Ethics in IT: An Overview

• Ethics in Information Technology, Fourth Edition, Lecture 1 provides an overview of ethics.

Objectives

• Key questions to consider include the definition of ethics, the importance of ethical conduct, rising importance of business ethics, organizational efforts to improve ethics, and the impact of trends on unethical information technology usage.

Defining Ethics

• A moral code is a set of rules that establishes boundaries for generally accepted behavior, though rules can sometimes contradict.
• Morality describes social conventions about right and wrong and forms the basis for an established consensus.
• Variations in morality can stem from differing ages, cultural groups, ethnic backgrounds, religions, life experiences, education, and gender.
• Ethics represents a set of beliefs about right and wrong behavior
• Virtues are habits that lead people to do what is acceptable.
• Vices are habits of unacceptable behavior.
• Personal value systems are defined by virtues and vices and represent a scheme of moral values.

Integrity

• Integrity is fundamental to ethical behavior, entailing consistent actions based on personal principles, respect, and consideration for all.
• Applying moral standards differently based on situations or people indicates a lack of integrity.
• Ethical dilemmas are often complex, not straightforward choices between right and wrong.

Morals, Ethics, and Laws

• Morals are individual beliefs about right and wrong.
• Ethics are standards of behavior expected of someone by a group.
• Laws are rules enforced by institutions and determine permissible and prohibited actions. Legal actions conform to the law, while moral acts align with individual beliefs of right and wrong.

Business Ethics

• The likelihood and impact of inappropriate behavior have increased in the business world.
• Globalization leads to complex work environments, while organizations face pressure to maintain profits/revenue.
• Increased vigilance from employees, shareholders, and regulatory agencies heightens the need for business ethics.
• IT company scandals include Satyam Computer Services (India), Hewlett Packard, Computer Associates International, and IBM.
• Ethical dilemmas can affect all employees, not just executives.

Good Business Ethics

• Fostering good business ethics is important for gaining community goodwill, creating consistent organizational operations, and fostering good practices.
• It also helps protect organizations and employees from legal action and to avoid unfavorable publicity.

Community

• Organizations have fundamental responsibilities to society, declared in formal statements of company principles or beliefs.
• These include charitable contributions and benefits for employees exceeding legal requirements.
• They also include economic opportunities that are more socially desirable than strictly profitable.
• Socially responsible activities enhance goodwill, facilitating business operations for corporations.

Consistency

• Consistency ensures that employees know expectations and can apply organizational values in decision-making.
• Shareholders, customers, suppliers, and the community can anticipate organizational behavior when there is consistency.
• Many companies operate with honesty and integrity, adhere to ethical standards, and treat stakeholders with respect.
• They strive for excellence and value diversity while making decisions based on facts and principles.

Business Practices

• Good ethics equates to improved business and profits.
• Companies produce safe, and effective products while avoiding recalls and lawsuits.
• They provide excellent service, cultivate robust employee relations, reduce turnover, and foster better employee morale.
• Suppliers/business partners prioritize collaboration with fair and ethical companies.
• Bad ethics leads to bad business, declining profits, and adverse effects on employees.

Legal Action

• The U.S. Supreme Court established that employers are responsible for employee actions, a principle termed respondeat superior.
• Some legal organizations advocate that ethics and compliance programs should reduce organizational criminal liability.
• Others contend that company officers with ineffective ethics programs should not receive lenient sentences.

Unfavorable Publicity

• Public reputation strongly influences a company's stock value, consumer perception, government oversight, and support/cooperation received.
• Organizations implement ethics programs to prevent negative publicity.

Corporate Ethics

• Successful ethics programs are characterized by employees seeking ethical advice and preparedness to handle misconduct situations.
• They are also characterized by rewarding ethical behavior, not rewarding questionable success, and fostering positive employee sentiment about the company.

Corporate Ethics Officer

• A corporate ethics officer provides vision and leadership in business conduct.
• They are typically a well-respected, senior-level manager reporting to the CEO.
• They put ethical procedures in place and create/maintain ethics culture.
• The officer serves as a key point of contact and knowledge for ethical issues.

Board of Directors

• The board oversees the organization's business activities and management.
• Board members must uphold high personal and professional integrity standards.
• They are responsible for setting ethical conduct standards, ensure regulatory compliance, and promote an environment where employees can seek ethical guidance, raise concerns, and report misconduct.

Corporate Code Of Ethics

• A code of ethics highlights an organization's key ethical issues, overarching values, and principles.
• Focuses employees on areas of ethical risk.
• It also provides guidance for recognizing and addressing ethical issues.
• It provides mechanisms for reporting unethical conduct and ensures employee compliance with laws and regulations.
• Intel's five principles of conduct includes conducting business with honesty/integrity, following the letter/spirit of the law and treating employees fairly.
• It also includes acting in Intel's best interests, avoiding conflicts of interest, and protecting the company's assets/reputation.