Risks Associated with Information Technologies

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1 Risks Associated

with Information

Technologies

•

nformation technologies can be misused to invade

users' privacy and commit computer crimes. The

following sections describe some of these misuses

and discuss related privacy issues. Keep in mind,

however, that you can minimize or prevent many

of these risks by installing operating system updates

regularly, using antivirus and antispyware

software, and using e-mail security features.

1.1 Cookies

Cookies are small text files with unique ID tags that are

embedded in a Web browser and saved on the user's

hard drive. Sometimes, cookies are useful or innocuous,

such as those used by a Web page that welcomes you or

those used by a Web site that remembers your personal

information for online ordering. Typically, users rely on

Web sites to keep this information fr?m being compromised.

Cookies also

make it possible for

Web sites to customize

pages for users,

such as Amazon.

com recommending

books based on your

past purchases.

Other times.rcookies can be considered an invasion

of privacy, and some people believe their information

should be collected only with their consent. Cookies also

provide information about the user's location and computer

equipment, and this information could be used for

unauthorized purposes, such as corporate espionage.

For these reasons, many users disable cookies

by installing a cookie manager, which can eliminate

okies are small texriites'WittL

ue llil~ tI1at are.embed4gd

rowser and saved on the

(jrive.

existing cookies and prevent additional cookies from

being saved to a user's hard drive. Popular Web browsers

such as Internet Explorer and Firefox provide a

range of options for accepting and restricting cookies.

1.2 Spyware and Adware

Spyware is software that secretly gathers information

about users while they browse the Web. This information

could be used for malicious purposes. Spyware can

also interfere with users' control of their computers

by installing additional software and redirecting Web

browsers, for example, Some spyware changes computer

settings, resulting-in slow Internet connections, changes

to users' default home pages, and loss of functions in

other programs. To protect against spyware, you should

install antivirus software that also checks for spyware

or install antispyware software, such as Spy Sweeper,

CounterSpy, STOPzilla, and Spyware Doctor.

Adware is a form of spyware that collects information

about the user (without

the user's consent) to

display advertisements in

the Web browser, based

on information it collects

from the user's browsing

patterns. In addition to

antivirus software, installing

an ad-blocking feature

in Web browsers is recommended

to protect against

adware.

1.3 Phishing

Phishing is sending fraudulent

e-mails that seem

to come from legitimate

sources, such as a bank

or university. They usually

direct e-mail recipients to

false Web sites that look

like the real thing for the

purpose of capturing private

information, such as

bank account numbers or

Social Security numbers.

1.4 Keyloggers

Keyloggers monitor and record keystrokes and can

software or hardware devices. Sometimes, comp -

use these devices to track employees' use of e-mail

the Internet, and this use is legaL However, keylo

can be used for malicious purposes, too, such as

lecting the credit card numbers that users enter w

shopping online. Some antivirus and antispyware p

grams guard against software keyloggers, and utili -

are available to install as additional protection.

1.5 Sniffing and Spoofing

Sniffing is capturing and recording network traffic.

though it can be done for legitimate reasons, such

monitoring network performance, hackers often use

to intercept information. Spoofing is an attempt to g -

access to a network by posing as' an authorized user

find sensitive information, such as passwords and ere

card information. Spoofing can also be illegitimate p

grams posing as legitimate ones.

1.6 Computer Crime and Fraud

Computer fraud is the unauthorized use of compu

data for personal gain, such as transferring money fro

another's account or charging purchases to someo

else's account. Many of the technologies discussed p

viously can be used for committing computer crim

In addition, social networking sites, such as Facebo

and MySpace, have been used for committing comput

crimes. The following information box discusses

cost of Internet fraud.

Internet Fraud Cost $559 Million in 20091

Losses from cybercrime more than doubled in 2009, jumping

from $265 million in 2008 to $559.7 million, according

to a report by the Internet Crime Complaint Center, which

is a partnership between the FBI and the National White

Collar Crime Center. The number of online complaints

about cybercrimes also rose dramatically, according to

the report. In 2009, 336,655 complaints were received, a

jump of more than 20 percent over 2008. Keep in mind

that these figures are only the reported complaints; the

actual ~umber of cybercrimes could be much higher.

Most of the complaints were about e-moil scams and

the nondelivery of merchandise or payments. To guard

against cybercrime, Internet users should install the most

current versions of antivirus and antispyware software

on their computers and be very careful when they receive

suspicious e-mails, particularly those with attachments.

In addition to phishing, which was introduced

earlier in the chapter, computer crimes include the

following:

• Denial-of-service attacks, which inundate a Web site

or network with e-rnails and other network traffic so

that it becomes overloaded and can't handle legitimate

traffic.

• Identity theft, such as stealing Social Security

numbers for unauthorized use.

• Software piracy and other infringements of intellectual

property (discussed later in thechapter) .

• Distributing child pornography .

• E-mail spamming.

j

• Writing or spreading viruses, worms, Trojan

programs, and other malicious code.

• Stealing files for industrial espionage.

• Changing computer records illegally.

• Virus hoaxes, in which individuals intentionally spread

false statements or information through the Internet in

such a way that readers believe they are true.

Another computer crime is sabotage, which involves

destroying or disrupting computer services. Computer

criminals change, delete, hide, or use computer files for

personal gain. Usually called "hackers," many of them

break into computer systems for personal satisfaction,

but others seek financial gain. Surprisingly, most

computer crimes are committed by company insiders,

which makes protecting information resources even

more difficult.

2 Privacy Issues

•

nformation technologies have brought many

benefits, but they've also created concerns about

privacy in the workplace. For example, some

employers search social networking sites, such

as Facebook or MySpace, to find background

information on applicants, and this information

can influence their hiring decisions. Is this use of

social networking sites legal or ethical? What

about users' privacy? Because infonnation posted on

these sites is often considered public domain, you

should be careful about what you post, in case it comes

back to haunt you. See the information box called "Social

Networking Sites and Privacy Issues" for an

example of what could happen.

With employee monitoring systems, managers can

also supervise employees' performance-the number of

errors they make, their work speed, and their time away

from the desk. Naturally, this monitoring has made

some workers concerned about their privacy.

Social Networking Sites and 1'1I".""5

Sta~y Snyder, a former student lit MHIersvIt fIritIeisfty of

Pennsylvania, posted on MySpace a photo OlhelseJfwearing

a pirate's hat while drinking. The pIlOID MIS mptioned

"Drunken Pirate." Although Snyder was ofleyal drinldng age

at the time, Millersville administrators CDIISidered the image

unprofessional and refused to grant her a degree in Education

and a teacning certificate. Instead, she was given a degree

in English. Did the university violate Stacy's privacy?2

...with employee monitoring systems, managers can supervise employees'

performance-the number of errors they make, their work speed, and their

time away from the desk.

Health care organizations, financial institutions,

legal firms, and even online-ordering firms gather a

great deal of personal data and enter it in databases.

Misuse and abuse of this information can have serious

consequences. For this reason, organizations should

establish comprehensive security systems (discussed

in Chapter 5) to protect their employees' or clients'

pnvacy.

Some "information paranoia" is valid, because

information about almost every aspect of people's

lives is now stored on various databases, and misuse

of extremely sensitive information (such as medical

records) could prevent someone from getting employment,

health insurance, or housing. Laws are in place to

prevent these problems, but taking legal action is often

costly, and by that point, the damage has often already

been done.

You can probably give examples of things you

expect to be private, such as your personal mail, your

bank account balances, and your phone conversations.

Defining privacy is difficult, however. In terms of electronic

information, most people believe they should be

able to keep their personal affairs to themselves and

should be told how information about them is used.

Based on this definition, many practices of government

agencies, credit agencies, and marketing companies using

databases would represent an invasion of privacy.

Unfortunately, information technologies have increased

ease of access to information for hackers as well as for

.legitimate organizations.

The number of databases is increasing rapidly. In

the United States, for example, the top three credit-rating

companies-Experian, Equifax, and TransUnionhave

records on nearly every person living in the United

States. Although these organizations and agencies are

reputable and supply information only to people using

it for its intended purpose, many small companies buy

information from credit-rating companies and use it in

ways that were never intended. This action is clearly

illegal, but enforcement of federal laws has been lax.

You may have noticed the effects of this problem if you

recently joined an organization and then began getting

mail from other organizations that you have not given

your address to.

Advances in computer technology have made i

easy to do what was once difficult or impossible. In

formation in databases can now be cross-matched t

create profiles of people and predict their behavio

based on their transactions with educational, financia

government, and other institutions. This information is

often used for direct marketing and for credit checks on

potential borrowers or renters. c

The most common way to index and link databases

is by using Social Security numbers (typically obtained

from credit bureaus), although names are sometimes

used to track transactions that don't require Social

Security numbers, such as credit card purchases, charitable

contributions, and movie rentals. Direct marketing

companies are a major user of this information.

You may think that the worst result of this information

sharing is an increase in junk mail (postal mail or email),

but there are more serious privacy issues than

that. Should information you give to a bank to help

establish a credit record be repackaged (that is, linked

with other databases) and used for other purposes?

In 1977, the U.S. government began linking large

databases to find information. The Department of

Health, Education, and Welfare decided to look for

people collecting welfare who were also working for the

government. JCollecting welfare while being employed is

illegal.) By comparing records of welfare payments and

government payroll, the department was able to identify

these workers. In this case, people abusing the system

were discovered, so this use of databases was useful.

The Housing and Urban Development Department

keeps records showing whether mortgage borrowers are

in default on federal loans and made this information

available to large banking institutions, such as Citibank,

to add to their credit files. This action led Congress to

pass the first of several laws intended to protect people's

rights of privacy with regard to their credit tecords.

Several federal laws now regulate the collecting and

using of information on people and corporations, but

the laws are narrow in scope and contain loopholes.

For example, the 1970 Fair Credit Reporting Act prohibits

credit agencies from sharing information with

anyone but "authorized customers." An authorized

customer, however, is simply defined as anyone with a

"legitimate need," and the act doesn't specify what a

legitimate need is.

There are three important concepts regarding Internet

and network privacy: acceptable use policies,

accountability, and nonrepudiation. To guard against

possible legal ramifications and the consequences of

using the Internet and networks, organizations usually

establish an acceptable use policy, which is a set of rules

specifying the legal and ethical use of a system and

the consequences of noncompliance. Having a clear,

specific policy can help prevent users from taking legal

action against an organization, as in cases of termination.

Most organizations have new employees sign an

acceptable use policy before they can access the network.

Accountability refers to issues involving both the

user's and the organization's responsibility and liability.

Nonrepudiation is basically a method for binding all

involved parties to a contract; it is covered in more

detail in Chapter 5.

Because of concerns about privacy, hardware or

software controls should be used to determine what

personal information is provided on the Web. Chapter

5 explains these controls in more detail, but users and

organizations should adhere to the following guidelines

to eliminate or minimize the invasion of privacy."

• Conduct business only with Web sites whose privacy

policies are easy to find, read, and understand.

• Organizations must limit access to personal information

to people who have authorization.

• Any organization creating, maintaining, using, or

disseminating records of personal data must ensure

the data's reliability and take precautions to prevent

misuse of the data.

• Any data collection must have a stated purpose.

Organizations should keep collected information

only as long as it's needed for the stated

purpose.

• There must be a way for people to prevent

personal information that was gathered

about them for one-purpose from being used

for other purposes or being disclosed to

others without their consent.

• Organizations should monitor data collection

and entry, and use verification procedures

to ensure data accuracy; they should

also collect only the data that's necessary.

• Records kept on an individual should be

accurate and up to date. Organizations must

correct or delete incorrect data and delete

data when it's no longer needed for the

stated purpose.

• Users should be

able to review

their records and

correct any

. .

inaccuracies.

• The existence of

record-keeping

systems storing

personal data

shouldn't be kept secret. In addition, there must be a

way for people to find out what information about

them has been stored and how it's used.

• Organizations must take all necessary measures to

prevent unauthorized access to data and misuse of

data.

Privacy-protection software can take many forms.

For example, to guard against cookies that record your

navigations around the Web, you can use cookie control

features within your browser. One company attempting

to address this problem is Anonymizer, Inc., which is

discussed in the Industry Connection box at the end

of this chapter. Using privacy-protection software has

some drawbacks, however. For example, eBay often

contends with sellers who, by using different user accounts,

bid on their own item to inflate the price. Currently,

eBay can trace these sellers' user accounts, but

privacy-protection software would make this tracking

impossible.

2.1 E-mail

Although e-rnail is widely used, it presents some serious

privacy issues. One issue is junk e-mail, or

spam-unsolicited e-mail sent for advertising purposes.

Because sending these e-rnails is so inexpensive,

Whether an e-mail is distributed through the Internet or through a

company network, people should assume that others have access to

their messages.

even a small response-a fraction of a percent, for

example-is a worthwhile return on the investment.

Usually, spam is sent in bulk using automated mailing

software, and many spammers sell their address lists.

For these reasons, the volume of spam can rise to an

unmanageable level quickly, clogging users' in-boxes

and preventing access to legitimate e-mails.

Another privacy concern is ease of access. Whether

an e-mail is distributed through the Internet or

through a company network, people should assume

that others have access to their messages. In addition,

many organizations have policies stating that

any e-mails sent on company-owned computers are

the property of the organization, and that the organization

has the right to access them. In other words,

employees often have no right to privacy, although

there's a lot of controversy over this point and several

lawsuits have resulted.

Spamming has also created decency concerns,

because these e-mails often contain explicit language

or nudity and can be opened by children. The following

list provides some 2009 statistics for e-mail and

sparn":

• 90 trillion-Number of e-mailssent on the

Internet

• 247 billion-Average number of e-mailmessages

per day

• 1.4 billion-Number of e-mailusersworldwide

• 100 million-New e-mail usersfrom the year

before

• 81 percent-Percentage of e-mailsthat were spam

• 92 percent-Peak spam levelslate in the year

• 24 percent-Increase in spam over previous year

2.2 Data Collection on the

Internet

The number of people shopping online is increasing

rapidly because of convenience, the array of choices,

and lower prices. Many customers, however, are reluctant

to make online purchases because of concerns

about hackers getting access to their credit card numbers

and charging merchandise to their accounts. To

lessen consumers' concerns, many credit card companies

reimburse fraudulent charges. In addition, other

electronic payment systems are being developed, such

as e-wallets and smart cards, that reduce the risks of exposing

consumers' information on the Web (discussed

in Chapter 8).

Some Web sites require you to enter your name,

address, and employment information before you're

allowed to use the site. Privacy issues include the

concern that this personal information will be sold to

telemarketing firms, and consumers don't want to be

bombarded with spam. Also, some consumers are concerned

about their computers' contents being searched

while they're connected to the Internet, and personal

information could be used without their consent for

solicitation and other purposes.

Information that users provide on the Web can also

be combined with other information and technologies

to produce new information. For example, by collecting

a person's employment information, a financial profile

could be created and used for other purposes. Two

commonly used technologies for data collection are

cookies (discussed previously) and log files. Log files,

which are generated by Web server software, record a

user's actions on a Web site.

Sometimes,users give incorrect information on purpose--on

chatting or dating sites,for example, or when

opening e-mail accounts. If the information collected

isn't accurate, the result could be identity misrepresentation.

For example, ifsomeone claimsto be younger on an

online dating site, any demographic data collectedwould

be flawed. Similarly,if a TV network collects data on

viewingtrends through online surveysand'people supply

answers that aren't truthful, any analyses the network

attempts to conduct wouldn't be accurate. Therefore,

data collected

on the Internet

must be used and

interpreted with

caution.

The distinction between what's legal and what's illegal is usually dear,

but drawing a line between what's ethical and what's unethrcahis mo~€

difficult.

;~ii;;iii3 Ethical Issues

of Information

Technologies

ompanies such as Enron, Arthur

Andersen, WorldCom, and Tyco,

to mention a few, have highlighted

the ethics issues that corporations

face in the 21st century. In essence,

ethics means doing the right thing,

and its meaning can vary in different cultures and even

from person to person.'

The distinction between what's legal and what's illegal

is usually clear, but drawing a line between what's

ethical and what's unethical is more difficult. Exhibit

4.1 shows a grid that can be used for assessing whether

an action is legal and/or ethical.

Review the following situations and try to determine

where they might fall in Exhibit 4.1's grid:

1. You make two copies of a software package you just

bought and sell one to a friend.

- 2. You make two copies of a software package you just

bought for personal use, in case the original software

fails and you need a backup.

3. A banker uses the information a client enters in a

loan application to sell other financial products to

this client.

4. A credit card company sells its customers' mailing

addresses to other competitors.

5. A supervisor fires a programmer who has intentionally

spread viruses to the organization's network.

E~hibit 4.1 Ethical versus legal grief

Number 1 is clearly illegal, and unethical (quadrant

IV). Number 2 is ethical because you made the

copy for your own use, but some software vendors

who prohibit making copies might consider it illegal

(quadrant II). Numbers 3 and 4 are legal but not ethical

(quadrant III). In number 5, the supervisor's behavior

is both legal and ethical. The supervisor has a clear

legal reason for firing the programmer, and allowing

the programmer to continue working there wouldn't

be ethical. As a future knowledge worker, watch your

own actions, and make sure you behave both legally

and ethically. Be careful about decisions you make affecting

coworkers so you can help maintain an ethical

working environment.

Some information systems professionals believe

that information technology offers many opportunities

for unethical behavior.'particularly because of the ease

of collecting and disseminating information. Cybercrime,

cyberfraud, identity theft, and intellectual property

theft (discussed later in this chapter) are on the rise.

For example, the incidence of identity theft increased

by 11 percent from 2008 to 2009, affecting 11 million

Americans."

Many experts believe management can reduce employees'

unethical behavior by developing and enforcing

codes of ethics. Many associations promote ethically responsible

use of information systems and technologies

and have developed codes of ethics for their members.

The Association for Computing Machinery (ACM), for

example, has a code of ethics and professional conduct

to help guide the actions of IT professionals. The ACM's

code of ethics (www.acm.org/about/code-of-ethics) includes

the following moral guidelines:

• 1.1: Contribute to society and human well-being.

• 1.2: Avoid harm to others.

• 1.3: Be honest and trustworthy.

• 1.4: Be fair and take action not to discriminate.

• 1.5: Honor property rights, including copyrights and

patents.

• 1.6: Give proper credit for intellectual property.

• 1.7: Respect the privacy of others.

• 1.8: Honor confidentiality.

Public information, posted by an organization or public agency, can

be censored for public policy reasons.

As a knowledge worker, you should consider the

following questions and statements before making a

decision:

• Does this decision comply with my organization's

values?

• How will I feel about myself after making this

decision?

• If I know this decision is wrong, I must not make it.

• If I'm not sure about this decision, Imust ask my

supervisor before making it.

• Is the decision right?

• Is the decision fair? How will I feelif somebody else

makes this decision on my behalf?

• Is the decision legal?

• Would I want everyone to know about this decision

after Imake it?

3.1 Censorship

No organization controls the whole Internet, so who

decid~s what content should be on it? Two types of

information are[available on the Web: public and private.

Public information, posted by an organization

or public agency, can be censored for public policy

reasons-such as not allowing military

secrets to be published, lest the information

fall into enemy hands. Public

information can also be censored if the

content is deemed offensive to a political,

religious, or cultural group. However,

private information-what's posted by

a person-isn't subject to censorship

because of our constitutional freedom

of expression. Of course, whether or

not something can be censored depends

in part on who is doing the censoring.

For example, if you agree to abide by an

organization's (e.g., a company's or an

Internet service provider's) terms of service

or policies and then post something

that violates that, you might be censored or denied

access.

Another type of censorship is restricting access to

the Internet. Some countries, such as Burma, China, and

Singapore, restrict or forbid their citizens' access or try

to censor the information posted on the Internet. These

governments believe that the racist, pornographic, and

politically extreme content of some Web sites could affeet

national security. In other countries, only employees

of multinational corporations have direct access to

the Internet.

Although U.S. citizens don't want the government

controlling Internet access, many parents are concerned

about what their children are exposed to while using

the Web, such as pornography, violence, and adult

language.

Another concern is children searching for information

on the Web. If a search includes keywords such

as toys, pets, boys, or girls, for example, the results

could list pornography sites. Guidelines for Web use

have been published to inform parents of the benefits

and hazards of the Internet, and parents can use these

to teach their children to use good judgment while on

. the Internet. For example, Microsoft posts a guideline

called "Help protect kids online: 4 things you can

do" (www.microsoft.com/pro teet/family/guide lines/

basics.mspx).

In addition, many parents use programs such as

CyberPatrol, CyberSitter, Net Nanny, and SafeSurf to

prevent their children's accessto certain Web sites.Web

browser software has also been developed to improve

children's security. For example, a Web browser may

accept e-mail only from an address that uses the same

Web browser software. This helps ensure that children

receive e-mail only from other children. Another possibility

is creating different levels of user access,similar

to movie ratings, to prevent children from accessing

controversial or pornographic information. This system

could use techniques such as requiring passwords or

using biometrics, including fingerprints or retinal scans

(discussed in Chapter 5).

3.2 Intellectua I Property

Intellectual property is a legal umbrella covering protections

that involve copyrights, trademarks, trade

secrets, and patents for "creations of the mind" developed

by people or businesses.! Intellectual property

can be divided into two categories: industrial property

(inventions, trademarks, logos, industrial designs, and

so on) and copyrighted material, which covers literary

and artistic works.

Generally, copyright laws protect tangible material,

such as books, drawings, and so forth. However,

they also cover online materials, including Web

pages, HTML code, and computer graphics, as long

Exhibit 4.2 The United States Copyright

Office home page

.•.

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as the content can be

printed or saved on

a storage device.

Copyright laws give

only the creator

exclusive rights,

meaning no one else

can reproduce, distribute, or perform the work without

permission."

Copyright laws do have some exceptions, however,

usually under the Fair Use Doctrine. This exception

means you can use copyrighted material for certain

purposes, such as quoting passages of a book in literary

reviews. There are limits-on the length of material

you can use. In addition, some copyrighted material

can be used to create new work, particularly for educational

purposes. Checking copyright laws carefully

before using this material is strongly recommended.

The United States Copyright Office (www.copyright.

gov) offers detailed information on copyright issues.

Exhibit 4.2 shows the home page.

Other intellectual property protections include

trademarks and patents. A trademark protects

product names and identifying marks (logos, for instance).

A patent protects newprocesses. (Note that

laws governing trademarks, patents, and copyrights

in the United States might not apply in other countries.)

The length of a copyright varies based on the

type of work, but, in general, copyrights last for the

author's lifetime plus 70 years and do not need to

be renewed, and patents last 20 years (14 years for

design patents).

An organization can benefit from a patent in at least

three ways."

• It can generaterevenue by licensingits patent to

others.

• It can use the patent to attract funding for.further

research and development.

• It can use the patent to keep competitorsfrom

entering certain market segments.

Another copyright concern is software piracy, but

the laws covering it are very straightforward. The 1980

revisions to the Copyright Act of 1976 include computer

programs, so both people and organizations can

be held liable for unauthorized duplication and use of

copyrighted programs. Sometimes, contracts are used

to supplement copyrights and give the software originator

additional protection. For example, a software

vendor might have a university sign a contract specifying

how many people can use the software. Companies

"One aspect of intellectual property that has attracted attention recently

is cybersquatting, which is registering, selling, or using a domain name to

profit from som~oneelse's trademark."

also make use of laws

on trade secrets, which

cover ideas, information,

and innovations, as

extra protection.

Most legal issues

related to information

technologies III

the United States

are covered by the

Telecomm unica tions

Act of 1996, the Communications Decency Act (CDA),

and laws against spamming. The CDA was partially

overturned in the 1997 Reno v. ACLU case, in which

the U.S. Supreme Court unanimously voted to strike

down the CDA's anti-indecency provisions, finding

they violated the freedom of speech provisions of the

First Amendment. To avoid the legal risks listed here,"

organizations should have an Internet use policy.

• Risk i-If employees download pornographic

materials to their office computers over the corporate

network, the organization could be liable for harassment

charges as well as infringement of privacy and

even copyright laws.

• Risk 2-Indecent e-mail exchanges among employees

can leave the corporation open to discrimination and

sexual harassment charges.

• Risk 3-Employees using the corporate network to

download and distribute unlicensed software could

leave the corporation open to serious charges of

copyright infringement and other legalissues.

Verizon's Cybersquatting Suit

In June 2008, Verizon sued OnlineNic, accusing it of trademark

infringement and illegal cybersquatting. According

to vetizon, OnlineNic registered domain names containing

Verizon trademarks. The registered names included myverizonwireless.com,

iphoneverizonplans.com, and verizon-ceilular.com,

among others, and Verizon was concerned about

the names misleading consumers. Verizon won this suit and

was awarded a $33 million judgment. 12

One aspect of intellectual property that has at

tracted attention recently is cybersquatting, whic

is registering, selling, or using a domain name t

profit from someone else's trademark. Often, it involv

buying domains containing the 'names of existing busi

nesses and then selling the names later for a profit. Th

information box called "Verizon's Cybersquatting Suit

describes such a case.

3.3 Social Divisions and

the Digital Divide

Some believe that information technology and tb

Internet have created a digital divide between t

information rich and the information poor. Althou

prices have been decreasing steadily, computers sf

aren't affordable for many people. In addition,

type of economic "red-lining" can occur when co

panies installing coaxial and fiber-optic cables fo

Internet connections focus on higher-income co

munities, where more residents are expected to u

the Internet. 13

Children, in particular, are often victims of the di .

tal divide. Those without computers or Internet ace

at home, as well as students who can't afford comput

equipment, are at a disadvantage and often become further

behind in their education. Students without ace

to the wide array of resources on the Web have mo

difficulty writing papers and learning about topics t

interest them. Interactive and virtual reality educatio

games available on the Internet can widen the ga

more, when some children have access and others don'

Increasing funding for computer equipment at schoo

and adding more computers in public places, such

libraries, can help offset this divide. Some schools ha

even started loaner programs so that students can bo

row a portable computer for use after school hours.

;iii~::~i 4 The Impact of

Information Technology

in the Workplace

lthough information technology

has eliminated some clerical jobs,

it has created many new jobs (de-

"scribed in Chapter 1) for

programmers, systems analysts,

database and network adminisJ

trators, network engineers, Webmasters, Web page

developers, e-commerce specialists, chief information

officers (CIOs), and technicians. In e-commerce, jobs

for Web designers, Java programmers, and Web troubleshooters

have been created, too. Some argue that the

jobs eliminated have been clerical and the jobs created

have been mostly technical, requiring extensive training.

Others believe that information technologies have

reduced production costs and, therefore, improved and

increased consumers' purchasing power, resulting in a

stronger economy.

Information technologies have a direct effect on

the nature of jobs. Telecommuting or virtual work, for

example, has enabled some people to perform their jobs

from home. With telecommunications technology, a

worker can send and receive data to and from the main

office, and organizations can use the best and most

cost-effective human resources in a large geographical

region. Table 4.1 lists some benefits and drawbacks of

telecommuting.

By handling repetitive and boring tasks, information

technologies have made our jobs more interesting,

resulting in more worker satisfaction. Information

technologies has also led to "job deskilling." This occurs

when skilled labor is eliminated by high technology or

when a job is downgraded from a skilled to a semiskilled

or unskilled position. It usually takes place when a job is

Table 4.1

The Benefits and Potential Drawbacks of Telecommuting

Benefit

Can care for small children or elderly parents and spend

more time with family,

!;;lavefewer. r.es'cr.ktiiol'ls,olclo~hing \1 f(:lf work, therefu~ saviit;)g

the expense @fw@d<weaf

No commute, so distance and time factors are reeucea as

well as the effects of Garemlssions on air quality

Able to work in more pleasant surroundinqs

Increased productivity

Decreased neiqhborhood crime because of more people

being home during the day

Easie;:-Workenvironment for employees with disabilities

Reduced costs for office space and utilities

Reduced employee turnover and absenteeism

Able to find and hire people with special skills, regardless of

where they're located

Fewer interruptions from coworkers

Potential drawback

Can become a workaholic (ne hard boundaries betweerr'at

work" and "at li1ome")

Ne fiegwlated worrk r.@l!Itilile

Lesslnteraetlori wi~Acoworkers

No separation between work and home life

Potential legal issues about workers' injuries

Family interruptions and household distractions

Lack of necessary supplies or equipment

Could create a two-tiered workforce-telecommuters and

on-site workers-that affects promotions and raises

automated or when a complex

job is fragmented into

a sequence of easily performed

tasks. An example

is when a computer-aided

design (CAD) program

performs the technical

tasks that used to be performed

by a designer. On

the other hand, information technologies have created

"job upgrading," as when clerical workers use computers

for word-processing tasks. This upgrading makes it

possible to add new tasks to employees' responsibilities,

too; for example, clerical workers could be responsible

for updating the company's Web site.Job upgrading has

some limitations, however. Even with information technologies,

training clerical workers to write programs for

the company Web site would be difficult, for instance.

With information technologies, one skilled worker

might be capable of doing the job of several workers. For

example, with mail-merge programs, an office worker

can generate thousands of letters, eliminating the need

for additional workers. Information technologies can

also make workers more efficient-being able to send

a message throughout an entire organization by using

e-mail instead of interoffice memos, for example. Similarly,

mass-marketing efforts for new product announcements

have been streamlined, reducing the expense and

personnel needed to reach millions of customers.

Another impact of information technology is the

creation of virtual organizations, which are networks

of independent companies, suppliers, customers, and

manufacturers connected via information technologies

so that they can share skills and costs and have access

to each other's markets." A virtual organization doesn't

need central offices or an organizational hierarchy for

participants to contribute their expertise. Advantages ,....J.---------------------~

of virtual organizations include the following."

• Each participating company can focus on what

it does best, thus improving the ability to meet

customers' needs.

• Because skills are shared among participating

companies, the cost of hiring additional employeesis

reduced.

• Companies can respond to customers faster and

more efficiently.

• The time needed to develop new products is reduced.

• Products can be customized more to respond to

customers' needs.

In 2001, Dell, Microsoft, and Unisys Corporation

created a partnership to design a voting system for

several U.S. states. Microsoft offered software, Dell

offered hardware, and Unisys served as the systems

integrator. This example illustrates the principle of

virtual organizations-the idea that several organizations

working together can do what one organization

can't.

4.1 Information Technology

and Health Issues

Although there have been reports of health problems

caused by video display terminals (VDTs), no conclusive

study indicates that VDTs are the cause, despite all

the complaints. Work habits can cause some physical

problems, however, and so can the work environment

in which computers are used-static electricity, inadequate

ventilation, poor lighting, dry air, unsuitable

furniture, and too few rest breaks.

Other reports of health problems related to computer

equipment include vision problems, such as

fatigue, itching, and blurred vision; musculoskeletal

problems (back strain and wrist paint; skin problems,

such as rashes; reproductive problems, such as miscarriage;

and stress-related problems (headaches and

depression). Ergonomics experts believe that using

better-designed furniture as well as flexible or wireless

keyboards, correct lighting, special monitors for workers

with vision problems, and so forth can solve many

of these problems.

Another recent health issue is the amount of time

some people spend on the Web playing games, participating

in chat rooms, and other activities. Although the

OOJllCloooal It:SOUl~

roo IIJIJIChrime <HI me eb can create psfChological, social,

and health problems, especially for young people.

The infonnation box called "Health and Social Issues

of Online Gaming" mentions some of these problems.

~ 5 Green Computing

reen computing is computing that

promotes a sustainable environment

and consumes the least amount of

energy. Information and communications

technology (ICT) generates

approximately 2% of the world's

carbon dioxide emissions, roughly

the same amount as the aviation industry.

/7 Although lCT is a part of the problem, however,

be of me soImioIL .Yany IT applications

and tools can help reduce carbon dioxide

emissions. Green computing not only helps an organization

save on energy costs, it improves the quality of

the environment that we live and work in.

Green computing involves the design, manufacture,

use, and disposal of computers, servers, and computing

devices (such as monitors, printers, storage devices, and

networking and communications equipment) in such a

way that there is minimal impact on the environment. /8

It is one of the methods for combating global warming.

In some states, certain computer manufacturers collect a

fee from their customers, called an advance recovery fee,

in order to dispose of the computer after its useful life.

A successful green computing strategy cannot be fully

implemented without the cooperation of both the private

and the public sector. Furthermore, both employees and

top management must be involved.

There are several ways to pursue a green computing

strategy. Some can be easily done with no cost to the

organization. Others are more challenging and require

an initial investment. Here are some examples:

• Designing products that last longer and are modular

in design, so that certain parts can be upgraded

without replacing the entire system.

• Designing search engines and other computing

routines that are faster and consume less energy.

• Replacing several underutilized smaller servers with

one large server using a virtualization technique.

In this case, multiple operating systems are hosted

on a single hardware platform and can share this

hardware platform. IBM's Project Big Green is

an example of virtualization, with energy savings

of approximately 42 percent for an average-data

center. 19

• Using computing devices that consume less energy

and are biodegradable.

• Allowing certain employees to work from their

homes, resulting in fewer cars on the roads (discussed

earlier in this chapter).

• Replacing actual face-to-face meetings with meetings

over computer networks (discussed in Chapter 6).

• Using video conferencing, electronic meeting systems,

and groupware (discussed in Chapter 12). These

technologies can also reduce business travel.

• Using a virtual world (discussed in Chapter 14). This

technology can also reduce face-to-face meetings,

resulting in less t~avel.

• Using cloud computing as promoted by companies

such as Amazon.com (discussed in Chapter 14). This

platform can also reduce energy consumption.

• Turning off idle PCs, recycling computer-related

materials, and encouraging carpool and nonmotorized

transportation for employees.

The Industry Connection highlights Anonymizer

Inc.'s online privacy services.

6 Chapter Summary

his chapter discussed information tee

•••• nologies that can affect privacy and

used for committing computer crimes.

also examined privacy issues related

information technologies and the Int

net, and methods for protecting

privacy of both personal informati

and organizations' data resources.

The chapter reviewed ethical issues related to inf

mation systems including censorship, laws related

intellectual property, and the digital divide. It cove

the effect of information systems on the workpl

and reviewed possible heath issues. Finally gr

computing and its impacts on the environment w

highlighted.