© 2015 Cengage Learning
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Chapter 9
Business
Ethics and
Technology
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Learning Outcomes
1. Discuss 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
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Business Ethics & Technology
• We live in an age dominated by advancing
technology. Each new generation
experiences technological advances that
were not seen by previous generations.
• The new generation of young people is
called the iGeneration. Technology is part
of their DNA, and they have no “offswitch.”
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Technology is at the core of most businesses,
but it is a two-edged sword.
Despite many positive advances, there are
new problems and challenges.
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Technology and
the Technological Environment
Technology •
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 •
The total set of technology-based
advancements or progress taking place in
society.
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Characteristics of Technology
Benefits of Technology • Increased production of goods and
services
• Reduced amount of labor needed to
produce goods and services
• Made labor easier and safer
• Results in a higher standard of living.
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Side Effects of Technology Technology has some unanticipated side
effects:
• Environmental pollution
• Depletion of natural resources
• Technological unemployment
• Creation of unsatisfying jobs
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Challenges of Technology • New technologies present many challenges
to managers, organizations and society.
• Some side effects cannot be forecast or
overcome.
• Overcoming technological determinism that
seems to be driving society today would be
helpful.
• New technology is primarily available in the
developed world. Developing nations enjoy
few of the benefits of technology available in
developed nations.
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Technology and Ethics
• Our perspective is to raise ethical
questions that may be related to business
development, and the use of technology.
Two Key Issues • Technological determinism •
The idea that what can be developed will be
developed.
• Ethical lag •
Occurs when the speed of technological
change far exceeds that of ethical
development.
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Society’s
Intoxication with Technology
The symptoms of Society’s intoxication 1. We favor the quick fix.
2. We fear and worship technology.
3. We blur the distinction between what is real
and what is false.
4. We accept violence as normal.
5. We love technology as a toy.
6. We live our lives distanced and distracted.
The solution - Find the right balance.
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Information Technology
Electronic commerce
Information Technology
Computer technology
in the workplace
Biotechnology
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E-Commerce as a
Pervasive Technology
Electronic Commerce •
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Also called e-commerce, e-business, or Web-based
marketing.
The Internet has reshaped the way business is
conducted.
Ongoing Issues in E-Commerce Ethics •
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Access
Intellectual property
Privacy and informed consent
Protection of children
Security of information
Trust
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Invasion of Consumer Privacy
via E-Commerce
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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Business Initiatives
with Consumer Privacy Protection
Ethical leadership
Privacy policies
Chief privacy officers
Data security
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The Workplace
and Computer Technology
Surveillance at work raises issues about privacy:
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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Ten Commandments
of Computer Ethics
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Biotechnology
Biotechnology •
Involves using biology to discover, develop,
manufacture, market, and sell products and
services. Biotechnology is striving to heal,
fuel, and feed the world.
Bioethics •
A field that deals with the ethical issues
embedded in the commercial use of
biotechnology.
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Proceduralism is the primary tool for
bioethicists. It is using protocols to ensure
that classical safeguards are not violated.
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Realms of Biotechnology
Genetic Engineering
Genetically
Modified Foods
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Genetic Engineering
Stem cell research
Cloning
Genetic testing and profiling
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Genetically Modified Foods
(GMFs)
• Also referred to as genetically engineered
foods (GEFs).
• Fear over health and environmental effects;
critics call them “Frankenfoods.”
• Many U.S. crops 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 • Safety of GMFs is not in question, according
to scientific research.
• But 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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Big Data
bioethics
biometrics
biotechnology
botnet scam
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)
• identity theft
• information technology
• online scams
• phishing
• social networking sites
• spam
• technological determinism
• technological environment
• technology
• therapeutic cloning
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