Normative theories of business ethics

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Normative theories of business ethics

• IT600 Information Technology Management
• Instructor Michael (Mike) Eitnier
• Presentation 9 September 2008

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Overview

• Ethics the Traditional View
• Adapting Ethics for the Information Age
• Areas of Information Control
• Normative Theories of Business Ethics
• What Would You Do

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Business Ethics The Traditional View

• Business ethics is a form of applied ethics that
  examines ethical principles and moral or ethical
  problems that arise in a business environment.
  (Wikipedia)

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Business Ethics The Traditional View

• My traditional view of business ethics
• A business should provide best value, treat
  customers/clients fairly, and never lie, cheat,
  or steal

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Adapting Ethics for the Information Age

• IT changes so quickly theres a lack of ethical
  clarity
• Most traditional mgrs receive education on the
  ethical norms associated business however
• Most IT professionals (engineers, computer
  scientist, etc.) usually lack similar training
  and education

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Areas of Information Control

• Privacy The authorized collection, disclosure,
  and use of personal information
• Accuracy The correctness or validity of
  information
• Property Whose information is it
• Accessibility Who can gain access to the
  information

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Areas of Information Control

• Privacy The authorized collection, disclosure,
  and use of personal information
• Oh, dont for get to remind everyone that
  PRIVACY is generally considered the most
  important area of information control

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Normative Theories of Business Ethics

• Stockholder Theory
• Managers actions are driven toward the best
  interest of the stockholders
• Milton Friedman wrote There is but one and
  only one social responsibility of business to
  use its resources and engage in activities
  designed to increase profits so long as it stays
  within the rules of the game, which is to say,
  engages in open and free competition, without
  deception or fraud.

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Normative Theories of Business Ethics (Cont.)

• Stakeholder Theory
• Managers have an obligation to stockholders and
  others who hold a stake in the success of the
  firmthis includes Customers, employees,
  suppliers, and the community

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Normative Theories of Business Ethics (Cont.)

• Social Contract Theory
• Mgrs have a social responsibility to consider the
  needs of society -- society charges corporations
  to create more value than they consume
• Affirms that the interests of parties other than
  stockholders play a legitimate role in the
  governance and management of the firm.

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Normative Theories of Business Ethics (Cont.)
THEORY DEFINITION
METRICS
Maximizes stockholder wealth, in legal and
nonfraudulent Manners. Maximizes benefits to
all Stakeholders while weighing Cost to
competing interests. Create value for society
in a manner that is just and nondiscriminatory
Will this action maximize long-term stockholder
value? Can goals be accomplished w/o
compromising Co. standards and without breaking
laws. Does the proposed action maximize
collective benefits to the Co.? Does this action
treat one or more of the Corporate stakeholders
unfairly. Does this action create a net
benefit for society? Does the proposed
action Discriminate against any group in
Particular, and is its implementation socially
just?
Stockholder Stakeholder Social contract
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Summary

• Ethics the Traditional View
• Adapting Ethics for the Information Age
• Areas of Information Control
• Normative Theories of Business Ethics
• What Would You Do

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Alternative Sources of Information

• Information Week
• Defining the Business Value of Technology
• http//www.informationweek.com/825/ethics.htm
• The Practical Professor
• Legal Ethics in Cyberspace
• http//www.usual.com/article9.htm

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Pop Quiz

• 1. As it relates to the control of information,
  what does the
• acronym PAPA stand for?
• a. Privacy, Accuracy, Property,
  Accessibility
• Proportionality, Advantage, Potential,
  Authority
• Privacy, Advantage, Potential, Accessibility

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Pop Quiz

• 2. At present, what areas of managerial concern
  regarding
• control of information is generally considered
  the most important?
• Privacy
• Accuracy
• Property
• Accessibility

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Pop Quiz

• 3. What are the three normative theories of
  business ethics?
• Stakeholder, Stockholder, Social Contract
  theories
• Stockholm, Transactional, Social Competence
  theories
• Subsistence, Standard, Social Agreement theories

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Pop Quiz

• In one word, sum up your thoughts on business
  ethics as
• it relates to IT?