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,…

Chapter 13 Managing Technology and Innovation McGraw­Hill/Irwin Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved Ch 13 Key Learning Objectives  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  Examining violations of intellectual property through the piracy of software, music, movies, and books, and how business and government attempt to prevent these illegal actions  Recognizing the benefits, as well as the ethical and social challenges that arise from technological breakthroughs in science and medicine 13­2 Violations of Privacy: Causes and Costs  The potential for violations of privacy can come from many different sources  Employees have access to new technologies at work and companies may be monitoring usage, raising employee concerns about invasions of privacy  More aggressive efforts by cyber criminals resulted in a steep rise of attacks on information security  Recent technological advancements have increased the number of ways that privacy violations may occur 13­3 Violations of Privacy: Causes and Costs  “Cybercrime has emerged as a formidable threat, thanks to deeply determined, highly skilled, and wellorganized 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 13­4 Violations of Privacy: Causes and Costs  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  The number of instances of identity theft and the losses associated with these fraudulent activities are increasing 13­5 Cases of Identity Theft and Figure 13.1 Fraud Losses in the U.S., 2006 – 2009 13­6 Ways Privacy Violations May Occur  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 13­7 Managing the Protection of Privacy  Since 2007, representatives from the United States and 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 13­8 Managing the Protection of Privacy  The Children’s Online Privacy Protection Act of 1998 (COPPA) requires commercial websites to collect a verifiable form of consent from the parent or guardian of any user below the age of 13  In 2010, the U.S government launched the “Perfect 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  Governments must act with businesses themselves— both Internet companies and any firm collecting and storing sensitive information—to secure information 13­9 Business Response to Information Security Invasions  Businesses have gone to great lengths to build strong 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 13­10 Chief Information Officer (CIO)  Is responsible for managing technology, including its many security issues, for companies  Position has been elevated in recent years, with most CIOs reporting directly to their CEOs  CIOs’ role expanded even more to include broader responsibilities and greater influences on corporate policies and practices  Part of job is enabling or driving business innovation through use of technology 13­11 Protecting Intellectual Property  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 13­12 Business and Government Responses to Violations of Intellectual Property  Companies have sought assistance on the issue of 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  Despite efforts at the international, national and business levels, piracy continues to rise each year globally 13­13 Figure 13.3 Commercial Value of Pirated Software, by Region, 2007-2011 13­14 Managing Scientific Breakthroughs  Nanotechnology  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  Human genome  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 13­15 Managing Scientific Breakthroughs  Biotechnology and Stem Cell Research  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  Cloning  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 13­16 Managing Scientific Breakthroughs  Genetically engineered foods  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 13­17 ... international, national and business levels, piracy continues to rise each year globally 13 13 Figure 13. 3 Commercial Value of Pirated Software, by Region, 200 7-2 011 13 14 Managing Scientific... grid and nuclear power plants  Governments must act with businesses themselves— both Internet companies and any firm collecting and storing sensitive information—to secure information 13 9 Business. .. of identity theft and the losses associated with these fraudulent activities are increasing 13 5 Cases of Identity Theft and Figure 13. 1 Fraud Losses in the U.S., 2006 – 2009 13 6 Ways Privacy