Matakuliah : M0304/Corporate Information System Management
Tahun
: 2008
Pertemuan -25
Aspek SOCIAL, ETHICAL,
DAN LEGAL
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THE LEGAL ENVIRONMENT
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Purpose of law is to constrain
behavior within a society so that its
needs are satisfied and harm is prevented
Law is related to, not the same as, ethics
IT impact has:
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Made new forms of crime possible
Changed mechanisms for reproducing material, photos, art, and music
Legal system has lagged behind technology
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ETHICS FRAMEWORKS
Why discuss ethics?
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IT is having a growing effect on our lives
Managers determine how IT is used
Managers are responsible for ethical implications of effects of using IT
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ETHICS FRAMEWORKS
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To act ethically requires that we take responsibility for our actions
Careers as managers and professionals are in jeopardy if unethical
Consider Enron and what happened to its managers!
Fakultas Ilmu Komputer
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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Code of ethics for software engineering profession
Recognizes that managers and organizations have special responsibilities
Developed jointly by IEEE and ACM
Fakultas Ilmu Komputer
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Fakultas Ilmu Komputer
Figure 25.1 Section 3 of the ACM
Code of Ethics
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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Basic principles to guide ethical behavior come from:
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Religious traditions
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Philosophers
Two basic ethical theories:
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Deontologism
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Consequentialism
Fakultas Ilmu Komputer
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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Deontologism – action is ethical or unethical based only upon the action itself without
regard to its consequences in the particular case
It is our intent, not the actual result, that determines whether an action is ethical or
unethical
In the Western world rules by which actions are judged have roots in Judeo-Christian
tradition
Problems:
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Rules are absolutes
Different cultures have different rules
Ignores the consequences that come from a specific action
Fakultas Ilmu Komputer
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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Consequentialism – judges an action by evaluating all the consequences that it
produces – if consequences good then action is ethical
Similar to “the ends justify the means”
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
Utilitarianism – one type of consequentialism where all parties who will be affected by
the action must be identified and consequences delineated and quantified, with
beneficial results measured on a positive scale and harmful results measured on the
negative scale
Problems:
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Quantification – how to assign numerical values and probabilities
What happens when all benefit is to one and all harm is to another, with net zero?
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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IT Management topics with ethical implications:
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Computer crime
Cyberattacks on computers
Identity theft
Impact of IT on privacy
Access to the technology and freedom of speech issues
Intellectual property issues
Hazards of inaccuracy
Impact of IT on workers
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Topics addressed in chapter
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ETHICS FRAMEWORKS
Analyzing Ethical Problems
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Other social issues with ethical implications that managers need to be aware of:
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Hate e-mail
Cyberstalking
Sexual abuse via the Internet
Pornography
Fakultas Ilmu Komputer
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COMPUTER CRIME
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Computer crime is big business
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Alarming statistics:
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and is growing rapidly
85-97% of computer intrusions never detected
10% of detected are reported, and only a few of reported are solved
FBI estimates computer crime losses in 1999 as much as $10 billion
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COMPUTER CRIME
Forms of computer crime:
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Financial crimes
Businesses stealing competitors’ secrets
Espionage agents stealing military intelligence
Attacks on computers by terrorists
Grudge attacks by disgruntled employees
Attacks by “hacker” for fun
Use of IT by criminals to run criminal businesses
Fakultas Ilmu Komputer
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COMPUTER CRIME
Financial Crimes
Forms of financial crime:
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Embezzlements
Sabotage as a way of “getting back” at an employer
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Logic bomb – a program designed to destroy data at a specified date and time
Fraud on the Web
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Spoofing – setting up a Web site that mimics a legitimate site
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COMPUTER CRIME
Cyberattacks on Computers
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Cyberattacks do serious economic damage
Hackers originally motivated by technological challenge and intended no harm
Crackers use hacking techniques to steal information or wipe out hard drives
Fakultas Ilmu Komputer
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COMPUTER CRIME
Fakultas Ilmu Komputer
Figure 25.2 Number of Cyberattack
Incidents Reported (in thousands)
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Fakultas Ilmu Komputer
Figure 25.3 Techniques Used
to Attack Computers
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COMPUTER CRIME
Cyberattacks on Computers
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Personal responsibility:
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Use antivirus software and keep up to date
Make sure all operating system updates are installed
Carefully protect passwords
Carefully opening e-mail messages, especially attachments
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COMPUTER CRIME
Computer Crime Laws
Most important:
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The Computer Fraud and Abuse Act of 1986 as amended (Title 18 United States
Code, Chapter 47, Sections 1029 and 1030)
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Section 1029 prohibits fraud and intrusion by use of counterfeit access devices
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Section 1030 covers espionage, stealing financial information, knowingly damaging
a computer or application by hacking, stealing passwords, and furthering a fraud by
accessing a computer
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IDENTITY THEFT
“someone appropriating your personal information without your knowledge to
commit fraud or theft” (Federal Trade Commission)
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Implications:
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Ruined credit rating
Extreme effort to “clean up” the mess
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IDENTITY THEFT
Impact of Identity Theft
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Serious problem for businesses and individuals
According to FTC (2003), in 2002:
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10 million victims
Loss of $48 billion for businesses
Loss of $5 billion for consumers
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IDENTITY THEFT
Police and Bank Attitudes
Problem for victims:
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Police, banks, and merchants often reluctant to pursue identity thieves
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IDENTITY THEFT
Ethical Issues
Are banks and merchants acting ethically when they ignore the crime rather than
pursuing the thief?
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IDENTITY THEFT
Laws on Identity Theft
Summary:
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Law on identify theft is inadequate
Enforcement of the law is poor
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PRIVACY
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Privacy is difficult to define
Violating privacy generally includes:
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Unwanted access to your person
Intruding into your home or office
Observing you
Obtaining information about you
Legally, our right to privacy is much weaker than our property rights and right to
free speech
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PRIVACY
IT perspective:
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Privacy – ability to control information about ourselves
Individual might give permission to collect and use certain personal information
in exchange for some benefit or business transaction
Privacy is invaded when information used in ways never intended or agreed to
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PRIVACY
Ethics of Invasion of Privacy
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Kantian view:
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Invasion of privacy always unethical
Treating person with disrespect
Utilitarian view:
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Whether unethical depends upon results of action
Does total resulting good exceed harm caused?
But how do you measure harm caused?
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PRIVACY
Laws on Privacy
U.S. Federal law:
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No comprehensive legal right to privacy
Much legislation to offer some privacy:
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Fair Credit Reporting Act
Privacy Act
Family Education Rights and Privacy Act
Electronic Communications Privacy Act
Video Protection Privacy Act
Driver’s Privacy Protection Act
Health Insurance Portability and Accountability Act
Children’s Online Privacy Protection Act
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PRIVACY
Laws on Privacy
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U.S. federal laws offer protection for:
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Student information
Electronic medical information
Electronic communications
Not well protected:
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Financial data
Financial institutions often buy and sell information they collect on individuals
Major concern: requirement that customer “opt-out” to obtain even limited
protection
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PRIVACY
Laws on Privacy
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Another concern is Patriot Act passed after 9-11:
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Purpose is to protect Americans against terrorism
But weakens constitutional protection against unreasonable search and seizure by
allowing FBI to force anyone to turn over records by telling judge its related to
ongoing terrorism or foreign intelligence
Judging by their laws, many other countries seem to value privacy more highly
than U.S.
Fakultas Ilmu Komputer
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PRIVACY
Privacy Problems
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IT has radically affected our ability to control access to information about
ourselves
Potential problems:
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Government agencies using online databases for official records containing private
information
Marketers increasingly value personal information
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PRIVACY
E-Commerce Privacy Concerns
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Many trusted businesses are collecting personal information about us and our shopping
activities and selling them to others
Method: use of “cookies” when you visit Web sites
Cookie – a small record that identifies you to the Web site you visited and allows it to set
up a file on its computer that can record information about the actions you take with that
site
Except for the financial industry, no U.S. laws regulate collection and sharing of data
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PRIVACY
Workplace Privacy
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75% of employers record employee Web use, voice mail, e-mail, or phone calls,
review computer files, or videotape workers (American Management Association, 2000)
Up to 25% do not tell workers (Associated Press, 1997)
Ethical (and practical) implication: Is it important that company policies for
monitoring employee activities and communications be clearly communicated to
employees?
Fakultas Ilmu Komputer
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PRIVACY
Access
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U.S. in reasonably good shape in regard to computer access and literacy
Europe and Japan lag somewhat behind U.S.
Developing countries lag far behind, but are making progress
Undeveloped world has no computer literacy, or literacy of any type
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PRIVACY
Freedom of Speech
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Use of Internet has led to renewed controversy
between our right to freedom of speech and the
right of society to protect itself
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PRIVACY
Freedom of Speech
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Use of Internet has led to renewed controversy
between our right to freedom of speech and the
right of society to protect itself
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Is there information so harmful that it should be banned from posting on the Internet?
– Instructions for making a bomb?
– How to poison a city’s water supply?
– Child pornography?
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PRIVACY
Freedom of Speech
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Spam – unsolicited commercial e-mail
ISPs spend a lot of money on anti-spam software
Typical consumers still receive 110 unwanted
e-mails a month
Congress has attempted to write laws to outlaw spam
Freedom of speech rights make anti-spam laws difficult to write, pass, and uphold
in courts
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PRIVACY
Intellectual Property Rights
Intellectual property rights – any product of the human
mind, such as an idea, an invention, a literary creation, a
work of art, a business method, an industrial process, a
chemical formula, a computer program, or a presentation
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Due to technological advances, sharing intellectual property is easy, rapid, and inexpensive
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PRIVACY
Intellectual Property Rights
• What property can be owned differs from one society to another
• Most societies value and reward intellectual property
• U.S. patent and copyright laws try to protect intellectual property
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PRIVACY
Software Piracy
• A serious problem for software industry
• 39% of software installed in 2002 was pirated, and cost software industry $13
billion
• Software piracy rate lowest in North America and highest in China
• U.S. copyright laws make it illegal to copy software and use it without vendor’s
permission
• Severe penalties for violation
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PRIVACY
Software Piracy
• Software vendors prosecute large companies for violations, but not often
individuals
• Ethical question: Is it right to copy software for personal use?
• Copyright protects against software piracy, but not against another creating the
same thing
• Patent – gives creator exclusive right to manufacture and use for a specified
period of time
• Computer programs are often patented
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PRIVACY
Digital Entertainment Piracy
• Laws are changing very rapidly
• Growing volumes of digital music, videos, and movies being pirated worldwide
• 28% of all CDs sold in 2002 worldwide were pirated (IFPA, 2003)
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PRIVACY
Internet File Sharing
• Greatest threat to recording industry
• Napster developed software to make MP3 files, and maintained a Web site that
enables sharing of MP3 files
• Courts eventually shut down Napster
• New sites spring up, such as Sharman networks with Kazaa service
• Many lawsuits still pending
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PRIVACY
Ethical Questions
Is it ethical to download copyrighted music or movies from the Internet, and not pay
for them?
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ACCURACY
National Crime Database
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FBI’s National Crime Information Center maintains an integrated, real-time transaction
processing and online fingerprint-matching database
Input comes from thousands of agencies across the country
Law establishing system required FBI to ensure information was “accurate, relevant, timely
and complete”
March 2003, Justice Department eliminated requirement for FBI to ensure accuracy
Outcome might be more innocent people identified as criminals
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ACCURACY
Credit Bureau Databases
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Three large credit reporting bureaus in U.S. maintain huge databases on 90% of Americans
Credit reporting information is notoriously inaccurate
Fair Credit Reporting Act required credit bureaus to maintain “reasonable” accuracy
What is “reasonable”?
Basic responsibility for accuracy remains with the individual rather than with collecting
agencies
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ACCURACY
Other Business Databases
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Most businesses maintain databases used for decision making
Accuracy of data might affect individual within and outside the company
Ethical question: What responsibility does the individual manager have for accuracy of the
data?
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IMPACT ON WORKERS
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IT can replace workers in some cases
IT can potentially harm the quality of working life
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Being on a computer terminal too long can cause repetitive stress injuries
Computerization of tasks can leave remaining manual tasks very dull and boring
Often main objective of a computer system is to reduce costs by replacing people
Ethical question: How do you balance organizational benefits with consequences to
people who lose jobs?
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THE FUTURE
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What will individuals and organizations do with the increased IT power available for less
and less money?
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What new social and ethical issues will the future bring?
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