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
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Technology
The new generation of young people is
called the iGeneration– technology is part
of their DNA.
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Young people have no technological off switch
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New technologies to benefit businesses like
social networking
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Security issues like in-store surveillance
cameras to monitor customers
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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
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.
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Challenges of Technology
Side Effects of Technology
 Environmental pollution
 Depletion of natural resources
 Technological unemployment
 Creation of unsatisfying jobs
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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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Information Technology
Electronic commerce
Information Technology
Computer technology
in the workplace
Biotechnology
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Electronic Commerce
Electronic commerce
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Also called e-commerce, e-business, or Webbased marketing.
The Internet has reshaped the way business is
conducted.
Key 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 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
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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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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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The Workplace and Computer
Technology
Employees generally 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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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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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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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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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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Ten Commandments of Computer
Ethics
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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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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
• 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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