in all situations
7
Ethics in the Business World
• Risk is the product of multiplying the likelihood of an
event by the impact of its occurrence
• Risks associated with inappropriate behavior have
increased due to
– Globalization
– Heightened vigilance by
• Employees
• Shareholders
• Regulatory agencies
• Examples??? WorldCom CA
8
Why Fostering Good Business Ethics Is
Important?
1. To gain the goodwill of the community
2. To create an organization that operates
consistently
3. To produce good business
4. To protect the organization and its employees from
legal action
5. To avoid unfavorable publicity
Ethics in Information Technology, Second Edition 9
Improving Corporate Ethics
• Risks of unethical behavior are increasing
• Improvement of business ethics is becoming more
important
10
How we can Improve Corporate
Ethics?
• Appointing a Corporate Ethics Officer
• Ethical Standards Set by Board of Directors
• Establishing a Corporate Code of Ethics
• Conducting Social Audits
• Requiring Employees to Take Ethics Training
• Including Ethical Criteria in Employee Appraisals
11
Appointing a Corporate Ethics Officer
• Corporate ethics definition includes
– Ethical conduct
– Legal compliance
– Corporate social responsibility
• Corporate ethics officer
– Is a senior-level manager
– Provides vision and direction in the area of business
conduct
– Tries to establish an environment that encourages
ethical decision making
12
Appointing a Corporate Ethics Officer
(continued)
• Responsibilities include:
– Complete oversight of the ethics function
– Collecting and analyzing data
– Developing and interpreting ethics policy
– Developing and administering ethics education and
training
– Overseeing ethics investigations
13
Ethical Standards Set by Board of
Directors
• Board responsible for supervising management
team
• Directors of company are expected to
– Conduct themselves according to the highest
standards of personal and professional integrity
– Set standard for company-wide ethical conduct
– Ensure compliance with laws and regulations
14
Establishing a Corporate Code of
Ethics
• Code of ethics:
– Highlights an organization’s key ethical issues
– Identifies overarching values and principles important
to an organization
– Focuses employees on areas of ethical risk
– Cannot gain company-wide acceptance unless
• Developed with employee participation
• Fully endorsed by organization’s leadership
– Must continually be applied to company’s decision
making
15
Conducting Social Audits
• Social audit
– Identifies ethical lapses committed in the past
– Sets directives for avoiding similar missteps in the
future
16
Requiring Employees to Take Ethics
Training
• Comprehensive ethics education program
encourages employees to act responsibly and
ethically
– Often presented in small workshop formats
• Principle-based decision making is based on
principles in corporate code of ethics
17
Including Ethical Criteria in Employee
Appraisals
• Some companies base a portion of employee
performance evaluations on:
– Treating others fairly and with respect
– Operating effectively in a multicultural environment
– Accepting personal accountability
– Continually developing themselves and others
– Operating openly and honestly with suppliers,
customers, and other employees
18
Creating an Ethical Work Environment
• Good employees sometimes make bad ethical
choices
• May be encouraged to do “whatever it takes” to get
the job done
• Employees must have a knowledgeable and potent
resource available to discuss perceived unethical
practices
19
Ethics in Information Technology
• Public concern about the ethical use of information
technology includes:
– E-mail and Internet access monitoring
– Peer-to-peer networks violation of copyright
– Unsolicited e-mail
– Hackers and identify theft
– Plagiarism
– Cookies and spyware
20
Summary
• Ethics is a set of beliefs about right and wrong
behavior
• Ethics in business is becoming more important
because the risks associated with inappropriate
behavior have grown
• Corporations want to protect themselves and their
employees from legal action
21
