Ethics in Information Technology

Unit-I
Ethics
ETHICS IS A SET OF BELIEFS
ABOUT RIGHT AND WRONG
B E H AV I O R W I T H I N A
SOCIETY
 Difference B/W Morals ,Ethics , Laws
MORALS ETHICS LAWS
One’s personal beliefs about right and wrong Standards or codes of behavior expected of an Law is a system of rules that tells us that we can
individual by a group to which an individual and cannot do (nation, organization, profession)
belongs (nation ,organization , profession)

This may vary person to person This may vary organization to organization or This never varies as it is permanently set by the
group to group legislative bodies

Ex: One may find cheating in exams feasible , Ex: One may find ethically correct to not Ex: It may not be found good that if a person
that is morally ethical but it may not be found disclose the important points to other colleague , has found out to be guilty could be ethically
ethical on the grounds of law and society in to win higher position though it may not be incorrect but under law he/she has full right to
which you live found morally correct hire a lawyer to defend himself
 Ethics in Business World
Leadership : The conscious effort to integrate,adopt,and emulate to guide decisions and
behavior of all aspects of personal life
Accountability : Holding yourself and other’s responsible for their actions, commitment
towards your organization
Integrity : It means to extend to all people the same respect and consideration that you expect
to receive from others. Consistency , is obviously hard to achieve, particularly when you are in a
situation that conflicts with your morals .Example : when you work more than your working
hours for your colleague then , you never demand for the pay but, when you work for your
organization then, immediate cause for overtime pay comes in your mind
 Respect for others: To foster ethical behavior and environments in the workplace,
respecting others is a critical component. Everyone deserves dignity, privacy, equality,
opportunity, compassion, and empathy.
 Honesty: Honesty and commitment towards your work , bad news should also be
communicated and received in the same manner as that of good news for the
organization
 Responsibility : Everyone should be responsible enough for the duties toward
organisation and towards your co-workers
 Fairness : Everyone should fair enough to give equal opportunities, and be treated the
same. If a practice or behavior would make you feel uncomfortable or place personal
or corporate benefit in front of equality, common courtesy, and respect, it is likely not
fair.
 Environmental Concerns: In a world where resources are limited, ecosystems have
been damaged by past practices, and the climate is changing, it is of utmost
importance to be aware of and concerned about the environmental impacts a
business has. All employees should be encouraged to discover and report solutions for
practices that can add to damages already done.
 Why Business ethics?????
• Gaining the goodwill of the community
Although organizations exist primarily to earn profits or provide services to customers,
they also have some fundamental responsibilities to society . As a result , many organisations
initiate or support socially responsible activities , which may include making contributions to
charitable organisations , providing benefits for employees in excess of any legal
requirements . For example : a company known for treating its employees well will find it
easier to compete for the best job candidates .
• Creating an Organisation That Operates Consistently
Organisations develop and abide by values to create an organisational culture and to
define a consistent approach for dealing with the needs of their stakeholders i.e. shareholders,
employees, customers, suppliers, and the community . Such consistency ensures that
employees know what is expected of them and can employ the organisations value to help in
decision making . For example: Google invested $250 million in solar and wind power
projects, which depicts its one of the socially responsible activities
• Fostering Good Business Practices
In many cases , good ethics can mean good business and improved profits. Companies
provide excellent service to retain their customers instead of losing them to competitors.
Suppliers and other business partners often place a priority on working with companies that
operate in a fair and ethical manner. All these factors tend to increase revenue and profits
while decreasing expenses. As a result , ethical companies tend to be more profitable over
the long term than unethical companies . On the other hand , bad ethics can lead to bad
business results. Bad ethics can have a negative impact on employees, many of whom may
develop negative attitudes if they perceive a difference. When such discrepancy between
employee and organization occur then, it destroys the employee commitment towards
organization.
• Protecting the Organization and its Employees from Legal Action
In 1909 ruling (United states v. New York Central& Hudson River Railroad Co.),the U.S
Supreme Court established that an employer can be held responsible for the acts of its
employees even if the employees act in a manner contrary to cooperate policy and their
employer’s directions. The principle established is called Respondent Superior , or “let the
master answer”
The CEO and the general counsel of IT solutions and services provider GSTI Corporation
were forced by Small Business Administration (SBA) to resign , while three other top GSTI
executives were suspended , due to allegations that GTSI employees were involved in a
scheme with its contracting partners that resulted in the firm receiving money set aside for
small businesses. GSTI , which had over 500 employees and revenue over $760 million ,
was providing services and being paid most of the fees.
• Avoiding Unfavorable Publicity
The public reputation of a company strongly influences the value of its stock , how
consumers regard its products and services , the degree of oversight it receives from
government agencies and the amount of support and co-operation it receives from its
business partners. Thus many organization are motivated to build a strong ethics program to
avoid negative publicity. For example : In 2012 , Google agreed to pay a fine $22.5 million
to end an FTC (Federal Trade Commission investigation into allegation that the firm
utilized cookies and bypassed privacy settings to track the online habits of people using
Apple’s Safari browser. Recently , also Google's Been Fined $162 Million In India for
abusing its commanding position in the smartphone market.
 Types of Business Ethics
• Corporate Social Responsibility
Corporate social responsibility (CSR) is the concept of meeting the needs of
stakeholders while accounting for the impact meeting those needs has on employees,
the environment, society, and the community in which the business operates. Of
course, finances and profits are important, but they should be secondary to the
welfare of society, customers, and employees—because studies have concluded that
corporate governance and ethical practices increase financial performance.
• Transparency and Trustworthiness
It's essential for companies to ensure they are reporting their financial performance
in a way that is transparent. This not only applies to required financial reports but all
reports in general. For example, many corporations publish annual reports to their
shareholders. Most of these reports outline not only the submitted reports to
regulators, but how and why decisions were made
 How an Ethical Work Environment could be created??????

1. Face the complexity involved in making ethical choices. Don’t oversimplify

decisions.
Openly discuss the ethical grey areas and acknowledge the complexity of work life.
Involve others in more of the ethical decisions. Be a leader who talks about the difficult
ethical choices, and help others learn to take responsibility for making ethical decisions
carefully.
2. Talk about the right thing to do in the context of your daily challenges. Don’t
separate ethics from day-to-day business.
Make it clear to your people that ethics is “the way we operate” and not a training program
or reference manual. Every activity, whether it is a training program, a client meeting, or
an important top management strategy session, should include conversations about ethics.
3. Demonstrate respect for everyone all the time. Don’t allow negative interpersonal
behaviors to erode trust.
Make respect a load-bearing beam in your culture. Be an ethical leader who expects it and
practices it. Cultivate a respectful environment where people can speak up about ethics and
share the responsibility for living it. Build trust, demand open communication and share the
ownership of organizational values.

4. Take responsibility broadly, and reach for the highest level of ethical leadership.
Don’t think about ethics as just following laws and regulations.
Take action and show consumers and other stakeholders that you are actively engaged with
ethical issues that matter. Recognize how ethics influences their reasons to buy from you,
and demonstrate your commitment to go beyond mere compliance with laws and
regulations. Prove that you are committed to ethical issues, including human rights, social
justice and sustainability.
5. Hold everyone accountable, and expect leaders to model the standards.
Don’t exempt anyone from meeting ethical expectations.
Allow no excuses. Make sure that no one is exempted from meeting the
ethical standards you adopt. Maintain the status of ethics as a total, absolute,
“must do” in the organization. Hold everyone, particularly senior leaders and
high profile managers, accountable. No exceptions!
6. When you talk about ethics, don’t just talk about the negative.
Celebrate positive ethical moments.
Be a proactive ethical leader, championing high ethical conduct, and
emphasizing prevention. Talk about what positive ethics looks like in practice
as often as you talk about what to avoid. Take time to celebrate positive ethical
choices.
 Ethics in IT
• The growth of the internet , the ability to capture and store vast amount of personal
data and greater reliance on information systems in all aspects of life have increased
the risk that information technology , will be used unethically.
• Examples:Many employees might have their and Internet access monitored while at
work, as employers struggle to balance their need to manage important company
assets and work time with employees’ desire for privacy and self-direction.
• Hackers break into databases of financial and retail institutions to steal customer
information, and then use it to commit identity theft—opening new accounts and
charging purchases to unsuspecting victims
• Web sites plant cookies or spyware on visitors’ hard drives to track their online
purchases and activities.
Profession
A profession is a calling that requires specialized knowledge and often long and
intensive preparation . The United States Code of federal regulations defines a
“professional employee” as one who is engaged in the performance of work:
• Requiring knowledge of an advanced type in a field of science or learning
customarily acquired by a prolonged course of specialized intellectual instructions
and study in an institution of higher learning
• Required the consistent exercise of discretion and judgment in its performance
• Which is predominantly intellectual and varied in character
• Which is of such character that the output produced or the result accomplishment by
such work cannot be standardized in relation to a given period of time
Are IT Workers Professionals?

From a legal perspective , IT workers are not recognized as professionals because they
are not licensed by the state or federal government .
• For a doctor to get certification requires one should be a medical school
graduate pass the final MBBS examination and undergo a one-year
internship in a hospital recognized by the National Medical Commission
previously Medical Council Of India
• For a lawyer to get certification , one needs just pass 12th and enroll in law
college , register in Bar Council of India, become junior assistant ,pass ALL
INDIA BAR EXAM , then work.
For This reason , in malpractice lawsuits , as many courts have ruled that IT
workers are not liable for malpractice because they do not meet the legal
definition of profession
Professional Relationship That must be Managed

Employers

Society Clients

IT
worker

IT Users Suppliers

Other Professionls
Relationship between IT workers and Employers
 There are many aspects which counts in building up of a relationship between IT workers and
employers . The first comes with the fundamental aspects that include acceptance of job title ,
performance expectation, specific work responsibilities , dress code, location of
employment , salary , work hours and company benefits.
 Although end users often get the blame when it comes to using illegal copies of commercial
software, software piracy in a corporate setting is sometimes directly traceable to IT staff
members - either they allow it to happen or they actively engage in it, often to reduce IT-
related spending.
 Business Software Alliance (BSA):- a trade group that represents the world’s largest
software and hardware manufacturers, whose mission is to stop unauthorized copying of
software produced by its members. Failure to cooperate with the BSA can be extremely
expensive. The cost of criminal or civil penalties to a corporation and the people involved can
easily be many times more expensive than the cost of “getting legal” by acquiring the correct
number of software licenses.
Trade secret: - information used in a business, generally unknown to the public
and representing something of economic value that the company has taken strong
measures to keep confidential. For example: formula of Coke, Intel’s
manufacturing process for the i7quad core processing chip.
Whistle-blowing: - an effort by an employee to attract attention to a negligent,
illegal, unethical, abusive, or dangerous act by a company that threatens the public
interest.
For example: an employee of a chips is dangerous to employees and the general
public . An employee would call the problem to management’s attention and try to
correct it by working with appropriate resources within the company . But what if
employee’s attempt to correct it by working with appropriate resources within
channels was ignored ? The employee might then consider becoming a whistle-
blower and reporting the problem to people outside the company, which may result
in retaliation and firing .
 Relationships between IT Workers and Clients
1. IT workers provide services to clients; sometimes those “clients” are coworkers who are
part of the same organization as the IT worker. In other cases, the client is part of a
different organization. Note that in relationships between IT workers and clients, each
party agrees to provide something of value to the other
2. Typically, the client makes decisions about a project on the basis of information,
alternatives, and recommendations provided by the IT worker.
3. Conflict of interest:- a conflict between a person’s (or firm’s) self-interest and the
interests of a client. Problems can arise during a project if IT workers find themselves
unable to provide full and accurate reporting of the project’s status due to a lack of
information, tools, or experience needed to perform an accurate assessment
For Example: an IT consulting firm might be hired to assess a firm’s IT strategic plan.
After a few weeks of analysis , the consulting firm might provide a poor rating for
existing strategy and insist that its proprietary products and services are required to
develop a new strategic plan . Such findings would raise questions about vendor’s
recommendations should be trusted or not
Fraud: - the crime of obtaining goods, services, or property through deception or trickery. For
example: Paul Ceglia , who in 2010 sued Facebook claiming to own a majority of the
company . Ceglia claimed that he signed a contract with Mark Zukerberg in 2003 to design and
develop the Website that eventually became Facebook . He alleged that he paid Zukerberg
$1000 for the programming work and also invested an additional $1000 in Zukerberg’s
Facebook project in exchange for 50% interest in Facebook . Ceglia manufactured evidence ,
including purported emails with Zukerberg , to support his false claim to an interest in Facebook
. But , later it was clear to the judge that this was false evidence created recently by Ceglia and
eventually he was arrested on federal mail and false charges.
Misrepresentation: - misstatement or incomplete statement of a material fact. If the
misrepresentation causes the other party to enter into a contract , that party may have the legal
right to cancel the contract or seek reimbursement for damages
Siri , the voice –activate software that comes with the Apple iPhone , has delighted many
iPhone users ; however , not everyone has had a positive experience . Shortly, after one
user realized that Siri was not performing as expected ,as it was unable to understand
question and gave incorrect directions
Breach of contract:- when one party fails to meet the terms of a contract.
Material breach of contract:- when a party fails to perform certain express or implied
obligations which impair or destroy the essence of the contract. Because there is no clear line
between a minor breach and a material breach, determination is made on a case-by-case
basis.” When there has been a material breach of contract , the nonbreaching party can
either : treat the contract as being in effect and sue the breaching party to recover damages
rescind the contract , seek restitution of any compensation paid under the contract to the
breaching party and be discharged from any further performance under the contract
 Relationships between IT Workers and Suppliers
1. Having a good relationship with a supplier encourages the flow of useful communication. A
good relationship is developed by treating suppliers fairly and not making unreasonable
demands.
2. Suppliers strive to maintain positive relationships with their customers in order to make and
increase sales. To achieve this goal, they may sometimes engage in unethical actions - for
example, offering an IT worker a gift that is actually intended as a bribe.
3. Bribery: - providing money, property or favors to someone in business or government to obtain
a business advantage. An obvious example is a software supplier sales representative who offers
money to another company’s employee to get its business This type of bribe is often called as
Kickback
4. Foreign Corrupt Practices Act (FCPA):- a federal law that makes it a crime to bribe a foreign
official, a foreign political party official, or a candidate for foreign political office.
5. The FCPA requires corporations to have an adequate internal auditing and accounting system,
and permits facilitating payments made for “routine government actions” such as obtaining
permits or processing visas.
6. In some countries, gifts are an essential part of doing business. In fact, in some countries, it
would be considered rude not to bring a present to an initial business meeting.
 Relationships between IT Workers and Other
Professionals
1. Professionals owe each other adherence to the professions code of conduct.
Experienced professionals can also serve as mentors and help develop new
members of the profession.
2. Résumé inflation: - lying on a résumé and claiming competence in an IT
skill that is in high demand.
For Example: Yahoo! Hired a Scott Thompson, the president of eBay’s
PayPal electronic payments unit , as its new CEO in January 2012 . Just after
four months later, Thompson left the company , due , at least in part , to
revelations that his resume falsely claimed that he had earned a bachelor’s
degree in computer science
An ethical issue that can arise in relationships between IT workers and
other professionals is the inappropriate sharing of corporate information.
Relationships between IT Workers and IT Users
1. Term IT user refers to a person who uses a hardware or software product; the term
distinguishes end users from the IT workers who develop, install, service, and support the
product.
2. IT workers have a duty to understand a user’s needs and capabilities and to deliver
products and services that best meet those needs - subject, of course, to budget and time
constraints.

Relationships between IT Workers and Society

3. Society expects members of a profession to provide significant benefits and to not cause
harm through their actions.
4. It is important to note that there is currently no single, formal organization of IT workers
that takes responsibility for establishing and maintaining standards that protect the public.
How do codes of ethics, professional organizations, certification, and licensing affect
the ethical behavior of IT professionals?
Professional Codes of Ethics
1. A professional code of ethics states the principles and core values that are essential to the work of a
particular occupational group. Practitioners in many professions subscribe to a code of ethics that
governs their behavior.
2. An important point to make is that laws do not provide a complete guide to ethical behavior. Just
because an activity is not defined as illegal does not mean it is ethical.
Professional Organizations
No IT professional organization has emerged as preeminent, so there is no universal code of
ethics for IT workers. However, the existence of such organizations is useful in a field that is rapidly
growing and changing.
Association for Computing Machinery (ACM)
Association for Computing Machinery (ACM), a computing society founded in 1947 with over
97,000 student and professional members in more than 100 countries. It is international in scope with
an ACM Europe, ACM India, and ACM China organization.
Institute of Electrical and Electronics Engineers Computer Society (IEEE-CS )
Institute of Electrical and Electronics Engineers (IEEE) covers the broad fields of electrical, electronic, and
information technologies and sciences. The IEEE-CS is one of the oldest and largest IT professional
associations, with about 85,000 members. In 1993, the ACM and IEEE-CS formed a Joint Steering Committee
for the Establishment of Software Engineering as a Profession .

Association of Information Technology Professionals (AITP)

1. AITP was started in Chicago in 1951 by a group of machine accountants under the name Machine
Accountants Associations (MAA).
2. AITP provides IT-related seminars and conferences, information on IT issues, and forums for networking
with other IT workers. Its mission is to provide superior leadership and education in information
technology, and one of its goals is to help members make themselves more marketable within their
industry.
SysAdmin, Audit, Network, Security (SANS) Institute
3. SANS Institute provides information security training and certification for a wide range of individuals,
such as auditors, network administrators, and security managers.
4. 2. SANS makes available, at no cost, a collection of some 1,200 research documents about various topics
of information security.
 Certification

1. Certification indicates that a professional possesses a particular set of skills, knowledge, or

abilities, in the opinion of the certifying organization. Note that unlike licensing, which
applies only to people and is required by law, certification can also apply to products (e.g., the
Wi-Fi CERTIFIED logo assures that the product has met rigorous interoperability testing to
ensure that it will work with other Wi-Fi-certified products) and is generally voluntary.
2. Certification is not a substitute for experience and does not guarantee that a person will
perform well on the job. As a result, some hiring managers are rather cynical about the value
of certifications.
Vendor Certifications
Many IT vendors - such as Cisco, IBM, Microsoft, SAP, and Oracle - offer certification
programs for their products. Explain that workers who successfully complete a program
can represent themselves as certified users of a manufacturer’s product. Depending on
the job market and the demand for skilled workers, some certifications might
substantially improve an IT worker’s salary and career prospects.

Industry Association Certifications

Point out that due to the ongoing need for strong project managers, some of the most
widely recognized and most sought-after certifications come from the Project
Management Institute, which offers certification at several different levels.
Government Licensing
Government licensing is usually handled by state governments in the U.S., and requires that
the recipient pass a test.
The Case for Licensing IT Workers
As a result of the increasing importance of IT in our everyday lives, the development of
reliable, effective information systems has become an area of mounting public concern.
This concern has led to a debate about whether the licensing of IT workers would
improve information systems
Issues Associated with Government Licensing of IT Workers
The reasons why there are few international or national licensing programs for IT
professionals:
• There is no universally accepted core body of knowledge
• It is unclear who should manage the content and administration of licensing exams
• There is no administrative body to accredit professional education programs
• There is no administrative body to assess and ensure competence of individual workers
Common Ethical Issues for IT Users

Software Piracy
Sometimes IT users are the ones who commit software piracy. A common violation occurs when
employees copy software from their work computers for use at home. The increasing popularity of the
Android Smartphone operating system has created a serious software piracy problem. Some IT end users
have figured out how to download applications from the Android Market Web site without paying for them
and then use the software or sell it to others.

Inappropriate Use of Computing Resources

Activities such as surfing the Web, playing video games, and participating in chat rooms erode
worker productivity and waste time.
Supporting the Ethical Practices of IT Users
The growing use of IT has increased the potential for new ethical issues and problems; thus, many
organizations have recognized the need to develop policies that protect against abuses.

Establishing Guidelines for the Use of Company Software

IT managers must provide clear rules about the use of home computers and associated
software, and ensure that employees have legal copies of all the software they need,
regardless of the location of their work.

Defining the Appropriate Use of IT Resources

Effective guidelines allow some level of personal use while prohibiting employees from visiting
objectionable Internet sites or using company email to send offensive or harassing messages.

Structuring Information Systems to Protect Data and Information

Point out that organizations must implement systems and procedures that limit data access to
employees who need it
Q: What is meant by compliance, and how does it help promote the right behaviors and
discourage undesirable ones?

Compliance
In the legal system, compliance usually refers to behavior in accordance with legislation - such the
Sarbanes–Oxley Act of 2002, which established requirements for internal controls to govern the
creation and documentation of accurate and complete financial statements, or HIPAA(Health
Insurance Portability and Accountability Act), which requires employers to ensure the security
and privacy of employee healthcare data. Failure to be in conformance to specific pieces of
legislation can lead to criminal or civil penalties specified in that legislation.
audit committee:- a subgroup of the board of directors that provides assistance to the board in
fulfilling its responsibilities with respect to the oversight of the quality and integrity of the
organization’s accounting and reporting practices and controls including: financial statements and
reports; the organization’s compliance with legal and regulatory requirements; the qualifications,
independence, and performance of the company’s independent auditor; and the performance of the
Company’s internal audit function.
Main responsibilities of the internal audit department. Note that although the
members of the internal audit team are not typically experts in detecting and
investigating financial statement fraud, they can offer advice on how to develop
and test policies and procedures that result in transactions being recorded in
accordance with generally accepted accounting principles (GAAP).
• Determine that internal System and controls are adequate and effective
• Verify the existence of company assets and maintain proper safeguards over their
protection
• Measure the organizations’ compliance with its own policies and procedures
• Insure that institutional policies and procedures, appropriate laws and good
practices are followed
• Evaluate the adequacy of information available for management decision making