Chapter 8-1

Chapter 8

BUSINESS & SOCIETYEthics and Stakeholder Management

Carroll & Buchholtz 6e

Business and Society: Ethics and Stakeholder Management, 6e • Carroll & BuchholtzCopyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

Prepared by Deborah BakerTexas Christian University

BUSINESS ETHICS and TECHNOLOGY

Chapter 8-2

Benefits of Technology

Human labor easier & safer

Increased productivity

Increased standard of living

Raised life expectancy

Chapter 8-3

Side Effects of Technology

Environmental pollution

Depletion of natural resources

Technological unemployment

Creation of unsatisfying jobs

Example: Automobile 1900

Chapter 8-4

Ethics and Technology

Key IssuesKey Issues

Technological Determinism“What can be developed will be developed”

(without consideration for ethics or side effects)

Technological Determinism“What can be developed will be developed”

(without consideration for ethics or side effects)

Ethical LagSpeed of T. change exceeds speed of

ethical development

Ethical LagSpeed of T. change exceeds speed of

ethical development

Chapter 8-5

Business Ethics & Technology

BiotechnologyBiotechnology

E-CommerceE-Commerce

Computer technologyin the workplace

Computer technologyin the workplace

Information Technology

Information Technology

Chapter 8-6

Issues in E- Commerce Technology

Access (rich vs. poor)

Downloading intellectual property

Invasion of privacy*

Protection of children

Security of personal information

Unsolicited ads

Who do we trust (online scams)?

Chapter 8-7

Invasion of Privacy (via Internet)

Identity theft

Unintentionally revealing information

Fake Web sites

Access to & distribution of information• Article on hospitals accessing credit reports

Victim of spying (employer, spouse, hackers)

Cyberstalking

Sales/ sharing of customer databases.

Chapter 8-8

The Financial Services Modernization Act of 1999 Allowed banks, insurers, brokers to join forces so

consumer can get all services from one company

Convenient but…

We used to have to “opt in” to have personal information used for purposes other than original intent

Now we have to “opt out” (business lobbyists pushed for this).

Government’s Involvement

Chapter 8-9

Proposed legislation to Protect Consumer Privacy

Consumer Online Privacy and Disclosure Act

Online Consumer Protection Act of 2001

Unsolicited Commercial Electronic Mail Act of 2001

Gramm-Leach-Bliley Act

Fair Credit Reporting Act

Children’s Online Privacy Protection Act

Privacy Agenda of the FTC (creation of do-not call list, enforcement against scams, enforcement of telemarketing rules)

Ethical lag- FYI

Chapter 8-10

Business Efforts to Protect Privacy

Ethical leadershipEthical leadership

Privacy policies (“opt-in”)Privacy policies (“opt-in”)

Chief privacy officers•Develop Internet policies

•Assess risk of privacy invasion•Handle customer complaints

•Help firm avoid litigation

Chief privacy officers•Develop Internet policies

•Assess risk of privacy invasion•Handle customer complaints

•Help firm avoid litigation

Chapter 8-11

Employee Surveillance

Monitoring: e-mail, Internet, cell phone, photocopier & fax

Monitoring workers via video camera (secret shoppers)

Online background checks

Tracking badges & GPS.

Why are we doing this?

Consequences?

Do employees have right to privacy or

employers a right to monitor for unethical behavior?Wal-Mart article

Chapter 8-12

Unethical Employee Activities

Engaged in dangerous activities (using T. while driving)

Copied company software for home use

Revealing co. information to competitors (blogs)

Used office equipment to Internet shop or search for job

Accessed private files without permission

Intruded on coworkers’ privacy

Visited porn Web sites.

Chapter 8-13

Cell Phone Issues

Racking up billable hours

Use of cell phones (texting) while driving

• 68% of population admits it

• Employers pressuring employees to work harder

• Accident liability issues: Is company liable?

Chapter 8-14

Biotechnology

BioethicsEthical issues embedded in the use of biotechnology

-Hiring bioethethists

Proceduralism

The use of elaborate protocols to ensure that ethical dilemmas do not arise (informed consent).

-“Leftover” blood use for research

-Use of cadaver parts

Chapter 8-15

Biotechnology

GeneticallyModified Foods

GeneticallyModified Foods

Genetic EngineeringGenetic Engineering

Chapter 8-16

Ethical Issues with Genetic Engineering

Stem cell research(Umbilical cord blood banks)

Stem cell research(Umbilical cord blood banks)

Cloning(Technological determinism)

Cloning(Technological determinism)

Genetic testing & profiling (DNA chips)

(Use in workplace)Genetic testing & profiling (DNA chips)

(Use in workplace)

Chapter 8-17

Issues with GMFs

http://scope.educ.washington.edu/gmfood@

Safety issuesAre consumers informed enough?

Safety issuesAre consumers informed enough?

Labeling issuesMandatory GMO label?

Non-GMO labels popular.

Labeling issuesMandatory GMO label?

Non-GMO labels popular.

Chapter 8-18

For next class

• Read case 24: Firestone and Ford

• What are some of the challenges multinational corporations face when they exist in less developed countries?

• What are some of the actions (strategies) multinational corporations can take to improve international business ethics?