Ethics in Information Technology Chapter 1 Quiz

Ethics in Information Technology

What is Ethics?

• Ethics is a set of beliefs about right and wrong behavior
• Virtues are habits that incline people to do what is acceptable
• Vices are habits of unacceptable behavior
• A personal value system is a scheme of moral values formed by virtues and vices

The Importance of Integrity

• Integrity is a cornerstone of ethical behavior
• People with integrity act in accordance with a personal code of principles
• Integrity emerges when moral standards are applied consistently in all situations

The Difference Between Morals, Ethics, and Laws

• Morals: personal beliefs about right and wrong
• Ethics: standards or codes of behavior expected of an individual by a group
• Laws: system of rules that tells us what we can and cannot do

Ethics in the Business World

• Several trends have increased the likelihood of unethical behavior, including globalization, maintaining profits, and heightened vigilance by employees, shareholders, and regulatory agencies
• Recent scandals in IT companies, such as Satyam Computer Services, Hewlett Packard, Computer Associates International, and IBM, highlight the importance of ethics

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 the organization and employees from legal action
• To avoid unfavorable publicity

Creating an Organization That Operates Consistently

• Consistency ensures that employees know what is expected of them
• Consistency also means that shareholders, customers, suppliers, and the community know what they can expect of the organization

Fostering Good Business Practices

• Good ethics means good business and improved profits
• Bad ethics means bad business and waning profits
• Suppliers and business partners prioritize working with companies that operate in a fair and ethical manner

Protecting the Organization and Its Employees from Legal Actions

• The U.S. Supreme Court established that an employer can be held responsible for the acts of its employees
• Organizations are motivated to build strong ethics programs to avoid negative publicity

Improving Corporate Ethics

• Characteristics of a successful ethics program include:
  • Employees willing to seek advice about ethical issues
  • Employees feel prepared to handle situations that could lead to misconduct
  • Employees are rewarded for ethical behavior
  • Employees are not rewarded for success obtained through questionable means
  • Employees feel positive about their company

Appointing a Corporate Ethics Officer

• The corporate ethics officer provides vision and leadership in business conduct
• The officer ensures ethical procedures are put in place
• The officer creates and maintains an ethics culture
• The officer is responsible for key knowledge/contact person for ethical issues

Ethical Standards Set by Board of Directors

• The board oversees the organization's business activities and management
• Board members of the company are expected to:
  • Conduct themselves according to the highest standards of personal and professional integrity
  • Set standard for company-wide ethical conduct
  • Ensure compliance with laws and regulations
  • Create an environment in which employees can seek advice about business conduct, raise issues, and report misconduct

Establishing a Corporate Code of Ethics

• A code of ethics highlights an organization's key ethical issues
• A code of ethics identifies overarching values and important principles
• A code of ethics focuses employees on areas of ethical risk
• A code of ethics offers guidance for employees to recognize and deal with ethical issues
• A code of ethics provides mechanisms to report unethical conduct

Conducting Social Audits

• A social audit reviews how well an organization is meeting ethical and social responsibility goals
• A social audit communicates new goals for the upcoming year
• A social audit is shared broadly with employees, shareholders, investors, market analysts, customers, suppliers, government agencies, and local communities