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2015 Cengage Learning 1 Chapter 9 Business Ethics and Technology 2015 Cengage Learning 2 Learning Outcomes 1. Discuss the role that technology plays in our business lives.

2. Gain an understanding of the technological environment and the characteristics of technology that influence business ethics and stakeholders. 3. Identify the benefits and side effects of technology in business. 4. Gain an appreciation of societys intoxication with technology and the consequences of this intoxication. 5. Learn to differentiate between information technology and biotechnology and their ethical implications for management. 6. Identify the ethical issues involved in biotechnology and present arguments on both sides of the issues. 2015 Cengage Learning 3

Chapter Outline Technology and the Technological Environment Characteristics of Technology Technology and Ethics Information Technology Biotechnology

Summary Key Terms 2015 Cengage Learning 4 Business Ethics & Technology We live in an age dominated by advancing technology. Each new generation experiences technological advances that were not seen by previous generations. The new generation of young people is called the iGeneration. Technology is part of their DNA, and they have no offswitch.

Technology is at the core of most businesses, but it is a two-edged sword. Despite many positive advances, there are new problems and challenges. 2015 Cengage Learning 5 Technology and the Technological Environment Technology The totality of the means employed to provide objects necessary for human sustenance and comfort.

A scientific method used to achieve a practical purpose. Technological environment The total set of technology-based advancements or progress taking place in society. 2015 Cengage Learning 6 Characteristics of Technology Benefits of Technology Increased production of goods and services Reduced amount of labor needed to produce goods and services

Made labor easier and safer Results in a higher standard of living. 2015 Cengage Learning 7 Side Effects of Technology Technology has some unanticipated side effects: Environmental pollution Depletion of natural resources Technological unemployment Creation of unsatisfying jobs 2012 South-Western, a part of Cengage Learning

8 Challenges of Technology New technologies present many challenges to managers, organizations and society. Some side effects cannot be forecast or overcome. Overcoming technological determinism that seems to be driving society today would be helpful. New technology is primarily available in the developed world. Developing nations enjoy few of the benefits of technology available in developed nations. 2015 Cengage Learning

9 Technology and Ethics Our perspective is to raise ethical questions that may be related to business development, and the use of technology. Two Key Issues Technological determinism The idea that what can be developed will be developed. Ethical lag

Occurs when the speed of technological change far exceeds that of ethical development. 2015 Cengage Learning 10 Societys Intoxication with Technology The symptoms of Societys intoxication 1.We favor the quick fix. 2.We fear and worship technology. 3.We blur the distinction between what is real and what is false. 4.We accept violence as normal. 5.We love technology as a toy.

6.We live our lives distanced and distracted. The solution - Find the right balance. 2015 Cengage Learning 11 Information Technology 2015 Cengage Learning 12 E-Commerce as a Pervasive Technology Electronic Commerce Also called e-commerce, e-business, or Web-based

marketing. The Internet has reshaped the way business is conducted. Ongoing Issues in E-Commerce Ethics Access Intellectual property Privacy and informed consent Protection of children Security of information Trust 2015 Cengage Learning 13 Invasion of Consumer Privacy

via E-Commerce Cookies Identification tags that Web sites drop on our personal computer hard drives so they can recognize repeat visitors the next time we visit their Web sites. Spam Unsolicited commercial e-mail. It is sent through "open-relays" to millions of persons. Identity Theft Tampering with ones financial accounts. 2015 Cengage Learning 14 2015 Cengage Learning 15

Business Initiatives with Consumer Privacy Protection 2015 Cengage Learning 16 The Workplace and Computer Technology Surveillance at work raises issues about privacy: Computers Monitoring website connections Storing and reviewing employee computer files Blocking access to inappropriate websites Telephone Monitoring time spent, numbers called

Taping phone conversations Video Video surveillance against theft Surveillance to monitor employee performance 2015 Cengage Learning 17 Ten Commandments of Computer Ethics 2015 Cengage Learning 18 Biotechnology

Biotechnology Involves using biology to discover, develop, manufacture, market, and sell products and services. Biotechnology is striving to heal, heal fuel, fuel and feed the world. Bioethics A field that deals with the ethical issues embedded in the commercial use of biotechnology. Proceduralism is the primary tool for bioethicists. It is using protocols to ensure that classical safeguards are not violated. 2015 Cengage Learning

19 Realms of Biotechnology Genetic Engineering Genetically Modified Foods 2015 Cengage Learning 20 Genetic Engineering 2015 Cengage Learning

21 Genetically Modified Foods (GMFs) Also referred to as genetically engineered foods (GEFs). Fear over health and environmental effects; critics call them Frankenfoods. Many U.S. crops are genetically modified:

Sugar beets (95%) Soybeans (91%) Cotton (88%) Corn (85%) Most Americans consume genetically modified foods every day. 2015 Cengage Learning 22 Labeling of GMFs Safety of GMFs is not in question, according to scientific research. But one of the most frequently discussed issues with GMFs is labeling.

FDA does not mandate GMF labeling in the U.S. The Non-GMO Project believes that people have the right to make informed choices about whether they consume GMF products. 2015 Cengage Learning 23 Key Terms

Big Data bioethics biometrics biotechnology botnet scam

chief privacy officer cloning cookies electronic commerce embryonic stems cells ethical lag genetic engineering genetic profiling genetic testing

genetically engineered foods (GEFs) genetically modified foods (GMFs) identity theft information technology online scams

phishing social networking sites spam technological determinism technological environment technology therapeutic cloning 2015 Cengage Learning 24

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