Ethics in Information Technology Chapter 1 Quiz

Objectives of the Chapter

• Consider the importance of ethics and its impact on business
• Understand why business ethics is becoming increasingly important
• Identify what organizations are doing to improve their business ethics
• Learn how to approach ethical decision making
• Recognize the trends that have increased the risk of using information technology in an unethical manner

What is Ethics?

• Moral code: a set of rules prescribing righteous behavior
• Ethics: a set of beliefs about right and wrong behavior
• Moral code and ethics establish boundaries of generally accepted behavior
• Morality may vary based on age, cultural group, ethnic background, religion, life experiences, education, and gender

The Importance of Integrity

• Integrity is a cornerstone of ethical behavior
• People with integrity act in accordance with a personal code of principles, extend respect and consideration to all, and apply the same moral standards in all situations

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 tell us what we can and cannot do

Ethics in the Business Domain

• Risks associated with inappropriate behavior have increased due to globalization, complex work environments, and the need to maintain profits
• Organizations are challenged to maintain profits, and employees, shareholders, and regulatory agencies have developed expectations of ethical behavior

Why Fostering Good Business Ethics is Important

• To gain the good will of the community
• To create an organization that operates consistently
• To produce good business practices
• To protect the organization and employees from legal action
• To avoid unfavorable publicity

Gaining the Good Will of the Community

• Fundamental responsibilities to society include making contributions to charitable organizations and providing benefits to employees
• Socially responsible activities create good will and make it easier for corporations to conduct business

Creating an Organization that Operates Consistently

• Many companies share values such as operating with honesty and integrity, respecting colleagues and customers, and valuing diversity

Fostering Good Business Practices

• Good ethics lead to good business and improved profits
• Companies that produce safe and effective products, provide excellent service, and develop strong employee relations enjoy better business results

Avoiding Unfavorable Publicity

• Public reputation of a company strongly influences its stock value, consumer regard, and government oversight

Improving Corporate Ethics

• Characteristics of a successful ethics program include employees willing to seek advice, feeling prepared to handle situations, and being rewarded for ethical behavior
• A corporate ethics officer provides vision and leadership, ensures ethical procedures, and creates an ethics culture

Establishing a Corporate Code of Ethics

• Code of ethics highlights an organization's key ethical issues, identifies overarching values and principles, and focuses employees on areas of ethical risk
• A code of ethics must be developed with employee participation, fully endorsed by leadership, and continually applied to company decisions

Including Ethical Criteria in Employee Appraisal

• Some companies base a portion of employee performance evaluations on treating others fairly, operating effectively in a multicultural environment, and accepting personal accountability

Creating an Ethical Work Environment

• Employees may make bad ethical choices due to pressure to get the job done, and need a knowledgeable resource to observe unethical practices
• Managers can affect employees' ethical behavior by setting a good example, providing resources, and creating an environment that supports ethical decision-making

Including Ethical Considerations in Decision Making

• Steps in a decision-making process include developing a problem statement, identifying stakeholders, and evaluating alternatives
• Four common approaches to ethical decision making are virtue ethics, utilitarian, fairness, and common good approaches