Module 2: Influence, Ethics, and Information
LESSON 3
Ethics and Information Technology
Ethical challenges exist in all professions and are not limited to one sector of business. As humans are all imperfect, so are the actions and behaviors they exhibit. Topics like fraud, the right to privacy for consumers, social responsibility, and trade restrictions are well-researched in the literature. For Information Technology (IT) specifically, these ethical concerns can translate into considerations on how technology is used to violate people’s privacy, how automation leads to job reductions, or how management information and its corresponding systems are used and abused for personal gain. While technological advances are often considered beneficial and revolutionary, they also come at a price.
Ethics in information technology raises a range of data management concerns, such as consumer confidentiality, consumer transparency, ethical predictive analytics use, and institutionalization of unfair biases. Private and sensitive consumer information such as financial, medical, and location should be held confidential by the business. However, recent cases in the news show that some businesses have forgone this ethical obligation for profit instead. The ethical use of data obtained from consumers should be transparent to enable consumers to understand how their data is used or whether it is being analyzed or sold to another organization. The widespread use of predictive analytics in information technology management has led to the construction of models that predict consumer behavior, which also raises ethical issues. Certain moral inferences can be made through data but are not always correct since human behavior is often unpredictable; therefore, determining how people will behave is not always morally accurate. Data analytics should not encourage prejudices, which lead to unfair biases. Algorithms can amplify implicit biases through data; thus, it is not always ethical to institutionalize them for business purposes. Therefore, the way data is used in business should undergo an ethical consultation to avoid potential dilemmas.
Information technology management also raises the data ethics issues of consumer privacy and identity. The ease with which information can be obtained due to advances in information technology has increased significantly. However, the moral means and use of that data have not always been ethical. Ethical obligations to obtain informed consent from consumers must always be present because of legal requirements. Many legal reforms have been passed; however, ethical frameworks and morality have not always been able to keep up with the pace of technological advancements. Another issue involves the identity of consumers, which morally should not be exploited for use by other entities such as individuals, businesses, and governments. Information technology has enabled organizations to profit from consumer data originally intended for purposes other than what consumers initially decided to use the product or service for in the first place, which is an ethical concern.
Be sure to review this lesson’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.
Lesson 3 Required Resources
Articles
• Emerging Risks in the IoT Ecosystem: Who’s Afraid of the Big Bad Smart Fridge?
Tanczer, L. M., Steenmans, I., Elsden, M., Blackstock, J., & Carr, M. (2018). Emerging risks in the IoT ecosystem: Who’s afraid of the big bad smart fridge? Living in the Internet of Things: Cybersecurity of the IoT – 2018, 1–9. https://doi.org/10.1049/cp.2018.0033
Internet of Things, one example of emerging technology presents significant potential challenges and risks.
• Privacy Concerns and Data Sharing in the Internet of Things: Mixed Methods Evidence from Connected Cars
Cichy, P., Salge, T. O., & Kohli, R. (2021). Privacy Concerns and Data Sharing in the Internet of Things: Mixed Methods Evidence from Connected Cars. MIS Quarterly, 45(4), 1863–1891. https://doi.org/10.25300/MISQ/2021/14165
Privacy concerns and data sharing are competing challenges for all organizations.
• Research Methods & Design – Research Ethics & Quality Library Guide
National University. (n.d.). Research methods & design – Research ethics & quality library guide.
Research methods and design foundation information to ensure ethical business research.
• Moving Beyond Ethical Decision-making: A Practice-based View to Study Unethical Sales Behavior
Ameer, I., & Halinen, A. (2019). Moving beyond ethical decision-making: A practice-based view to study unethical sales behavior. Journal of Personal Selling & Sales Management, 39(2), 103–122.
• On the Intermediary Effect of Organizational Policy: The Effect of Perceived Ethical Climate on Corruption Behavior of Teachers
Özen, F. (2018). On the intermediary effect of organizational policy: The effect of perceived ethical climate on corruption behavior of teachers. Journal of Education and Training Studies, 6(8), 52–65. http://files.eric.ed.gov/fulltext/EJ1181949.pdf
• Business Ethics Library Guide
National University. (n.d). Business ethics library guide.
A National University Library pages focused on business ethics research and information.
• The Effects of Thought Suppression on Ethical Decision Making: Mental Rebound Versus Ego Depletion
Yam, K. C. (2018). The effects of thought suppression on ethical decision making: Mental rebound versus ego depletion. Journal of Business Ethics, 17(1), 65–79.
Assignment 3: Critique Potential Violations Using Information Technology
Instructions
With the rapid advancement and adoption of technology in all areas of business, it is critical for you, as a future business leader, to understand how unethical actions occur and what you can do to mitigate future risks.
Assume you have been hired as a consultant in the IT Department at National University. One of the University’s current goals is to minimize security threats and prevent breaches. To accomplish this, you have been asked to research last year’s “major hacks” to understand technology, information security measures, and issues in security management.
You must present your findings to the IT supervisor before the supervisor’s meeting with senior leadership. Prepare meeting notes for the IT supervisor that include the following:
Select one major incident to research regarding technological breaches. Identify the company that was affected and then describe this incident and why you selected it.
Explain the implications associated with this breach, specifically in terms of privacy laws and violations of the law.
Analyze the impact that these technological breaches have on consumer safety and well-being.
Recommend further actions to protect the privacy of clients.
Support your meeting notes with a minimum of three scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 3-5 pages, not including title and reference pages
Your meeting notes should show thoughtful consideration of the course’s ideas and concepts by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards where appropriate.
Lesson 4: The Organization’s Influence on Unethical Behavior
The Organization’s Influence on Unethical Behavior
Regardless of your social and personal culture, an organization’s culture can influence how you behave. Thus, organizations must understand the impact of policies, procedures, company culture and values, and more on an individual’s ethical behavior, or lack thereof. Systems, both formal and informal, can influence how individuals behave. In fact, according to research, organizational systems may impact the outlook of employees regarding what is acceptable versus unacceptable.
Codes of ethics adopted by organizations influence the perceptions that employees have about work performance. Unethical behavior often undermines and is counterproductive to performance. Organizations that hold themselves accountable for corporate social responsibility are conscious of the impact business is having on society, including those that are economic, social, and environmental in nature. Empirical-based research shows that consumers care about the ethics of an organization so significantly that organizational ethics may influence consumer purchasing decision behavior. From an organizational perspective, ethical behavior promotes good business relationships with consumers, while unethical behavior does the opposite.
Organizational systems are comprised of people throughout the organization. As an ethical leader, it is important to ensure proper management and leadership of employees throughout.
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Actions and the tone of communications from top leadership are crucial as these key stakeholders serve as role models for organizational behavior. While this is important, it is not the only factor that encourages ethical behavior. Organizations can encourage ethics through policies, procedures, and practices, yet they can also promote unethical behavior due to unrealistic expectations, organizational rivalry, employee ranking, and much more.
For example, a corporate merger can be difficult to implement. A corporate merger leads to the formation of a new corporation by blending two different organizations, which may raise legal and ethical issues. Each board of directors is bound to its corporate culture and is determined to keep the status quo for its institution. The duties to be governed by members of the board of directors are not abrogated by the creation of a third board. Power could be legally transferred to the third merged board of directors, but responsibility is still held with the two boards until otherwise notified by the third board. In the end, both boards must be adjourned or allowed to continue to pursue their own goals.
In some cases of corporate mergers, because of conflicts, some members of the board of directors may abandon their legitimate roles and ethical obligations to govern by the establishment of a third board of directors. In such cases, the third board of directors formed by the merger must order the new CEO to terminate senior administrators from both organizations, stop providing them with operating budgets, and cease to provide routine financial reports. Unfortunately, this may result in depriving the organization of the necessary resources for operations and growth.
Be sure to review this lesson’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.
Lesson 4 Required Resources
Articles
• The Role of Ethics in 21st Century Organizations
Grigoropoulos, J. E. (2019). The role of ethics in 21st century organizations. International Journal of Progressive Education, 15(2), 167–175.
• Business Ethics Library Guide
National University. (n.d). Business ethics library guide.
A National University Library pages focused on business ethics research and information.
• Research Methods & Design – Research Ethics & Quality Library Guide
National University. (n.d.). Research methods & design – Research ethics & quality library guide.
Research methods and design foundation information to ensure ethical business research.
• Does Corporate Integrity Improve the Quality of Internal Control?
Shu, W., Chen, Y., Lin, B., & Chen, Y. (2018). Does corporate integrity improve the quality of internal control? China Journal of Accounting Research, 11(4), 407–427. https://doi.org/10.1016/j.cjar.2018.09.002
Assessing the link between ethics and internal controls within organizations.
• Can Corporate Ethics Programs Reduce Unethical Behavior? Threat Appraisal or Coping Appraisal
Jannat, T., Alam, S. S., Ho, Y.-H., Omar, N. A., & Lin, C.-Y. (2022). Can Corporate Ethics Programs Reduce Unethical Behavior? Threat Appraisal or Coping Appraisal. Journal of Business Ethics, 176(1), 37–53. https://doi.org/10.1007/s10551-020-04726-8
A critical assessment of the nature of holistic ethics management systems.
• The Board’s Role in Promoting an Ethical Culture
Vollmer, S. (2018). The board’s role in promoting an ethical culture. Journal of Accountancy, 226(1), 79–83.
• My Company Cares About My Success…I Think: Clarifying Why and When a Firm’s Ethical Reputation Impacts Employees’ Subjective Career Success
Rice, D. B., Taylor, R. M., Wang, Y., Wei, S., & Ge, V. (2023). My Company Cares About My Success…I Think: Clarifying Why and When a Firm’s Ethical Reputation Impacts Employees’ Subjective Career Success. Journal of Business Ethics, 186(1), 159–177. https://doi.org/10.1007/s10551-022-05143-9
How does a company’s ethical reputation affect employee actions?
• More Accountable, More Ethical, yet Less Trusted: Misplaced Corporate Governance in the Era of Big Data
Fotaki, M., Voudouris, I., Lioukas, S., & Zyglidopoulos, S. (2021). More accountable, more ethical, yet less trusted: Misplaced corporate governance in the era of big data. British Journal of Management, 32(4), 947–968. https://doi.org/10.1111/1467-8551.12447
Organizations are not the same and thus data management and ethical use of data may be different for different organizations.
• Creating an Ethical Organizational Environment: The Relationship Between Ethical Leadership, Ethical Organizational Climate, and Unethical Behavior
Kuenzi, M., Mayer, D. M., & Greenbaum, R. L. (2020). Creating an ethical organizational environment: The relationship between ethical leadership, ethical organizational climate, and unethical behavior. Personnel Psychology, 73(1), 43. https://doi.org/10.1111/peps.12356
A critical assessment of the ethical climate of an organization and ethical outcomes.
• Embeddedness on Unethical Pro-organizational Behavior: Roles of Perceived Status and Ethical Leadership
Lee, J., Oh, S.-H., & Park, S. (2022). Effects of Organizational Embeddedness on Unethical Pro-organizational Behavior: Roles of Perceived Status and Ethical Leadership. Journal of Business Ethics, 176(1), 111–125. https://doi.org/10.1007/s10551-020-04661-8
Organizations with solid ethical cultures can still create competitive internal structures that lead to unethical behavior.
• Increasing Organizational Culture and Ethics in Healthcare Organizations
Forgon, T. (2018). Increasing organizational culture and ethics in healthcare organizations. Scientific Papers of Silesian University of Technology. Organization & Management / Zeszyty Naukowe Politechniki Slaskiej. Seria Organizacji i Zarzadzanie, (122), 43–49. https://doaj.org/article/5bef692e310e4fd1886730b1e0467c50
Assignment 4: Interpret Organizational Influence on Behavior
Instructions
This lesson’s resources provide a great deal of information regarding the impact that organizational systems have on unethical behavior. For example, researchers note that rivalry can often increase unethical behaviors (Kilduff et al., 2016). In this lesson, you will explain how an organization’s culture (e.g., systems and practices) can unknowingly or unintentionally increase unethical behavior among employees.
Assume you have been tasked with researching these concepts for your organization’s management team, who are concerned about possible cases of unethical behavior stemming from organizational systems in place. Prepare a professional business memo to share with managers at the next team meeting. Be sure to include the following in your memo:
• Explain the importance of organizational culture and codes of conduct in encouraging ethical behavior.
• Assess three organizational policies or practices, as found in the readings and outside research, which can increase unethical behavior among employees.
• Propose informal and formal system solutions to reduce unethical behavior in your organization. Explain the benefits of these system solutions and implications for them.
Support your memo with a minimum of three scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 1-2 pages, not including title and reference pages
Your memo should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards where appropriate.
Reference
Kilduff, G. J., Galinsky, A. D., Gallo, E., & Reade, J. J. (2016). Whatever it takes to win: Rivalry increases unethical behavior. Academy of Management Journal, 59(5), 1508-1534.
Learning Outcomes: 4, 5, 6
• Assess the extent to which social, ethical, and public issues must be considered in internal and external stakeholder relationships.
• Interpret ethics in a business setting with regards to integrity and code of conduct.
• Categorize the organizational consequences of ethics violations.
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