Chapter 8 Ethics and Technology Chapter Summary This chapter examines the ethical debate over employee surveillance and the extent to which technology not only facilitates the prevention of unethical behavior but also jeopardizes the rights of individual employees. The chapter begins by displaying the types of new technology and the ethical implications of using it. Further, the chapter discusses the different points of view on privacy at work from an employer and an employee perspective. Finally, the chapter discusses the privacy and surveillance capabilities and the future of surveillance used in corporations. Learning Outcomes After studying this chapter, the student should be able to: 1. Evaluate the ethical ramifications of recent technological advances. 2. Explain the opposing employer and employee views of privacy at work. 3. Distinguish between thin and thick consent. 4. Evaluate the concept of vicarious liability. 5. Analyze an organization’s employee-surveillance capabilities. Extended Chapter Outline Frontline Focus “Problems at ComputerWorld” Questions 1. The Computer Ethics Institute developed “Ten Commandments of Computer Ethics,” listed in Figure 8.1. How many of those commandments are being broken here? Larry is breaking several of the “Ten Commandments of Computer Ethics” in this situation. In particular, the following commandments are broken: • Commandment 2—Thou Shalt Not Interfere with Other People’s Computer Work. Larry is interfering with other people’s work by keeping Mr. Johnson’s old hard drive. • Commandment 3—Thou Shalt Not Snoop Around in Other People’s Computer Files. Larry is also possibly snooping around on Mr. Johnson’s computer files when he states that he will erase the hard drive if he has time. • Commandment 7—Thou Shalt Not Use Other People’s Computer Resources without Authorization or Proper Compensation. By reselling those slightly used hard drives at the flea market Larry is using other people’s computer resources without authorization or proper compensation. • Commandment 8—Thou Shalt Not Appropriate Other People’s Intellectual Output. Larry is using his knowledge of computers to deceive Mr. Johnson, who is not computer savvy. 2. Larry seems pretty happy with the prospect of selling those slightly used hard drives at the flea market, but what happens if the information on them doesn’t get erased? Would ComputerWorld be liable here? Read the section “Vicarious Liability” on page 164 to find out more. Vicarious liability is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident. Therefore, since Larry is directly involved with selling the hard drives at the flea market and because of his position at ComputerWorld, the organization could be held liable as well, especially if the information on drives is not erased. 3. What should Steve do now? Students’ answers will vary. Steve needs to approach his manager about Larry and the reselling of customers’ hard drives at flea markets. This could potentially come back and destroy the reputation of the firm and cause numerous costly lawsuits. Learning Outcome 1: Evaluate the Ethical Ramifications of Recent Technological Advances. • Technological advances often deliver new and improved functional capabilities before we have had the chance to fully consider the implications of those improvements. o There have been dramatic changes in workplace technology over the last two decades—specifically desktop computing, the Internet, and the growth of e-mail and instant messaging (IM). ➢ The intranet is a company’s internal website, containing information for employee access only. ➢ An extranet is a private piece of a company’s Internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password. • Disadvantages of technology in the workplace include the loss of privacy in two key areas: o Customers must be aware that companies now have the technical capability to send their personal data to any part of the world to take advantage of lower labor costs. o Employees must be aware that employers now have the capability of monitoring every e-mail you send and website you visit in order to make sure that you really are delivering on the promise of increased worker productivity. Learning Outcome 2: Explain the Opposing Employer and Employee Views of Privacy at Work. • Computers, e-mail, instant messaging, and the World Wide Web have changed our work environments beyond recognition over the last two decades, but with those changes have come a new world of ethical dilemmas. o There are two distinct viewpoints on this issue: ➢ The employer view—employers mandate that productivity in the workplace is what the employees have to meet for the pay-for-performance contract they agreed to when they were hired. ✓ Employee actions during work time are at the discretion of the company. ✓ All employee activity should be work-related, and any monitoring of that activity should not be regarded as an infringement of your privacy. ✓ The organization has an obligation to its stakeholders to operate as efficiently as possible and ensure company resources are not being misused and that company data and proprietary information are being closely guarded. ➢ The employee view—employee time at work represents the productivity for which the employee receives an agreed amount of compensation in return. ✓ The compensation agreement should not, however, allow the employer to intrude the employees’ civil rights as an individual. ✓ An employee is not a servant. ✓ Electric monitoring can imply that employees can’t be trusted to do their job; and, thus, the employer’s decision to employ them in the first place as questionable. o Arriving at a satisfactory resolution of opposing arguments between employees and employers are difficult for the following two reasons: ➢ The availability of ongoing technological advancements has made it increasingly difficult to determine precisely where work ends and personal life begins. ➢ The willingness to negotiate or compromise has risen and fallen in direct relation to the prevailing job market. Learning Outcome 3: Distinguish Between Thin and Thick Consent. • Telecommuting is the ability to work outside of your office (from your home or anywhere else) and log in to your company network (usually via a secure gateway such as a virtual private network, or VPN). o The concept of “at work” has become blurred. o The concept of being at work has become far more flexible. o Availability has now become defined by accessibility. o Employees, in return, have begun to expect the same flexibility in taking care of personal needs during working hours. • Adam Moore points out that the state of the job market will inevitably create a distinction between two types of consent: thin and thick. o Thin consent is the consent in which the employee has little choice. ➢ For example, when an employee receives formal notification that the company will be monitoring all e-mail and web activity—either at the time of hire or during employment—and it is made clear in that notification that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring. ➢ In other words, there are two options—agree to the monitoring or pursue other employment opportunities. o Thick consent is the consent in which the employee has an alternative to unacceptable monitoring. ➢ For example, if jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative for avoiding an unacceptable policy. Learning Outcome 4: Evaluate the Concept of Vicarious Liability. • Vicarious Liability is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident. o The implications of vicarious liability are that the party charged is responsible for the actions of his or her subordinates. • Cyberliability is a legal concept that employers can be held liable for the actions of their employees in their Internet communications to the same degree as if those employers had written those communications on company letterhead. o The extent of this new liability can be seen in the top categories of litigation recorded by Elron Software: ➢ Discrimination ➢ Harassment ✓ Obscenity and pornography ✓ Defamation and libel ✓ Information leaks ✓ Spam Learning Outcome 5: Analyze an Organization’s Employee-Surveillance Capabilities. • Many supporters of employee privacy rights argue that we have reached that state now that employers have the technology to monitor every keystroke on your computer, track every website you visit, and record every call you make. o Creating a “locked-down” place to work may protect your liability, but it may also drive those employees away who are not comfortable being treated like lab rats. o The Ten Commandments of Computer Ethics (Figure 8.1) are as follows: ➢ Thou Shalt Not Use a Computer to Harm Other People. ➢ Thou Shalt Not Interfere with Other People’s Computer Work. ➢ Thou Shalt Not Snoop Around in Other People’s Computer Files. ➢ Thou Shalt Not Use a Computer to Steal. ➢ Thou Shalt Not Use a Computer to Bear False Witness. ➢ Thou Shalt Not Copy or Use Proprietary Software for Which You Have Not Paid. ➢ Thou Shalt Not Use Other People’s Computer Resources without Authorization or Proper Compensation. ➢ Thou Shalt Not Appropriate Other People’s Intellectual Output. ➢ Thou Shalt Think about the Social Consequences of the Program You Are Writing or the System You Are Designing. ➢ Thou Shalt Always Use a Computer in Ways That Ensure Consideration and Respect for Your Fellow Humans. Life Skills The mixed blessing of technology The Life Skills box discusses the benefits of all the recent technology, such as the Internet, e- mail, text messaging, etc., and how it has greatly enhanced the efficiency. It also puts a different perspective on technology and points out the reality that this technology and easy communication has created a blur between work and home. It states that you are no good to your company if you are burned out and never find the time to rest. Progress ✓ Questions 1. How would you feel if you found out that someone halfway around the world from your doctor’s office was reading your CAT scan? Students’ answers may vary. Some may be upset with their doctor because they thought there was an understanding of doctor-patient confidentiality. On the other hand, some may say that if their doctor needed extra assistance to determine the problem with a CAT scan then they wouldn’t mind if their doctor used a patient ID number to release some personal information on the network. 2. Would your opinion change if you knew the cost savings from outsourcing were putting American radiologists out of a job? What if they were being read this way because there was a shortage of qualified medical personnel here? Would that change your opinion? Students’ answers may vary. Yes, my opinion would change if outsourcing led to job losses for American radiologists, as it raises concerns about economic impact and job security. However, if outsourcing was due to a shortage of qualified personnel, it may be viewed as a necessary solution to meet healthcare needs. 3. Should your doctor be obligated to tell you where your tests are being read? Why or why not? Students’ answers may vary. Most of the students may have the opinion that they should be told where their tests are being read, as it is an individual’s personal information and they may not want any person other than their doctor to look at it. 4. Storing private information in digital format simplifies the storage and transfer of that information and offers cost savings to companies that are (hopefully) passed on to their customers. Does using ID number instead of names meet their obligation to maintain your privacy in this new digital world? Students’ answers may vary. Most of them would say that ID numbers would work only if they could guarantee patient confidentiality. 5. Define the term telecommuting. Telecommuting is the ability to work outside the office (from home or anywhere else) and log in to the company network (usually via a secure gateway such as a virtual private network, or VPN). 6. Summarize the employer position on privacy at work. The organization has an obligation toward its stakeholders to operate as efficiently as possible, and to do so, it must ensure that company resources are not being misused or stolen and that company data and proprietary information are being closely guarded. 7. Summarize the employee position on privacy at work. As employees, they would argue that their civil rights as an individual are being intruded upon. If the employees are being monitored, it implies that they are not trusted to do their jobs. 8. Explain the difference between thin and thick consent. Thick consent is the consent in which the employee has an alternative to unacceptable monitoring. For example, if jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative for avoiding an unacceptable policy. Thin consent is the consent in which the employee has little choice. For example, when an employee receives formal notification that the company will be monitoring all e-mail and web activity—either at the time of hire or during employment—and it is made clear in that notification that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring. 9. How would you describe the atmosphere in this call center? Students’ answers may vary. Many of them may say that the call center has a stressful atmosphere with the agents getting as stressed or more stressed than the customers. 10. Jamie’s calls were monitored at all times by a call center supervisor. Is that ethical? Why or why not? Students’ answers may vary. Many of them may say that it is ethical in this case because the employer can supervise the employees’ calls and determine if the employee has a problem with how he or she deals with customers. In this case the employer can work on the employee’s customer relations skills, so the employee is better able to sell the company’s products. 11. What would you say is the worst part of working in this call center? Students’ answers may vary. Many of them may say that the worst part about working in this call center may be the inbound sales channel. The inbound sales channel would have to first deal with the customers’ complaint and then have to try and sell more products. 12. When Jamie resigned, she was escorted from the building by security. Is that ethical? Why or why not? Students’ answers may vary. It depends on how Jamie resigned; if he acted respectfully and professionally while resigning then there should be no need to escort him out of the building. On the other hand if Jamie acted obnoxiously and going berserk it would be ethical to escort Jamie out of the building. 13. Which of the “Ten Commandments of Computer Ethics,” in Figure 8.1, carry the strongest ethical message? Why? Students’ answers may vary. All of these commandments carry a strong ethical message. The strongest ethical messages in the "Ten Commandments of Computer Ethics" are likely: 1. Thou shalt not use a computer to harm other people – This commandment underscores the responsibility to avoid causing harm through technology, emphasizing the ethical principle of non-maleficence. 2. Thou shalt not snoop around in other people's files – This focuses on respecting privacy, a fundamental ethical concern in the digital age. 14. Define the term vicarious liability. Vicarious liability is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident. 15. List four of the top categories of litigation related to Internet communications. Four of the top categories of litigation related to Internet communications are: • Obscenity and pornography • Defamation and libel • Information leaks • Spam 16. Define the term cyberliability. Cyberliability is a legal concept that employers can be held liable for the actions of their employees in their internet communications to the same degree as if those employers had written those communications on company letterhead. Ethical Dilemma 8.1 – A Failure to Disclose 1. Is Sally right to be concerned about Chuck’s plan? Explain why or why not. Students’ answers will vary. Sally has a right to be concerned with Chuck’s plan because of the failure to disclose the information of sending the tax returns to India. The plan of providing cheaper, while still accurate, returns is an admirable strategy, but implementing this strategy without informing the customers while they are under the impression that the returns are being completed in the U.S. is not ethical. 2. Chuck Junior is obviously focusing on the money to be saved (and made) with this plan. What are the issues he is not considering? Students’ answers will vary. Chuck Junior is not considering issues such as the privacy of information being sent overseas. Some customers may not be comfortable sending their information to foreign countries. The other issue becomes the legality of disclosing and informing the customers. 3. Do you think Chuck Senior has signed off on this plan? If not, should Sally tell him? Explain why or why not. Students’ answers will vary. Chuck Junior, because of his attitude of being on the cutting edge, probably has not shared his plan with Chuck Senior (who has likely not signed off on this plan). Chuck Junior seems to be simply waiting for the actual day he takes control of the business. Even if Chuck Senior has been informed of the plan, Sally should still approach him and discuss the implications of the plan. 4. Would the plan still succeed if Chuck Junior disclosed all the details? Students’ answers will vary. Chuck Junior’s plan would probably be a success if the details were disclosed to the customers. There will be some customers who will be comfortable with the new plan and want the benefits of a cheaper, faster return. Others will still request to have their tax returns completed in the United States by local CPAs. 8.2 – Top 20 Blonde Jokes 1. Was Steve Collins wrong to send the e-mail? Why? Students’ answers will vary. Many of them may say that Steve Collins was wrong in sending the e-mail because it is in a professional setting where females and blondes are present. While some employees may find these things funny, others may find it offensive, as Jane did. Even though Steve did not direct it towards Jane, the e-mail still created a negative emotional response from Jane and may affect her work performance. 2. Is Jane Williams overreacting in filing her formal complaint? Explain why or why not. Students’ answers will vary. Some of them may say that if Jane truly felt uncomfortable by the e- mail, then it is her right to file a formal complaint. However, others may state that Jane is overreacting because the e-mail was not directed towards her and the intent of the e-mail was to make people laugh, not “create a hostile work environment.” 3. What impact do you think any change in the employee privacy policies would have at Midland? Students’ answers will vary. It seems as though the employee privacy policies are very informal and relaxed at Midland. Jokes are a routine and common thing in this organization. If employee privacy policies are changed, the morale of some employees may seem to decrease because of being too strict compared to the previous setting. However, a change in these policies will decrease the number of formal grievances and situations similar to Collins’ and Williams’. 4. What are Bill Davis’s options here? Students’ answers will vary. Some of them may say that Bill Davis should speak with Steve Collins about the unprofessional e-mail and how it created an uncomfortable situation for other employees. Bill needs to reprimand or warn Steve and keep the warning on file to keep track of the number of offenses he has committed. Frontline Focus “Problems at ComputerWorld—Steve Makes a Decision” Questions 1. What could Steve have done differently here? Students’ answers will vary. Many of them may say that Steve should have taken the initiative to tell his boss of Larry’s “side business.” This is ultimately going to affect him, Larry, and ComputerWorld. If Steve approached his boss he could save himself and ComputerWorld from any legal suits in the future. 2. What do you think will happen now? Students’ answers will vary. Many of them may say that now that Mr. Johnson has received a phone call stating his old hard drive was sold with all of his personal information, Larry, Steve, and ComputerWorld will be facing a lawsuit. Both Larry and Steve will probably be fired and will struggle to find another job in the IT industry. ComputerWorld will probably be sued and have to pay Mr. Johnson and court fees. 3. What will be the consequences for Steve, Larry, Mr. Johnson, and ComputerWorld? Students’ answers will vary. Many of them may say that Larry, Steve, and ComputerWorld will be facing a lawsuit. Both Larry and Steve will probably be fired and will struggle to find another job in the IT industry. ComputerWorld will probably be sued and have to pay Mr. Johnson and court fees. Key Terms Cyberliability: A legal concept that employers can be held liable for the actions of their employees in their internet communications to the same degree as if those employers had written those communications on company letterhead. Extranet: A private piece of a company’s Internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password. Intranet: A company’s internal website, containing information for employee access only. Telecommuting: The ability to work outside of your office (from your home or anywhere else) and log in to your company network (usually via a secure gateway such as a virtual private network, or VPN). Thick Consent: Consent in which the employee has an alternative to unacceptable monitoring. For example, if jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative for avoiding an unacceptable policy. Thin Consent: Consent in which the employee has little choice. For example, when an employee receives formal notification that the company will be monitoring all e-mail and web activity— either at the time of hire or during employment—and it is made clear in that notification that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring. Vicarious Liability: A legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident. Review Questions NOTE: Some questions allow for a number of different answers. Below are some suggestions. 1. Should you be allowed to surf the web at work? Why or why not? Students’ answers will vary. Surfing the web at work is a controversial issue. Surfing the web at work can be viewed as wasting company time and money and should be limited. On the other hand, employees need to be able to redirect their minds to something other than their work and come back to it with a fresh thought process. The biggest issue in such cases is which websites are the employees viewing. 2. Are your telephone calls monitored where you work? If they are, how does that make you feel? If they aren’t monitored, how would you feel if that policy were introduced? Students’ answers will vary. Many employees would probably feel their privacy is being violated, especially if the policy were just being introduced. These policies may also encourage employees to use their cellular phones. 3. What would you do if someone sent you an e-mail at work that you found offensive? Would you just delete it or say something to that person? Students’ answers will vary. These responses will completely depend upon the person and their personality. Some may simply delete it, while others will approach the person or even file a formal grievance. 4. If you had the chance to work from home and telecommute, would you take it? If the opportunity meant that you had to allow your company to monitor every call on your phone and every keystroke on your computer, would you still take it? Explain why or why not. Students’ answers will vary. One opinion on this offer would be that people may not want to “confuse” work and home, especially if their company is monitoring everything at their house. Many people feel like they are more productive when in an actual work setting because too many distractions exist at home. 5. You have just been issued a new company Blackberry (to make sure you never miss an important e-mail or phone call!). Are you now obligated to answer those calls and e-mails at any time, day or night? Why or why not? Students’ answers will vary. The company would probably find out if the employee did not answer a call or email in a timely manner and they could use that against the employee as insubordination or grounds for dismissal if they wanted to. 6. Would you use that new Blackberry for personal calls and e-mails? Why or why not? Students’ answers will vary. If you use the new Blackberry for personal calls and e-mails, the company can monitor your calls and e-mails. It is in the best interest not to use it for personal business unless you want that business made public. Review Exercises 1. How well did Matrix’s client handle this situation? Matrix Technologies has upgraded its customer service extranet service for its clients to download software updates. The majority of clients had very positive feedback for this new update. The only client of Matrix who reported that this upgrade did not help was the large local government client. This client had to take away all Internet privileges from its employees and therefore, is requiring Matrix to mail upgrade CDs to 24 regional offices. 2. What kind of message does this send to the employees of Matrix’s client? When Matrix created upgrades through its extranet and had to mail upgrade CDs to its local government client, the message sent to the government employees was a reminder that they could not use the Internet while numerous other firms were still allowing employees to access the Internet during work. It also sends a message to the employees that Matrix Technologies is willing to accommodate the needs of the firm based on its policies. 3. What other options were available here? Students’ responses will vary. Matrix Technologies could have not accommodated its government client by refusing to change its upgraded system specifically for it. Of all the clients, the local government was the only client that this new system did not work for because it did not allow access to the Internet. 4. On the assumption that the downloadable software patches can greatly improve updates for its client, does Matrix have an ethical obligation to get involved here? Explain your answer. Students’ answers will vary. Matrix Technologies has an obligation to satisfy its clients and must respect the ethical issue the government faced with regards to Internet surfing. Matrix cannot lose a large client because it is not willing to utilize the Internet. Internet Exercises 1. Visit the website for the RAND Center for Corporate Ethics and Governance (CCEG) at www.rand.org/jie/centers/corporate-ethics.html. a. What does the CCEG do? The CCEG is committed to improving public understanding of corporate ethics, law, and governance, and to identifying specific ways that businesses can operate ethically, legally, and profitably at the same time. b. What are the three objectives of the CCEG? The CCEG is dedicated to three objectives: • Creating more effective public policies • Promoting more ethical, self-governing corporate cultures • Improving public trust in the corporate world c. Select and summarize a current CCEG research project. Students can visit this page and choose any current CCEG research project: http://www.rand.org/jie/centers/corporate-ethics/projects.html One of the current projects is Accounting Methods and Systemic Risk: An Investigation of Policy Issues and Lessons. The site explains that this project involves an investigation of policy issues surrounding fair value accounting practice and systemic risk. Through a combination of literature review, case study methods, and individual and small group discussions with stakeholders, the relationship between accounting methods, firm-level risk management practices, competing business models in the financial services sector, and transparency in underlying asset valuation to investors can be explored. Students can read the details of the project and summarize it based on their understanding. Briefly, this project examines the relationship between accounting methods, risk management practices, several business models in the financial services sector, and transparency in asset valuation. 2. Visit the website for the Electronic Frontier Foundation (EFF) at www.eff.org. a. What does the EFF do? The EFF is a donor-funded nonprofit organization that defends the digital rights of individuals and groups. They defend those cutting-edge issues associated with free speech, privacy, innovations, and consumer rights today. b. What is the EFF “Bloggers’ Rights” Project? The EFF “Blogger’s Right’s” Project is a legal guide provided for bloggers to help them understand that they have rights and their legitimate speech is protected. This legal guide is actually a collection of blogger-specific FAQs that addresses a variety of issues ranging from fair use to defamation law to workplace whistle-blowing. c. What is the “Open Wireless Movement”? The “Open Wireless Movement” is a movement that aims to achieve an omnipresent open Internet. It aims to have several open networks at users’ fingertips. It aspires to allow tablets, watches, and other new devices to automatically join these networks. This movement believes that wireless Internet is effective for sharing which is one of the societal expectations. Team Exercises 1. When are you “at work”? Divide into two teams. One team must defend the employer position on employee monitoring. The other team must defend the employee position. Draw on the policies and experiences you have gathered from your own jobs. Students’ answers will vary. Employers view the issue of employee monitoring as verifying and utilizing the time of the employees effectively. When employees are allowed to surf the Internet or be on the phone without being monitored, the company is not aware of how much time and money is being wasted on lack of productivity. Monitoring phone calls also helps address improvements in customer service. From an employee position, monitoring every keystroke and every phone call can be considered an invasion of privacy. Another issue that employees may argue is the point that strict monitoring will reduce morale and result in lower productivity. 2. A new billing system. A new system that bills corporate clients is under development, and there is a discussion over how much to invest in error checking and control. One option has been put forward so far, and initial estimates suggest it would add about 40 percent to the overall cost of the project but would vastly improve the quality of the data in the database and the accuracy of client billing. Not spending the money would increase the risk of overcharging some midsize clients. Divide into two groups and prepare arguments for and against spending the extra money on error checking and control. Remember to include in your argument how stakeholders would be affected and how you would deal with any unhappy customers. Students’ answers will vary. Arguments for spending the extra money on error checking control include the satisfaction of customers and the savings the time and money would cost the company for inaccurate billings. When customers receive inaccurate bills the company’s credibility and reputation decreases. Arguments against spending the extra money include the 40 percent to the overall cost of the project. 3. E-mail privacy. Divide into two groups and prepare arguments for and against the following behavior: Your company has a clearly stated employee surveillance policy that stipulates that anything an employee does on a company-owned computer is subject to monitoring. You manage a regional office of 24 brokers for a company that offers lump-sum payments to people receiving installment payments—from lottery winnings or personal injury settlements who would rather have a large amount of money now than small monthly checks for the next 5, 10, or 20 years. You have just terminated one of your brokers for failing to meet his monthly targets for three consecutive months. He was extremely angry about the news and when he went back to his cube, he was observed typing feverishly on his computer in the 10 minutes before building security arrived to escort him from the premises. When your IT specialist arrives to shut down the broker’s computer, he notices that it is still open and logged in to his Gmail account and that there is evidence that several e-mails with large attachments had been sent from his company e-mail address to his Gmail address shortly after the time he was notified that he was being fired. The e-mails had been deleted from the folder of sent items in his company account. The IT specialist suggests that you take a look at the e-mails and specifically the information attached to those e-mails. Should you? Students’ answers will vary. Arguments for looking at the broker’s Gmail account would be on the basis of security. According to the scenario, it seems the broker sent company information to his personal e-mail which could jeopardize the company. Also, the company has a clearly stated policy that stipulates anything an employee does on company-owned computers is subject to monitoring. If the e-mail was left open and there is reason to believe the broker had sent private company information to his personal account, then the company has a right to check it. Arguments against checking the brokers Gmail account would be on the basis of privacy. There were no signs of sent mail to the brokers Gmail account from his company e-mail, and the broker could claim an invasion of privacy if the company were to go through his private (Gmail) account. 4. Software piracy. Divide into two groups and prepare arguments for and against the following behavior: You run your own graphic design company as a one-person show, doing primarily small business projects and subcontracting work for larger graphic design agencies. You have just been hired as an adjunct instructor at the local community college to teach a graphic design course. You decide that it’s easier to use your own laptop rather than worry about having the right software loaded on the classroom machines, and so the college IT department loads the most current version of your graphic design software on your machine. Business has been a little slow for you, and you haven’t spent the money to update your own software. The version that the IT department loads is three editions ahead of your version with lots of new functionality. You enjoy teaching the class, although the position doesn’t pay very well. One added bonus, however, is that you can be far more productive on your company projects using the most current version of the software on your laptop, and since you use some of that work as examples in your class, you’re not really doing anything unethical, right? Students’ answers will vary. An argument for using the software for personal use is that it is providing examples and content for your class. It was easier to load this upgraded software on the personal laptop than the classroom computers and therefore, should be able to be used as long as still employed by the community college. An argument against using the software for personal use is that the college loaded the software on the laptop for the purpose of teaching the class. Because the person did not pay for the software, it should not be used to make money on the side. Thinking Critically 8.1 – Instagram: The Dangers in Changing Your Terms of Service 1. What prompted Instagram to change the terms of service (TOS) agreement? Students’ answers will vary. At the time of the purchase, Instagram, while developing a very passionate and loyal user base, had yet to figure out how to generate revenue from its business model. The solution appeared in a brief block of text added to the Instagram “terms of service” (TOS) agreement. The company appeared to be staking claim to the right to sell the photos and username information of all the content uploaded to the site, without any permission or compensation to the user. With over 1 billion photos already uploaded to the service, the likelihood of finding material worthy of financial remuneration seemed highly likely, but the company seriously underestimated the degree of personal attachment between its users and their respective photographs and personal information. 2. Critics and many Instagram customers reacted very strongly to the TOS change. Was there an error of judgment on the company’s part? Why or why not? Students’ answers will vary. It is evident in the case that the company seriously underestimated the degree of personal attachment between its users and their respective photographs and personal information uploaded in the site. So, students might feel that there was an error of judgment on the company’s part. 3. Was Instagram’s response to the PR crisis over the change in the TOS appropriate? Why or why not? Students’ answers will vary. Students may note that though Systrom may be given credit for the promptness of his response, the question remained that if Instagram had no intention of selling user’s photographs or personal information, the plan that required the company to make such an explicit change in its TOS agreement was not clear. 4. How could Instagram have handled this situation differently? What should the company do now? Students’ answers will vary. Instagram could have handled this situation differently by clearly stating their TOS agreement. This would have avoided any misinterpretation or misunderstanding on the part of its users and public. 8.2 – Reverb Communications: Truth in Advertising 1. Why did the FTC introduce new guidelines in 2009? Students’ answers will vary. The FTC introduced new guidelines in 2009 in wake of the new trends in social media and “official blogs” that organizations set up to buzz up their products. 2. What was the nature of the complaint against Reverb Communications? Students’ answers will vary. The complaint against Reverb Communications was that allegedly, between November 2008 and May 2009, Reverb posted reviews about its client’s games on Apple’s iTunes store “using account names that gave readers the impression that the reviews were written by disinterested customers.” 3. Considering Reverb’s position in its widely distributed statement in response to the settlement of the complaint, was there an ethical transgression here? Students’ responses will vary. Although there was no fine associated with the incident, Reverb’s founder, Tracie Snitker, was required to delete any comments made and barred to make additional comments. Ms. Snitker disclosed in a statement that she basically settled with the FTC to resolve the incident. 4. Given that there was no admission of guilt or financial penalty applied, do you think this settlement will prompt companies such as Reverb to be more ethical in their postings in the future? Why or why not? Students’ answers will vary based on their perception of the case. Although there will probably be additional incidents, individuals should act in an ethical manner so that the FTC does not exploit the company. It could ruin the reputation of both the business and the business owner. 8.3 – The HIPAA Privacy Rule 1. Is the term privacy rule accurate in describing the HIPAA legislation? Why or why not? Students’ answers will vary. While the purpose of HIPAA is clearly stated, the interpretation of the legislation lacks clarity. This piece of legislation attempts to be a privacy rule, but has had numerous incidents in which violations and unethical situations occur. 2. Is it ethical for covered entities to be excused from getting patient permission to use their private information for routine purposes? Why or why not? Students’ answers will vary. Private entities should not be excused from obtaining patient permission to use their private information for routine purposes because this creates a situation that exposes patient information to more people and creates opportunity for more unethical and privacy situations. In order to reduce and enhance this piece of legislation, permission should always be required from the patient, no matter who needs it. 3. Based on the limited information in this article, do you think the HIPAA legislation achieves its objective of securing patient privacy? Students’ answers will vary. With the examples provided in the article, it is hard to believe that the HIPAA legislation is achieving its objective of securing patient privacy. These examples demonstrate the incidents when HIPAA has not upheld its privacy guarantees. 4. How could this issue of patient privacy have been handled in a more ethical manner? Students’ answers will vary. The HIPAA legislation needs to be modified and should state that permission must always be given before using or accessing their private information. The consequences for HIPAA violations should also be addressed and enforced to prevent people from making careless mistakes or bad decisions. Chapter 8 Ethics and Technology 8-2 Ethics and Technology • Vast amounts of information is available to employees and customers on their: • Internet sites • Intranet sites: Company’s internal Web site, containing information for employee access only • Extranet sites: Private piece of a company’s Internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password 8-3 Ethics and Technology • Loss of privacy • Companies have ability to send customers’ personal data anywhere in the world • Employee monitoring 8-4 Do You Know Where Your Personal Information Is? • Call centers were the result of the first wave of technological advancement • Ethical obligations • Notify the customer the country in which the call center is based • Notify the customer the real name of person answering the call • Notify the customer that their personal information is being transferred to other countries 8-5 Employer Position • Monitoring of work-related activity will not be infringement of privacy • Organization has an obligation to its stakeholders to operate efficiently • It must ensure that company resources are not being misused or stolen • It must ensure company data and proprietary information are closely guarded 8-6 Employer Position • Technological advancements has made it difficult to determine where work ends and personal life begins • Employees be notified of any electronic surveillance and the purpose of that surveillance • Actions of a small number of employees in breaking company rules should not be used as a justification to take away everyone’s civil rights 8-7 Employer/Employee Position • Arriving at a resolution of the arguments is difficult • Technological advancements has made it difficult to determine where work ends and personal life begins • Willingness to compromise has risen and fallen in direct relation to the prevailing job market 8-8 When Are You at Work? • Telecommuting: Working from anywhere by logging into your company’s network remotely • Computer and Smartphone has made the concept of being at work flexible • Availability is now defined as accessibility 8-9 Employee Consent • Thin consent: Employee has little choice • When an employee receives formal notification that the company will be monitoring all e-mail and Web activity and it is made clear in that notification that his or her continued employment with the company will be dependent on the employee’s agreement to abide by that monitoring 8-10 Employee Consent • Thick consent: Employee has an alternative to unacceptable monitoring • When jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative for avoiding an unacceptable policy 8-11 The Dangers of Leaving a Paper Trail • Documents written on the machines do the most harm • Offensive email postings • Viewing inappropriate Web sites • Internet communication • Damage from electronic trail of emails 8-12 Vicarious Liability • A party may be held responsible for injury or damage even when he or she was not actively involved in an incident • Cyberliability: Employers can be held liable for the actions of their employees in their Internet communications to the same degree as if those employers had written those communications on company letterhead 8-13 Vicarious Liability • Extent of cyberliability in the top categories of litigation • Discrimination • Harassment • Obscenity and pornography • Defamation and libel • Information leaks • Spam 8-14 Figure 8.1 - Ten Commandments of Computer Ethics Source: Computer Ethics Institute, “Ten Commandments of Computer Ethics,” Computer Professionals for Social Responsibility, http://cpsr.org/issues/ethics/cei. Solution Manual for Business Ethics Now Andrew Ghillyer 9780073524696, 9781260262513
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