Business & Society
Ethics, Sustainability, and Stakeholder
Management
Eighth Edition
Archie B. Carroll
Ann K. Buchholtz
© 2012 South-Western, a part of Cengage Learning
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Chapter 9
Business
Ethics and
Technology
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Learning Outcomes
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
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Technology and the Technological Environment
Characteristics of Technology
Technology and Ethics
Information Technology
Biotechnology
Summary
Key Terms
Discussion Questions
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Technology and the Technological
Environment
Technology
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The totality of the means employed to provide
objects necessary for human sustenance and
comfort.
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A scientific method used to achieve a practical
purpose.
Technological environment
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The total set of technology-based
advancements or progress taking place in
society.
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Characteristics of Technology
• What are the characteristics of technology?
• What are the benefits of technology?
• What are the drawbacks and difficulties?
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Technology and Ethics
Two Key Issues
• Technological determinism
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What can be developed will be developed.
• Ethical lag
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Occurs when the speed of technological
change far exceeds that of ethical
development.
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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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Electronic Commerce
Electronic commerce
• Also called e-commerce, e-business, or
Web-based marketing.
• The Internet has reshaped the way business
is conducted.
 What are the key issues in e-commerce
ethics?
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Invasion of Privacy via
E-Commerce (continued)
Cookies
• Identification 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
• Unsolicited commercial e-mail. It is sent
through "open-relays" to millions of
persons.
Identity Theft
• Tampering with one’s financial accounts.
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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
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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.
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Business Initiatives with Privacy
Protection
Ethical leadership
Privacy policies
Chief privacy officers
Data security
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Technology and the Workplace
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What are the questionable business
practices that have arisen with the
popularity of the Internet?
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What are the advantages and disadvantages
of using computer technology in the
workplace?
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Surveillance
 Surveillance raises questions about privacy
violations.
Computers
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Monitoring website connections
Storing and reviewing employee computer files
Blocking access to inappropriate websites
Telephone
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Monitoring time spent, numbers called
Taping phone conversations
Video
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Video surveillance against theft
Surveillance to monitor employee performance
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Biometrics
Biometrics
• The 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.
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Biotechnology
Biotechnology
• Involves 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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Genetic Engineering
Stem cell research
Cloning
Genetic testing and profiling
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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:
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Sugar beets (95%)
Soybeans (91%)
Cotton (88%)
Corn (85%)
 Most Americans consume genetically
modified foods every day.
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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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Key Terms
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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
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