AN OVERVIEW OF ETHICS

AN OVERVIEW OF ETHICSEthics in Information Technology, Second Edition

What is Ethics?Moral codeSet of rules Establishes boundaries of generally accepted behaviourDifferent rules often have contradictionsMoralitySocial conventions about right and wrongWidely shared

What is Ethics? (continued)Morality may vary by:AgeCultural groupEthnic backgroundReligionGender

Definition of EthicsEthics is a set of beliefs about right and wrong behaviorEthical behavior conforms to generally accepted social normsVirtuesHabits that incline people to do what is acceptableVicesHabits of unacceptable behaviorValue systemScheme of moral valuesThe Importance of IntegrityIntegrity is a cornerstone of ethical behaviorPeople with integrity Act in accordance with a personal code of principlesExtend to all people the same respect and consideration that you desireApply the same moral standards in all situationsEthics in the Business WorldRisk is the product of multiplying the likelihood of an event by the impact of its occurrenceRisks associated with inappropriate behavior have increased due toGlobalizationHeightened vigilance by EmployeesShareholders Regulatory agencies

Ethics in the Business WorldRecent scandals in IT companiesWorldComQwest Communications International Inc.Adelphia Communications Corp.Computer Associates (CA)Legal Overview: The Sarbanes-Oxley ActEnacted in response to public outrage over several major accounting scandalsSection 404 requires that the CEO and CFO sign any SEC filing to attest to its accuracyPublic Company Accounting Oversight Board (PCAOB) provides oversight for auditors of public companiesIT organizations must build controls that ensure information stands up to audit scrutinyWhy Fostering Good Business Ethics Is ImportantTo gain the goodwill of the communityTo create an organization that operates consistentlyTo produce good businessTo protect the organization and its employees from legal actionTo avoid unfavorable publicityGaining the Goodwill of the CommunityBasic responsibilities to societyDeclared in formal statement of companys principles or beliefsInclude:Making contributions to charitable organizations and nonprofit institutionsProviding benefits for employees in excess of legal requirementsChoosing economic opportunities that might be more socially desirable than profitableGoodwill that socially responsible activities create can make it easier for corporations to conduct business

Creating an Organization That Operates ConsistentlyMany business values include:Operating with honesty and integrity, staying true to corporate principlesOperating according to standards of ethical conduct, in words and actionTreating colleagues, customers, and consumers with respectStriving to be the best at what matters most to the companyAccepting personal responsibility for actionsValuing diversityMaking decisions based on facts and principlesGood Ethics Can Mean Good BusinessProduce safe and effective products Avoid costly recalls and lawsuitsProvide excellent service Maintain customersDevelop and maintain strong employee relations Suffer less turnoverEnjoy better employee moraleSuppliers and other business partners prefer companies that operate in a fair and ethical mannerBad ethics can lead to bad business resultsProtecting the Corporation and Its Employees from Legal ActionsU.S. Justice Department sentencing guidelines suggest more lenient treatment for convicted executives if their companies had ethics programsFines for criminal violations can be lowered by up to 80 percent if the organization has implemented an ethics management program and cooperates with authorities

Avoiding Unfavorable PublicityPublic reputation of company strongly influences Value of its stockHow consumers regard products and servicesDegree of oversight received from government agenciesAmount of support and cooperation received from business partnersImproving Corporate EthicsRisks of unethical behavior are increasingImprovement of business ethics is becoming more important

Appointing a Corporate Ethics OfficerCorporate ethics definition includesEthical conductLegal complianceCorporate social responsibilityCorporate ethics officer Is a senior-level manager Provides vision and direction in the area of business conductTries to establish an environment that encourages ethical decision makingAppointing a Corporate Ethics Officer Responsibilities include:Complete oversight of the ethics functionCollecting and analyzing dataDeveloping and interpreting ethics policyDeveloping and administering ethics education and trainingOverseeing ethics investigationsEthical Standards Set by Board of DirectorsBoard responsible for supervising management teamDirectors of company are expected to Conduct themselves according to the highest standards of personal and professional integritySet standard for company-wide ethical conduct Ensure compliance with laws and regulationsEstablishing a Corporate Code of EthicsCode of ethics: Highlights an organizations key ethical issues Identifies overarching values and principles important to an organizationFocuses employees on areas of ethical riskCannot gain company-wide acceptance unless Developed with employee participation Fully endorsed by organizations leadershipMust continually be applied to companys decision makingCorporate Satisfaction with their Codes of Ethics

Conducting Social AuditsSocial auditIdentifies ethical lapses committed in the past Sets directives for avoiding similar missteps in the future

Requiring Employees to Take Ethics TrainingComprehensive ethics education program encourages employees to act responsibly and ethicallyOften presented in small workshop formatsPrinciple-based decision making is based on principles in corporate code of ethicsIncluding Ethical Criteria in Employee AppraisalsSome companies base a portion of employee performance evaluations on: Treating others fairly and with respectOperating effectively in a multicultural environmentAccepting personal accountabilityContinually developing themselves and othersOperating openly and honestly with suppliers, customers, and other employeesWhen Good Ethics Result in Short-Term LossesOperating ethically does not always guarantee business successOrganizations that operate outside the United StatesDeal with a business as usual climateAre placed at a significant competitive disadvantageHope good ethics will prove to be good business in the long termCreating an Ethical Work EnvironmentGood employees sometimes make bad ethical choicesMay be encouraged to do whatever it takes to get the job doneEmployees must have a knowledgeable and potent resource available to discuss perceived unethical practices

How Management Can Affect Employees Ethical Behaviour

How Management Can Affect Employees Ethical Behaviour

Managers Checklist

Ethical Decision MakingGet the factsIdentify stakeholders and their positionsConsider the consequences of a decisionWeigh various guidelines and principlesDevelop and evaluate optionsReview a decisionEvaluate the results of a decisionPhilosophical Theories for Ethical Decision Making

Ethics in Information TechnologyPublic concern about the ethical use of information technology includes:E-mail and Internet access monitoringPeer-to-peer networks violation of copyrightUnsolicited e-mailHackers and identify theftPlagiarismCookies and spywareEthics in Information Technology The general public has not realized the critical importance of ethics as applied to ITImportant technical decisions are often left to technical expertsGeneral business managers must assume greater responsibility for these decisionsThey must be able to make broad-minded, objective, ethical decisions based on technical savvy, business know-how, and a sense of ethicsThey must also try to create a working environment in which ethical dilemmas can be discussed openly, objectively, and constructivelySummaryEthics is a set of beliefs about right and wrong behaviorEthics in business is becoming more important because the risks associated with inappropriate behavior have grown Corporations want to protect themselves and their employees from legal actionSummary 7-step approach to ethical decision makingTrends contributing to the risk of using information technology unethically include:Growth of the InternetAbility to capture and store vast amounts of personal data onlineGreater reliance on information systems