Chapter 9

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Business & Society

Ethics, Sustainability, and Stakeholder
Management

Eighth Edition

Archie B. Carroll

Ann K. Buchholtz

© 2012 South
-
Western, a part of Cengage Learning

1

Chapter 9

Business

Ethics and

Technology

© 2012 South
-
Western, a part of Cengage Learning

2

Learning Outcomes

© 2012 South
-
Western, a part of Cengage Learning

1.
Identify the role that technology plays in
our business lives.

2.
Gain an understanding of the technological environment and
the characteristics of technology that
influence business
ethics and stakeholders.

3.
Identify the benefits and side effects of technology in
business.

4.
Gain an appreciation of society’s intoxication with
technology and the consequences of this intoxication.

5.
Learn to differentiate between information technology and
biotechnology and their ethical
implications for management.

6.
Identify the ethical issues involved in biotechnology and
present arguments on both sides of the issues.

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Chapter Outline


Technology and the Technological Environment


Characteristics of Technology


Technology and Ethics


Information Technology


Biotechnology


Summary


Key Terms

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© 2012 South
-
Western, a part of Cengage Learning

Technology

The new generation of young people is
called the iGeneration


technology is part
of their DNA.


Young people have no technological off switch


New technologies to benefit businesses like
social networking


Security issues like in
-
store surveillance
cameras to monitor customers






© 2012 South
-
Western, a part of Cengage Learning

5

Technology and the Technological
Environment


Technology


The
totality of the means employed
to
provide
objects necessary for
human
sustenance and
comfort.


A scientific method used to achieve a practical
purpose.

Technological
environment


The total set of technology
-
based
advancements or progress taking place in
society.





6

© 2012 South
-
Western, a part of Cengage Learning

Characteristics of Technology

Benefits of Technology


Increase
production of goods and services


Reduce
amount of labor needed to produce

goods and services


Make
labor easier and safer


Increased productivity


Higher standard
of living


Increased life
expectancy



It can be difficult to spread the benefits of
technology beyond the developed world.





7

© 2012 South
-
Western, a part of Cengage Learning

Challenges of Technology


Side Effects of Technology


Environmental pollution


Depletion of natural resources


Technological unemployment


Creation of unsatisfying
jobs






8

© 2012 South
-
Western, a part of Cengage Learning

Technology and Ethics


Two Key Issues


Technological determinism


W
hat
can

be developed
will

be
developed.


Ethical lag


O
ccurs
when the speed of technological
change far exceeds that of ethical
development.




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© 2012 South
-
Western, a part of Cengage Learning

Symptoms of Society’s Technology
Intoxication

1.
We favor the quick
fix.

2.
We fear and worship
technology.

3.
We blur the distinction between what is
real and
fake.

4.
We accept violence as
normal.

5.
We love technology as a
toy.

6.
We live our lives distanced and
distracted.


Find the right balance!



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© 2012 South
-
Western, a part of Cengage Learning

Information Technology

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© 2012 South
-
Western, a part of Cengage Learning

Biotechnology

Electronic commerce

Computer technology

in the workplace

Information Technology

Electronic Commerce

Electronic commerce


Also called e
-
commerce, e
-
business, or Web
-
based marketing.


The Internet has reshaped the way business is
conducted.

Key issues in e
-
commerce
e
thics


Access


Intellectual property


Privacy and informed consent


Protection of children


Security of information


Trust





12

© 2012 South
-
Western, a part of Cengage Learning

Invasion of Privacy via

E
-
Commerce


Identity theft


Unintentionally revealing information


Lost/stolen
personal information


Fake Web sites


Government distribution of information


Broadcasting information over the Internet


Victim of spying


Cyberstalking


13

© 2012 South
-
Western, a part of Cengage Learning

Invasion of Privacy via

E
-
Commerce
(continued)

Cookies


I
dentification
tags that Web sites drop on
our personal computer hard drives so they
can recognize repeat visitors the next time
we visit their Web
sites.

Spam


U
nsolicited
commercial e
-
mail. It is sent
through "open
-
relays" to millions of
persons.

Identity Theft


Tampering
with one’s financial
accounts.




14

© 2012 South
-
Western, a part of Cengage Learning

Government’s Involvement


The
Financial Services Modernization Act of
1999


Made it possible
for consumers to get
all financial
services
from one company.


Convenient, but empowered
these companies to
develop
detailed
portraits of their customers

Other legislation


FTC Act


Gramm
-
Leach
-
Bliley Act


Fair Credit Reporting Act


Children’s Online Privacy Protection Act



The government has been criticized for not doing
enough to protect consumers.



15

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-
Western, a part of Cengage Learning

Business Initiatives with Privacy
Protection

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© 2012 South
-
Western, a part of Cengage Learning

Ethical leadership

Privacy policies

Chief privacy officers

Data security

Questionable Businesses and
Practices

Electronic commerce has made possible many
questionable businesses and practices.


Pornography


Gambling


Illegal Web
-
based downloading of music,
movies, books, and other copyrighted
materials


Problems with intellectual property protection


Monitoring technology


“Phishing




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© 2012 South
-
Western, a part of Cengage Learning

The Workplace and Computer
Technology

Employees
g
enerally like technology in
the workplace


Expands job
-
related knowledge


Increases productivity during
normal work
hours and commuting time


Improves communication with clients and
customers


Relieves job stress


Improved time management


Expanded professional networks


Development of a competitive edge


Balance of work and family needs





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© 2012 South
-
Western, a part of Cengage Learning

Surveillance


Surveillance raises questions about privacy
violations.

Computers


Monitoring website
connections


Storing and reviewing employee computer files


Blocking
access to inappropriate websites

Telephone


Monitoring time spent, numbers called


Taping phone
conversations

Video


Video surveillance against theft


Surveillance
to monitor employee
performance




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© 2012 South
-
Western, a part of Cengage Learning

Social Media and Surveillance


Employers may monitor social media
usage and check employee’s social media
pages.


Some employers even monitor employees’
Internet access from hotel rooms while on
business trips.


Employees have been terminated:


After employers read their Facebook and
MySpace pages.


For posting inappropriate videos on websites
like YouTube.





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© 2012 South
-
Western, a part of Cengage Learning

Biometrics

Biometrics


T
he
use of body measurements, such as eye
scans,
fingerprints, or
palm prints for
determining and confirming
identity.


An explosion
of applications in the
commercial use of
biometrics.



Not much focus on the legal ethical risks
yet.



21

© 2012 South
-
Western, a part of Cengage Learning

Unethical Employee Activities
Related to Technology


Created a dangerous situation by using new
technology while driving


Wrongly blamed
error on technological glitch


Copied company software for home use


Used office equipment to shop on the Internet


Used office equipment to search for job


Accessed private files without permission


Intruded on co
-
workers’ privacy


Visited porn Web
sites



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© 2012 South
-
Western, a part of Cengage Learning

Ten Commandments of Computer
Ethics

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© 2012 South
-
Western, a part of Cengage Learning

Biotechnology

Biotechnology


I
nvolves using
biology to discover,
develop, manufacture, market, and sell
products and
services.

Bioethics


A
field
that deals with the ethical
issues
embedded in
the commercial use
of
biotechnology.


Proceduralism

is a primary tool for
bioethicists. It is using protocols
to
ensure
that classical
safeguards are not violated.




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Western, a part of Cengage Learning

Realms of Biotechnology

25

© 2012 South
-
Western, a part of Cengage Learning

Genetic Engineering

Genetically

Modified Foods

Genetic Engineering

26

© 2012 South
-
Western, a part of Cengage Learning

Stem cell research

Cloning

Genetic testing and profiling

Genetically Modified Foods


Also referred to as genetically engineered
foods (GEFs).


Fear over health and environmental effects.


Major U.S. crops that are genetically
modified:


Sugar beets (95%)


Soybeans (91%)


Cotton (88%)


Corn (85%)


Most Americans consume genetically
modified foods every day.



27

© 2012 South
-
Western, a part of Cengage Learning

Labeling of GMFs


One of the most frequently discussed issues
with GMFs is labeling.


FDA does not mandate GMF labeling in
the U.S.


The Non
-
GMO Project believes that people
have the right to make informed choices
about whether they consume GMF
products.



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© 2012 South
-
Western, a part of Cengage Learning

Key Terms


Bioethics


Biometrics


Biotechnology


Chief Privacy Officer


Cloning


Cookies


Electronic commerce


Embryonic stems cells


Ethical lag


Genetic engineering


Genetic profiling


Genetic testing


Genetically engineered
foods (GEFs)


Genetically modified
foods (GMFs)


Information
technology


Phishing


Spam


Surveillance


Technological
determinism


Technological
environment


Technology


Therapeutic cloning





© 2012 South
-
Western, a part of Cengage Learning

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