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Chapter 4
Ethical and Social Issues in Information Systems
Student Learning Objectives
1. What ethical, social, and political issues are raised by information systems?
2. What specific principles for conduct can be used to guide ethical decisions?
3. Why do contemporary information systems technology and the Internet pose
challenges to the protection of individual privacy and intellectual property?
4. How have information systems affected laws for establishing accountability,
liability, and the quality of everyday life?
Learning Catalytics is a “bring your own device” student engagement, assessment, and
Key Terms
The following alphabetical list identifies the key terms discussed in this chapter. The
page number for each key term is provided.
Accountability, 131
Liability, 133
Carpal tunnel syndrome (CTS), 155
Nonobvious relationship awareness
(NORA), 130
Computer abuse, 153
Opt-in, 143
Computer crime, 152
Opt-out, 143
Computer vision syndrome (CVS), 156
Patent, 146
Cookies, 140
Privacy, 136
Copyright, 145
Profiling, 129
Digital divide, 155
Repetitive stress injury (RSI), 155
Due process, 130
Risk Aversion Principle, 135
Safe harbor, 139
Ethics, 126
Spam, 153
Fair Information Practices (FIP), 136
Spyware, 142
Golden Rule, 134
Technostress, 156
Trade secret, 145
Information rights, 128
Utilitarian Principle, 135
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Informed consent, 139
Web beacons, 140
Intellectual property, 144
Teaching Suggestions
This is an interesting, stimulating chapter to present in class with the opportunity to
create dynamic discussions. Your students will have a variety of opinions about the
ethical issues presented in this chapter. You may want to open the discussion by asking if
any students have had first-hand experiences with personal data compromises. You may
also ask students how they defend themselves against misuse of information systems and
data. Most of them probably don’t.
The opening case, “Content Pirates Sail the Web” shows that technology can be a double-
edged sword. It can be the source of many benefits. It can also create new opportunities
The misuse and abuse of content also creates moral and ethical dilemmas that students
are likely to face in the workplace. Is it okay to use content like music, movies, and books
without paying for it simply because it’s available and “everyone else does?” Students
should understand that content creation is expensive and relies on someone’s talents. The
creators have a reasonable expectation to be compensated for their work.
Companies who own or control content are taking measures against online piracy by
initiating alert systems which notify users suspected of piracy and results in progressive
Section 4.1, “What ethical, social, and political issues are raised by information
systems?” Many people do not want to discuss or even think about technology-related
ethical and social issues, at least not until a large scandal takes place that may affect them
personally such as the Target Department Store data breach that occurred in December
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Throughout this chapter it is imperative that you discuss these issues so that students can
see both the positive and negative sides of technology. It’s important for students to
understand that almost every technology improvement opens the door to potential misuse
and abuse. Table 4.2 discusses technology trends that have helped create some of the
ethical issues our society is now facing.
Interactive Session: Management: Edward Snowden: Traitor or Protector of
Privacy?
Case Study Questions
1. Perform an ethical analysis of the PRISM program and NSA surveillance
activities. What is the ethical dilemma presented by this case?
The PRISM program, administered by the National Security Agency, is designed to
identify terrorists and their plans before the terrorists do major harm to America and its
citizens. The program collects metadata which simply identifies who is communicating
2. Describe the role of information technology in creating this ethical dilemma.
Five key technological trends (listed in Table 4.2) help the NSA and the PRISM program
succeed: doubling of computing power every 18 months; advances in data storage
techniques and rapidly declining storage costs; data analysis advances; networking
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the NSA in creating profiles of certain people they may be interested in tracking and
3. Do you think the NSA should be allowed to continue its electronic
surveillance programs? Why or why not?
The answer to this question refers back to the title of this case study: is Snowden a traitor
or protector of privacy? Parts of the information gathering processes used by the NSA are
included in the USA Patriot Act passed by Congress and signed into law. The NSA
programs are approved and overseen by the secret Foreign Intelligence Surveillance
Section 4.2, “What specific principles for conduct can be used to guide ethical
decisions?” This section provides the basic concepts of responsibility, accountability, and
liability as they apply to information system issues. It’s easy to blame problems on a
computer system but you should remind students that behind every computer is a human
being. People have the responsibility to make wise decisions about how information
Section 4.3, “Why do contemporary information systems technology and the Internet
pose challenges to the protection of individual privacy and intellectual Pproperty?”
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This section is designed to teach students how they should protect information systems
and data. Although most people immediately think of their own data, students should
understand they will have a responsibility to protect other people’s data once they enter
the workforce even if they don’t work in the information technology department.
Interactive Session: Technology: Big Data Gets Personal: Behavioral Targeting
Case Study Questions:
1. Why is behavioral tracking such an important ethical dilemma today? Identify
the stakeholders and interest groups in favor of and opposed to behavioral
tracking.
This case study shows that technology can be a double-edged sword. It can be the source
of many benefits. It can also create new opportunities for breaking the law or taking
benefits away from others. The Web has created new opportunities and challenges
regarding privacy issues. It has also created struggles between businesses and users
regarding the vast amounts of data that are collected from Web surfing. The misuse and
abuse of data also creates moral and ethical dilemmas that students are likely to face in
the workplace.
Stakeholders in favor of behavioral tracking include:
• Individual Web sites and companies whose business is identifying and tracking
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2. How do businesses benefit from behavioral tracking? Do people benefit? Explain
your answer.
Students should think of two questions in this case study: Which is more important to you
3. What would happen if there were no behavioral tracking on the Internet?
To be sure, online advertising would still occur but in a less efficient way—at least for
advertisers. Online ads would operate much like ads in newspapers, magazines, and
television. The ads would be more broad-based without the ability to directly target only
those who may be interested in the ad.
Section 4.4, “How have information systems affected laws for establishing
accountability, liability, and the quality of everyday life?” When discussing
accountability, liability, and control, ask students if they have first-hand experience with
data errors. Examples might include credit bureau errors, checking account errors, or
incorrect information recorded in their student records. If so, ask them to explain the
kinds of problems they experienced because of the errors. Then ask them to explain who
they think should be responsible for detecting and correcting the errors.
Because most students probably have a Facebook account, it’s a good way to discuss how
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Review Questions
4-1. What ethical, social, and political issues are raised by information systems?
Explain how ethical, social, and political issues are connected and give some
examples.
Figure 4.1 can be used to answer this question. Information technology has raised
new possibilities for behavior for which laws and rules of acceptable conduct have
not yet been developed. The introduction of new information technology has a ripple
effect, raising new ethical, social, and political issues that must be dealt with on the
individual, social, and political levels. Ethical, social, and political issues are closely
List and describe the key technological trends that heighten ethical concerns.
Table 4.2 summarizes the four key technological trends responsible for heightening
ethical concerns. These trends include:
• Computing power doubles every 18 months
Differentiate between responsibility, accountability, and liability.
Responsibility is a key element of ethical actions. Responsibility means that you
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accept the potential costs, duties, and obligations for the decisions you make.
Accountability is a feature of systems and social institutions. It means that
mechanisms are in place to determine who took responsible action.
Liability is a feature of political systems in which a body of laws is in place that
4-2. What specific principles for conduct can be used to guide ethical decisions?
List and describe the five steps in an ethical analysis.
The five steps in ethical analysis include:
• Identify and describe clearly the facts.
• Define the conflict or dilemma and identify the higher-order values involved.
• Identify the stakeholders.
Identify and describe six ethical principles.
Six ethical principles are available to judge conduct. These principles are derived
independently from several cultural, religious, and intellectual traditions and include:
• Golden Rule—Do unto others as you would have them do unto you.
• Immanuel Kant’s Categorical Imperative—If an action is not right for
everyone to take, it is not right for anyone.
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4-3. Why do contemporary information systems technology and the Internet pose
challenges to the protection of individual privacy and intellectual property?
Define privacy and fair information practices.
Privacy is the claim of individuals to be left alone, free from surveillance or
interference from other individuals or organizations, including the state. Claims of
privacy are also involved at the workplace.
Fair information practices are a set of principles governing the collection and use of
information about individuals. FIP principles are based on the notion of a mutuality of
Explain how the Internet challenges the protection of individual privacy and
intellectual property.
Contemporary information systems technology, including Internet technologies,
challenges traditional regimens for protecting individual privacy and intellectual
property. Data storage and data analysis technology enable companies to easily gather
personal data about individuals from many different sources and analyze these data to
create detailed electronic profiles about individuals and their behaviors. Data flowing
Explain how informed consent, legislation, industry self-regulation, and
technology tools help protect the individual privacy of Internet users.
The online industry prefers self-regulation rather than having state and federal
governments passing legislation that tightens privacy protection.
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online advertising trade group Network Advertising Initiative, published its own self-
regulatory principles that largely agreed with the FTC. Nevertheless, the government,
privacy groups, and the online ad industry are still at loggerheads over two issues.
Privacy protections have also been added to recent laws deregulating financial
services and safeguarding the maintenance and transmission of health information
about individuals. The Gramm-Leach-Bliley Act of 1999, which repeals earlier
The Health Insurance Portability and Accountability Act of 1996 (HIPAA), which
took effect on April 14, 2003, includes privacy protection for medical records. The
law gives patients access to their personal medical records maintained by healthcare
List and define three different regimes that protect intellectual property rights?
Intellectual property is subject to a variety of protections under three different legal
traditions:
• Trade secrets
• Copyright
• Patent law
Traditional copyright laws are insufficient to protect against software piracy because
digital material can be copied so easily. Internet technology also makes intellectual
property even more difficult to protect because digital material can be copied easily
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and intellectual property? AACSB: Ethical understanding and reasoning; Application
4-4. How have information systems affected laws for establishing accountability,
liability, and the quality of everyday life?
Explain why it is so difficult to hold software services liable for failure or injury.
In general, insofar as computer software is part of a machine, and the machine injures
someone physically or economically, the producer of the software and the operator
can be held liable for damages. Insofar as the software acts like a book, storing and
Software is very different from books. Software users may develop expectations of
infallibility about software; software is less easily inspected than a book, and it is
more difficult to compare with other software products for quality; software claims
List and describe the principal causes of system quality problems?
Three principle sources of poor system performance are:
• Software bugs and errors
• Hardware or facility failures caused by natural or other causes
• Poor input data quality
Zero defects in software code of any complexity cannot be achieved and the
seriousness of remaining bugs cannot be estimated. Hence, there is a technological
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Name and describe four quality-of-life impacts of computers and information
systems.
Four quality of life impacts of computers and information systems include:
• Jobs can be lost when computers replace workers or tasks become
unnecessary in reengineered business processes.
• Ability to own and use a computer may be exacerbating socioeconomic
disparities among different racial groups and social classes.
Define and describe technostress and RSI and explain their relationship to
information technology.
Technostress is defined as stress induced by computer use; symptoms include
aggravation, hostility toward humans, impatience, and fatigue.
Repetitive stress injury (RSI) is avoidable. Three management actions that could
reduce RSI injuries include:
• Designing workstations for a neutral wrist position, using proper monitor
stands, and footrests all contribute to proper posture and reduced RSI.
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Discussion Questions
4-5. Should producers of software-based services, such as ATMs, be held liable for
economic injuries suffered when their systems fail?
Student answers to this question will vary.
4-6. Should companies be responsible for unemployment caused by their
information systems? Why or why not?
Student answers to this question will vary.
4-7. Discuss the pros and cons of allowing companies to amass personal data for
behavioral targeting.
Student answers to this question will vary.
Hands-On MIS Projects
Management Decision Problems
4-8. InfoFree’s Web site is linked to massive databases that consolidate personal data on
millions of people and businesses. Users can purchase marketing lists of consumers
broken down by location, age, income level, home value, and interests. One could use
this capability to obtain a list, for example, of everyone in Peekskill, New York, making
$150,000 or more per year. Do data brokers such as InfoFree raise privacy issues? Why
or why not? If your name and other personal information were in this database, what
limitations on access would you want in order to preserve your privacy? Consider the
following data users: government agencies, your employer, private business firms, other
individuals.
To answer these questions, students should be clear on what constitutes an ethical
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The collection of personal information on individuals and their impending invasion of
privacy are bound to have an ethical dilemma attached. One of the most prevalent and
discussed elements of these ethical dilemmas has been connected to the invasion of
4-9. Small insurance company: Examines the options businesses have for monitoring
employee usage of the Internet. What kind of ethical dilemmas are created for employers
and employees when a business monitors the activities of its employees? Calculate the
amount of time each employee spends on the Web and then rank the employees in the
order of the amount of time each spent online. Do the students’ findings and contents of
the report indicate any ethical problems employees are creating? Is the company creating
an ethical problem by monitoring its employees’ use of the Internet? Use the guidelines
for ethical analysis presented in this chapter to develop a solution to the problems you
have identified.
User Name
Legitimate minutes
Suspect
minutes
Kelleher, Claire
96
152
McMahon, Patricia
44
83
Milligan, Robert
155
Olivera, Ernesto
Talbot, Helen
35
225
Wright, Steven
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Although it appears that most of the employees are using the Internet for nonbusiness
reasons, managers must be cautious about making accusations based on raw data. For
instance, while Talbot may clearly be visiting personal, nonbusiness Web sites such as
The point is, managers may be creating not just an ethical problem but relationship
problems with employees if simple raw data is used to make unfounded accusations.
(Learning Objective 4.1: What ethical, social, and political issues are raised by
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Achieving Operational Excellence: Creating a Simple Blog
Software skills: Blog creation
Business skills: Blog and Web page design
4-10. This exercise will not turn students into professional bloggers (although it
might), but it will give them a feel for its basic functions. Students are asked to
create a simple blog using software available at Blogger.com. Here are the elements
they should include in their blog:
• Pick a sport, hobby, or topic of interest.
• Name the blog, give it a title, and choose a template.
• Post at least four entries.
• Upload an image.
Each student’s blog will differ, depending on the content and design they have chosen.
What students should take away from this exercise is that blogs are becoming legitimate
business tools and not just social time-wasters. Many companies now encourage
Improving Decision Making: Analyzing Web Browser Privacy
4-11. This project will help develop Internet skills for using the privacy protection
features of leading Web browser software.
Examine the privacy protection features and settings for two leading Web browsers, such
• How do these privacy protection features protect individuals?
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Internet Explorer uses InPrivate Filtering to help protect users’ Web browsing trails:
“InPrivate Filtering helps prevent Web site content providers from collecting information
about sites you visit. Here’s how it works.
Many Web pages use content—such as advertisements, maps, or Web analysis tools—
from Web sites other than the one you are visiting. These Web sites are called content
providers or third-party Web sites. When you visit a Web site with third-party content,
Usually this third-party content is displayed seamlessly, such as in an embedded video or
image. The content appears to originate from the Web site you originally went to, so you
may not know that another Web site might be able to see where you are surfing. Web
InPrivate Filtering works by analyzing Web content on the Web pages you visit, and if it
sees the same content being used on a number of Web sites, it will give you the option to
Mozilla Firefox also uses privacy settings to prevent browsing tracking:
“Most major websites track their visitors’ behavior and then sell or
provide that information to other companies (like advertisers). Firefox has
a Do Not Track feature that lets you tell websites you don’t want your
browsing behavior tracked.
Tracking is a term that includes many different methods that websites,
advertisers and others use to learn about your web browsing behavior.
When you turn on the Do Not Track feature, Firefox tells every website
you visit (as well as their advertisers and other content providers) that you
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Turning on Do Not Track will not affect your ability to log in to websites
• How do these privacy protection features impact what businesses can do on
the Internet?
The privacy features disrupt the normal collection of individual data while they are in
use. The features may not block the total collection of data however. Businesses may be
• Which does the best job of protecting privacy? Why?
Answers will vary based on individual preferences and experiences. For instance, some
students may not care if an employer can continuing tracking pages they visit. Others
Collaboration and Teamwork Project
4-12. In MyMISLab, you will find a Collaboration and Teamwork Project dealing
with the concepts in this chapter. You will be able to use Google Drive, Google Docs,
Google Sites, Google +, or other open source collaboration tools to complete the
assignment.
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Case Study: Facebook Privacy: There Is No Privacy
4-13. Perform an ethical analysis of Facebook. What is the ethical dilemma
presented by this case?
The stakeholders involved in an ethical analysis of Facebook include Facebook
(obviously), advertisers, data collecting agencies, Electronic Privacy Information
Center (EPIC), and individual users.
Facebook collects an incredible amount of personal data on its users. It is using its
ability to track online activity of its members to develop a frighteningly accurate
4-14. What is the relationship of privacy to Facebook’s business model?
The less privacy Facebook offers to its users, the more valuable and useful its
business model becomes. By providing more privacy to its users, the less data it
4-15. Describe the weaknesses of Facebook’s privacy policies and features. What
people, organization, and technology factors have contributed to those weaknesses?
People: Ninety-three percent of people polled believe that Internet companies should
be forced to ask for permission before using their personal information. Seventy-two
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Organization: Facebook’s value and growth potential is determined by how
effectively it can leverage the personal data that’s aggregated about its users to attract
advertisers. It also stands to gain from managing and avoiding the privacy concerns
raised by its users and government regulators.
Technology: Facebook does not have a good history when it comes to privacy
violations and missteps that raise doubts about whether it should be responsible for
the personal data of hundreds of millions of people. It has settled lawsuits with the
Federal Trade Commission in which they were barred from misrepresenting the
privacy or security of its users’ personal information. It was charged with deceiving
its users by telling them they could keep their information on Facebook private, then
repeatedly allowing it to be shared and made public. It has also come under fire for
collecting information about users who are not even logged into Facebook or have
4-16. Will Facebook be able to have a successful business model without invading
privacy? Explain your answer. Are there any measures Facebook could take to
make this possible?
Opinions will vary on this question. Certainly, Facebook’s ability to leverage as much
as possible from advertisers may be diminished if it cannot collect every nugget of
The company can also allow users to view all the data it collects on them and allow
them to delete information they deem necessary. They can also allow users to opt-out
of the tracking systems much like European users already can.
Facebook should continue to explore additional revenue streams outside of what it
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4-17. What are the five principles of Fair Information Practices? For each
principle, describe a business situations where the principle comes into play, and
how you think manager should react.
Visit MyMISLab for suggested answers.
4-18. What are five digital technology trends that characterize American
business today that raise ethical issues for business firms and managers? Provide
an example from business or personal experience where an ethical issue resulted
from each of these trends.
Visit MyMISLab for suggested answers.
For an example illustrating the concepts found in this chapter, view the
videos in mymislab.com.