McLeod CH10

8/17/2019 McLeod CH10

1/36

© 2007 by Prentice Hall© 2007 by Prentice Hall Management Information Systems, 10/e RManagement Information Systems, 10/e Raymond McLeod and eorge Sc!ellaymond McLeod and eorge Sc!ell

11

ManagementManagement

Information Systems,Information Systems,10/e10/eRaymond McLeod "r# and eorge P#Raymond McLeod "r# and eorge P#

Sc!ellSc!ell

8/17/2019 McLeod CH10

2/36

© 2007 by Prentice Hall© 2007 by Prentice Hall Management Information Systems, 10/e RManagement Information Systems, 10/e Raymond McLeod and eorge Sc!ellaymond McLeod and eorge Sc!ell 22

$!a%ter 10$!a%ter 10&t!ical Im%lications of Information&t!ical Im%lications of Information

'ec!nology 'ec!nology

8/17/2019 McLeod CH10

3/36

© 2007 by Prentice Hall

Management Information Systems, 10/e Raymond Mc

"

Learning (b)ecti*esLearning (b)ecti*es

# +nderstand !o morals, et!ics, and las di-er#+nderstand !o morals, et!ics, and las di-er## .e familiar it! com%ter legislation t!at !as been.e familiar it! com%ter legislation t!at !as been

%assed in t!e +nited States and no !o legislation%assed in t!e +nited States and no !o legislationin one contry can inence com%ter se in ot!ersin one contry can inence com%ter se in ot!ers

as ell#as ell## no !o a 3rm creates an et!ical cltre by 3rstno !o a 3rm creates an et!ical cltre by 3rst

establis!ing a cor%orate credo, t!en establis!ingestablis!ing a cor%orate credo, t!en establis!inget!ics %rograms, and t!en lastly establis!ing aet!ics %rograms, and t!en lastly establis!ing acor%orate et!ics code#cor%orate et!ics code#

# no !y society demands t!at com%ters be sedno !y society demands t!at com%ters be sedet!ically#et!ically#

# no t!e for basic rig!ts t!at society !as concerningno t!e for basic rig!ts t!at society !as concerningt!e com%ter#t!e com%ter#

8/17/2019 McLeod CH10

4/36



$

Learning (b)ecti*es 4$ont5d6Learning (b)ecti*es 4$ont5d6

# no !o t!e 3rm5s internal aditors can %lay ano !o t!e 3rm5s internal aditors can %lay a%ositi*e role in ac!ie*ing information systems t!at%ositi*e role in ac!ie*ing information systems t!atare designed to meet et!ical %erformance criteria#are designed to meet et!ical %erformance criteria#

# .e aare of com%ter indstry codes of et!ics, and.e aare of com%ter indstry codes of et!ics, and

t!e ide *ariety of edcational %rograms t!at cant!e ide *ariety of edcational %rograms t!at can!el% 3rms and em%loyees se com%ters et!ically#!el% 3rms and em%loyees se com%ters et!ically#

# no !at t!e c!ief information ocer 4$I(6 canno !at t!e c!ief information ocer 4$I(6 cando to be a %oer center as t!e 3rm follos et!icaldo to be a %oer center as t!e 3rm follos et!ical

%ractices#%ractices#

# .e ac8ainted it! t!e most %rodced %iece of.e ac8ainted it! t!e most %rodced %iece oflegislation to be le*ied on bsiness in recentlegislation to be le*ied on bsiness in recent!istory9'!e Sarbanes:(;ley

8/17/2019 McLeod CH10

5/36



%

Prescri%ti*e *s# =escri%ti*ePrescri%ti*e *s# =escri%ti*e

$o*erage$o*erage

#Prescriptive coveragePrescriptive coverage is !en eis !en e%rescribe !o t!e MIS%rescribe !o t!e MIS ought to beought to be de*elo%ed and sed in a bsiness 3rm#de*elo%ed and sed in a bsiness 3rm#

#Descriptive coverageDescriptive coverage e;%lains !oe;%lains !ot!ingst!ings are beingare being done#done# (r mission is to recogni>e t!at(r mission is to recogni>e t!at

bsiness%eo%le in general and informationbsiness%eo%le in general and information%eo%le in %articlar !a*e de3nite%eo%le in %articlar !a*e de3niteres%onsibilities in terms of %erformingres%onsibilities in terms of %erformingit!in et!ical, moral, and legal constraints#it!in et!ical, moral, and legal constraints#

8/17/2019 McLeod CH10

6/36



&

Morals, &t!ics, and LasMorals, &t!ics, and Las

#MoralsMorals are traditions of belief abotare traditions of belief abotrig!t and rong condct? a socialrig!t and rong condct? a socialinstittion it! a !istory and a list ofinstittion it! a !istory and a list of

rles#rles##EthicsEthics is a collection of giding beliefs,is a collection of giding beliefs,

standards, or ideals t!at %er*ades anstandards, or ideals t!at %er*ades anindi*idal or a gro% or commnity ofindi*idal or a gro% or commnity of

%eo%le#%eo%le##Pirated softwarePirated software9softare t!at is9softare t!at is

illegally co%ied and t!en sed or sold#illegally co%ied and t!en sed or sold#

8/17/2019 McLeod CH10

7/36



7

Morals, &t!ics, and LasMorals, &t!ics, and Las

4$ont5d64$ont5d6#LawsLaws are formal rles of condct t!at aare formal rles of condct t!at a

so*ereign at!ority, sc! as aso*ereign at!ority, sc! as a

go*ernment, im%oses on its sb)ects orgo*ernment, im%oses on its sb)ects or

citi>ens#citi>ens## In 1@AA, 3rst case of com%ter crimeIn 1@AA, 3rst case of com%ter crime

Programmer for a ban altered a %rogramProgrammer for a ban altered a %rogram

not to ag !is accont for being o*erdran#not to ag !is accont for being o*erdran# Programmer not c!arged becase no lasProgrammer not c!arged becase no las

e;isted#e;isted#

8/17/2019 McLeod CH10

8/36



'

$om%ter Legislation in$om%ter Legislation in

+#S#ens andorgani>ations t!e rig!t to access data !eld by t!e federalorgani>ations t!e rig!t to access data !eld by t!e federalgo*ernment#go*ernment#

# The 19! Fair "redit #eporting ActThe 19! Fair "redit #eporting Act dealt it! t!e !andling ofdealt it! t!e !andling ofcredit data#credit data#

# The 19$ #ight to Federal Privac% ActThe 19$ #ight to Federal Privac% Act limited t!e federallimited t!e federalgo*ernment5s ability to condct searc!es of ban records#go*ernment5s ability to condct searc!es of ban records#

# The 19$$ "omp&ter Matching and Privac% ActThe 19$$ "omp&ter Matching and Privac% Act restricted t!erestricted t!efederal go*ernment5s rig!t to matc! com%ter 3les for t!efederal go*ernment5s rig!t to matc! com%ter 3les for t!e

%r%ose of determining eligibility for go*ernment %rograms or%r%ose of determining eligibility for go*ernment %rograms oridentifying debtors#identifying debtors#

# The 196$ Electronics "omm&nications Privac% ActThe 196$ Electronics "omm&nications Privac% Act co*eredco*eredonly *oice commnications? reritten in 1@BA to inclde digitalonly *oice commnications? reritten in 1@BA to inclde digitaldata, *ideo commnications, and electronic mail#data, *ideo commnications, and electronic mail#

8/17/2019 McLeod CH10

9/36



(

$om%ter Legislation in +#S#

8/17/2019 McLeod CH10

10/36



10

$om%ter Legislation in +#S#

8/17/2019 McLeod CH10

11/36



11

Softare PatentsSoftare Patents

# In "ly 1@@B, in t!eIn "ly 1@@B, in t!e 'tate 'treet Decision)'tate 'treet Decision) t!et!e+S $ort of

8/17/2019 McLeod CH10

12/36



12

&t!ics $ltre $once%t&t!ics $ltre $once%t

# Ethics c&lt&reEthics c&lt&re states t!at if a 3rm is to bestates t!at if a 3rm is to be

et!ical, t!en to%:management mst beet!ical, t!en to%:management mst be

et!ical in e*eryt!ing t!at it does and says,et!ical in e*eryt!ing t!at it does and says,

i#e#, lead by e;am%le#i#e#, lead by e;am%le## "orporate credo"orporate credo is a sccinct statement ofis a sccinct statement of

*ales t!at t!e 3rm sees to %!old#*ales t!at t!e 3rm sees to %!old#

# Ethics programEthics program is an e-ort consisting ofis an e-ort consisting of

mlti%le acti*ities designed to %ro*idemlti%le acti*ities designed to %ro*ide

em%loyees it! direction in carrying ot t!eem%loyees it! direction in carrying ot t!e

cor%orate credo#cor%orate credo#

8/17/2019 McLeod CH10

13/36



1"

Digre 10#1 'o%:Le*el ManagementDigre 10#1 'o%:Le*el Management

Im%oses &t!ics $ltre in a 'o%:=onIm%oses &t!ics $ltre in a 'o%:=on

MannerManner

8/17/2019 McLeod CH10

14/36



1$

Digre 10#2 &;am%le of aDigre 10#2 &;am%le of a

$or%orate $redo$or%orate $redo

8/17/2019 McLeod CH10

15/36



1%

&t!ics $ltre $once%t&t!ics $ltre $once%t

4$ont5d64$ont5d6#Ethics a&ditEthics a&dit is !en an internalis !en an internal

aditor meets it! a manager in aaditor meets it! a manager in ase*eral:!or session for t!e %r%ose ofse*eral:!or session for t!e %r%ose of

learning !o t!e manager5s nit islearning !o t!e manager5s nit iscarrying ot t!e cor%orate credo#carrying ot t!e cor%orate credo#

#Tailored corporate credoTailored corporate credo are sallyare sally

ada%tations of codes for a %articlarada%tations of codes for a %articlarindstry or %rofession t!at a 3rm !asindstry or %rofession t!at a 3rm !asde*ised for t!eir on cor%orate credo#de*ised for t!eir on cor%orate credo#

8/17/2019 McLeod CH10

16/36



1&

$om%ter &t!ics$om%ter &t!ics

# "omp&ter ethics"omp&ter ethics consists of to main acti*itiesEconsists of to main acti*itiesE

8/17/2019 McLeod CH10

17/36



17

Reasons for t!e Im%ortance ofReasons for t!e Im%ortance of

$om%ter &t!ics$om%ter &t!ics# "ames H# Moor belie*es t!ere are t!ree main reasons "ames H# Moor belie*es t!ere are t!ree main reasons

for t!e !ig! le*el of interest in com%ter et!icsEfor t!e !ig! le*el of interest in com%ter et!icsE

Logical Mallea*ilit%+Logical Mallea*ilit%+ '!e com%ter %erforms '!e com%ter %erforms

e;actly as instrcted, so if it5s sed for ane;actly as instrcted, so if it5s sed for an

net!ical acti*ity t!e com%ter is not t!e cl%rit#net!ical acti*ity t!e com%ter is not t!e cl%rit#

The Transformation Factor+The Transformation Factor+ $$om%ters canom%ters can

drastically c!ange t!e ay e do t!ings#drastically c!ange t!e ay e do t!ings#

The Invisi*ilit% FactorThe Invisi*ilit% FactorEE IInternal o%erationsnternal o%erations

%ro*ides t!e o%%ortnity for in*isible %rogramming%ro*ides t!e o%%ortnity for in*isible %rogramming*ales, in*isible com%le; calclations, and*ales, in*isible com%le; calclations, and

in*isible abse#in*isible abse#

8/17/2019 McLeod CH10

18/36



1'

Social Rig!ts and t!eSocial Rig!ts and t!e

$om%ter$om%ter# Mason coined t!e acronymMason coined t!e acronym PAPAPAPA 4%ri*acy,4%ri*acy,

accracy, %ro%erty, and accessibility6 toaccracy, %ro%erty, and accessibility6 tore%resent society5s for basic rig!ts in terms ofre%resent society5s for basic rig!ts in terms ofinformation#information#

# Mason felt t!at Gt!e rig!t to be left alone isMason felt t!at Gt!e rig!t to be left alone isbeing t!reatened by to forcesEbeing t!reatened by to forcesE

1#1#t!e increasing ability of t!e com%ter to be sedt!e increasing ability of t!e com%ter to be sedfor sr*eillance#for sr*eillance#

2#2#t!e increasing *ale of information in decisiont!e increasing *ale of information in decision

maing#maing## Dor e;am%le, decision maers %lace sc! a !ig!Dor e;am%le, decision maers %lace sc! a !ig!

*ale on information t!at t!ey ill often be*ale on information t!at t!ey ill often beilling to in*ade someone5s %ri*acy to get it#illing to in*ade someone5s %ri*acy to get it#

8/17/2019 McLeod CH10

19/36



1(

More Rig!ts More Rig!ts

# #ight to Acc&rac%+#ight to Acc&rac%+ t!e %otential for a le*elt!e %otential for a le*elof accracy t!at is nac!ie*able inof accracy t!at is nac!ie*able innoncom%ter systems?noncom%ter systems? some com%ter:some com%ter:

based systems contain more errors t!anbased systems contain more errors t!anold be tolerated in manal systems#old be tolerated in manal systems#

# #ight to Propert%#ight to Propert%E cE co%yrig!t and %atento%yrig!t and %atentlas %ro*ide some degree of %rotection#las %ro*ide some degree of %rotection#

# #ight to Access#ight to AccessE mc! information !asE mc! information !asbeen con*erted to commercial databases,been con*erted to commercial databases,maing it less accessible to t!e %blic#maing it less accessible to t!e %blic#

8/17/2019 McLeod CH10

20/36



20

Information ation *erify t!e accracy ofacconting records of 3rms of all si>es#acconting records of 3rms of all si>es#

# Internal aditors %erform t!e same analysesInternal aditors %erform t!e same analysesas e;ternal aditors bt !a*e a broaderas e;ternal aditors bt !a*e a broaderrange of res%onsibilities#range of res%onsibilities#

#

8/17/2019 McLeod CH10

21/36



21

Digre 10#J '!e Position ofDigre 10#J '!e Position ofInternal ation

8/17/2019 McLeod CH10

22/36



22

'y%es of

8/17/2019 McLeod CH10

23/36



2"

Digre 10#C '!e &scalating $ost ofDigre 10#C '!e &scalating $ost of

$orrecting =esign &rrors as t!e System$orrecting =esign &rrors as t!e System

=e*elo%ment Life $ycle Progresses=e*elo%ment Life $ycle Progresses

8/17/2019 McLeod CH10

24/36



2$

Internal

8/17/2019 McLeod CH10

25/36



2%

8/17/2019 McLeod CH10

26/36



2&

$odes of &t!ics$odes of &t!ics

#

8/17/2019 McLeod CH10

27/36



27

Digre 10#K (tline of t!e

8/17/2019 McLeod CH10

28/36



2'

'able 10#1 'o%ics $o*ered by t!e

8/17/2019 McLeod CH10

29/36



2(

'able 10#2 'o%ics $o*ered by t!e

8/17/2019 McLeod CH10

30/36



"0

8/17/2019 McLeod CH10

31/36



"1

$om%ter &t!ics &dcation$om%ter &t!ics &dcation

# College coursesCollege courses9

8/17/2019 McLeod CH10

32/36



"2

&t!ics and t!e $I(&t!ics and t!e $I(

#

8/17/2019 McLeod CH10

33/36



""

&t!ics and t!e $I( 4$ont5d6&t!ics and t!e $I( 4$ont5d6

'!e $I( can bring 3nancial re%orting % to e;%ectations '!e $I( can bring 3nancial re%orting % to e;%ectationsby folloing a %rogram t!at incldes t!e folloingEby folloing a %rogram t!at incldes t!e folloingE Achieving a higher level of understanding of Achieving a higher level of understanding of

accounting principles.accounting principles.

Reviewing the information systems that accomplishReviewing the information systems that accomplishnancial reporting and taking remedial action.nancial reporting and taking remedial action.

Educating the rm's executives on nancial systems.Educating the rm's executives on nancial systems.

Integrating alarms into information systems that alertIntegrating alarms into information systems that alertexecutives to activities that require attention.executives to activities that require attention.

Actively participating in the release of nancial Actively participating in the release of nancial

information to environmental elements.information to environmental elements. eeping tight control on money spent for informationeeping tight control on money spent for information

resources.resources.

8/17/2019 McLeod CH10

34/36



"$

Life nder Sarbanes:(;leyLife nder Sarbanes:(;ley

# '!e ob)ecti*e of Sarbanes:(;ley, non as S(N, is '!e ob)ecti*e of Sarbanes:(;ley, non as S(N, is

to %rotect in*estors by maing t!e 3rm5sto %rotect in*estors by maing t!e 3rm5s

e;ecti*es %ersonally accontable for t!e 3nanciale;ecti*es %ersonally accontable for t!e 3nancial

information t!at is %ro*ided to t!e 3rm5sinformation t!at is %ro*ided to t!e 3rm5s

en*ironment, %rimarily stoc!olders and t!een*ironment, %rimarily stoc!olders and t!e

3nancial commnity#3nancial commnity#

# S(N consists of 10 ma)or %ro*isions, 2 directlyS(N consists of 10 ma)or %ro*isions, 2 directly

a-ect t!e 3rm5s information ser*ices nit#a-ect t!e 3rm5s information ser*ices nit# $&(s and $D(s mst certify t!e 3nancial re%orts#$&(s and $D(s mst certify t!e 3nancial re%orts#

+#S# com%anies are re8ired to !a*e internal adit nits#+#S# com%anies are re8ired to !a*e internal adit nits#

S(N Pro*isions

8/17/2019 McLeod CH10

35/36



"%

S(N Pro*isions

8/17/2019 McLeod CH10

36/36

© 2007 by Prentice H Management Information S "&

S(N Pro*isions 4$ont5d6S(N Pro*isions 4$ont5d6

# S(N C0@93rm mst be able to re%ort c!anges in itsS(N C0@93rm mst be able to re%ort c!anges in its3nancial condition in3nancial condition in real timereal time9as t!e c!anges occr#9as t!e c!anges occr# S!old featre online in%ts#S!old featre online in%ts# (t%t sbsystems s!old be ca%able of immediately(t%t sbsystems s!old be ca%able of immediately

re%orting c!anges in t!e 3rm5s 3nancial condition#re%orting c!anges in t!e 3rm5s 3nancial condition## S(N and $(.I'S(N and $(.I' $(.I' is an indstry organi>ation t!at %ro*ides secrity$(.I' is an indstry organi>ation t!at %ro*ides secrity

standards for t!e 3rm5s information resorces#standards for t!e 3rm5s information resorces# $(.I' can assist t!e 3rm in addressing its S(N$(.I' can assist t!e 3rm in addressing its S(N

res%onsibilities becase $(.I' standards align *ery ellres%onsibilities becase $(.I' standards align *ery ellit! t!e S(N e;%ectations#it! t!e S(N e;%ectations# $(.I' !as C7,000 members orldide, its 3nancial$(.I' !as C7,000 members orldide, its 3nancial

re%orting standards can !a*e a global e-ect#re%orting standards can !a*e a global e-ect#

McLeod CH10

Documents