Lecture Business and society: Stakeholders, ethics, public policy (14/e): Chapter 13 - Anne Lawrence, James Weber

Chapter 13 - Managing technology and innovation. After studying this chapter you will be able to: Evaluating the growth in breaches of personal information privacy, understanding where these attacks come from and what their effects are, evaluating initiatives taken by government and business to minimize invasions of privacy, recognizing the emerging role and responsibilities of the organization’s chief information officer,…

Managing Technology

and Innovation

Chapter 13

Ch 13 Key Learning Objectives

information privacy

what their effects are

business to minimize invasions of privacy

the organization’s chief information officer

the piracy of software, music, movies, and books, and

how business and government attempt to prevent

these illegal actions

social challenges that arise from technological

breakthroughs in science and medicine

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Violations of Privacy: Causes and

Costs

many different sources

and companies may be monitoring usage, raising

employee concerns about invasions of privacy

steep rise of attacks on information security

number of ways that privacy violations may occur

 “Cybercrime has emerged as a formidable threat,

thanks to deeply determined, highly skilled, and

well-organized cyber criminals from nation states to

hacktivists, from criminal gangs to lone-wolf

perpetrators Organizations need to be aware and

adjust to this changing landscape.”

 PricewaterhouseCoopers executive

Violations of Privacy: Causes and

Costs

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 In a survey of 583 U.S companies

 90 percent said their companies’ computers were breached

at least once by hackers over the past year

 Nearly 60 percent reported two or more breaches

 More than 50 percent said they had little confidence of being

able to stave off future attacks

losses associated with these fraudulent activities are

increasing

Violations of Privacy: Causes and

Costs

Cases of Identity Theft and Fraud Losses in the U.S.,

2006 – 2009

Figure 13.1

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 Recent technological advances have increased the

number of ways that privacy violations may occur

 Employees making inadvertent mistakes

 Computer hackers, individuals, often with advanced

technology training, who, for thrill or profit, breach a business information security system using:

• Zombies, a hijacked computer that can be remote-controlled by the attacker to respond to the attacker’s commands

• Trojan horses, that enable hackers to gain access to computers when people clicked on dangerous links

• Worms that would replicate, spread and corrupt computer files within the company’s system

• Logic bombs that could hide in computers and then “go off” and delete files at a specific time

Ways Privacy Violations May Occur

Managing the Protection of Privacy

27 European countries have gathered annually for Data

Privacy Day

 The event, which brings together privacy professionals,

government leaders, academics and students, and business executives, was designed to raise awareness and generate discussion about data privacy practices and rights

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Managing the Protection of Privacy

(COPPA) requires commercial websites to collect a

verifiable form of consent from the parent or guardian of

any user below the age of 13

Citizen” program to detect cyber assaults on private

U.S companies and government agencies running

critical infrastructures, such as the electricity grid and

nuclear power plants

both Internet companies and any firm collecting and

storing sensitive information—to secure information

Business Response to Information

Security Invasions

defenses to protect information and ensure

stakeholder privacy

 Companies are now using honeypots, a system used by

security professionals to lure hackers to a fabricated

website that can track all their movements

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Chief Information Officer (CIO)

many security issues, for companies

CIOs reporting directly to their CEOs

responsibilities and greater influences on corporate

policies and practices

through use of technology

Protecting Intellectual Property

 The ideas, concepts, and other symbolic creations of the

human mind

 Protected in U.S by copyright, patent and trademark laws

 Theft of intellectual property, artistic performance, or

copyrighted material exploded with the entrance of the

Internet and global connectivity

 Whether it is computer-based software, musical recordings,

video movie productions, or electronic versions of books,

piracy is on the rise and victims are retaliating turning to

governments for enforcement and protection of their rights,

or seeking collaborative solutions to this ethical challenge

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Business and Government Responses

to Violations of Intellectual Property

software piracy from governmental agencies and the

courts both inside and outside the United States

 In 1998, the United States passed the Digital Millennium

Copyright Act, making it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturer and the user

 In China, where experts estimate that 90 percent of all

software in use is unlicensed, government officials have also take steps to curb piracy

business levels, piracy continues to rise each year

globally

Commercial Value of Pirated Software, by Region, 2007-2011

Figure 13.3

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Managing Scientific Breakthroughs

 The application of engineering to create materials on a

molecular or atomic scale

 So far, at least, the U.S government has not regulated the use

of nanomaterials and nanoparticles in consumer products

 When Celera Genomics Group announced that it completed the

first sequencing of human DNA makeup, the achievement was

hailed as the most significant scientific breakthrough since

landing on the moon

 A new era of medicine, as well as great opportunity for

biotechnology companies, appeared to be born with the

decoding of the human genome

Managing Scientific Breakthroughs

 Tissue engineering is the growth of tissue in a laboratory dish for

experimental research

 Stem-cell research is research on nonspecialized cells that have

the capacity to self-renew and to differentiate into more mature cells

 Clearly stem cell research leading to the possibility of human

cloning and the human consumption of food cloned from animals are important issues and will likely increase in prominence in the near future

 In 2008 the F.D.A declared that food from cloned animals and

their offspring was safe to eat, but imposed a voluntary ban on the sale of cloned animals

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Managing Scientific Breakthroughs

 Genetic engineering is altering the natural makeup of a living

organism, allowing scientists to insert any gene in to a plant

 Significant economic implications for agricultural industry

 Genetically modified foods is food processed from genetically

engineered crops

 Early on was backlash against genetically modified foods in

Europe, initial opposition has weakened

 By 2007, developing countries planting genetically modified

seeds outnumbered developed countries, according to a report from the International Service for the Acquisition of Agri-biotech Applications