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Lecture 1

The document provides an overview of ethics in information technology, emphasizing the importance of acting according to a code of ethics and the growing significance of business ethics. It discusses the definitions of ethics, morals, and laws, and highlights the need for integrity and consistency within organizations to foster good business practices. Additionally, it addresses the risks of unethical behavior in the business world and the benefits of maintaining strong ethical standards.

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19 views19 pages

Lecture 1

The document provides an overview of ethics in information technology, emphasizing the importance of acting according to a code of ethics and the growing significance of business ethics. It discusses the definitions of ethics, morals, and laws, and highlights the need for integrity and consistency within organizations to foster good business practices. Additionally, it addresses the risks of unethical behavior in the business world and the benefits of maintaining strong ethical standards.

Uploaded by

slahalhmadi1234
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Ethics in Information

Technology

Chapter 1
An Overview of Ethics
Objectives

• As you read this chapter, consider the following


questions:
– What is ethics, and why is it important to act
according to a code of ethics?
– Why is business ethics becoming increasingly
important?
– What are organizations doing to improve their
business ethics?

Ethics in Information Technology, Fourth Edition 2


Objectives (cont’d.)

– Why are organizations interested in fostering good


business ethics?
– What approach can you take to ensure ethical
decision making?
– What trends have increased the risk of using
information technology in an unethical manner?

Ethics in Information Technology, Fourth Edition 3


What is Ethics?

• Moral code
– Set of rules
– Establishes boundaries of generally accepted
behavior
– Different rules often have contradictions
• Morality
– Social conventions about right and wrong
– Widely shared
– Form basis for an established consensus

Ethics in Information Technology, Fourth Edition 4


What is Ethics? (cont’d.)

• Morality may vary by:


– Age
– Cultural group
– Ethnic background
– Religion
– Life experiences
– Education
– Gender

Ethics in Information Technology, Fourth Edition 5


Definition of Ethics

• Ethics
– Set of beliefs about right and wrong behavior
• Virtues
– Habits that incline people to do what is acceptable
• Vices
– Habits of unacceptable behavior
• Virtues and vices define a personal value system
– Scheme of moral values

Ethics in Information Technology, Fourth Edition 6


The Importance of Integrity

• Integrity is a cornerstone of ethical behavior


• People with integrity:
– Act in accordance with a personal code of principles
– Extend to all the same respect and consideration
– Apply the same moral standards in all situations
• Lack of integrity emerges if you apply moral
standards differently according to situation or people
involved
• Many ethical dilemmas are not as simple as right
versus wrong
Ethics in Information Technology, Fourth Edition 7
The Difference Between Morals,
Ethics, and Laws
• Morals: one’s personal beliefs about right and wrong
• Ethics: standards or codes of behavior expected of
an individual by a group
• Law: system of rules that tells us what we can and
cannot do
– Laws are enforced by a set of institutions
– Legal acts conform to the law
– Moral acts conform to what an individual believes is
the right belief of right and wrong

Ethics in Information Technology, Fourth Edition 8


Ethics in the Business World

• Both the likelihood and the negative impact of


inappropriate behavior have increased
• Several trends have increased the likelihood of
unethical behavior:
– Globalization creating complex work environments
– Organizations challenged to maintain profits / revenue
– Heightened vigilance by:
• Employees
• Shareholders
• Regulatory agencies
Ethics in Information Technology, Fourth Edition 9
Ethics in the Business World (cont’d.)

• Recent scandals in IT companies


– Satyam Computer Services (India)
– Hewlett Packard
– Computer Associates International
– IBM
• Not just executives, but even lower-level employees,
can find themselves in the middle of an ethical
dilemma

Ethics in Information Technology, Fourth Edition 10


Why Fostering Good Business Ethics
Is Important
• To gain the good will of the community
• To create an organization that operates consistently
• To foster good business practices
• To protect organization/employees from legal action
• To avoid unfavorable publicity

Ethics in Information Technology, Fourth Edition 11


Gaining the Good Will
of the Community
• Organizations have fundamental responsibilities to
society
– Declared in formal statement of company’s principles
or beliefs
– Include:
• Making contributions to charitable organizations and
nonprofit institutions
• Providing benefits for employees in excess of legal
requirements
• Choosing economic opportunities that might be more
socially desirable than profitable

Ethics in Information Technology, Fourth Edition 12


Gaining the Good Will of the
Community (cont’d.)
• Socially responsible activities create good will
• Good will makes it easier for corporations to conduct
business

Ethics in Information Technology, Fourth Edition 13


Creating an Organization That
Operates Consistently
• Consistency ensures that employees:
– Know what is expected of them
– Can employ the organization’s values to help them in
decision making
• Consistency also means that shareholders,
customers, suppliers, and community know what
they can expect of the organization

Ethics in Information Technology, Fourth Edition 14


Creating an Organization That
Operates Consistently (cont’d.)
• Many companies share the following values:
– Operate with honesty and integrity, staying true to
organizational principles
– Operate according to standards of ethical conduct, in
words and action
– Treat colleagues, customers, and consumers with
respect
– Strive to be the best at what matters to the company
– Value diversity
– Make decisions based on facts and principles

Ethics in Information Technology, Fourth Edition 15


Fostering Good Business Practices

• Good ethics means good business/improved profits


• Companies that:
– Produce safe and effective products
• Avoid costly recalls and lawsuits
– Provide excellent service that retains customers
– Develop and maintain strong employee relations
• Suffer lower turnover rates
• Enjoy better employee morale

Ethics in Information Technology, Fourth Edition 16


Fostering Good Business Practices
(cont’d.)
• Suppliers/business partners place priority on
working with companies that operate in a fair and
ethical manner
• Bad ethics means bad business/waning profits
– Bad ethics can lead to bad business results
– Bad ethics can have a negative impact on employees

Ethics in Information Technology, Fourth Edition 17


Protecting the Organization and Its
Employees from Legal Actions
• U.S. Supreme Court established that an employer can
be held responsible for the acts of its employees

• This principle is called respondeat superior


• Coalition of several legal organizations argues
establishment of ethics and compliance programs
should reduce criminal liability of organization
• Others argue company officers should not be given
light sentences if their ethics programs are ineffective

Ethics in Information Technology, Fourth Edition 18


Avoiding Unfavorable Publicity

• Public reputation of company strongly influences:


– Value of its stock
– How consumers regard products and services
– Degree of oversight received from government
– Amount of support and cooperation received

• Organizations are motivated to build strong ethics


programs to avoid negative publicity

Ethics in Information Technology, Fourth Edition 19

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