Chapter 13

1
Management 308

• Chapter 13
• of Stakeholders, Ethics, Public Policy
• Technology A Global and Social Force
• Shawn Berman
• Anderson School of Management
• University of New Mexico

2
The questions raised by MySpace

• Does business have an ethical responsibility to
  monitor online activity and provide oversight to
  protect users, particularly children, from
  pornography and predators?
• Did News Corporation quickly enough, or should it
  have anticipated the problems and worked
  proactively? Why did these problems become such
  a media storm after News Corporation acquired
  MySpace?
• What more can News Corporation do to protect
  users?
  

3
Technology defined and phases of technology
Technology is the broad term referring to the
knowledge of and use of humanitys tools and
crafts.
Figure 13.1
The book suggests we are entering a phase
dominated by biotechnology.
What do you think?
4
Factors Fueling Technological Growth

• Economic expansion
• During the 1990s, U.S. businesses poured more
  than 2 trillion into computers, software, and
  other technology products. This helped sustain
  the economic boom that carried global business
  into the 21st century.
• Worker productivity
• During the late 1990s, productivity grew at
  almost twice the rate of the previous two
  decades. Businesses could afford more technology
  given the larger economic boom. Also, workers
  were more adept at accepting technological
  improvements.
• Research and development investment
• Businesses very directed in their technology
  strategies and expect quicker and direct return
  on their investment.
  
• Government funding of technology RD supplements
  private funding
  
• The U.S. government annually provided more than
  60 billion to support technology-based research
  and development. The similar figure in Europe is
  45 billion.
• Rapid increases in technology development funding
  seen in mid-2000s in India, China, Taiwan, and
  South Korea.

5
Technology as an economic force

• The application of technology in business has led
  to
  
• decreasing communications costs
• bringing buyers and sellers together more easily
• declines in pricing power
• new products and services.
• However, technology poses problems and challenges
  for business, government, and society. These
  problems are detailed in the following slides.

6
Technologys problems, 1

• Problem 1 Technology leads to productivity, but
  productivity doesnt always lead to job growth.
  Also, technology can cause permanent shifts in
  employment patterns (for example, call centers in
  India).
• Problem 2 Technology can increase inequality.
  This problem is often referred to as the Digital
  Divide. Why does the digital divide matter?
  
• Problem 3 Technology can disrupt prevailing
  business models. How has the music industry
  changed in your lifetime? Why has this change
  occurred? How would your company make money
  today if you ran a studio?

7
Technologys problems, 2

• Problem 4 Technology has an effect on privacy
  and security. Technology has opened problems
  with protecting personal financial and medical
  information. The privacy problems involve both
  sabotage of personal information and companies
  ability to gather large amounts of information
  about their customers.
• Problem 5 Technology can advance faster than
  attempts to regulate or to set social
  expectations for its use. Biotechnology
  (including stem-cell research), cloning, and
  genetic engineering are all examples of
  technologies that have real effects on society.
  Yet the ability of governments to regulate such
  technologies or societies to set ethical
  expectations for their use tends to lag behind.

8
The Dark Side of the Internet, discussion
questions

• What is greater the benefits from the Internet
  that enhances our lives, education, and health,
  or the damage the Internet does to our society
  through illegal and illicit activities?
• What can be done to lessen the negative impacts
  of the underground Internet on society? Who
  should be responsible for taking these actions?
  
• Does this discussion case indicate that
  technology has gotten out of hand? Are
  financially or technologically motivated people
  to blame for these societal crises?