CH 14

IT for Management: On-Demand Strategies for
Performance, Growth, and Sustainability

Twelfth Edition
Turban, Pollard, Wood
Chapter 14
IT Ethics and Local and Global

Sustainability
Learning Objectives (1 of 3)
An Introduction to
Ethics
ICT and Global ICT and Local

Sustainability Sustainability
Copyright ©2021 John Wiley & Sons, Inc. 2

Ethics are the values and
customs of a particular
group that identify what is
considered right and what
An is considered wrong.
Introduction
to Ethics Ethical behavior is acting
in ways consistent with the
accepted values of society
and individuals.

Code of Ethics
• Code of ethics is a set of principles and rules used by individual
and organizations to govern their decision-making process, as
well as to distinguish right from wrong.
• It has two main purposes:
1. serves as an internal guide and
2. as an external statement of an organization’s values and
commitments.
• A company’s code of ethics should:
• Show employees the company operates in a responsible way
• Show customers that the company values integrity
• Prevent unintentional violations of ethical behavior
• Provide a clear point of reference if enforcement of corrective action is
necessary

IT Professionals’ Code of Ethics
Examples of IT-related professional associations:
• Association of IT Professionals (AITP) Code of Ethics and
Standards of Conduct
• Project Management Institute (PMI) Code of Ethics and
Professional Conduct
• Society of Information Management (SIM) Code of Conduct
• American Medical Informatics Association (AMIA) Code of
Professional Ethical Conduct
• Australian Computer Society Code of Ethics
• British Computer Society Code of Conduct and Practice
• Computer Society of South Africa Code of Ethics

• To formalize the process,
every organization should
Developing have an ethics and
compliance program that
an Ethics ensures:
and 1. Comprehensive
Complianc reporting,
e Program 2. Clear accountability,
and
3. Full and effective
oversight by top
management
Comprehensive Reporting
• Sarbanes–Oxley Act (SOX) mandates more accurate business
reporting and disclosure of violations and advocates “an
organizational culture that encourages ethical conduct and a
commitment to compliance with the law” as a precondition to
the establishment of “effective compliance and ethics”
programs.
• Section 302 of the SOX requires that the CEO and CFO verify that
they have reviewed the financial report, and, to the best of their
knowledge, the report does not contain an untrue statement or
omit any material fact.
• Executive management faces criminal penalties including long jail terms
for false reports.
• SOX requires companies to set up comprehensive internal
controls.
Accountability
• Employees must be aware of what is expected of them
with respect to their interactions with corporate
computer resources and of the enforcement and
consequences they will face if they engage in unethical
behavior.
• Every individual who works with an information system
should be assigned specific roles and responsibilities.
• Once implemented, it is imperative that a company
strictly applies with its provisions.

An enterprise-wide approach that combines
risk, security, compliance, and IT specialists
greatly increases the prevention and detection
of ethical infringements.
Full and It starts with corporate governance, culture,

and ethics at the top levels of the organization.
Effective
Oversight IT can play an important role in a company’s
efforts to ensure full and effective oversight.
A strong board of directors is another effective

tool for governance of an organization’s ethics
and compliance and program.

Ethics Training in the Workplace
• Workplace ethics training helps build strong teams, foster
professionalism, and increase productivity at work.
• Ethics training can range from a simple conversation with an HR
professional or a full-blown training program that discusses
potential ethical dilemmas that an employee may encounter in
the workplace such as customer privacy, employee and customer
data protection, fraud, customer relations, and general
employee behavior and presents the best course of action in
each situation.
• Reporting of unethical behavior:
• Whistleblower is an employee, supplier, contractor, client, or
any other individual who has and reports insider knowledge
of illegal activities occurring in an organization.

IT-Related Unethical Behavior
• Unethical behavior is an action that is not considered
morally right or proper carried out by a person, a
profession, or an industry.
• Unethical behavior can lead to very serious
consequences that can cost a company time and money
in trying to repair their reputation, cost millions of
dollars and even prison time, and adversely affect its
sustainability.

Whitelisted apps is an
approved app or executable
file that is permitted to be
Whitelisted present and active on a
computer system.
Apps vs
Blacklisted
Blacklisted apps is a
Apps malicious app that mimics a
reputable, highly
downloaded app.

• Artificial intelligence (AI) was designed to
make our lives better and more efficient,
but that is not always the case.
Tech-Savvy • Tech-savvy individuals create macros,
Individuals which are computing apps that allow
users to input one instruction that
and coincides with a long list of instructions
Scalpers to be completed automatically by the
program, to instantly and automatically
Exploit buy as many tickets to popular events
and shows as possible.
Artificial
• Acting alone or in collaboration with
Intelligence “scalpers,” they resell the tickets at
immensely inflated prices since the
original tickets are sold out.

Distracted Driving
• At any given time, approximately 660,000 Americans
are using or manipulating an electronic device while
driving.
• The delay in a driver’s reaction time when using a hand-
held or hands-free cell phone is equivalent to that of a
person with a 0.08% blood alcohol concentration.
• In 2019, the Department of Transportation reported
that texting while driving is a primary or contributing
factor in as many as 16% of all police-reported traffic
accidents, 58% of crashes involving teen drivers, and
14% of fatal crashes.
• Despite benefits, the medical
application of bioprinting to
produce living tissue and organs is
expected to spark major ethical
Additive debates about whether lives are
Manufacturing being saved or redefined.
Dilemmas (3D • Unfortunately, 3D printers can
Printing and exert impacts on the environment
Bioprinting) worse than those of standard
manufacturing.
• Despite the ethical challenges it
poses, the use of 3D printing is
growing.

• Insider fraud is a term that refers
to a variety of criminal behaviors
perpetrated by an organization’s
employees or contractors against
an employer.
Insider • Fraud is a nonviolent crime using
deception, confidence, and
Fraud trickery to secure resources for
personal gain.
• Computer-related fraud is the use
of computers, the Internet, and
other IT devices to defraud people
or organizations of resources.

• Fraud occurs because internal
controls to prevent insider fraud—
no matter how strong—will fail on
occasion.
• Fraud risk management is a system
Why of policies and procedures to
prevent and detect illegal acts
Fraud committed by managers,
Occurs employees, customers, or business
partners against a company’s
interests.
• Analyzing why and how fraud
could occur is as important as
detecting and stopping it.

Fraud Prevention and Detection
• Designing effective fraud response and litigation-readiness
strategies (post-incident strategies) is crucial to be able to do the
following:
• Recover financial losses.
• Punish perpetrators through lawsuits, criminal charges, and/or forfeited
gains.
• Stop fraudsters from victimizing other organizations.
• Trying to keep fraud hidden can mean either doing nothing or
simply firing the employee.
• These approaches to dealing with fraud are not sustainable
because they erode the effectiveness of fraud prevention
measures and produce a moral hazard, that is, they take the risk
out of insider fraud.

Internal Controls
Strong internal controls, which depend on IT for their
effectiveness, consist of the following:
• Segregation of duties
• Job rotation
• Oversight Management
• Safeguarding of assets
• IT policies—understand your IS

Regulatory Controls
Dodd-Frank Wall Street

Foreign Corrupt Federal Sentencing
Reform and Consumer
Practices Act (FCPA) Guidelines
Protection Act
Federal Trade
Consumer Protection Commission (FTC) Social
UK Bribery Act of 2010
Act Media Guidelines for
Financial Institutions
Federal Financial
Institutions Examination
Council (FFIEC)

• Employers use social media for multiple
reasons: to engage employees, to share
knowledge among employees, and for
recruitment and hiring of new employees.
• Engaging in unethical and illegal social media
snooping that results in bias when recruiting
Discrimination new hires is known as social media
in Social discrimination.
Media • There is a fine line between ethical
Recruiting microtargeting, a marketing strategy that
uses consumer data and demographics to
create targeted subsets or market segments,
and unethical social media discrimination
that uses protected class information to vet
individual candidates and puts employers in
jeopardy of breaking the law.

Unethical and Illegal Practices in Social
Media Recruiting
• Career Builder reports that 70% of employers are using
social media to vet their recruiting prospects
• Some of these result in bias and social media
discrimination making social media a hotbed for
recruiting discrimination
• Negligent hiring is the hiring of an employee when the
employer knew or should have known about the
employee’s background which, if known, indicates a
dangerous or untrustworthy character.

Civil rights are the rights of citizens
Civil to political and social freedom and
equality.
Rights
and Protected class is a group of people
Protected with characteristics that cannot be
targeted for discrimination and
Classes harassment such as age, race,
disability, gender, marital status,
national origin, genetic
information, and religion.

Proving Social Media Discrimination
• Unlike data privacy cases, social media discrimination is
not always obvious, and it is much more difficult to
prove.
• When companies violate privacy regulations that their
customers rely upon, these are clear-cut cases that are
relatively easy to detect and prosecute.
• If a company uses social media photos and postings to
piece together a profile of a person’s age, religion, or
genetic condition and rejects them based on what they
found, the company has committed social media
discrimination and is very likely in violation of other
laws.
Providing a Secure and Respectful
Workplace: Company Responsibilities
• Being intolerant of disrespectful, untrustworthy, hostile,
or bullying behavior
• Setting clear expectations of respectful behavior
• Responding to ideas, concerns, complaints, and
feedback with empathy, fairness, dignity, and respect
• Offering an ethics training program
• Offering a formal conflict resolution process
• Setting up ethics, fraud, and whistleblower hotlines for
anonymous reporting of unethical behavior

Providing a Secure and Respectful
Workplace: Employee Responsibilities
• Treat each other with respect and consideration
• Act inclusively
• Value others
• Accept differences in other people
• Recognize the efforts and achievements of others
• Consider impact of their behavior on others
• Report unethical behavior

An Introduction to Ethics: Questions
1. What are the three tenets of ethical behavior?
2. Why is it important for a company to have a code of ethics?
3. What are three ways in which the production, development, and use of IT is
causing unethical behavior?
4. Name three protected classes.
5. How is social media depriving protected classes of their civil rights?
6. Why is it important that a company provide its employees with a secure and
respectful workplace?
7. What types of behavior can a secure and respectful workplace help deter?
8. What is insider fraud? What are some other terms for insider fraud?
9. What four factors increase the risk of fraud?
10. What is the difference between social media discrimination and negligent
hiring?

An Introduction to
Ethics


ICT and Local Sustainability
Sustainability is the ability to create and maintain conditions that
enable humans and nature to exist in productive harmony to support
present and future generations.

• Fair trade means pricing products and
services in an affordable and equitable
manner, providing employees with
decent working conditions in all
locations, and offering fair terms of trade
to farmers and workers in developing
countries.
Three Facets • Eco-efficiency involves the creation of
of more and better goods and services
Sustainability while using fewer resources and creating
less waste and pollution.
Interactions
• Environmental justice focuses on the fair
treatment and meaningful involvement
of all people regardless of race, color,
national origin, or income with respect to
the development, implementation, and
enforcement of environmental laws,
regulations, and policies.
The Triple Bottom Line and Sustainable
Development
• Triple bottom line is a process by which companies
manage their financial, social, and environmental risks,
obligations, and opportunities.
• Sustainable development is an initiative to create long-
term stakeholder value through implementing a
business strategy focused on doing business in an
ethical, social, environmental, cultural, and
economically responsible way.

Sustainable Development Programs Benefits
Acquisition and retention of sustainability-conscious customers
Attraction and retention of socially responsible investors
More dedicated sustainability-conscious employees
Attraction and retention of sustainability-conscious talent
Short-term and long-term cost savings
Increase in market share through building a brand image based on

sustainability
Profits: “Green IT” Trumps Greenbacks
• Sustainable profitability for a business means that an
organization provides a service or product that is both
profitable and environmentally friendly.
• There is a common misconception that focusing on
expensive “green” initiatives means that profits must
suffer.
• Researchers at the Massachusetts Institute of
Technology refute this claim.
• Efficient use of IT and more specifically information
communications technology (ICT) can be an important
enabler in ensuring sustainable profits.
• Quality of life is the general well-
being of individuals and societies,
including physical health, family,
education, employment, wealth,
safety, religious beliefs, and the
People: environment.
• The six elements of quality of life that
Preservin information technology impacts in
g Quality positive and negative ways are:
• communications
of Life • relationships
• work–life balance
• healthcare
• education, and
• travel
ICT and Local Sustainability: Questions
1. What is the triple bottom line?
2. How does ICT affect the profits of a company?
3. Why would a company want to become sustainable?
4. What are the six aspects of quality of life?
5. How does the use of ICT impact communications?
6. Why would you purchase an electric vehicle?

An Introduction to
Ethics


ICT and
Global
Sustainability
• Being profit-
motivated without
concern for damage
to the planet is
unacceptable.
• To protect the planet,
the four “Rs” of
environmental
sustainability must be
judiciously applied to
air, energy, waste,
water, and
biodiversity around
the globe.
Climate Change (Global Warming)
• Global warming is the upward
trend in the global mean
temperature (GMT).
• Greenhouse gas (GHG) emissions
are carbon dioxide, methane,
nitrous oxide, and other chemical
compounds that trap and hold
heat in the atmosphere by
absorbing infrared radiation.
• Greenhouse effect is the holding
of the heat of the sun within the
earth’s atmosphere.

ICT and Climate Change
• Analysis conducted at McMaster University:
o At the current rate, the IT sector’s carbon footprint of roughly
1.5% in 2007 could grow to more than 14% by 2040 because
of increased use of tablets, smartphones, apps, and services
and the exponential growth of the IT industry.
o Among all devices, trends suggest that by 2020, smartphones
will be the most damaging devices to the environment.
o The IT infrastructure accounts for most of the IT industry
impact growing from 61% in 2010 to 79% in 2020.

Climate Change Mitigation
• Carbon footprint is the amount of carbon dioxide and other
carbon compounds emitted due to the burning of fossil
fuels by a person, group, organization, or country.
• Climate change mitigation is any action to limit the
magnitude of long-term climate change.
• Network service providers also must reduce energy use to
decrease their carbon footprint.
• The Internet is the largest network in the world. It produces
a huge amount of GHGs required for the manufacture and
shipping of servers, computers and smartphones and in
powering and cooling them throughout their useful life and
in transmitting the data they carry.

Formal Climate Change Initiatives and
Agreements
• Along with tax incentives and subsidies to targeted
industry sectors, several local and international groups
have developed initiatives to guide the use of
technology to achieve sustainability goals:
a. The Global e-Sustainability Initiative (GeSI)
b. The Climate Group’s SMART 2020 Report
c. The Paris Climate Pact

ICT and Sustainability in Developing
Countries
• Developing countries are faced with several unique and
particularly disturbing health, social, and economic
sustainability issues impacted by climate change and
can benefit from the use of ICT solutions.
• These include:
• access to clean water and sanitary conditions
• food security, and
• unsustainable agriculture

Access to Clean Water and Sanitary
Conditions
• The United Nations estimate that by 2030 the global population will
suffer from a 40% shortage in water resources needed for drinking,
washing, cooking, and maintain sanitation systems.
• The lack of clean drinking water is of particular concern in Africa
• Clean water and personal hygiene go hand in hand. It’s hard to believe
that more people have a smartphone than have toilets!
• Sustainability Goal 6 of the UN Development Program is “Clean Water
and Sanitation” and commits to ensuring the availability and
sustainable management of water and sanitation worldwide, including
an end to open defecation by 2030.
• ICT is playing a pivotal role in reaching this goal by combining physical
infrastructure, data management, and communication technologies in
new and innovative ways.
The Current State of Food Security

Examples of ICT-supported Food Security
Initiatives
• Sugar cane farmers in Kenya increased their average yield by almost 12% as a
result of receiving personalized SMS on their smartphones advising them to
complete certain tasks in the fields.
• Farmers in Uganda increased their crop revenues by as much as 55% when
they received price information via radio.
• Food was made more affordable for consumers in Niger when grain prices
were reduced by 10–16% after grain traders started to use smartphones to
call them to search for price information over larger areas and see their grains
in more markets.
• In Africa, to increase human and animal welfare, provide regional and local
food security and conserve the environment, the Infonet-Biovision
Information Platform provides farmers and rural communities with validated
information and knowledge from local experts and international scientists on
crop, animal, human, and environmental health.

Lack of Technical
Infrastructures
Barriers to ICT
Acquisition,
Inadequate STEM (Science,
Implementation,
Technology, Engineering,
and Use in
Developing and Math) Education
Countries
Scarcity of ICT Policies and
Regulations

People-first approach ensures
that technology meets the needs
Taking a of users by involving the users at
People- every stage of systems
development.
First
Approach Tech-clash is the love/hate
to relationship technology users
experience when they perceive
Technology the business value of technology
is not aligned with their personal
values, expectations, and needs.

Sustaining Business in a Post-COVID-19
World
• The COVID-19 pandemic has made ICT more relevant
than ever before.
• The use of digital payments, telehealth, AI, and
robotics, for example, has accelerated sharply during
2020 to help businesses stay open and reduce the
spread of the virus.
• To sustain business during and after the COVID-19
pandemic, companies will have to embrace more and
more of these disruptive technologies.

Top Five Disruptive Technologies: 1 to 3
• TREND 1: The I in Experience
o To be successful in the future, companies will have to build personalized,
interactive, and shared virtual communities to allow customers to create
their own meaningful digital experience.
• TREND 2: AI and Me
o Investing in AI and other tools that enable a true partnership between
humans and AI will allow business to reimagine their work and workforce
in the future.
• TREND 3: The Dilemma of Smart Things
o Companies must consider how they can introduce new features and
repurpose smart devices to fight the COVID-19 pandemic.
o They must also consider privacy issues related to data collection, storage,
and use, and companies and governments will need to ensure they
operate within strict privacy guidelines to maintain customer confidence.

Top Five Disruptive Technologies: 4 and 5
• TREND 4: Robots in the Wild
o As more people stay home and distancing becomes the new
normal, robots are more critical in business and society than
ever.
o This “contact-less” solution is already helping frontline
workers fight the virus, and anti-virus robots that can
sanitize surfaces and scan for fevers among patients and the
public are being enabled by ultraviolet bars and infrared
cameras.
• TREND 5: Innovation DNA
o Innovation DNA trend includes three different areas: mature
digital technologies, scientific advancements, and emerging
technologies.

ICT and Global Sustainability: Questions
1. What is the greenhouse effect?
2. Why do some experts warn that carbon emission reductions of 45% are necessary by
2030? How does the use of mobile devices contribute to the level of GHGs?
3. What is ICT’s role in global warming?
4. What are the three major sustainability issues in developing countries?
5. How can developing countries benefit from being sustainable?
6. What are the three major categories of barriers to ICT adoption in developing
countries?
7. Which continents are most at risk from lack of food security?
8. How is blockchain technology being used to reduce poverty and help clean up our
oceans?
9. Why is it important for organizations to take a people-first approach to IT?
10. What is the next biggest challenge companies currently face with respect to ICT and
sustainability amid the COVID-19 pandemic?
11. What disruptive technologies could our company use to address the challenges of the
COVD-19 pandemic?
Copyright
Copyright © 2021 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Act without the express written permission of the
copyright owner is unlawful. Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies
for his/her own use only and not for distribution or resale. The Publisher assumes no
responsibility for errors, omissions, or damages, caused by the use of these programs or
from the use of the information contained herein.

CH 14

Uploaded by

Copyright:

Available Formats

CH 14

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CH 14

Uploaded by

Copyright:

Available Formats

IT for Management: On-Demand Strategies for

Performance, Growth, and Sustainability

IT Ethics and Local and Global

ICT and Global ICT and Local

Copyright ©2021 John Wiley & Sons, Inc. 2

Copyright ©2021 John Wiley & Sons, Inc. 3

Copyright ©2021 John Wiley & Sons, Inc. 5

Copyright ©2021 John Wiley & Sons, Inc. 6

Copyright ©2021 John Wiley & Sons, Inc. 9

Full and It starts with corporate governance, culture,

A strong board of directors is another effective

Copyright ©2021 John Wiley & Sons, Inc. 10

Copyright ©2021 John Wiley & Sons, Inc. 11

Copyright ©2021 John Wiley & Sons, Inc. 12

Copyright ©2021 John Wiley & Sons, Inc. 14

Copyright ©2021 John Wiley & Sons, Inc. 15

Copyright ©2021 John Wiley & Sons, Inc. 17

Copyright ©2021 John Wiley & Sons, Inc. 18

Copyright ©2021 John Wiley & Sons, Inc. 19

Copyright ©2021 John Wiley & Sons, Inc. 21

Copyright ©2021 John Wiley & Sons, Inc. 23

Dodd-Frank Wall Street

Copyright ©2021 John Wiley & Sons, Inc. 24

Copyright ©2021 John Wiley & Sons, Inc. 26

Copyright ©2021 John Wiley & Sons, Inc. 27

Copyright ©2021 John Wiley & Sons, Inc. 29

Copyright ©2021 John Wiley & Sons, Inc. 33

Copyright ©2021 John Wiley & Sons, Inc. 34

Copyright ©2021 John Wiley & Sons, Inc. 35

ICT and Global ICT and Local

Copyright ©2021 John Wiley & Sons, Inc. 36

Copyright ©2021 John Wiley & Sons, Inc. 37

Copyright ©2021 John Wiley & Sons, Inc. 39

Acquisition and retention of sustainability-conscious customers

Attraction and retention of socially responsible investors

More dedicated sustainability-conscious employees

Attraction and retention of sustainability-conscious talent

Short-term and long-term cost savings

Increase in market share through building a brand image based on

Copyright ©2021 John Wiley & Sons, Inc. 45

ICT and Global ICT and Local

Copyright ©2021 John Wiley & Sons, Inc. 46

Copyright ©2021 John Wiley & Sons, Inc. 48

Copyright ©2021 John Wiley & Sons, Inc. 49

Copyright ©2021 John Wiley & Sons, Inc. 50

Copyright ©2021 John Wiley & Sons, Inc. 51

Copyright ©2021 John Wiley & Sons, Inc. 52

Copyright ©2021 John Wiley & Sons, Inc. 54

Copyright ©2021 John Wiley & Sons, Inc. 58

Copyright ©2021 John Wiley & Sons, Inc. 59

Copyright ©2021 John Wiley & Sons, Inc. 60

Copyright ©2021 John Wiley & Sons, Inc. 61

Copyright ©2021 John Wiley & Sons, Inc. 63

Copyright ©2021 John Wiley & Sons, Inc. 64

Copyright ©2021 John Wiley & Sons, Inc. 66

You might also like