Business and Society Chapter Notes

Chapter 9

Business Ethics and Technology

LEARNING OUTCOMES

After studying this chapter, you should be able to:

  1. Identify 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 society’s 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 the arguments on both sides of the issues.

TEACHING SUGGESTIONS

INTRODUCTION – Chapter 9 explores the subject of technology and business ethics. Technology is such an integral aspect of our work lives and consumer lives that special treatment of these topics is warranted. The authors first consider what technology means and some of its benefits and challenges. Then, they discuss the subject of ethics and technology, and finish the chapter by exploring ethical issues connected with two major components of technology—information technology and biotechnology.

KEY TALKING POINTS – Students are likely to be aware of the latest in technology, and so have an inherent interest in this chapter. However, like many of their fellow citizens, they will have given little thought to the ethical issues raised by the use of technology. As the authors of the textbook correctly point out, the use of technology has increased our standard of living tremendously. However, it has also raised many questions that directly affect people’s lives. The authors list four categories of undesirable side effects of technology: (1) environmental pollution, (2) depletion of natural resources, (3) technological unemployment, and (4) creation of unsatisfying jobs. Items 3 and 4, technological unemployment and creation of unsatisfying jobs, are perhaps the factors that will affect students most directly. Technology is no longer replacing just manual labor—mid-level managers are now being “downsized” due to technological improvements.

Jeremy Rifkin, in his book The End of Work, provides a chilling account of the effects farming technology had on farm laborers in the early twentieth century. Because owners were able to purchase farm implements that literally did the work of dozens of humans, there was a mass exodus of unskilled laborers from the South. Not only were these workers’ livelihoods jeopardized, but their entire social structure was torn apart as well. Fortunately, as Rifkin points out, factory jobs in Northern manufacturing centers provided employment for large numbers of the dislocated farm laborers. However, as manufacturing and managerial jobs are now being lost to technological innovations, there is no sector that will clearly take up the slack.

Another side effect in which technology plays a role is the amount of time spent working. In fact, technology is often cited as one of the major factors that contributes to dissatisfaction with work-life balance. At one point in time, technological improvements were predicted to provide humans with a significant degree of leisure. However, current statistics show that Americans work longer hours now than at any point in our history. We also work longer hours than any other country in the world. Thus, while technology is supposed to make our lives (including work) easier, in some cases it has had the opposite effect by virtually making us available 24-7 to family, friends, superiors, co-workers and clients. How does technology produce this counter-intuitive result? Although no firm answers yet exist, my impression is that technology is viewed as a way to “do more” rather than a method for “doing the same amount of work in less time.”

Students also will be keen to examine the issues raised by the use of social media in our personal and professional lives. As social media use continues to increase at astronomical rates, businesses constantly must adapt to harness the benefits of this technology while recognizing the potential legal and ethical issues inherent with its use (e.g., intellectual property protection, libel / defamation claims, employment problems, and privacy complaints, among others).

Many students may not have the scientific background to adequately discuss and understand the ethical implications of modern biotechnology. As a result, instructors may consider spending one class period reviewing critical background information relevant to topics such as genetic engineering and genetically modified foods, cloning, stem cell research, genetic profiling, etc. I have found it helpful to invite instructors from chemistry and/or biology to guest lecture during this review period to provide this background information in “layman’s terms” for business students.

Students should have animated discussions over these and other ethical issues raised by the use of technology.

PEDAGOGICAL DEVICES – In this chapter, instructors may utilize a combination of:

Cases:

The High Cost of High Tech Foods

Ethics in Practice Cases:

Bosses Watching Employees: Are you Safe on Social Networking Sites?

Spotlight on Sustainability:

Technology Meets Sustainability

Power Point slides:

Visit for slides related to this and other chapters.

LECTURE OUTLINE

  1. TECHNOLOGY AND THE TECHNOLOGICAL ENVIRONMENT
  1. CHARACTERISTICS OF TECHNOLOGY
  2. Benefits of Technology
  3. Side Effects of Technology
  4. Challenges of Technology
  1. TECHNOLOGY AND ETHICS
  2. Two Key Issues
  3. Society’s Intoxication with Technology
  1. INFORMATION TECHNOLOGY
  2. Electronic Commerce as a Popular Technology
  3. Ongoing Issues in E-Commerce Ethics
  4. Invasion of Privacy via Electronic Commerce
  5. Government’s Involvement in Internet Privacy Protection
  6. Business Initiatives with Privacy Protection
  7. Ethical Leadership First
  8. Privacy Policies
  9. Chief Privacy Officers
  10. Data Security
  11. Questionable Businesses and Practices
  12. The Workplace and Computer Technology
  13. Surveillance
  14. Monitoring Email and Internet Usage
  15. Biometrics
  16. Other Technology Issues in the Workplace
  17. Ethical Implications of Cell-Phones and Text Messaging
  18. Unethical Activities by Employees Related to Technology
  19. Company Actions
  1. BIOTECHNOLOGY
  2. Bioethics
  3. Genetic Engineering
  4. Stem Cell Research
  5. Cloning
  6. Cloning Animals for Food
  7. Genetic Testing and Profiling
  8. Genetically Modified Foods
  9. Labeling of GMFs
  1. SUMMARY

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

Students should recognize that their answers to these discussion questions should be well reasoned and supported with evidence. Although some answers will be more correct than others, students should be aware that simplistic answers to complex questions, problems, or issues such as these will never be “good” answers.

  1. One interesting issue related to technology is the fact that the number of hours that Americans work is increasing, not decreasing. As Jeremy Rifkin notes in The End of Work, the primary view of technology’s effects on work would be to provide increasing amounts of leisure. One need look no further than the cartoon series The Jetsons to capture the visions of Rifkin’s “techno-paradise.” Some students will rightfully point out that it is not technology per se that makes us work longer hours—that is a decision we make based on our value systems. However, technology has driven an expectation of constant availability in business – if you aren’t available – someone else will be. In order to remain competitive, employees feel constant pressure to be accessible. While employees may wish to clearly segregate work and personal lives, they may find it increasingly difficult to do so. This is exactly the point that should be made. How we decide to use technology is the ethical issue that we confront.

On the other hand, technology has increased our ability to access relevant data in an expedient manner and to market ourselves and our businesses. Tasks that once took weeks to complete (as workers had to rely on traditional methods to obtain forms, information, printed materials, etc.) now can be completed and transmitted in a matter of minutes. Further, social media platforms now remove certain barriers of entry for business and individual marketing.

  1. I agree that our society is intoxicated with technology. Whether one concurs with each of thesix symptoms identified in High Tech / High Touch is not really the point—we need look no further than popular attitudes about technological unemployment and global warming to provide convincing evidence that we are intoxicated with technology. In the case of unemployment, the prevailing attitude is that new types of jobs will come from somewhere, regardless of our inability to identify the source. “We’ll invent something…” With global warming, many people ignore the fact that the widespread use of technology is the primary cause of global warming and claim that new technology (yet to be invented or even conceptualized) will allow us to avoid this coming disaster.
  1. Although it would be foolish to expect that business would not use all of the technology available to it to enhance its operations, I do think that business invades the privacy of its customers. Certainly, the concepts of “right to privacy” and “expectation of privacy” are recognized in the court systems. Sitting in the privacy of my home and using the Internet is not an invitation to hundreds or thousands of companies to send me emails or to push advertisements onto my computer screen. Nor should my purchase of a particular product subject me to a multitude of follow-up solicitations to buy other products. Further, I should not have to be concerned with how my information will be used or if it will be sold when it is necessary for me to provide such information to certain businesses. Employees, on the other hand, do not have the same rights or expectations to privacy in the workplace. As noted in a later chapter, businesses can record employee phone calls and review employee e-mails as long as such activities occur in the ordinary course of business. As a result, students should have few expectations to privacy in the workplace and conduct themselves accordingly. According to an April 2007Wall Street Journalarticle, a case involving employee surveillance at Walmart is a good reminder to students regarding workplace privacy. In connection with work related activities, Walmart monitored not only its employees’ phone calls and e-mails from the Walmart server, but also the e-mails sent from the employees’ personal e-mail accounts (yahoo, hotmail, gmail, etc.) when such e-mails were sent from work. Employer surveillance also can occur in connection with employees’ social media accounts, although businesses should carefully consider when and if they will observe employee information in this medium.
  1. There are ethical implications to the use of cell phones and text messaging for business, whether managers want to acknowledge them or not. Any time that one person’s actions affect another, there is a potential ethical situation involved. In the case of cell phone use and text messaging, these issues can range from the mild annoyance caused to others who may be forced to listen to a one-sided telephone conversation or watch an individual texting to life threatening situations when a driver is talking or texting on the cell phone. All of these potential ethical issues are exacerbated by employers’ pressure to “get more done.” In addition to the bystanders who are affected in ways noted above, the employee is also subjected to the pressure to always be available to customers, co-workers, and managers. With a company-provided cell phone, many employees are expected to be available literally any time someone calls them or to respond to text messages day or night. The effects on the employee’s personal life can be devastating. This constant pressure also impacts business because many employees will leave their current employer when the pressure becomes too much in search of a better opportunity. This translates into dollars and manpower lost for companies.
  1. When weighing the needs and rights of companies versus consumers, I think it is plain that individuals should be given clear preference over corporations. Our history is rife with examples of harms done to people by companies selling products whose effects were unknown or not fully understood (e.g., asbestos, lead in gasoline, tobacco, etc.). However, there seems to be growing support from government groups that GMFs are safe for human consumption. As the textbook notes, the World Health Organization claims that current GMFs have passed risk assessments and that human health has not been affected by the consumption of such foods in countries where they have been approved. However, while certain groups may continue to assert that GMFs are not likely to present risks to human health, public perception may be another matter. The text also notes a majority of consumers would not purchase a GMF product (although it is virtually impossible to avoid this). Consequently, warning labels that indicate that a product is a GMF should be required. Consumers have a right to information that is clear and not misleading. If GMF foods are properly labeled, then the consumer is free to make an informed choice regarding consumption. This is not unfair to the GMF industry, especially if it merely alerts the customer that the product is a GMF. It is arguably unfair to the consumer, however, when he or she is not informed that a product is a GMF.

GROUP ACTIVITIES

Group Activity 1 -Technology Matters

Have students create a Facebook group where they can discuss concerns regarding employee and consumer privacy. Encourage students to invite other students from outside the class. Remind students about defamation laws and that they will have little to no privacy with regards to the information that they post on Facebook. In fact, it has been noted that many employers will access Facebook to review a student’s profile prior to a job interview (many jobs have been lost due to the Facebook review). Students should discuss how the Facebook project has impacted their perceptions regarding employee and consumer privacy.

Group Activity 2 - Bioethics Debate

Students should be divided into groups to debate issues related to bioethics. Each group should be assigned to argue for or against one of the following topics: cloning, cloning animals for food, genetic testing and profiling, and genetically modified foods. The instructor should then host a debate where each group in favor of a particular issue will debate the group against a particular issue. Students, along with the instructor, should determine the two most persuasive groups in the class. The two best teams should then debate the issue of stem cell research, including whether or not the practice should receive federal funding from the government.

Group Activity 3 - Bioethics Movie Night

Invite groups of students to watch the movie Gattaca, starring Ethan Hawke and Uma Thurman. This movie is about a world where most babies are genetically designed to excel in various areas. Individuals who do not elect to genetically engineer their children ensure that their offspring will be societal outcasts. Within this context, the story revolves around a naturally-birthed individual who dreams of becoming an astronaut. In order to achieve this dream, he assumes the identity of a genetically engineered athlete.

Students should explore the ethical dilemmas that may result from the idea of creating a genetically superior race. Have students prepare a movie review where they express their opinion regarding the ethical issues this movie raises.

INDIVIDUAL ASSIGNMENT

Have students read Stem Cell Now by Christopher Thomas Scott. While the main focus of the book is on the science of stem cell research, Scott also explores the ethical and moral issues involved with the use of embryonic stem cells forresearch purposes(a practice that remains controversial in political, religious and medical circles).

After reading this book, students should summarize what they have learned regarding the scientific possibilities of stem cell research and the ethical issues associated with such research. Students also should discuss whether they are in favor of embryonic stem cell research and support their position with appropriate data. Finally, students should explore whether the government should provide federal funding for stem cell research.