Ethics in information technology 6th edition pdf free download

Ethics in information technology 6th edition pdf free download

ethics in information technology 6th edition pdf free download

Ethics in Information Technology, Fifth Edition, fills a void of practical business information for panies represents the “greatest transfer of wealth in history. Suggest a sixth characteristic, and defend your choice. 6. In the United States, a gift might take the form of free tickets to a sporting event from. Free PDF Book Ethics in Information Technology by George Reynolds 5th edition download,ethics in information technology 6th edition pdf. So if you're searching for this interesting book ethics in information technology 6th edition pdf, this book isn't part of ethics in information. ethics in information technology 6th edition pdf free download

Ethics in Information Technology [6th Edition]

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ETHICS IN INFORMATION TECHNOLOGY Sixth Edition

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

ETHICS IN INFORMATION TECHNOLOGY Sixth Edition

George W. Reynolds

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Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

Ethics in Information Technology, Sixth Edition George W. Reynolds

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BRIEF CONTENTS Preface Chapter

1

An Overview of Ethics

xiii 1

Chapter

2

Ethics for IT Workers and IT Users

43

Chapter

3

Cyberattacks and Cybersecurity

83

Chapter

4

Privacy

133

Chapter

5

Freedom of Expression

185

Chapter

6

Intellectual Property

221

Chapter

7

Ethical Decisions in Software Development

263

Chapter

8

The Impact of Information Technology on Society

299

Chapter

9

Social Media

329

Chapter 10

Ethics of IT Organizations

357

Appendix A

A Brief Introduction to Morality

397

Glossary

413

Index

427

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Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

TABLE OF CONTENTS Preface Chapter 1 An Overview of Ethics

xiii 1

Organizations Behaving Badly 1 What Is Ethics? 3 The Importance of Integrity 5 The Difference Between Morals, Ethics, and Laws 5 Ethics in the Business World 7 Corporate Social Responsibility 10 Why Fostering Corporate Social Responsibility and Good Business Ethics Is Important? 13 Gaining the Goodwill of the Community 13 Creating an Organization That Operates Consistently 14 Fostering Good Business Practices 15 Protecting the Organization and Its Employees from Legal Action 15 Avoiding Unfavorable Publicity 16 How Organizations Can Improve Their Ethics 17 Appoint a Corporate Ethics Officer 18 Require the Board of Directors to Set and Model High Ethical Standards 19 Establish a Corporate Code of Ethics 20 Conduct Social Audits 21 Require Employees to Take Ethics Training 22 Include Ethical Criteria in Employee Appraisals 22 Create an Ethical Work Environment 23 Including Ethical Considerations in Decision Making 24 Develop Problem Statement 24 Identify Alternatives 25 Choose Alternative 26 Implement the Decision 26 Evaluate the Results 26 Ethics in Information Technology 27 Summary 29 Key Terms 30 Self-Assessment Questions 30 Self-Assessment Answers 32 Discussion Questions 33 What Would You Do? 33 Cases 34 End Notes 39

Chapter 2 Ethics for IT Workers and IT Users Organizations Behaving Badly IT Worker Relationships That Must Be Managed

43 43 44

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Relationships Between IT Workers and Employers Relationships Between IT Workers and Clients Relationships Between IT Workers and Suppliers Relationships Between IT Workers and Other Professionals Relationships Between IT Workers and IT Users Relationships Between IT Workers and Society Encouraging the Professionalism of IT Workers Professional Codes of Ethics Professional Organizations Certification Licensing of IT Professionals What Can Be Done to Encourage the Ethical Use of IT Resources Among Users? Common Ethical Issues for IT Users Supporting the Ethical Practices of IT Users Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 3 Cyberattacks and Cybersecurity Organizations Behaving Badly The Threat Landscape Why Computer Incidents Are So Prevalent? Types of Exploits Federal Laws for Prosecuting Computer Attacks The CIA Security Triad Implementing CIA at the Organization Level Implementing CIA at the Network Level Implementing CIA at the Application Level Implementing CIA at the End-User Level Response to Cyberattack Incident Notification Protection of Evidence and Activity Logs Incident Containment Eradication Incident Follow-Up Using an MSSP Computer Forensics Summary Key Terms Self-Assessment Questions Self-Assessment Answers

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44 47 50 54 55 55 56 56 57 59 60 64 64 66 70 72 72 74 74 75 76 80

83 83 85 86 88 99 100 101 107 111 112 114 114 115 115 115 115 116 117 119 120 121 123

Table of Contents

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Discussion Questions What Would You Do? Cases End Notes

Chapter 4 Privacy Organizations Behaving Badly Privacy Protection and the Law Information Privacy Privacy Laws, Applications, and Court Rulings Key Privacy and Anonymity Issues Consumer Profiling Electronic Discovery Workplace Monitoring Advanced Surveillance Technology Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 5 Freedom of Expression Organizations Behaving Badly First Amendment Rights Obscene Speech Defamation Freedom of Expression: Key Issues Controlling Access to Information on the Internet Internet Censorship Strategic Lawsuit Against Public Participation Anonymity on the Internet John Doe Lawsuits Hate Speech Pornography on the Internet Fake News Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

123 124 125 129

133 133 135 138 138 157 157 161 162 164 167 170 171 173 173 174 175 179

185 185 187 188 189 189 190 195 196 197 199 201 202 205 208 210 210 211 211 213 214 217

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Chapter 6 Intellectual Property Organizations Behaving Badly What Is Intellectual Property? Copyrights Patents Trade Secrets Current Intellectual Property Issues Plagiarism Reverse Engineering Open Source Code Competitive Intelligence Trademark Infringement Cybersquatting Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 7 Ethical Decisions in Software Development Organizations Behaving Badly Software Quality and Why It Is Important The Importance of Software Quality Software Product Liability Strategies for Developing Quality Software Software Development Methodologies Capability Maturity Model Integration Developing Safety-Critical Systems Risk Management Quality Management Standards Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 8 The Impact of Information Technology on Society Organizations Behaving Badly The Impact of IT on the Standard of Living and Worker Productivity IT Investment and Productivity IT and Workplace Automation Artificial Intelligence

x

221 221 224 225 231 235 239 239 241 242 244 246 247 249 252 252 253 254 254 255 259

263 263 265 268 269 271 271 276 278 280 282 286 288 289 291 291 292 293 297

299 299 302 302 305 306

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The Impact of IT on Health Care Computerized Patient Records Clinical Decision Support Computerized Provider Order Entry Telehealth Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 9 Social Media Organizations Behaving Badly What Is Social Media? Social Networking Platforms Business Applications of Social Media Social Media Marketing Social Media in the Hiring Process Improving Customer Service Using Social Media Social Shopping Platforms Social Networking Ethical Issues Cyberabuse, Cyberharassment, and Cyberstalking Encounters with Sexual Predators Uploading of Inappropriate Material Employee Participation on Social Media Networks Miscellaneous Social Media Issues Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Chapter 10 Ethics of IT Organizations Organizations Behaving Badly Use of Contingent Workers The Gig Economy Independent Contractors Advantages of Using Contingent Workers Disadvantages of Using Contingent Workers Deciding When to Use Contingent Workers H-1B Workers Using H-1B Workers Instead of U.S. Workers

309 311 313 313 313 317 319 319 321 321 322 323 326

329 329 330 331 333 334 336 336 337 338 338 341 343 343 344 346 348 348 350 350 351 351 354

357 357 359 360 361 362 363 363 365 366

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Gaming the H-1B Visa Program The Need for H-1B Workers Outsourcing Offshore Outsourcing Pros and Cons of Offshore Outsourcing Strategies for Successful Offshore Outsourcing Whistle-Blowing Protection for Whistle-Blowers Whistle-Blowing Protection for Private-Sector Workers Dealing with a Whistle-Blowing Situation Green Computing Summary Key Terms Self-Assessment Questions Self-Assessment Answers Discussion Questions What Would You Do? Cases End Notes

Appendix A A Brief Introduction to Morality Introduction The Knotty Question of Goodness Relativism: Why “Common Sense” Won’t Work Egoism versus Altruism Deontology, or the Ethics of Logical Consistency and Duty Happy Consequences, or Utilitarianism Promises and Contracts A Return to the Greeks: The Good Life of Virtue Feminism and the Ethics of Care Pluralism Summary

xii

367 368 371 371 372 374 375 375 377 377 380 383 385 385 388 388 389 390 394

397 397 398 399 401 402 404 406 407 409 410 411

Glossary

413

Index

427

Table of Contents

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PREFACE We are excited to publish the sixth edition of Ethics in Information Technology. This new edition builds on the success of the previous editions and meets the need for a resource that helps readers understand many of the legal, ethical, and societal issues associated with information technology. We have responded to the feedback from our previous edition adopters, students, and other reviewers to create an improved text. We think you will be pleased with the results. Ethics in Information Technology, Sixth Edition, fills a void of practical business information for business managers and IT professionals. The typical introductory information systems book devotes one chapter to ethics and IT, which cannot possibly cover the full scope of ethical issues related to IT. Such limited coverage does not meet the needs of business managers and IT professionals—the people primarily responsible for addressing ethical issues in the workplace. What is missing is an examination of the different ethical situations that arise in IT as well as practical advice for addressing these issues. Ethics in Information Technology, Sixth Edition, has enough substance for an instructor to use it in a full-semester course in computer ethics. Instructors can also use the book as a reading supplement for such courses as Introduction to Management Information Systems, Principles of Information Technology, Managerial Perspective of Information Technology, Computer Security, E-Commerce, and so on.

WHAT’S NEW Ethics in Information Technology, Sixth Edition, has been updated and revised to incorporate the many new developments and ethical issues that are affecting IT professionals and influencing professional ethics, such as state licensing of IT professionals; cyberterrorism and hacktivism; the erosion of privacy due to electronic surveillance; the positive and negative impacts of social networking; the design and implementation of safety-critical systems; and the impact of IT on the standard of living, worker productivity, and health care. Each chapter opens with a new “Organizations Behaving Badly” real-world scenario that highlights key issues from the chapter and raises thought-provoking questions. Critical thinking exercises, also a new feature, are strategically placed at the end of each major chapter section to encourage the reader to pause, consider, and apply what they’ve just read. Each chapter ends with a list of key terms and a set of self-assessment questions that students can use to check their grasp of key points from the chapter. New—and more varied—end-of-chapter exercises have been added to encourage critical application of chapter concepts. Students can practice principles they’ve learned with revised Discussion Questions, and What Would You Do? exercises, as well as all new Cases. Instructors of

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online courses can use this wealth of material as the basis for discussion forums that allow their online students to share a variety of perspectives and experiences and to create a learning community. Such discussions provide students the opportunity to more deeply understand the material while challenging their critical thinking skills. We think you will like these changes and additions.

ORGANIZATION Each of the 10 chapters in this book addresses a different aspect of ethics in information technology: •





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Chapter 1, “An Overview of Ethics,” introduces ethics, ethics in business, and the importance of ethics in IT. The distinction between morals, ethics, and laws is defined. The trends that have increased the likelihood of unethical behavior are identified. The concept of corporate social responsibility is defined and discussed. The chapter presents reasons why practicing good business ethics is important in business. A model for improving corporate ethics is provided. The most commonly observed types of misconduct in the workplace are identified. The need for an organizational code of ethics is discussed. Key steps in establishing a sound ethics program are outlined. The role of the chief ethics officer and board of directors in establishing a strong organizational ethics program is examined. A useful model for ethical decision making is provided. The chapter ends with a discussion of the role of ethics in IT. Chapter 2, “Ethics for IT Workers and IT Users,” explains the importance of ethics in the business relationships of IT professionals, including those between IT workers and employers, clients, suppliers, other professionals, IT users, and society. The chapter provides suggestions for what can be done to encourage the professionalism of IT workers by emphasizing the significance of IT professional organizations and their codes of ethics as well as certification and licensing. Some ethical issues faced by IT users are discussed, including software piracy, inappropriate use of computing resources, and inappropriate sharing of information. Actions that can be taken to encourage the ethical use of IT resources by end-users are outlined. The chapter introduces the topic of internal control and compliance and the role the audit committee and members of the internal audit team have in ensuring that both the IT organization and IT users follow organizational guidelines and policies, as well as various legal and regulatory practices. Chapter 3, “Cyberattacks and Cybersecurity,” describes the types of ethical decisions that IT professionals must make, as well as the business needs they must balance when dealing with security issues. The chapter identifies the most common computer-related security incidents and provides numerous reasons why such incidents are increasing. This chapter includes information on the use of cloud computing, virtualization software, and bring your own device corporate business policies. It describes some of the more common hacker attacks, including ransomware, viruses, worms, Trojan horses, blended threats, distributed denial-of-service, rootkits, advanced persistent

Preface

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threats, spam, phishing, spear-phishing, smishing, and vishing. Cyberespionage and cyberterrorism are also covered including the roles of the United States Computer Emergency Readiness Team (US-CERT) and the Department of Homeland Security in defending against cyberterrorism. In addition to providing a useful classification of computer crimes and their perpetrators, the chapter summarizes the major federal laws that address computer crime. The chapter introduces the concept of the CIA triad (confidentiality, integrity, and availability) and outlines steps to implement this concept throughout the organization at all levels. The chapter discusses the need for a corporate security policy and offers both a process for establishing a security policy and several security-related policy templates that can help an organization to quickly develop effective security policies. A process for performing an assessment of an organization’s IT resources from both internal and external threats is presented. Useful guidelines are provided on how to respond to specific security incidents to quickly resolve problems and improve ongoing security measures. Chapter 4, “Privacy,” explains how the use of IT affects privacy rights and discusses several key pieces of legislation that have addressed privacy rights over the years. The Fourth Amendment is explained, and laws designed to protect personal financial and health data—as well as the privacy of children—are discussed. Electronic surveillance is covered, along with many laws associated with this activity, including Executive Order 12333, the Foreign Intelligence Surveillance Act, and the USA PATRIOT Act including its various amendments and extensions. Various regulations affecting the export of personal data from one country to another are covered. The chapter explains how the personal information businesses gather using IT can be used to obtain or keep customers (or to monitor employees). It also discusses the concerns of privacy advocates regarding how much information can be gathered, with whom it can be shared, how the information is gathered in the first place, and how it is used. These concerns also extend to the informationgathering practices of law enforcement and government. Identity theft and data breaches are covered along with various tactics used by identity thieves; the chapter also presents some safeguards that can thwart identity theft. Guidelines and principles for treating consumer data responsibly are offered. The pros and cons of consumer profiling as well as various tactics for profiling are discussed. The expanding use of electronic discovery, workplace monitoring, camera surveillance, vehicle data recorders, and stalking apps is discussed. Chapter 5, “Freedom of Expression,” addresses issues raised by the growing use of the Internet as a means for freedom of expression, while also examining the types of speech protected by the First Amendment of the U.S. Constitution. The chapter covers the ways in which the ease and anonymity with which Internet users can communicate may pose problems for people who might be adversely affected by such communications. It describes attempts at using legislation (such as the Communications Decency Act, the Children Online Protection Act, and the Children’s Internet Protection Act) and Preface

xv

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xvi

technology, such as Internet filtering, to control access to Internet content that is unsuitable for children or unnecessary in a business environment. The use of strategic lawsuits against public participation (SLAPP) lawsuits is covered. The use of John Doe lawsuits to reveal the identities of anonymous posters is discussed. Internet censorship, doxing, sexting, fake news, defamation, hate speech, pornography on the Internet, and spam are also covered. Chapter 6, “Intellectual Property,” defines intellectual property and explains the varying degrees of ownership protection offered by copyright, patent, and trade secret laws. Copyright, patent, and trademark infringement are examined, using many examples. Key U.S. and international rules aimed at protecting intellectual property are discussed, including the Prioritizing Resources and Organization for Intellectual Property Act, the General Agreement on Tariffs and Trade, the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights, the World Intellectual Property Organization Copyright Treaty, and the Digital Millennium Copyright Act. The chapter explains software patents and software licensing as well as the use of cross-licensing agreements. It also addresses key intellectual property issues such as plagiarism, reverse engineering, open source code, competitive intelligence, trademark infringement, and cybersquatting. The use of nondisclosure agreements and noncompete clauses in work contracts is also discussed. Finally, the chapter addresses several key issues relevant to ethics in IT, including plagiarism, reverse engineering of software, open source code, competitive intelligence gathering, and cybersquatting. Chapter 7, “Ethical Decisions in Software Development,” provides a thorough discussion of the software development process and the importance of software quality. It covers the ethical and economic issues that software manufacturers must consider when deciding “how good is good enough?” with regard to their software products—particularly when the software is safety-critical and its failure can cause loss of human life. Topics include software product liability, risk management, quality management, and quality assurance. An overview of and the pros and cons of the waterfall and agile software development approaches are presented. The chapter also examines the Capability Maturity Model Integration (CMMI), the ISO 9000 family of standards, and the Failure mode and effects analysis (FMEA) technique as strategies for improving software quality. Chapter 8, “The Impact of Information Technology on Society,” examines the effect that IT investment has had on the standard of living and worker productivity. Also covered are how advances in artificial intelligence, machine learning, robotics, and natural language processing are fundamentally changing the way work gets done and have the potential to affect the tasks, roles, and responsibilities of most workers. The chapter looks at the impact of IT on the delivery of health care and healthcare costs. Electronic medical records, electronic health records, and health information exchanges are explained. The issues with implementing a successful electronic health records system

Preface

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are discussed. Telehealth and telemedicine are defined and how they help deliver of health care are discussed. Chapter 9, “Social Media,” discusses how people use social media, identifies common business uses of social media, and examines many of the ethical issues associated with the use of social media. The most popular social networking platforms are identified. The business applications of social media are covered, including the use of social networks to communicate and promote the benefits of products and services, the use of social media in the hiring process, improving customer service, and the creation of social shopping platforms. Common ethical issues that arise for members of social networking platforms including online abuse, harassment, stalking, cyberbullying, encounters with sexual predators, the uploading of inappropriate material, and the inappropriate participation of employees in social networking are discussed. Other social networking issues covered include the increased risk of accidents associated with social media interaction while driving, the tendency of many social media users to become narcissist in their postings, and the ability to perform self-image manipulation. Chapter 10, “Ethics of IT Organizations,” covers a range of ethical issues facing IT organizations, including those associated with the use of nontraditional workers, such as temporary workers, contractors, consulting firms, H-1B workers, and the use of outsourcing and offshore outsourcing. Also raised is the issue of discriminatory hiring practices at many large IT firms and the special issues of independent contractors working in the gig economy. Factors that are considered in classifying a worker as either an employee or an independent contractor are provided. The chapter also discusses the risks, protections, and ethical decisions related to whistle-blowing, and it presents a process for safely and effectively handling a whistle-blowing situation. In addition to introducing the concept of green computing, the chapter discusses the ethical issues that both IT manufacturers and IT users face when a company is considering how to transition to green computing—and at what cost. It discusses the use of the Electronic Product Environment Assessment Tool to evaluate, compare, and select electronic products based on a set of 51 environmental criteria. Appendix A provides an in-depth discussion of how ethics and moral codes developed over time.

PEDAGOGY Ethics in Information Technology, Sixth Edition, employs a variety of pedagogical features to enrich the learning experience and provide interest for the instructor and student: • •

Opening Quotation. Each chapter begins with a quotation to stimulate interest in the chapter material. Organizations Behaving Badly. At the beginning of each chapter, a brief real-world scenario illustrates the issues to be discussed, and carefully crafted focus questions pique the reader’s interest. Preface

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• • • •

Learning Objectives. Learning Objectives appear at the start of each chapter. They are presented in the form of questions for students to consider while reading the chapter. Critical Thinking Exercises. New, thought-provoking critical thinking exercises are strategically placed at the end of each major chapter section to encourage the reader to pause, consider, and apply what they’ve just read. Key Terms. Key terms appear in bold in the text and are listed at the end of the chapter. They are also defined in the glossary at the end of the book. Manager’s Checklist. Chapters include a checklist that provides a practical and useful list of questions to consider when making a business decision involving the topics just covered.

End-of-Chapter Material To help students retain key concepts and expand their understanding of important IT concepts and relationships, the following features are included at the end of every chapter: • • • • •

Summary. Each chapter includes a summary of the key issues raised that correlate to the Learning Objectives for each chapter. Self-Assessment Questions. These questions help students review and test their understanding of key chapter concepts. The answers to the Self-Assessment Questions are provided at the end of each chapter. Discussion Questions. These open-ended questions help instructors generate class discussion to move students deeper into the concepts and help them explore the numerous aspects of ethics in IT. What Would You Do? These exercises present realistic dilemmas that encourage students to think critically about the ethical principles presented in the text. Cases. In each chapter, two new real-world cases reinforce important ethical principles and IT concepts, and show how real companies have addressed ethical issues associated with IT. Questions after each case focus students on its key issues and ask them to apply the concepts presented in the chapter.

ABOUT THE AUTHOR George W. Reynolds brings a wealth of computer and industrial experience to this project, with more than 30 years of experience in government, institutional, and commercial IT organizations with NASA, the Jet Propulsion Laboratory, University of Cincinnati, Procter & Gamble, and Atos. He has authored over two dozen texts and has taught at the University of Cincinnati, Xavier University (Ohio), Miami University (Ohio), the College of Mount St. Joseph, and Strayer University.

Teaching Tools The following supplemental materials are available when this book is used in a classroom setting. All Instructor Resources can be accessed online at www.cengage.com/login. xviii

Preface

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• •





Instructor’s Manual. Includes additional instructional material to assist in class preparation, including suggestions for lecture topics. It also includes solutions to all end-of-chapter exercises. Test Banks. Cengage Learning Testing powered by Cognero is a flexible, online system that allows instructors to author, edit, and manage test bank content from multiple Cengage Learning solutions and to create multiple versions. It works on any operating system or browser with no special installs or downloads needed, so tests can be created from anywhere with Internet access. PowerPoint Presentations. Lecture slides for each chapter can be included as a teaching aid for classroom presentation, made available to students on the network for chapter review, or printed for classroom distribution. The slides are fully customizable. Instructors can either add their own slides for additional topics they introduce to the class or delete slides they won’t be covering. Additional Cases. Find over 40 additional real-world cases to choose from to reinforce important ethical principles and IT concepts, and show how real companies have addressed ethical issues associated with IT. Questions after each case focus students on its key issues and ask them to apply the concepts presented in the chapter.

ACKNOWLEDGMENTS I wish to express my appreciation to a number of people who helped greatly in the creation of this text: Kristin McNary, Product Team Manager, for her belief in and encouragement of this project; Michele Stulga, Content Project Manager, for guiding the book through the production process; Kate Mason, Associate Product Manager, for overseeing and directing this effort; Maria Garguilo, Associate Content Developer for her outstanding support in all the many activities associated with a project of this scope; Mary Pat Shaffer, Development Editor, for her tremendous support, many useful suggestions, and helpful edits; and the many students and instructors who provided excellent ideas and constructive feedback on the text. I also wish to thank Clancy Martin for writing Appendix A. Last of all, thanks to my family for all their support, and for giving me the time to write this text. —George W. Reynolds

Preface

xix

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CHAPTER

1

AN OVERVIEW OF ETHICS QUOTE

Jacek Dudzinski/Shutterstock.com

This above all: to thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man. —Polonius, a character in Hamlet, discussing the importance of integrity with his son, Laertes

ORGANIZATIONS

BEHAVING

BADLY

Ever get upset trying to make sense of all the miscellaneous charges that appear each month on your cell phone bill? Well, it turns out you—and millions of other consumers—may have cause for concern.

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In October 2014, the Federal Communications Commission (FCC) announced a $105 million

2

settlement with AT&T Mobility in a case related to the practice of “cramming,” in which unauthorized, recurring third-party charges are added to consumers’ cell phone bills for “premium” subscriptions such as ring tones, wallpaper, and horoscope text messaging services. Often, consumers were duped into signing up for these services without understanding that they would result in ongoing charges, up to $9.99 per month. In addition to allowing third-party companies to place charges on its customers’ accounts without their knowledge, AT&T Mobility lumped together several miscellaneous charges on its bills, making it difficult for customers to detect the unauthorized charges. When customers complained, AT&T Mobility would typically only refund a portion of the cramming charges.1 A year later, the FCC fined AT&T Mobility $100 million for misleading customers about its “unlimited” mobile data plans. The FCC alleged that the carrier slowed down the data speeds for customers with such plans after they had used a certain amount of data, a practice called throttling, meaning that these customers were being billed for services they were not receiving in full.2 AT&T Mobility is not the only mobile carrier to be fined by the FCC for issues related to their billing practices. In late 2014, T-Mobile USA was fined $90 million for cramming customer phone bills with unauthorized charges for years and then ignoring complaints and requests for refunds.3 The FCC also fined Verizon $90 million and Sprint $68 million in 2015 for billing customers for third-party texting services without their consent.4 The people who developed, implemented, and supported the practice of cramming customer phone bills were once new hires—likely full of ambition and a desire to do well in their jobs. What

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might cause employees to support and implement a practice, such as cramming, that appears

3

unethical and possibly illegal? What happened to their desire to do well that they did not object to and stop this unfair billing practice? Do you feel pressured to commit such practices in your current place of employment?

LEARNING

OBJECTIVES

As you read this chapter, consider the following questions: 1. What is ethics? 2. What trends have increased the likelihood of an unethical behavior? 3. What is corporate social responsibility, and why is fostering good business ethics important? 4. What measures can organizations take to improve their business ethics? 5. How can you include ethical considerations in your decision making? 6. What trends have increased the risk that information technology will be used in an unethical manner?

WHAT IS ETHICS? Ethics is a code of behavior that is defined by the group to which an individual belongs. Ethical behavior conforms to generally accepted norms, which may change over time to meet the evolving needs of the society or a group of people who share similar laws, traditions, and values that provide structure to enable them to live in an organized manner. Ethics help members of a group understand their roles and responsibilities so they can work together to achieve mutual benefits such as security, access to resources, and the pursuit of life goals. Morals are the personal principles upon which an individual bases his or her decisions about what is right and what is wrong. They are core beliefs formed and adhered to by an individual. For example, many of us have a core belief that all people should be treated with respect and this belief governs our actions toward others. Your moral principles are statements of what you believe to be rules of right conduct. As a child, you may have been taught not to lie, cheat, or steal. As an adult facing more complex decisions, you often reflect on your moral principles when you consider what to do in different situations: Is it okay to lie to protect someone’s feelings? Should you intervene with a coworker who seems to have a chemical dependency problem? Is it acceptable to exaggerate your work experience on a résumé? Can you cut corners on a project to meet a tight deadline?

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As children grow, they learn complicated tasks—such as walking, talking, swimming, riding a bike, and writing the alphabet—that they perform out of habit for the rest of their lives. People also develop habits that make it easier for them to choose between good and bad. A virtue is a habit that inclines people to do what is acceptable, and a vice is a habit of unacceptable behavior. Fairness, generosity, and loyalty are examples of virtues, while vanity, greed, envy, and anger are considered vices. People’s virtues and vices help define their personal value system—the complex scheme of moral values by which they live. Although nearly everyone would agree that certain behaviors—such as lying and cheating—are wrong, opinions about what constitutes right and wrong behaviors can vary dramatically. For example, attitudes toward software piracy—a form of copyright infringement that involves making copies of software or enabling others to access software to which they are not entitled—range from strong opposition to acceptance of the practice as a standard approach to conducting business. According to the Business Software Alliance (BSA), the global rate of software piracy stands at around 42 percent. The piracy rate is nearly 80 percent across the continent of Africa, where many consumers simply cannot afford software licenses and pirated copies are readily available at cut-rate prices.5 Individual views of what behavior is moral may be impacted by a person’s age, cultural group, ethnic background, religion, life experiences, education, and gender along with many other factors. There is widespread agreement on the immorality of murder, theft, and arson, but other behaviors that are accepted in one culture might be unacceptable in another. Even within the same society, people can have strong disagreements over important moral issues. In the United States, for example, issues such as abortion, stem cell research, the death penalty, same-sex marriage, marijuana usage, and gun control are continuously debated, and people on both sides of these debates feel that their arguments are on solid moral ground. The reality is that the world has many systems of beliefs about what is right and wrong, each with many proponents. Life is complex, and on occasion, you will encounter a situation in which the ethics of the group to which you belong are in conflict with your morals, as highlighted in the following two examples:

4





The ethics of the law profession demand that defense attorneys defend an accused client to the best of their ability, even if they know that the client is guilty of the most heinous and morally objectionable crime one could imagine. The ethical standards of the medical profession do not allow a doctor to euthanize a patient, even at the patient’s request. However, the doctor may personally believe that the patient has a right, based on the doctor’s own morals.

Figure 1-1 illustrates the relationship between ethics and morals and identifies some of the many factors that help define them.

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Life experiences

5

Group code of ethics Traditions Morals - individual beliefs of what is right and wrong

Culture

Core personal beliefs

Education

Virtues

Beliefs

Vices

Age

Religion Gender

FIGURE 1-1

The relationship between ethics and morals

The Importance of Integrity A person who acts with integrity acts in accordance with a personal code of principles. One approach to acting with integrity is to extend to all people the same respect and consideration that you expect to receive from them. Unfortunately, consistency can be difficult to achieve, particularly when you are in a situation that conflicts with your moral standards. For example, you might believe it is important to do as your employer requests while also believing that you should be fairly compensated for your work. Thus, if your employer insists that, due to budget constraints, you do not report the overtime hours that you have worked, a moral conflict arises. You can do as your employer requests or you can insist on being fairly compensated, but you cannot do both. In this situation, you may be forced to compromise one of your principles and act with an apparent lack of integrity. Another form of inconsistency emerges if you apply moral standards differently according to the situation or people involved. If you are consistent and act with integrity, you apply the same moral standards in all situations. For example, you might consider it morally acceptable to tell a little white lie to spare a friend some pain or embarrassment, but would you lie to a work colleague or customer about a business issue to avoid unpleasantness? Clearly, many ethical dilemmas are not as simple as right versus wrong but involve choices between right versus right. As an example, for some people it is “right” to protect the Alaskan wildlife from being spoiled and also “right” to find new sources of oil to maintain U.S. oil reserves, but how do they balance these two concerns?

The Difference Between Morals, Ethics, and Laws Law is a system of rules that tells us what we can and cannot do. Laws are enforced by a set of institutions (the police, courts, law-making bodies). Violation of a law can result in

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censure, fines, and/or imprisonment. Laws in the United States are made by the various local, state, and federal legislatures. Sometimes the laws of these various jurisdictions are in conflict, creating confusion and uncertainty. In addition, laws are not static; new laws are constantly being introduced and existing laws repealed or modified. As a result, the precise meaning of a particular law may be different in the future from what it is today. Legal acts are acts that conform to the law. Moral acts conform to what an individual believes to be the right thing to do. Laws can proclaim an act as legal, although many people may consider the act immoral—for example, abortion. Laws may also proclaim an act as illegal, although many people may consider the act moral—for example, using marijuana to relieve stress and nausea for people undergoing chemotherapy treatment for cancer. Laws raise important and complex issues concerning equality, fairness, and justice, but do not provide a complete guide to ethical behavior. Just because an activity is defined as legal does not mean that it is ethical (see Figure 1-2). As a result, practitioners in many professions subscribe to a code of ethics that states the principles and core values that are essential to their work and, therefore, govern their behavior. The code can become a reference point for helping an individual determine what is legal and what is ethical; however, an individual will also be guided by his or her set of morals.

6

Ethical

Ethical and legal

Ethical and illegal

Illegal

Legal Unethical and legal

Unethical and illegal

Unethical FIGURE 1-2

Legal versus ethical

CRITICAL THINKING EXERCISE: LEGAL VERSUS ETHICAL Give an example of an action that fits in each of the four quadrants of the legal versus ethical chart shown in Figure 1-2—ethical and legal, ethical and illegal, unethical and illegal, and unethical and legal.

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The remainder of this chapter provides an introduction to ethics in the business world. It discusses the importance of ethics in business, outlines what businesses can do to improve their ethics, advises on creating an ethical work environment, and suggests a model for ethical decision making. The chapter concludes with a discussion of ethics as it relates to information technology (IT).

7

ETHICS IN THE BUSINESS WORLD Ethics has risen to the top of the business agenda because the risks associated with inappropriate behavior have increased, both in their likelihood and in their potential negative impact. We have seen the collapse and/or bailout of financial institutions such as Bank of America, CitiGroup, Countrywide Financial, Fannie Mae, Freddie Mac, Lehman Brothers, and American International Group (AIG) due to unwise and/or unethical decision making regarding the approval of mortgages, loans, and lines of credit to unqualified individuals and organizations. We have also witnessed numerous corporate officers and senior managers sentenced to prison terms for their unethical behavior, including former investment broker Bernard Madoff, who bilked his clients out of an estimated $65 billion, and Stewart Parnell, former CEO of Peanut Corporation of America, who was sentenced to 28 years in prison for knowingly shipping contaminated food product, resulting in a salmonella outbreak that killed nine people and sickened more than 700.6,7 Clearly, unethical behavior in the business world can lead to serious negative consequences for both organizations and individuals. Several trends have increased the likelihood of unethical behavior. First, for many organizations, greater globalization has created a much more complex work environment that spans diverse cultures and societies, making it more difficult to apply principles and codes of ethics consistently. Numerous U.S. companies have moved operations to developing countries, where employees or contractors work in conditions that would not be acceptable in the most developed parts of the world. For example, it was reported in 2016 that employees of the Pegatron factory in China, where the Apple iPhone is produced, are often forced to work excessive amounts of overtime—up to 90 overtime hours per month—while their overall wages have been cut from $1.85 to $1.60 per hour.8 Second, in today’s challenging and uncertain economic climate, many organizations are finding it more difficult to maintain revenue and profits. Some organizations are sorely tempted to resort to unethical behavior to maintain profits. Tesco, Britain’s largest supermarket chain, admitted its first half-year of profits for 2013 were overstated by $400 million.9 Fiat Chrysler Automobiles admitted its U.S. auto sales were overstated by hundreds of cars each month starting as far back as 2011.10 Employees, shareholders, and regulatory agencies are increasingly sensitive to violations of accounting standards, failures to disclose substantial changes in business conditions, nonconformance with required health and safety practices, and production of unsafe or substandard products. Such heightened vigilance raises the risk of financial loss for businesses that do not foster ethical practices or that run afoul of required standards. There is also a risk of criminal and civil lawsuits resulting in fines and/or incarceration for individuals. A classic example of the many risks associated with unethical decision making can be found in the Enron accounting scandal. In 2000, Enron—a Texas-based energy An Overview of Ethics Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

company—employed over 22,000 people, and it reported an annual revenue of $101 billion. However, in 2001, it was revealed that much of Enron’s revenue was the result of deals with limited partnerships, which it controlled. In addition, as a result of actions taken contrary to generally accepted accounting practices (GAAP), many of Enron’s debts and losses were not reported in its financial statements. As the accounting scandal unfolded, Enron shares dropped from $90 per share to less than $1 per share, and the company was forced to file for bankruptcy.11 The Enron case was notorious, but many other corporate scandals have occurred in spite of safeguards enacted as a result of the Enron debacle. Here are just a few examples of lapses in business ethics by employees in IT organizations:

8

• •



Volkswagen has admitted that 11 million of its vehicles were equipped with software that was used to cheat on emissions tests. The company is now contending with the fallout. Toshiba, the Japanese industrial giant whose diversified products and services include information technology and communications equipment and systems, disclosed that it overstated its earnings over a seven-year period by more than $1.2 billion. Amazon has the second highest employee turnover rate of companies in the Fortune 500 and has been criticized by some for creating a high pressure work environment in which bosses’ expectations were almost impossible to satisfy and jobs were threatened if illness or other personal issues encroached on work.12

It is not unusual for powerful, highly successful individuals to fail to act in morally appropriate ways, as these examples illustrate. Such people are often aggressive in striving for what they want and are used to having privileged access to information, people, and other resources. Furthermore, their success often inflates their belief that they have the ability and the right to manipulate the outcome of any situation. The moral corruption of people in power, which is often facilitated by a tendency for people to look the other way when their leaders act inappropriately has been given the name Bathsheba syndrome—a reference to the biblical story of King David, who became corrupted by his power and success.13 According to the story, David became obsessed with Bathsheba, the wife of one of his generals, and eventually ordered her husband on a mission of certain death so that he could marry Bathsheba. Even lower-level employees and ordinary individuals can find themselves in the middle of ethical dilemmas, as these examples illustrate: •

Edward Snowden, working as a Dell contractor at the National Security Agency (NSA), copied thousands of classified and unclassified documents that revealed details about the capabilities and scope of operations of the NSA and other foreign intelligence agencies. The documents were then handed over to reporters who published many of the disclosures in the Guardian and Washington Post newspapers. Snowden felt he acted as a patriot in exposing the behavior of the NSA, which he thought was overreaching and counter to the U.S. Constitution. Some consider him a whistle-blower and a hero, while others see him as a traitor.

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Mark Lillie, a former Takata Corporation engineer, warned the company of the potential deadly consequences of using the propellant ammonium nitrate to inflate its airbags. The use of ammonium nitrate enabled Takata to earn a greater profit than other designs, however, it also resulted in devices that can deploy with too much force, causing them to rupture and shoot metal fragments at motorists. Unfortunately, Lillie was unable to convince management at Takata to choose an alternative design. He eventually left the firm in disagreement over this fatal manufacturing decision. In the United States, at least 10 deaths and more than 100 injuries have been attributed to the flawed devices, and over 100 million cars with Takata inflators have been recalled worldwide.14,15

9

This is just a small sample of the incidents that have led to an increased focus on business ethics within many IT organizations. Table 1-1 identifies the most commonly observed types of misconduct in the workplace.

TABLE 1-1

Most common forms of employee misconduct

Type of employee misconduct

Percentage of surveyed employees observing this behavior in the workplace

Misuse of company time

33

Abusive behavior

21

Lying to employees

20

Company resource abuse

20

Violating company Internet use policies

16

Discrimination

15

Conflicts of interest

15

Inappropriate social networking

14

Health or safety violations

13

Lying to outside stakeholders

12

Stealing

12

Falsifying time reports or hours worked

12

Source: Ethics Resource Center, “2011 National Business Ethics Survey: Workplace Ethics in Transition,” © 2011, https://s3.amazonaws.com/berkley-center/120101NationalBusinessEthicsSurvey2011WorkplaceEthicsin Transition.pdf.

According to the 2013 National Business Ethics Survey, it is managers—those expected to act as role models and enforce discipline—who are responsible for 60 percent of workplace misconduct, as shown in Figure 1-3.16

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First-Line manager 17% Non-managers 40% Middle manager 19%

Senior manager 24%

FIGURE 1-3

Who is responsible for instances of misconduct

Source: Ethics Resource Center, “2011 National Business Ethics Survey: Workplace Ethics in Transition,“ ©2011, https://s3 .amazonaws.com/berkley-center/120101NationalBusinessEthicsSurvey2011WorkplaceEthicsinTransition.pdf.

CRITICAL THINKING EXERCISE: CUT TESTING SHORT You are a new hire at a large software firm and have been working overtime for the last two months trying to complete the final testing of a new software release for the firm’s flagship product, which is used by thousands of organizations worldwide. Unfortunately, the software has many bugs and testing has taken weeks longer than expected. This afternoon your boss stopped by and asked you to “sign off” on the completion of your portion of the testing. He explains that the project has gone over budget and is in danger of missing the committed release date for customers. When you object because you feel the software is still buggy, he says not to worry, whatever bugs remain will be fixed in the next release of the software. What do you do?

CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) is the concept that an organization should act ethically by taking responsibility for the impact of its actions on its shareholders, consumers, employees, community, environment, and suppliers (see Figure 1-4). An organization’s approach to CSR can encompass a wide variety of tactics—from donating a portion of net profit to charity to implementing more sustainable business operations or encouraging employee education through tuition reimbursement. Setting CSR goals encourages an organization to achieve higher moral and ethical standards.

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Shareholders

Suppliers

Consumers

Corporate social responsibility

Environment

Employees

Community

FIGURE 1-4

An organization’s program CSR affects its shareholders, consumers, employees, community, environment, and suppliers

Supply chain sustainability is a component of CSR that focuses on developing and maintaining a supply chain that meets the needs of the present without compromising the ability of future generations to meet their needs. Supply chain sustainability takes into account issues such as fair labor practices, energy and resource conservation, human rights, and community responsibility. Many IT equipment manufacturers have made supply chain sustainability a priority, in part, because they must adhere to various European Union directives and regulations—including the Restriction of Hazardous Substances Directive, the Waste Electrical and Electronic Equipment Directive, and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) Regulation—to be permitted to sell their products in the European Union countries. In many cases, meeting supply chain sustainability goals can also lead to lower costs. For example, in fiscal year 2015, Dell launched its closed-loop plastics supply chain and by year end had recycled 2.2 million pounds of those plastics back into new Dell products. In addition, its global takeback program has made Dell the world’s largest technology recycler, collecting more than 1.4 billion pounds of e-waste since 2007.17 Each organization must decide if CSR is a priority and, if so, what its specific CSR goals are. The pursuit of some CSR goals can lead to increased profits, making it easy for senior company management and stakeholders to support the organization’s goals in this arena. However, if striving to meet a specific CSR goal leads to a decrease in profits, senior

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management may be challenged to modify or drop that CSR goal entirely. For example, most U.S. auto manufacturers have introduced models that run on clean, renewable electric power as part of a corporate responsibility goal of helping to end U.S. dependence on oil. However, Americans have been slow to embrace electric cars, and many manufacturers have had to offer low-interest financing, cash discounts, sales bonuses, and subsidized leases to get the autos off the sales floor. Manufacturers and dealers are struggling to increase profits on the sale of these electric cars, and senior management at the automakers must consider how long they can continue with their current strategies. Many organizations define a wide range of corporate responsibility areas that are important to them, their customers, and their community. In order for a CSR program to be effective, a senior executive should be placed in charge of corporate responsibility results for each area, with strategic initiatives defined, staffed, and well-funded. Key indicators of progress in these areas should be defined and the results tracked and reported to measure progress. Table 1-2 shows a summary of the 2015 corporate responsibility report for Intel. An example of one strategic initiative at Intel is its diversity and inclusion initiative launched in early 2015 whose goal is to achieve full representation of women and underrepresented minorities in Intel’s workforce by 2020. TABLE 1-2

Intel Corporate Responsibility Report for 2015

Key performance area

Key performance indicator

2015 value

Financial results and economic impact

Net revenue Net income Provision for taxes Research and development spending Capital investments Customer survey “Delighted” score

$55.4B $11.4B $2.8B $12.1B $7.3B 87%

Environmental sustainability

Greenhouse gas emissions (millions of metric tons of CO2) Energy usage (billions of kWh) Total water withdrawn (billions of gallons) Hazardous waste generated (thousands of tons)/% to landfill Nonhazardous waste generated (thousands of tons)/% recycled

2.00 6.4 9.0 61.6/2 80.8/82

Our people

Employees at year end (thousands) Women in global workforce (percent) Women on our board of directors at year-end (percent) Investment in training (millions of dollars) Safety (recordable rate/days away case rate) Organizational Health Survey scores—“Proud to Work for Intel”

107.3 25% 18% $278 0.58/0.11 84% (2014)

Social impact

Employee volunteerism rate Worldwide charitable giving (dollars in millions) Charitable giving as a percentage of pre-tax net income

41% $90.3 0.6%

Supply chain responsibility

Supplier audits (third-party and Intel-led audits)

121

Source: “2015 Corporate Responsibility Report,” Intel, http://csrreportbuilder.intel.com/PDFfiles/CSR2015_Executive-Summary.pdf, accessed August 10, 2016.

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CRITICAL THINKING EXERCISE: ORACLE CSR PROGRAM

13

Oracle Corporation, a multinational computer technology company with headquarters in Redwood City, California, offers a comprehensive and fully integrated set of cloud applications, platform services, and engineered systems. Oracle has 132,000 employees and more than 420,000 customers, and its software is deployed in more than 145 countries. For fiscal year 2016, the company’s total revenue was $37.0 billion, with net income of $8.9 billion. Oracle has set corporate social responsibility goals in the areas of sustainability, education, giving, and volunteering. Develop two goals for each of these areas that you feel would be reasonable for Oracle to achieve. Download the 2016 Oracle Corporate Citizenship Report at https://www.oracle.com/corporate/citizenship/index.html. After reviewing the report, comment on the difference between the goals you identified and Oracle’s actual programs.

WHY FOSTERING CORPORATE SOCIAL RESPONSIBILITY AND GOOD BUSINESS ETHICS IS IMPORTANT? Organizations have at least five good reasons to pursue CSR goals and to promote a work environment in which employees are encouraged to act ethically when making business decisions: • • • • •

Gaining the goodwill of the community Creating an organization that operates consistently Fostering good business practices Protecting the organization and its employees from legal action Avoiding unfavorable publicity

Gaining the Goodwill of the Community Although organizations exist primarily to earn profits or provide services to customers, they also have some fundamental responsibilities to society. As discussed in the previous section, companies often declare these responsibilities in specific CSR goals. All successful organizations, including technology firms, recognize that they must attract and maintain loyal customers. Philanthropy is one way in which an organization can demonstrate its values in action and make a positive connection with its stakeholders. (A stakeholder is someone who stands to gain or lose, depending on how a particular situation is resolved.) As a result, many organizations initiate or support socially responsible activities, which may include making contributions to charitable organizations and nonprofit institutions, providing benefits for employees in excess of any legal requirements, and devoting organizational resources to initiatives that are more socially desirable than

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14

profitable. Here are a few examples of some of the CSR activities supported by major IT organizations: •

• •

• • •

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Ethics in information technology 6th edition pdf free download

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