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In all that we do, Intel supports and upholds a set of core values and principles. Our future growth depends on each of us understanding these values and principles and continuously demonstrating the uncompromising integrity that is the foundation of our company. All of us at Intel must abide by the Code when conducting Intel-related business. Conducting Social Audits An increasing number of organizations conduct regular social audits of their policies and practices. In a social audit, an organization reviews how well it is meeting its ethical and social responsibility goals, and communicates its new goals for the upcoming year.
This information is shared with employees, shareholders, investors, market analysts, custo- mers, suppliers, government agencies, and the communities in which the organization operates. In , Intel focused on goals in three primary areas: 1 the environment—with targets set for global-warming emissions, energy consumption, water use, chemical and solid waste reduction, and product energy efficiency; 2 corporate governance—with goals to improve transparency and strengthen ethics and compliance reporting; and 3 social—with goals to improve the organizational health of the company as measured by its own Organiza- tional Health Survey, to expand the number of supplier audits, and to increase the number of community education programs.
Requiring Employees to Take Ethics Training The ancient Greek philosophers believed that personal convictions about right and wrong behavior could be improved through education. Today, most psychologists agree with them. Other researchers have repeatedly supported the idea that people can continue their moral development through further education, such as working through case studies and exam- ining contemporary issues.
Organizations can do this by showing employees examples of how to apply the code of ethics in real life. One approach is through a comprehensive ethics education program that encourages employees to act responsibly and ethically. Employees may also be given examples of recent company decisions based on principles from the code of ethics. A critical goal of such training is to increase the percentage of employees who report incidents of misconduct; thus, employees must be shown effective ways of reporting such incidents.
In addition, they must be reassured that such feedback will be acted on and that they will not be subjected to retaliation.
The focus of the training is to clarify corporate values and policies and to encourage employees to report ethical concerns via numerous report- ing channels.
Motorola investigates all allegations of ethical misconduct, and it will take appropriate disciplinary actions if a claim is proven—up to and including dismissal of all involved employees. All salaried employees must complete an online introduction to the ethics program every three years. All managers in newly acquired businesses or high-risk locations must take further classroom ethics training.
Motorola operates a hour toll-free service for reporting any suspected ethical concerns. In , the firm introduced a Code of Business Conduct in 10 languages and updated its suite of ethics training courses to include new anticorruption and antibribery training. Creating an Ethical Work Environment Most employees want to perform their jobs successfully and ethically, but good employees sometimes make bad ethical choices. Employees in highly competitive workplaces often feel pressure from aggressive competitors, cutthroat suppliers, unrealistic budgets, unfor- giving quotas, tight deadlines, and bonus incentives.
I can never absorb all this. Employees can also report violations anonymously through an internal Web site dedicated to ethics. Senior management at Intel has made it clear that any employee can report suspected violations of corporate business principles without fear of reprisal or retaliation. The preferred answer to each question is yes. Do employees know how and to whom to report any infractions of the code of ethics?
Do employees feel that they can report violations of the code of ethics safely and without fear of retaliation? Do employees feel that action will be taken against those who violate the code of ethics?
Do senior managers set an example by communicating the code of ethics and using it in their own decision making? Do managers evaluate and provide feedback to employees on how they operate with respect to the values and principles in the code of ethics? Are employees aware of sanctions for breaching the code of ethics?
Most of us have developed a decision-making process that we execute automatically, without think- ing about the steps we go through. For many of us, the process generally follows the steps outlined in Figure Gather and analyze facts.
Develop problem statement Make no assumptions. Identify stakeholders affected by the decision. Identify alternatives Involve others, including stakeholders, in brainstorming. What laws, guidelines, policies, and principles apply? What is the impact on you, your organization, Evaluate and choose alternative and other stakeholders? Evaluate alternatives based on multiple criteria.
Develop and execute an implementation plan. Implement decision Provide leadership to overcome resistance to change. Evaluate results against selected success criteria.
Evaluate results Were there any unintended consequences? No Success? The following sections discuss this decision-making process further and point out where and how ethical considerations need to be brought into the process. Develop a Problem Statement 21 A problem statement is a clear, concise description of the issue that needs to be addressed.
A good problem statement answers the following questions: What do people observe that causes them to think there is a problem? Who is directly affected by the problem? Is anyone else affected? How often does the problem occur? What is the impact of the problem? How serious is the problem? Development of a problem statement is the most critical step in the decision-making process.
Without a clear statement of the prob- lem or the decision to be made, it is useless to proceed. Obviously, if the problem is stated incorrectly, the decision will not solve the problem. You must gather and analyze facts to develop a good problem statement. Seek informa- tion and opinions from a variety of people to broaden your frame of reference. During this process, you must be extremely careful not to make assumptions about the situation. Simple situations can sometimes turn into complex controversies because no one takes the time to gather the facts.
For example, you might see your boss receive what appears to be an employment application from a job applicant and then throw the application into the trash after the applicant leaves. You could report your boss for failure to follow the policy, or you could take a moment to speak directly to your boss.
You might be pleasantly surprised to find out that the situation was not as it appeared. Part of developing a good problem statement involves identifying the stakeholders and their positions on the issue.
Stakeholders often include others beyond those directly involved in an issue. Identifying the stakeholders helps you understand the impact of your decision and could help you make a better decision. Unfortunately, it may also cause you to lose sleep from wondering how you might affect the lives of others. However, by involv- ing stakeholders in the decision, you can work to gain their support for the recommended course of action. What is at stake for each stakeholder? What does each stakeholder value, and what outcome does each stakeholder want?
Do some stakeholders have a greater stake because they have special needs or because the organization has special obligations to them? To what degree should they be involved in the decision? This is a possible solution, not a problem statement. This is not specific enough.
Identify Alternatives During this stage of decision making, it is ideal to enlist the help of others, including stakeholders, to identify several alternative solutions to the problem. On the other hand, there may be times when it is inappro- priate to involve others in solving a problem that you are not at liberty to discuss. During any brainstorming process, try not to be critical of ideas, as any negative criti- cism will tend to shut down the discussion, and the flow of ideas will dry up.
Simply write down the ideas as they are suggested. Evaluate and Choose an Alternative Once a set of alternatives has been identified, the group must evaluate them based on numerous criteria, such as effectiveness at addressing the issue, the extent of risk associ- ated with each alternative, cost, and time to implement. An alternative that sounds attractive but that is not feasible will not help solve the problem. As part of the evaluation process, weigh various laws, guidelines, and principles that may apply.
You certainly do not want to violate a law that can lead to a fine or imprisonment for yourself or others. Do any corporate policies or guidelines apply? Does the organizational code of ethics offer guidance? Do any of your own personal principles apply? Also consider the likely consequences of each alternative from several perspectives: What is the impact on you, your organization, other stakeholders including your suppliers and customers , and the environment?
Philosophers have developed many approaches to aid in ethical decision making. Four of the most common approaches, which are summarized in Table and discussed in the following sections, provide a framework for decision makers to reflect on the acceptability of their actions and evaluate their moral judgments.
People must find the appropriate balance among all applicable laws, corporate principles, and moral guide- lines to help them make decisions. See Appendix A for a more in-depth discussion of ethics and moral codes. Virtue ethics approach The ethical choice best reflects moral virtues in yourself and your community. Utilitarian approach The ethical choice produces the greatest excess of benefits over harm.
Fairness approach The ethical choice treats everyone the same and shows no favoritism or discrimination. Common good approach The ethical choice advances the common good.
Virtue Ethics Approach 23 The virtue ethics approach to decision making focuses on how you should behave and think about relationships if you are concerned with your daily life in a community. It does not define a formula for ethical decision making, but suggests that when faced with a complex ethical dilemma, people do either what they are most comfortable doing or what they think a person they admire would do.
A proponent of virtue ethics believes that a disposition to do the right thing is more effective than following a set of principles and rules, and that people should perform moral acts out of habit, not introspection. Virtue ethics can be applied to the business world by equating the virtues of a good businessperson with those of a good person.
However, businesspeople face situations that are peculiar to a business setting, so they may need to tailor their ethics accordingly.
For example, honesty and openness when dealing with others are generally considered virtues; however, a corporate purchasing manager who is negotiating a multimillion dollar deal might need to be vague in discussions with potential suppliers. The definition of virtue cannot be worked out objectively; it depends on the circumstances—you work it out as you go. For example, bravery is a great virtue in many circumstances, but in others it may be foolish. Utilitarian Approach The utilitarian approach to ethical decision making states that you should choose the action or policy that has the best overall consequences for all people who are directly or indirectly affected.
The goal is to find the single greatest good by balancing the interests of all affected parties. Utilitarianism fits easily with the concept of value in economics and the use of cost-benefit analysis in business.
Business managers, legislators, and scientists weigh the benefits and harm of policies when deciding whether to invest resources in building a new plant in a foreign country, to enact a new law, or to approve a new prescription drug.
A complication of this approach is that measuring and comparing the values of certain benefits and costs is often difficult, if not impossible.
How do you assign a value to human life or to a pristine wildlife environment? It can also be difficult to predict the full benefits and harm that result from a decision.
Fairness Approach The fairness approach focuses on how fairly actions and policies distribute benefits and burdens among people affected by the decision. The guiding principle of this approach is to treat all people the same. However, decisions made with this approach can be influ- enced by personal bias, without the decision makers even being aware of their bias. If the intended goal of an action or a policy is to provide benefits to a target group, other affected groups may consider the decision unfair.
Common Good Approach 24 The common good approach to decision making is based on a vision of society as a com- munity whose members work together to achieve a common set of values and goals. Deci- sions and policies that use this approach attempt to implement social systems, institutions, and environments that everyone depends on and that benefit all people. Examples include an effective education system, a safe and efficient transportation system, and accessible and affordable health care.
As with the other approaches to ethical decision making, the common good approach has potential complications. People clearly have different ideas about what constitutes the common good, which makes consensus difficult. In addition, maintaining the common good often requires some groups to bear greater costs than others—for instance, home- owners pay property taxes to support public schools, but apartment dwellers do not.
Implement the Decision Once an alternative is selected, it should be implemented in an efficient, effective, and timely manner. This is often much easier said than done, because people tend to resist change. In fact, the bigger the change, the greater the resistance to it. Communication is the key to helping people accept a change. A transition plan must be defined to explain to people how they will move from the old way of doing things to the new way.
It is essential that the transition be seen as rela- tively easy and pain free. Evaluate the Results After the solution to the problem has been implemented, monitor the results to see if the desired effect was achieved, and observe its impact on the organization and the various stakeholders.
Were the success criteria fully met? Were there any unintended conse- quences? This evaluation may indicate that further refinements are needed.
If so, return to the develop a problem statement step, refine the problem statement as necessary, and work through the process again. In the midst of the many IT break- throughs in recent years, the importance of ethics and human values has been underem- phasized—with a range of consequences. This book is based on two fundamental tenets. First, the general public needs to develop a better understanding of the critical importance of ethics as it applies to IT; cur- rently, too much emphasis is placed on technical issues.
Unlike most conventional tools, IT has a profound effect on society. IT professionals and end users need to recognize this fact when they formulate policies that will have legal ramifications and affect the well- being of millions of consumers.
The second tenet on which this book is based is that in the business world, important decisions are too often left to the technical experts. General business managers must assume greater responsibility for these decisions, but to do so they must be able to make broad-minded, objective decisions based on technical savvy, business know-how, and a sense of ethics.
They must also try to create a working environment in which ethical dilemmas can be discussed openly, objectively, and constructively. Thus, the goals of this text are to educate people about the tremendous impact of ethical issues in the successful and secure use of information technology; to motivate people to recognize these issues when making business decisions; and to provide tools, approaches, and useful insights for making ethical decisions.
However, if striving to meet a specific CSR goal leads to a decrease in profits, senior management may be challenged to modify or drop that CSR goal entirely.
Four common philosophies are the virtue ethics approach, the utilitarian approach, the fairness approach, and the common good approach. Key Terms 27 Bathsheba syndrome morals code of ethics problem statement common good approach Sarbanes—Oxley Act of corporate compliance officer social audit corporate ethics officer software piracy corporate social responsibility CSR supply chain sustainability ethics stakeholder fairness approach utilitarian approach integrity vice law virtue moral code virtue ethics approach morality.
The term refers to social conventions about right and wrong that are so widely shared that they become the basis for an established consensus. A person who acts with integrity acts in accordance with a personal. The public of an organization strongly influences the value of its stock, how consumers regard its products and services, the degree of oversight it receives from gov- ernment agencies, and the amount of support and cooperation it receives from its business partners.
The corporate ethics officer provides the organization with and in the area of business conduct. The goal of the Sarbanes—Oxley Act was to. A n enables an organization to review how well it is meeting its ethical and social responsibility goals, and communicate new goals for the upcoming year.
The most important part of the decision-making process is. The approach to ethical decision making is based on a vision of society as a community whose members work together to achieve a common set of values and goals.
Discussion Questions 1. There are many ethical issues about which people hold very strong opinions—abortion, gun control, and the death penalty, to name a few. If you were a team member on a project with someone whom you knew held an opinion different from yours on one of these issues, how would it affect your ability to work effectively with this person?
Identify two important life experiences that helped you define your own personal code of ethics. Create a list of 5 to 10 guidelines for ensuring a successful brainstorming session to identify potential solutions to a problem. Do you believe an organization should be able to escape criminal liability for the acts of its employees if it has acted as a responsible corporate citizen, making strong efforts to pre- vent and detect misconduct in the workplace? Why or why not? The Ethics Resource Center identified five characteristics of a successful ethics program.
Suggest a sixth characteristic, and defend your choice. Create three such goals for a small, local IT consulting firm. How can this be done in a way that does not encourage unethical behavior on the part of employees? Describe a hypothetical situation in which the action you would take is not legal, but it is ethical. Describe a hypothetical situation where the action you would take is legal, but not ethical. Hypothesis: It is easier to establish an ethical work environment in a nonprofit organization than in a for-profit organization.
Provide three facts or opinions that support this hypothesis. Provide three facts or opinions that refute the hypothesis. This chapter discusses four approaches to dealing with moral issues.
Which approach is closest to your way of analyzing moral issues? Now that you are aware of different approaches, do you think you might modify your approach to include other perspectives?
Explain why or why not. It can be difficult for a large organization to act ethically consistently across all facets of its 29 business. Identify a recent example of a usually ethical company acting in an unethical manner.
Should software piracy within the boundaries of third-world countries be tolerated to allow these countries an opportunity to move more quickly into the information age? Without revealing the name of your employer, comment on the efforts of your employer to promote a work environment in which employees are encouraged to act ethically. Do you think that ethics training can really be effective in changing the behavior of employ- ees? What Would You Do? Use the five-step decision-making process discussed in the chapter to analyze the following situations and recommend a course of action.
You are concerned that you may be pressured to resolicit and encourage under contributors to pledge more. Do you think that this is a fair request? How would you respond if such pressure is applied to you? You are currently being considered for a major promotion within your company to vice president of marketing. In your current position as manager of advertising, you supervise 15 managers and 10 hourly workers.
As part of the annual salary review process, you have been given the flexibility to grant your employees an average 3 percent annual sal- ary increase; however, you are strongly considering a lower amount.
How would you proceed? You are the customer support manager for a small software manufacturer. The newest addition to your person team is Sofia, a recent college graduate. She is a little overwhelmed by the volume of calls, but is learning quickly and doing her best to keep up.
Today, as you performed your monthly review of employee email, you were surprised to see that Sofia has received several messages from employment agencies. We have lots of opportunities that I think would much better match your interests. You had no idea she was unhappy, and your team desperately needs her help to handle the onslaught of calls generated by the newest release of software. Should you confront Sofia and demand to know her intentions? Should you avoid any confrontation and simply begin seeking her replacement?
Could you be misinterpreting the email? What should you do? Your friend has offered to give you a glowing performance review if you agree to do the same for him. Truth be told, your friend is not a very dependable worker, and his work is often below minimum standards. However, he is a good friend, and you would hate to upset him. What would you do? While mingling with neighbors at a party, you mention that you are responsible for evaluating bids for a large computer software contract.
A few days later, you receive a lunch invitation from one of your neighbors who also attended the party. Over appetizers, the conversation turns to the contract you are managing. Your neighbor seems remarkably well informed about the bidding process and likely bidders.
You volunteer information about the potential value of the contract and briefly outline the criteria your firm will use to select the winner. At the end of the lunch, your neighbor surprises you by revealing that he is a consultant for several companies in the computer software market. Later that day, your mind is racing. Did you reveal informa- tion that could provide a supplier with a competitive advantage in the bidding process?
What are the potential business risks and ethical issues in this situation? Should you report the conversation to someone? If so, whom should you talk to, and what would you say?
You are a recent graduate of a well-respected business school, but you are having trouble getting a job. So far, you have not even had an invitation for an interview. You know that one of your shortcomings is that you have no real job experience to speak of.
You have just completed a grueling day business trip calling on two dozen accounts up and down the West Coast. There were even business meetings combined with social events late into the night and on the weekends.
On the flight back home at the end of this marathon, you are tired and feeling as if you have not seen your family for a month. Cases 31 1. IBM—A Front-Runner in Sustainability During the s, IBM produced mainframe computers, adding machines, typewriters, and tele- phone routing systems—much of the advanced information technology of the time. The com- pany was the one of the largest corporations in the world and ranked seventh in the Fortune list of largest U.
In an effort to take the lead in corporate responsibility, IBM established one of the first environmental pro- grams of its kind in IBM incrementally reduced toxic waste by , tons from to , a dramatic achievement.
IBM has been able to accomplish this, in part, by recy- cling 44 percent of the hazardous chemicals used in its manufacturing processes. The company has also changed manufacturing processes to eliminate or reduce the use of hazardous materials. For example, in the s, scientists noticed a hole in the ozone layer of the stratosphere over Antarctica that protects the earth from harmful ultraviolet radiation.
In response, IBM worked to reduce its use of ozone-depleting chemicals, such as chlorofluorocarbons, and in , IBM led the IT world in its reduction of such chemicals. Today, the company has expanded its initiative beyond toxic waste management. Its programs now seek to reduce energy use, conserve water resources, create energy efficient products, spearhead safety in the use of nanotechnology, and combat climate change.
IBM has also focused on the use of environmentally preferable substances and materials, and it continues to work to reduce or eliminate its reliance on heavy metals and carcinogens. The company reduced greenhouse gas emissions in by 3. In many cases, IBM helped ISO to develop a specific standard and then became the first company to demonstrate compliance with that standard.
The practice of meeting sustainability standards helps IBM maintain market share because the European Union, the United States, and other countries often give preference in awarding contracts to companies that have ISO certification. By , IBM had dropped to 19 on the Fortune list. In fact, the company has found that corporate responsibility has given it a better bottom line.
IBM also has an expansive community and corporate citizenship program. For instance, the 32 company has a program to match employees with community service needs. Over , IBM employees and retirees have participated in this volunteer program in areas such as education, economic development, health care, disaster relief, and environmental programs. IBM also pro- vides employees to serve as teachers for inner city schools throughout the world.
The company continues to pay its employees as they work in the schools. Finally, the company utilizes its technology in cities worldwide to help struggling governments find solutions to problems with traffic, emergency services, and infrastructure. IBM built an electronic meeting platform called Jams, which facili- tates online brainstorming and engages a wide range of stakeholders. Present three strong arguments that IBM might have used to justify the start of its sustain- ability programs in the s.
What major goals has IBM achieved in environmental stewardship? How might IBM leverage its leadership in sustainability to maintain its competitiveness in the IT market? Ethical and Business Setbacks for Nokia On the morning of September 5, , Nokia staged a press conference in New York City to announce the official launch of its new Windows 8 smartphones, the Lumia and However, the online tech magazine The Verge decided to take a closer look at the video, and while examining it, a researcher for the magazine noticed a reflection in a window of a trailer behind the woman on the bike.
The reflection showed a young man not on a bicycle, but rather in a van—holding a large camera. Eastern time, the word was out. And by p. It has a year history of worker- and community-centered operations, and a sterling reputation for environmental con- sciousness. Nokia announced in that it was moving production from its facility in Bochum, Germany, to the relatively low-wage environment of Romania.
In addition, a boy- cott was organized by German trade unions, and several cabinet ministers publicly changed to other brands of cell phones. While the protection of trade secrets is a legitimate corporate goal, and similar activities are allowed in many European Union countries, Finnish culture is strongly in favor of privacy and the right to confidentiality. The last several years have also been a time of unprecedented financial upheaval for Nokia.
The question remains whether Nokia will learn from its current troubles and adapt quickly enough to satisfy its customers, shareholders, and other stakeholders.
Discussion Questions 34 1. Do customers always respond to unethical decisions in this way? How does this impact accountability? Does this explain why Nokia kept the investigation secret? In the article, Schrage provided a few scenarios to back up his opinion.
In one such exam- ple, a company is developing a customer relationship management CRM system, and the staff is working very hard to meet the deadline. The company plans to outsource the maintenance and support of the CRM system once it is developed, meaning that there is a good chance that two-thirds of the IT staff will be laid off. Would you disclose this information? Schrage said he would with- hold it. Business involves competing values, he argued, and trade-offs must be made to keep business operations from becoming paralyzed.
Other feedback provided new perspectives on his scenarios that Schrage had not considered in his article. For example, an IT manager at Boise State University argued that doing the right thing is good for business. Not disclosing layoffs, she argued, is a trick that only works once.
Remaining employees will no longer trust the company and may pursue jobs where they can feel more secure. New job applicants will think twice before joining a company with a reputation for exploiting employees. Other readers responded to that scenario by suggesting that the company could try to maintain loyalty by offering incentives for those who stayed or by providing job-placement services to departing employees.
What if you were wrong and the boss could have helped? Once your boss knows that you lied once, will he believe you the next time? Based on his experience, he suggested speaking to the boss about the problem at an appropriate time and place. In addition, the reader explained that as situations arose that required him to convey.
The boss, the reader assured Schrage, will adapt. Others argued that engaging in unethical behavior, even for the best of purposes, crosses a line that eventually leads to more serious transgressions. Some readers suspected that Schrage had published the article to provoke outrage. Must businesses choose between good ethics and financial benefits? Do you agree? Exist, www. Co, U.
January 18, , DW, www. The CityTime project was meant to replace a largely manual, paper-based payroll system for the city.
The goal was to provide a tool that would help city administrators manage a. It was also intended to simplify. The project was initiated. SAIC , a defense company. In an unusual move, the handoff to SAIC occurred without the contract.
Around the. Richard Valcich, the NYC payroll office executive director during the initial years of the project,.
However, Valcich retired in and was replaced by Joel Bondy, a staunch. It was later discovered that Bondy worked for Spherion for two years prior to joining. In another questionable move, the CityTime contract was switched from a fixed-price contract to. This switch in the terms of the contract plus lack of project oversight. At a city hearing in December , Bondy revealed that Spherion employees were billing the. That same month, federal prosecutors charged several consultants for the CityTime project with.
The consultants were accused of. TechnoDyne are now fugitives and their whereabouts are unknown. Six other defendants are sched-. By this time, it was estimated. What were some early warning signs that signaled things were not going well with the City- Time project? What steps should city managers and SAIC have taken at an early stage of the project to identify and prevent fraud? What key characteristics distinguish a professional from other kinds of workers, and is an IT worker considered a professional?
What factors are transforming the professional services industry? What relationships must an IT worker manage, and what key ethical issues can arise in each? How do codes of ethics, professional organizations, certification, and licensing affect the ethical behavior of IT professionals? What is meant by compliance, and how does it help promote the right behaviors and discourage undesirable ones? Over the years, the United States government adopted labor laws and regulations that required a more precise definition of what is meant by a professional.
Many people would also expect professionals to contribute to society, to participate in a lifelong training program both formal and informal , to keep abreast of developments in their field, and to assist other professionals in their development.
In addition, many professional roles carry spe- cial rights and responsibilities. Doctors, for example, prescribe drugs, perform surgery, and request confidential patient information while maintaining doctor—patient confidentiality.
Are IT Workers Professionals? Many business workers have duties, backgrounds, and training that qualify them to be classified as professionals, including marketing analysts, financial consultants, and IT specialists such as mobile application developers, software engineers, systems analysts, and network administrators.
From a legal perspective, IT workers are not recognized as professionals because they are not licensed by the state or federal government. This distinction is important, for example, in malpractice lawsuits, as many courts have ruled that IT workers are not liable for malpractice because they do not meet the legal definition of a professional.
Professional Relationships That Must Be Managed IT workers typically become involved in many different relationships, including those with employers, clients, suppliers, other professionals, IT users, and society at large—as illustrated in Figure In each relationship, an ethical IT worker acts honestly and appropriately.
These various relationships are discussed in the following sections. Society Clients. IT worker. IT users Suppliers. Other professionals. Relationships Between IT Workers and Employers IT workers and employers have a critical, multifaceted relationship that requires ongoing effort by both parties to keep it strong.
An IT worker and an employer typically agree on fundamental aspects of this relationship before the worker accepts an employment offer. These issues may include job title, general performance expectations, specific work responsibilities, drug-testing requirements, dress code, location of employment, salary, work hours, and company benefits. These issues may include protection of company secrets; vacation policy; time off for a funeral or an illness in the family; tuition reimbursement; and use of company resources, including computers and networks.
Other aspects of this relationship develop over time as the need arises for example, whether the employee can leave early one day if the time is made up another day.
Some aspects are addressed by law—for example, an employee cannot be required to do anything illegal, such as falsify the results of a quality assurance test. Some aspects are specific to the role of the IT worker and are established based on the nature of the work or project—for example, the programming language to be used, the type and amount of documentation to be produced, and the extent of testing to be conducted.
IT workers often have the skills and 46 knowledge to abuse systems and data or to enable others to do so. Software piracy is an area in which IT workers may be tempted to violate laws and policies.
Although end users often get the blame when it comes to using illegal copies of commercial software, software piracy in a corporate setting is sometimes directly traceable to IT staff members—either they allow it to happen or they actively engage in it, often to reduce IT-related spending.
Its mission is to stop the unauthorized copying of software produced by its members. More than BSA lawyers and investigators prosecute thousands of cases of software piracy each year. Many of these cases are reported by disgruntled employees or former employees. Failure to cooperate with the BSA can be extremely expensive. As part of the settlement agreement with BSA, the firm deleted all unlicensed copies of software from its computers, purchased the licenses required to become compliant, and agreed to implement more effective soft- ware management procedures.
BSA was alerted to this situation by a report sent to its Web site. A trade secret is information, generally unknown to the public, that a company has taken strong measures to keep confidential. It represents something of economic value that has required effort or cost to develop and that has some degree of uniqueness or novelty. Trade secrets can include the design of new software code, hardware designs, business plans, the design of a user interface to a computer program, and manufacturing processes.
Employers worry that employees may reveal these secrets to competitors, especially if they leave the company. Zynga claimed that the employee stole files with data critical to the business—including financial projections, marketing plans, and game designs.
Another issue that can create friction between employers and IT workers is whistle- blowing. Whistle-blowing is an effort by an employee to attract attention to a negligent, illegal, unethical, abusive, or dangerous act by a company that threatens the public inter- est. Whistle-blowers often have special information based on their expertise or position within the offending organization.
For example, an employee of a chip manufacturing company may know that the chemical process used to make the chips is dangerous to employees and the general public. The employee might then consider becoming a whistle- blower and reporting the problem to people outside the company, including state or federal agencies that have jurisdiction.
The lawsuit further alleged that Infosys brought workers to the United States on B-1 visas which are intended for workers coming to the United States for short-term work assignments only , but that these workers were assigned full-time jobs.
It also claimed that Infosys was not paying the B-1 workers the prevailing wage and was not withholding federal and state income taxes. In other cases, the client is part of a dif- ferent organization.
In relationships between IT workers and clients, each party agrees to provide something of value to the other. Generally speaking, the IT worker provides hard- ware, software, or services at a certain cost and within a given time frame. The client provides compensation, access to key contacts, and perhaps a work space. This relationship is usually documented in contractual terms— who does what, when the work begins, how long it will take, how much the client pays, and so on.
Although there is often a vast disparity in technical expertise between IT workers and their clients, the two parties must work together to be successful. Typically, the client makes decisions about a project on the basis of information, alternatives, and recommendations provided by the IT worker. The IT worker must trust that the client will provide relevant information, listen to and understand what the IT worker says, ask questions to understand the impact of key decisions, and use the information to make wise choices among various alternatives.
Thus, the responsibility for decision making is shared between client and IT worker. One potential ethical problem that can interfere with the relationship between IT workers and their clients involves IT consultants or auditors who recommend their own products and services or those of an affiliated vendor to remedy a problem they have detected.
After a few weeks of analysis, the consulting firm might provide a poor rating for the existing strategy and insist that its proprietary products and services are required to develop a new strategic plan. The project manager may want to keep resources flowing into the project and hope that problems can be corrected before anyone notices. The project manager may also be reluctant to share status information because of contractual penalties for failure to meet the schedule or to develop certain sys- tem functions.
In such a situation, the client may not be informed about a problem until it has become a crisis. After the truth comes out, finger-pointing and heated discussions about cost overruns, missed schedules, and technical incompetence can lead to charges of fraud, misrepresentation, and breach of contract. Fraud is the crime of obtaining goods, services, or property through deception or trickery. Fraudulent misrepresentation occurs when a person consciously decides to induce another person to rely and act on a misrepresentation.
As an example of alleged fraud, consider the case of Paul Ceglia, who in sued Facebook claiming to own a majority of the company. Ceglia claimed that he signed a contract with Mark Zuckerberg in to design and develop the Web site that eventually became Facebook. Eventually, Ceglia was arrested on federal mail and 49 wire fraud charges.
If the misrepresentation causes the other party to enter into a contract, that party may have the legal right to cancel the contract or seek reimbursement for damages. Siri, the voice-activated software that comes with the Apple iPhone, has delighted many iPhone users; however, not everyone has had a positive experience. Shortly after one user in New York purchased an iPhone 4S, he realized that Siri was not performing as expected.
When he asked Siri for directions, it did not understand the question or after a long delay gave incorrect directions. Fur- ther, a material breach of contract occurs when a party fails to perform certain express or implied obligations, which impairs or destroys the essence of the contract. Because there is no clear line between a minor breach and a material breach, determination is made on a case-by-case basis.
Oracle entered into a contract with the GSA for the sale of software and technical support to various departments of the federal government. The contract required Oracle to provide the government with its pricing policies. Trials can take years to settle, generate substantial legal fees, and create bad publicity for both parties. As a result, the vast majority of such disputes are settled out of court, and the proceedings and outcomes are concealed from the public. In addition, IT vendors have become more careful about protecting themselves from major legal losses by requiring that contracts place a limit on potential damages.
Most IT projects are joint efforts in which vendors and customers work together to develop a system. Assigning fault when such projects go wrong can be difficult; one side. Clients and vendors often disagree about who is to blame in such circumstances. Most IT workers understand that building a good working relationship with suppliers encourages the flow of useful communication as well as the sharing of ideas. IT workers can develop good relationships with suppliers by dealing fairly with them and not making unreasonable demands.
Suppliers strive to maintain positive relationships with their customers in order to make and increase sales. To achieve this goal, they may sometimes engage in unethical actions—for example, offering an IT worker a gift that is actually intended as a bribe.
Clearly, IT workers should not accept a bribe from a vendor, and they must be careful when considering what constitutes a bribe. For example, accepting invitations to expen- sive dinners or payment of entry fees for a golf tournament may seem innocent to the recipient, but it may be perceived as bribery by an auditor. Bribery is the act of providing money, property, or favors to someone in business or government in order to obtain a business advantage. This type of bribe is often referred to as a kickback or a payoff.
The person who offers a bribe commits a crime when the offer is made, and the recipient is guilty of a crime if he or she accepts the bribe.
Various states have enacted bribery laws, which have sometimes been used to invalidate contracts involving bribes but have seldom been used to make criminal convictions. He now faces 20 years in prison on charges of money laundering, receiving kickbacks, and wire fraud. The Foreign Corrupt Practices Act FCPA makes it a crime to bribe a foreign official, a foreign political party official, or a candidate for foreign political office.
The act applies to any U. However, a bribe is not a crime if the payment was lawful under the laws of the foreign country in which it was paid. The goal of these standards is to prevent companies from using slush funds or other means to disguise payments to foreign officials.
The United Nations Convention Against Corruption is a legally binding global treaty designed to fight bribery and corruption. In particular, the countries pledged to put in place mechanisms for the recovery of property from corrupt officials through international cooperation in tracing, freezing, and confiscating assets. Members also pledged to adopt and enforce laws against international bribery and put in place rules to protect whistle- blowers.
In fact, in some coun- tries, it would be considered rude not to bring a present to an initial business meeting. But, at what point does a gift become a bribe, and who decides? The key distinguishing factor is that no gift should be hidden. A gift may be consid- ered a bribe if it is not declared. As a result, most companies require that all gifts be declared and that everything but token gifts be declined.
Some companies have a policy of pooling the gifts received by their employees, auctioning them off, and giving the proceeds to charity. When it comes to distinguishing between bribes and gifts, the perceptions of the donor and the recipient can differ. The recipient may believe he received a gift that in no way obligates him to the donor, particularly if the gift was not cash.
Table shows some distinctions between bribes and gifts. TABLE Distinguishing between bribes and gifts Bribes Gifts 52 Are made in secret, as they are neither legally nor Are made openly and publicly, as a gesture of morally acceptable friendship or goodwill.
Are often made indirectly through a third party Are made directly from donor to recipient. Encourage an obligation for the recipient to act Come with no expectation of a future favor for favorably toward the donor the donor.
Relationships Between IT Workers and Other Professionals Professionals often feel a degree of loyalty to the other members of their profession. As a result, they are often quick to help each other obtain new positions but slow to criticize each other in public. To gain the goodwill of the community d. A complication of the approach to decision making is that measuring and comparing the values of certain benefits and costs is often difficult, if not impossible.
Ethics b. Virtues c. Every society forms a set of rules that establishes the boundaries of generally accepted behavior.
These rules are often expressed in statements about how people should behave, and they fit together to form the by which a society lives. Moldova b. Bangladesh c. Libya d. Companies that develop and maintain strong employee relations: a. In the case of United States v. Supreme Court established that: a. A rapid increase in the appointment of corporate ethics officers typically follows: a. Based on a National Business Ethics Survey, the percentage of employees who said they reported misconduct in the workplace when they saw it.
The that socially responsible activities create can make it easier for corporations to conduct their business. The step in the decision-making process during which the decision makers consider laws, guidelines, policies, and principles that might apply to the decision is the step. Which of the following is the most critical step in the decision-making process?
Evaluation of the results b. Identification of alternative solutions c. Development of a problem statement d. Tata Consultancy Services b. Wipro Consultancy Services c. Genpact d. Someone who stands to gain or lose, depending on how a situation is resolved is called a a. In a n , an organization reviews how well it is meeting its ethical and social responsibility goals, and communicates its new goals for the upcoming year. A well-implemented ethics and compliance program and a strong ethical culture can lead to: a.
An approach to ethical decision making that is based on a vision of society as a community whose members work together to achieve a general set of values and goals is the approach. A provides an organization with vision and leadership in the area of business conduct.
Section of the Sarbanes-Oxley Act states that: a. The approach to decision making suggests that when faced with a complex ethical dilemma, people do either what they are most comfortable doing or what they think a person they admire would do. The goal of the approach to ethical decision making is to find the single greatest good by balancing the interests of all affected parties. In the decision-making process of implementing the decision, a n how they will move from the old way of doing things to the new way.
The principle that the ethical choice treats everyone the same and shows no favoritism or discrimination is most closely associated with the approach to dealing with moral issues. The approach to ethical decision making fits easily with the concept of value in economics and the use of cost-benefit analysis in business. Decisions and policies that use the approach to decision making attempt to implement social systems, institutions, and environments that everyone depends on and that benefit all people.
Section of the requires public companies to disclose whether they have a code of ethics and to disclose any waiver of the code for certain members of senior management. During the problem definition process, one must be extremely careful not make. 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.
Supply chain sustainability is a component of 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.
The growth of the Internet and the ability to capture and store vast amounts of personal data have increased the risk that will be used unethically. A n aligns the practices of a workplace with the stated ethics and beliefs of that workplace, holding people accountable to ethical standards. What is a social audit? ANSWER: In a social audit, an organization reviews how well it is meeting its ethical and social responsibility goals, and communicates it new goals for the coming year. This information is shared with employees, shareholders, investors, market analysts, customers, suppliers, government agencies, and the communities in which the organization operates.
Describe two trends that 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 much more difficult to apply principles and codes of ethics consistently. For example, numerous U.
Some organizations are sorely tempted to resort to unethical behavior to maintain profits. In the context of an ethical decision-making process, discuss the importance of communication in implementing a change.
This is much easier said than done, because people tend to resist change. In fact, the bigger the change, the greater the resistance to it. Communication is the key in helping people accept a change. It is imperative that someone whom the stakeholders trust and respect answer the following questions: Why are we doing this? What is wrong with the current way we do things?
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By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. To browse Academia. Ethics in Information Technology, Fifth Edition, has been updated and revised to incorporate the many new developments and ethical issues that have arisen since the last edition.
Tehcnology is new or expanded coverage of the following topics: the increased security risks of bring your own device BYOD business policies, the role of the Edltion Security Agency in breaking of codes used to encrypt sensitive communications and for the interception of signals on behalf of the federal government, the ethics of using online reputation management companies, the use of strategic lawsuits against public participation SLAPP and anti-SLAPP lawsuits, the theft by China of ethics in information technology 5th edition solution manual secrets from the United States and Western Europe, and telehealth and telemedicine and their role in the delivery of health care.
All opening vignettes and two-thirds of the end-of-chapter cases are new or extensively updated. Dozens of new real-world examples are erhics in each chapter. At least 50 percent of the Log in with Ethics in information technology 5th edition solution manual Log in with Google. Remember me on this computer. Enter the email address tschnology signed up with and we'll email you a reset link. Need an account? Click here to sign up.
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