Chapter 4 & 5 Essentials of Management Information Systems, 6e Essentials of Management Information Systems, 6e 1 Ethical and Social Issues in Information Systems Lecturer: Dr Richard Boateng Email: [email protected]
Chapter 4 & 5
Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6e
1
Ethical and Social Issues in Information Systems
Lecturer: Dr Richard Boateng
Email: [email protected]
Class Website
www.ugbsexecutive.wordpress.com
2
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Internet + Business = ?????
Electronic Business, Electronic Commerce, and the Emerging Digital Firm
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To recap…..
Internet Business Models• Virtual storefront: Sells physical products
directly to consumers or businesses.• Information broker: Provides product pricing
and availability information; generates revenuefrom advertising or directing buyers to sellers.
• Transaction Broker: Processes online salestransactions for fee.
Electronic Business, Electronic Commerce, and the Emerging Digital Firm
New Business Models and Value Propositions
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Internet Business Models• Virtual storefront: Sells physical products
directly to consumers or businesses.• Information broker: Provides product pricing
and availability information; generates revenuefrom advertising or directing buyers to sellers.
• Transaction Broker: Processes online salestransactions for fee.
Internet Business Models
• Online Marketplace: Provides digitalenvironment where buyers and sellers meet
• Content Provider: Provides digital content, suchas news; revenue from fees or advertising sales
• Online Service Provider: Provides connectivity;revenue from fees, advertising, or marketinginformation
Electronic Business, Electronic Commerce, and the Emerging Digital Firm
New Business Models and Value Propositions
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Internet Business Models
• Online Marketplace: Provides digitalenvironment where buyers and sellers meet
• Content Provider: Provides digital content, suchas news; revenue from fees or advertising sales
• Online Service Provider: Provides connectivity;revenue from fees, advertising, or marketinginformation
Internet Business Models (cont.)
• Virtual Community: Provides online meetingplace for people of similar interests
• Portal: Provides initial point of entry to the Web,along with specialized content and services
• Syndicator: aggregates content or applications toresell as package to third-party Web sites
Electronic Business, Electronic Commerce, and the Emerging Digital Firm
New Business Models and Value Propositions
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Internet Business Models (cont.)
• Virtual Community: Provides online meetingplace for people of similar interests
• Portal: Provides initial point of entry to the Web,along with specialized content and services
• Syndicator: aggregates content or applications toresell as package to third-party Web sites
• Business-to-consumer (B2C): Retailing productsand services to individual shoppers
• Business-to-business (B2B): Sales of goods andservices among businesses
• Consumer-to-consumer (C2C): Consumersselling directly to consumers
Electronic Commerce
Categories of Electronic Commerce
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• Business-to-consumer (B2C): Retailing productsand services to individual shoppers
• Business-to-business (B2B): Sales of goods andservices among businesses
• Consumer-to-consumer (C2C): Consumersselling directly to consumers
Direct Sales Over the Web• Disintermediation: Removal of intermediary
steps in a value chain, selling directly toconsumers, significantly lowers purchasetransaction costs
• Reintermediation: Shifting intermediaryfunction in a value chain to a new source, suchas “service hubs”
Electronic Commerce
Customer-Centered Retailing
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Direct Sales Over the Web• Disintermediation: Removal of intermediary
steps in a value chain, selling directly toconsumers, significantly lowers purchasetransaction costs
• Reintermediation: Shifting intermediaryfunction in a value chain to a new source, suchas “service hubs”
Electronic Commerce
The benefits of disintermediation to the consumer
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Interactive Marketing and Presentation• Collection of customer information using Web
site auditing tools less expensive than surveysand focus groups
• Web personalization technology customizescontent on Web site to individual’s profile andpurchase history
• Web sites and marketing shorten sales cycle andreduce time spent in customer education
Electronic Commerce
Customer-Centered Retailing
www.ugbsexecutive.wordpress.com | WeeK 4 | Dr. Richard Boateng ([email protected]) |
Interactive Marketing and Presentation• Collection of customer information using Web
site auditing tools less expensive than surveysand focus groups
• Web personalization technology customizescontent on Web site to individual’s profile andpurchase history
• Web sites and marketing shorten sales cycle andreduce time spent in customer education
Ethical and Social Issues
11
Ethical and Social IssuesOn collecting and managinginformation
Objectives
1. What ethical, social, and political issues areraised by information systems?
2. Are there specific principles for conduct thatcan be used to guide decisions about ethicaldilemmas?
3. Why does contemporary information systemstechnology pose challenges to the protection ofindividual privacy and intellectual property?
www.ugbsexecutive.wordpress.com | WeeK 4 | Dr. Richard Boateng ([email protected]) |
1. What ethical, social, and political issues areraised by information systems?
2. Are there specific principles for conduct thatcan be used to guide decisions about ethicaldilemmas?
3. Why does contemporary information systemstechnology pose challenges to the protection ofindividual privacy and intellectual property?
Objectives
4. How have information systems affectedeveryday life?
5. How can organizations develop corporatepolicies for ethical conduct?
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4. How have information systems affectedeveryday life?
5. How can organizations develop corporatepolicies for ethical conduct?
• Ethics: Principles of right and wrong that can beused by individuals acting as free moral agentsto make choices to guide their behavior
• View shock of new information technology as a“rock thrown into a pond.”
Understanding Ethical and Social Issues Related to Systems
A Model for Thinking About Ethical, Social, and Political Issues
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• Ethics: Principles of right and wrong that can beused by individuals acting as free moral agentsto make choices to guide their behavior
• View shock of new information technology as a“rock thrown into a pond.”
Understanding Ethical and Social Issues Related to Systems
The relationship between ethical, social, and political issuesin an information society
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• Information rights and obligations
• Property rights and obligations
• Accountability and control
• System quality
• Quality of life
Understanding Ethical and Social Issues Related to Systems
Moral Dimensions of the Information Age
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• Information rights and obligations
• Property rights and obligations
• Accountability and control
• System quality
• Quality of life
• Profiling: use of computers to combine datafrom multiple sources and create electronicdossiers of detailed information on individuals
Understanding Ethical and Social Issues Related to Systems
Key Technology Trends that Raise Ethical Issues
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• Profiling: use of computers to combine datafrom multiple sources and create electronicdossiers of detailed information on individuals
Understanding Ethical and Social Issues Related to Systems
Nonobvious relationship awareness (NORA)
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• Responsibility
• Accountability
• Liability
• Due process
Ethics in an Information Society
Basic Concepts
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• Responsibility
• Accountability
• Liability
• Due process
1. Information technologies are filtered throughsocial institutions, organizations, individuals
2. Responsibility falls on institutions,organizations, and individuals who choose touse the technology
3. In an ethical, political society, individuals andothers can recover damages done to themthrough a set of laws
Ethics in an Information Society
Basic Concepts
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1. Information technologies are filtered throughsocial institutions, organizations, individuals
2. Responsibility falls on institutions,organizations, and individuals who choose touse the technology
3. In an ethical, political society, individuals andothers can recover damages done to themthrough a set of laws
Five-step Process for Analysis
1. Identify and describe clearly the facts2. Define the conflict and identify the higher-
order values involved3. Identify the stakeholders4. Identify reasonable options5. Identify potential consequences of these
options
Ethics in an Information Society
Ethical Analysis
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Five-step Process for Analysis
1. Identify and describe clearly the facts2. Define the conflict and identify the higher-
order values involved3. Identify the stakeholders4. Identify reasonable options5. Identify potential consequences of these
options
• The principles are:
The Golden Rule: Do unto others as you would have them do unto you.
• Immanuel Kant's Categorical Imperative: If an action is not right for everyoneto take, it is not right for anyone.
• Descartes' rule of change: If an action cannot be taken repeatedly, it should notbe taken at any time.
• The Utilitarian Principle: Take the action that achieves the higher or greatervalue.
• The Risk Aversion Principle: Take the action that produces the least harm orleast cost.
• The ethical "no free lunch" rule: All tangible objects are assumed ownedby someone else unless specifically declared otherwise.
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www.ugbsexecutive.wordpress.com | WeeK 4 | Dr. Richard Boateng ([email protected]) |
• The principles are:
The Golden Rule: Do unto others as you would have them do unto you.
• Immanuel Kant's Categorical Imperative: If an action is not right for everyoneto take, it is not right for anyone.
• Descartes' rule of change: If an action cannot be taken repeatedly, it should notbe taken at any time.
• The Utilitarian Principle: Take the action that achieves the higher or greatervalue.
• The Risk Aversion Principle: Take the action that produces the least harm orleast cost.
• The ethical "no free lunch" rule: All tangible objects are assumed ownedby someone else unless specifically declared otherwise.
• Codes of ethics: promises by professions toregulate themselves in the general interest ofsociety.
• Association of Computing Machinery (ACM)“General Moral Imperatives” include honoringproperty rights and respecting privacy.
Ethics in an Information Society
Professional Codes of Conduct
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• Codes of ethics: promises by professions toregulate themselves in the general interest ofsociety.
• Association of Computing Machinery (ACM)“General Moral Imperatives” include honoringproperty rights and respecting privacy.
• Competing values: one set of interests pittedagainst another
• E-mail monitoring at the workplace
• Use of new technology to reduce workforce andlower costs
Ethics in an Information Society
Some Real-World Ethical Dilemmas
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• Competing values: one set of interests pittedagainst another
• E-mail monitoring at the workplace
• Use of new technology to reduce workforce andlower costs
• Privacy: Claim of individuals to be left alone,free from surveillance or interference fromother individuals, organizations, or the state.
• Protected primarily in United States by FirstAmendment, Fourth Amendment, and PrivacyAct of 1974
• Today, most U.S. federal privacy laws applyonly to federal government, not to privatesector
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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• Privacy: Claim of individuals to be left alone,free from surveillance or interference fromother individuals, organizations, or the state.
• Protected primarily in United States by FirstAmendment, Fourth Amendment, and PrivacyAct of 1974
• Today, most U.S. federal privacy laws applyonly to federal government, not to privatesector
European Commission’sDirective on Data Protection (1998)
• More stringent than the United States• Requires companies to inform people of data collection
and storage• Customers must provide informed consent• Disallows transferring of data to countries without
similar laws• U.S. “safe harbor” developed with U.S. Department of
Commerce
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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European Commission’sDirective on Data Protection (1998)
• More stringent than the United States• Requires companies to inform people of data collection
and storage• Customers must provide informed consent• Disallows transferring of data to countries without
similar laws• U.S. “safe harbor” developed with U.S. Department of
Commerce
Internet Challenges to Privacy
• Computer systems able to monitor, capture,store communications passing through
• Monitoring tools• Cookies• Web bugs• Spyware
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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Internet Challenges to Privacy
• Computer systems able to monitor, capture,store communications passing through
• Monitoring tools• Cookies• Web bugs• Spyware
The Moral Dimensions of Information Systems
How cookies identify Web visitors
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Privacy Protection Tools
• Managing Cookies• Blocking ads• Secure e-mail or data• Anonymous e-mail• Anonymous surfing
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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Privacy Protection Tools
• Managing Cookies• Blocking ads• Secure e-mail or data• Anonymous e-mail• Anonymous surfing
Ethical Issues
• Under what conditions should privacy beinvaded?
• What legitimates unobtrusive surveillance?
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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Ethical Issues
• Under what conditions should privacy beinvaded?
• What legitimates unobtrusive surveillance?
Social Issues• “Expectations of privacy”, privacy norms.
• Should people have expectations of privacywhile using e-mail, cellular phones, bulletinboards, postal system, etc.?
• Do expectations of privacy extend to criminalconspirators?
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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Social Issues• “Expectations of privacy”, privacy norms.
• Should people have expectations of privacywhile using e-mail, cellular phones, bulletinboards, postal system, etc.?
• Do expectations of privacy extend to criminalconspirators?
Political Issues• Statutes to govern relationship between record
keepers and individuals
• Should CID monitor e-mail?
• Should e-commerce sites maintain personaldata about individuals
The Moral Dimensions of Information Systems
Information Rights: Privacy and Freedom in the Internet Age
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Political Issues• Statutes to govern relationship between record
keepers and individuals
• Should CID monitor e-mail?
• Should e-commerce sites maintain personaldata about individuals
Intellectual Property• Intangible property created by individuals or
corporations
• Protected under three different legaltraditions: trade secret, copyright, and patentlaw
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Intellectual Property• Intangible property created by individuals or
corporations
• Protected under three different legaltraditions: trade secret, copyright, and patentlaw
Trade Secret• Any intellectual work product used for a business
purpose; cannot be based on information in publicdomain
• Protects both ideas in product as well as product itself
• Applies to software with unique elements, procedures,compilations
• Difficult to prevent ideas in the work from falling intopublic domain after distribution
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Trade Secret• Any intellectual work product used for a business
purpose; cannot be based on information in publicdomain
• Protects both ideas in product as well as product itself
• Applies to software with unique elements, procedures,compilations
• Difficult to prevent ideas in the work from falling intopublic domain after distribution
Copyright
• Statutory grant that protects creators of intellectualproperty from having work copied for the life of authorplus 70 years; 95 years for corporate-owned property
• Computer Software Copyright Act provides protectionfor program code and product copies sold in commerce
• Does not protect underlying ideas behind work
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Copyright
• Statutory grant that protects creators of intellectualproperty from having work copied for the life of authorplus 70 years; 95 years for corporate-owned property
• Computer Software Copyright Act provides protectionfor program code and product copies sold in commerce
• Does not protect underlying ideas behind work
Patents• Grants exclusive monopoly on ideas behind invention
for 20 years
• Ensures inventors receive full rewards for labor; butprepares for widespread use by providing detaileddocuments
• Applies to underlying concept of software
• Stringent criteria of nonobviousness, originality, andnovelty; lengthy application process
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Patents• Grants exclusive monopoly on ideas behind invention
for 20 years
• Ensures inventors receive full rewards for labor; butprepares for widespread use by providing detaileddocuments
• Applies to underlying concept of software
• Stringent criteria of nonobviousness, originality, andnovelty; lengthy application process
Challenges to Intellectual Property Rights
• Digital media easy to replicate• Difficulties establishing uniqueness• Compactness of product• Proliferation of electronic networks, including
Internet, World Wide Web• File-sharing software• Web site construction and framing
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Challenges to Intellectual Property Rights
• Digital media easy to replicate• Difficulties establishing uniqueness• Compactness of product• Proliferation of electronic networks, including
Internet, World Wide Web• File-sharing software• Web site construction and framing
The Moral Dimensions of Information Systems
Who owns the pieces? Anatomy of a Web page
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Digital Millenium Copyright Act (1998)• Implements World Intellectual Property
Organization treaty
• Makes it illegal to circumvent technology-based protections of copyrighted materials
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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Digital Millenium Copyright Act (1998)• Implements World Intellectual Property
Organization treaty
• Makes it illegal to circumvent technology-based protections of copyrighted materials
• Ethical Issues: Is there value in protectingintellectual property when it is so easily copiedand distributed?
• Social Issues: Routine illegal file-sharingcreating society of lawbreakers
• Political issues: New protection measuresneeded to protect investments made bycreators
The Moral Dimensions of Information Systems
Property Rights: Intellectual Property
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• Ethical Issues: Is there value in protectingintellectual property when it is so easily copiedand distributed?
• Social Issues: Routine illegal file-sharingcreating society of lawbreakers
• Political issues: New protection measuresneeded to protect investments made bycreators
• Ethical issues: Who is morally responsible forconsequences of use of hardware or software?
• Social issues: What should society expect andallow of service-providing informationsystems?
• Political issues: To what extent shouldgovernment intervene, protect serviceproviders and users?
The Moral Dimensions of Information Systems
Accountability, Liability, and Control
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• Ethical issues: Who is morally responsible forconsequences of use of hardware or software?
• Social issues: What should society expect andallow of service-providing informationsystems?
• Political issues: To what extent shouldgovernment intervene, protect serviceproviders and users?
• Ethical issues: At what point shouldsoftware/services be released forconsumption?
• Social issues: Should people be encouraged tobelieve systems are infallible?
• Political Issues: Laws of responsibility andaccountability
The Moral Dimensions of Information Systems
System Quality: Data Quality and System Errors
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• Ethical issues: At what point shouldsoftware/services be released forconsumption?
• Social issues: Should people be encouraged tobelieve systems are infallible?
• Political Issues: Laws of responsibility andaccountability
Negative Social Costsof Information Technology
• Balancing power: Key policy decisions stillcentralized
• Rapidity of change: More efficient marketplacereduces response time to competition
The Moral Dimensions of Information Systems
Quality of Life: Equity, Access, and Boundaries
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Negative Social Costsof Information Technology
• Balancing power: Key policy decisions stillcentralized
• Rapidity of change: More efficient marketplacereduces response time to competition
• Maintaining boundaries: Ubiquitouscomputing weakening traditional boundariesbetween family or leisure and work
• Dependence and vulnerability: Vulnerable tosystem failures; no standards as with otherpublic-utility technologies
The Moral Dimensions of Information Systems
Quality of Life: Equity, Access, and Boundaries
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• Maintaining boundaries: Ubiquitouscomputing weakening traditional boundariesbetween family or leisure and work
• Dependence and vulnerability: Vulnerable tosystem failures; no standards as with otherpublic-utility technologies
• Computer crime: Commission of illegal acts throughthe use of a computer or against a computer system
• Computer abuse: Commission of acts involving acomputer that may not be illegal but are consideredunethical, i.e. spamming
• Computer forensics: scientific collection and analysisof data held on or retrieved from computer storagemedia to be used as evidence in court of law
The Moral Dimensions of Information Systems
Quality of Life: Equity, Access, and Boundaries
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• Computer crime: Commission of illegal acts throughthe use of a computer or against a computer system
• Computer abuse: Commission of acts involving acomputer that may not be illegal but are consideredunethical, i.e. spamming
• Computer forensics: scientific collection and analysisof data held on or retrieved from computer storagemedia to be used as evidence in court of law
Internet Crime and Abuse
• Spamming• Hacking• Jamming• Malicious software• Sniffing• Spoofing
The Moral Dimensions of Information Systems
Quality of Life: Equity, Access, and Boundaries
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Internet Crime and Abuse
• Spamming• Hacking• Jamming• Malicious software• Sniffing• Spoofing
Can the Spamming Monster Be Tamed?
Is spamming an important managementdecision? Why or why not?
The Moral Dimensions of Information Systems
Window on Management
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Can the Spamming Monster Be Tamed?
Is spamming an important managementdecision? Why or why not?
Offshore Outsourcing: Good or Bad?
Does offshore outsourcing create an ethicaldilemma? Why or why not?
The Moral Dimensions of Information Systems
Window on Organizations
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Offshore Outsourcing: Good or Bad?
Does offshore outsourcing create an ethicaldilemma? Why or why not?
1. Do the increase surveillance power and capability ofthe government present an ethical dilemma? Explainyour answer.
2. Apply an ethical analysis to the issue of thegovernment’s use of information technology to ensurepublic safety and citizens’ privacy rights.
3. What are the ethical, social, and political issues raisedby the government creating massive databases tocollect personal data on individuals and profile them?
Chapter 5 Case Study
Security Versus Privacy: Does Terrorism Change the Debate?
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1. Do the increase surveillance power and capability ofthe government present an ethical dilemma? Explainyour answer.
2. Apply an ethical analysis to the issue of thegovernment’s use of information technology to ensurepublic safety and citizens’ privacy rights.
3. What are the ethical, social, and political issues raisedby the government creating massive databases tocollect personal data on individuals and profile them?
4. How effective are electronic eavesdropping andmassive databases as terrorism and crime-preventiontools? Explain your answer.
5. State your views on ways to solve the problems ofcollecting the key data the government needs tocombat terrorism without interfering with individualprivacy.
Chapter 5 Case Study
Security Versus Privacy: Does Terrorism Change the Debate?
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4. How effective are electronic eavesdropping andmassive databases as terrorism and crime-preventiontools? Explain your answer.
5. State your views on ways to solve the problems ofcollecting the key data the government needs tocombat terrorism without interfering with individualprivacy.
Thank You for Listening
Contact: [email protected] Website: www.pearlrichards.org
Class Website: www.vivauniversity.wordpress.com
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Thank You for Listening
Contact: [email protected] Website: www.pearlrichards.org
Class Website: www.vivauniversity.wordpress.com
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