Ethical Issues in Information Systems Chapter 4

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Questions and Answers

What ethical concern is raised by behavioral targeting in information systems?

It allows for the efficient targeting of ads.

It enhances user experience on websites.

It raises issues regarding individual privacy. (correct)

It reduces the cost of advertising.

Which principle can guide ethical decisions in the context of information systems?

Complete anonymity of users.

Aggressive marketing strategies.

Profit maximization for businesses.

Transparency in data collection. (correct)

How do contemporary information systems technology and the Internet challenge the protection of intellectual property?

By increasing the possibilities of unauthorized sharing. (correct)

By making distribution of artistic content easier.

By reducing the ownership rights of consumers.

By enhancing the security measures for digital content.

What is a primary purpose of behavioral targeting in digital marketing?

To tailor advertisements to specific user demographics. Signup and view all the answers

What is one effect of information systems on everyday life?

They have increased exposure to targeted advertisements. Signup and view all the answers

What does NORA technology primarily aim to achieve?

Finding nonobvious relationships among disparate data sources Signup and view all the answers

Which factor contributes to the ease of accessing personal data from remote locations?

Networking advancements and the Internet Signup and view all the answers

How does profiling leverage data analysis techniques?

It combines data from multiple sources to create detailed individual files. Signup and view all the answers

What has contributed to the rapidly declining data storage costs?

Increased competition among storage providers Signup and view all the answers

What is a potential ethical concern related to data profiling and NORA technology?

Identification of individuals without their knowledge can lead to privacy violations. Signup and view all the answers

What ethical dilemma is illustrated by the cases of Barclays Bank and Walmart?

Bribery and fraudulent reports Signup and view all the answers

Which aspect is NOT one of the five moral dimensions of the information age?

Cultural sensitivity Signup and view all the answers

What is a significant challenge posed by information systems regarding ethics?

They obscure accountability. Signup and view all the answers

Which model compares society to a 'calm pond' and IT to a 'rock'?

Ethical, social, and political issues model Signup and view all the answers

What does the phrase 'ripples of new situations' in the ethical model refer to?

Long-term effects of technological advancements Signup and view all the answers

Which of the following best describes one challenge with measuring ethics?

Individual ethics may conflict with profit motives. Signup and view all the answers

What key technology trend is mentioned as raising ethical issues?

Doubling of computer power Signup and view all the answers

What is a critical social change driven by information systems?

Emergence of new forms of crime Signup and view all the answers

Which principle of the FTC Fair Information Practice emphasizes the need for websites to disclose their data collection practices prior to gathering user information?

Notice/awareness Signup and view all the answers

Which of the following acts relates to the protection of children's online privacy?

Consumer Protection Act (COPPA) Signup and view all the answers

According to FTC Fair Information Practice principles, what must consumers be allowed to do regarding their personal data?

Review and contest accuracy Signup and view all the answers

What is required by the European Directive on Data Protection before companies can collect personal data?

Informed consent Signup and view all the answers

What does the enforcement principle of the FTC FIP ensure?

Mechanisms to enforce FIP principles Signup and view all the answers

Which framework allows U.S. businesses to operate under self-regulation concerning privacy without heavy governmental oversight?

Safe Harbor Framework Signup and view all the answers

Which principle does the FTC FIP emphasize to ensure that personal data security is maintained?

Security Signup and view all the answers

What is a significant restriction imposed by the European Directive on Data Protection regarding data transfer?

Cannot transfer data to countries lacking similar privacy protection Signup and view all the answers

What does accountability refer to in an ethical context?

Identifying responsible parties for actions taken Signup and view all the answers

Which ethical principle emphasizes treating others as one wishes to be treated?

Golden Rule Signup and view all the answers

Which of the following is NOT part of the five-step ethical analysis?

Assess the legal implications of the situation Signup and view all the answers

What does the due process principle ensure?

That individuals can appeal to higher authorities Signup and view all the answers

What does the utilitarian principle advocate?

Maximizing overall happiness through decision-making Signup and view all the answers

Which principle suggests that an action is not right if it cannot be universally applied?

Kant’s Categorical Imperative Signup and view all the answers

What is the first step in the five-step ethical analysis?

Identify the facts Signup and view all the answers

What does liability allow individuals and firms to do?

Seek damages from responsible parties Signup and view all the answers

Study Notes

Learning Objectives

Understanding ethical, social, and political issues raised by information systems.
Identifying principles to guide ethical conduct and decision-making.
Examining challenges posed by modern information technology to privacy and intellectual property.
Analyzing the impact of information systems on daily life.

Behavioral Targeting and Privacy

Behavioral targeting enhances online ad efficiency by tracking user activity across various sites.
Google employs tracking files for user monitoring, while businesses analyze site activity to understand consumer behavior.
Ethical concerns arise regarding the implications of such extensive online information collection.

Recent ethical failures include notable cases from Barclays, GlaxoSmithKline, and Walmart, highlighting misuse of information systems for unethical practices.
Ethical principles guide individual choices, affecting behaviors within information systems.

Information systems provoke new ethical questions, fostering significant social changes.
They facilitate new types of crime and challenge existing norms of power, rights, and responsibilities.
Difficulties arise in comparing individual ethics against financial incentives.

Ethical Framework

Society's structure can be likened to a calm pond; information technology creates ripples that disrupt existing norms and require time to address.
Understanding ethics is crucial for navigating uncertain legal landscapes.

Moral Dimensions of the Information Age

Five key moral dimensions:
- Information rights and obligations
- Property rights and obligations
- Accountability and control
- System quality
- Quality of life

Key Technology Trends and Ethical Issues

Rapid increases in computer power and declining data storage costs lead organizations to maintain extensive databases on individuals.
Advances in networking and data analysis facilitate easy data sharing and profiling (e.g., Nonobvious Relationship Awareness or NORA) to uncover hidden connections.

NORA Technology

NORA identifies obscure relationships among individuals by aggregating data from varied sources, potentially flagging security concerns.

Ethics in Information Society

Basic concepts for ethical analysis include:
- Responsibility: Acknowledging the impacts of decisions.
- Accountability: Identifying those responsible for actions.
- Liability: Allowing recovery for damages.
- Due process: Ensuring fair application of laws.

Five-Step Ethical Analysis

Identify the facts of the situation.
Define the ethical dilemma and relevant values.
Identify stakeholders affected by the decision.
Explore possible actions to take.
Assess potential outcomes for each action.

Candidate Ethical Principles

Golden Rule: Treat others as you wish to be treated.
Categorical Imperative: Actions should be universally applicable.
Descartes' Rule of Change: Actions should be repeatable without harm.
Utilitarian Principle: Choose actions that provide the greatest benefit.
Risk Aversion Principle: Opt for actions with minimal risk or harm.

Privacy Legislation and the FTC

The Federal Trade Commission’s Fair Information Practice principles include:
- Notice/Awareness: Disclosing data practices prior to collection.
- Choice/Consent: Allowing consumers to control data usage.
- Access/Participation: Enabling review of personal data accuracy.
- Security: Ensuring data accuracy and safety.
- Enforcement: Establishing accountability mechanisms.

European Data Protection Directive

Companies must inform individuals about data collection, usage, and storage.
Requires informed consent and restricts data transfer outside the EU without equivalent privacy safeguards.
U.S. businesses often operate under a self-regulating safe harbor framework to comply with privacy objectives without strict government enforcement.

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Description

Explore the ethical, social, and political issues raised by information systems in this quiz on Chapter 4. Understand the guiding principles for ethical decision-making and the impact of contemporary technology. Test your knowledge on the foundational concepts of ethics in information systems.