Chapter 13

Question 1

Accessibility

Answer 1

Accessibility: An area of information control involved with the ability to obtain data.

Question 2

Accuracy

Answer 2

Accuracy: An area of information control dealing with the correctness of information or lack of errors in
information.

Question 3

Cookies

Answer 3

Cookie: A small coded text message placed on or retrieved and updated from a person’s hard drive to allow
companies to track the person’s movements through a site or sites.

Question 4

Green Computing

Answer 4

Green computing: An upcoming technology strategy in which companies become more socially responsible by
using computing resources efficiently.

Question 5

Identity Theft

Answer 5

Identity theft: The taking of a victim’s identity to obtain credit and/or credit cards from banks and retailers, steal
money from the victim’s existing accounts, apply for loans, establish accounts with utility companies, rent an
apartment, file for bankruptcy, or obtain a job using the victim’s name.

Question 6

Information Ethics

Answer 6

Information ethics: The ethical issues associated with the development and application of information
technologies.

Question 7

Online Reputation Management

Answer 7

Online reputation management: The service provided to a person or company for a fee to find negative formal
or informal reviews on Web sites and report results to the client periodically.

Question 8

Privacy

Answer 8

Privacy: The area of information control involved with the right to be left alone; an individual’s ability to personally control information about himself or herself; it is involved with the protections from intrusion and
information gathering by others.

Question 9

Property

Answer 9

Property: An area of information control focused on who owns the data.

Question 10

Social Contract Theory

Answer 10

Social contract theory: The theory used in business ethics that places responsibility on corporate managers to consider the needs of the society (societies) in which a corporation is embedded. Social contract theorists ask what
conditions would have to be met for the members of such a society to agree to allow a corporation to be formed.
Thus, society bestows legal recognition on a corporation to allow it to employ social resources toward given ends.

Question 11

Stakeholder Theory

Answer 11

Stakeholder theory: A theory used in business ethics that suggests that managers, although bound by their relation to stockholders, are also entrusted with a fiduciary responsibility to all those who hold a stake in or a claim
on the firm, including employees, customers, vendors, neighbors, and so forth.

Question 12

1. TJX’s handling of its serious data breach is consistent with which one of the following?
   a) Stakeholder theory
   b) Stockholder theory
   c) Social normative
   d) Social contract theory
   e) Corporate social responsibility

Answer 12

b) Stockholder theory

Question 13

2. Which normative theory of business ethics would TJX have displayed if it had informed customers as soon as the breach was corrected and told other retailers how to prevent future security breaches?
   a) Stakeholder
   b) Stockholder
   c) Social contract
   d) Investor
   e) Corporate social responsibility

Answer 13

c) Social contract

Question 14

3. This is the term used to describe ethical dilemmas that arise with the development and application of IT.
   a) Stockholder theory
   b) PAPA principles
   c) Information ethics
   d) Normative theories
   e) IT dilemmas

Answer 14

c) Information ethics

Question 15

4. All of the following are examples of green computing EXCEPT:
   a) Virtualization
   b) Cloud computing
   c) Tidal powered servers
   d) Server workloads moved to off-peak hours
   e) Cookies

Answer 15

e) Cookies

Question 16

5. Green computing is often associated with supporting the triple bottom line known as:
   a) Economic, environmental and social
   b) Stockholder, stakeholder and society
   c) People, Privacy and Property
   d) Google, Facebook and Microsoft
   e) Data, information and knowledge

Answer 16

a) Economic, environmental and social

Question 17

6. This is a text message that is stored on a user’s computer by a Web server that helps trace the user’s browsing habits.
   a) Script
   b) Cookie
   c) Id theft
   d) Firewall
   e) Data file

Answer 17

b) Cookie

Question 18

7. In the chapter, there is the statement, “Internet companies are in business for the money and hence they really would prefer to keep their customers in the dark about how their personal data is being used to generate profits”. Assuming this statement is true, with which ethical theory would you say these Internet companies are most aligned?
   a) Stockholder theory
   b) Stakeholder theory
   c) Property theory
   d) Fiduciary theory
   e) Normative theory

Answer 18

a) Stockholder theory

Question 19

8. “Who owns information?” and “What are the just and fair prices for its exchange?” are part of this ethical issue:
   a) Privacy
   b) Accuracy
   c) Ownership
   d) Property
   e) Accessibility

Answer 19

d) Property

Question 20

9. What principles, developed in 2000 by the US Department of Commerce (DOC) in consultation with the European Commission, allow U.S. companies to be placed on a list maintained by the DOC?
   a) Safe Harbor framework
   b) Approved Business framework
   c) PAPA framework
   d) Property Harbor framework
   e) Safe Business framework

Answer 20

a) Safe Harbor framework

Question 21

10. The European Union Directive on Data Protection does all of the following EXCEPT:
    a) Expect accurate and up-to-date data on collected personal information
    b) Allow companies to only keep data as long as necessary
    c) Set standards for the collection, storage and processing of personal information
    d) Regulate data standards for publically traded companies
    e) Prohibit the transfer of personal data to non-European Union nations that do not meet certain standards

Answer 21

d) Regulate data standards for publically traded companies

Question 22

11. Questions like “Who is responsible for the reliability of information?” and “Who will be accountable for errors in the information?” are part of this ethical issue.
    a) Privacy
    b) Accuracy
    c) Authenticity
    d) Perfection
    e) Purpose

Answer 22

b) Accuracy

Question 23

12. The question “What information does a person or an organization have a right or a privilege to obtain?” is part of this ethical issue.
    a) Privacy
    b) Accuracy
    c) Accessibility
    d) Perfection
    e) Property

Answer 23

c) Accessibility

Question 24

13. In today’s digital word, individuals can control their privacy through choice, ______ , and correction.
    a) Protection
    b) Consent
    c) Property
    d) Communication
    e) Consideration

Answer 24

b) Consent

Question 25

14. A company should examine this area of the control of information if it wants to determine what data it has the right to monitor and capture from its employees. a) Privacy b) Accuracy c) Accessibility d) Perfection e) Property

Answer 25

a) Privacy

Question 26

15. Today's managers must ensure that information about their employees and customers is only available to those who have a right to see it and use it, an issue referred to as: a) Screening b) Accuracy c) Accessibility d) Perfection e) Property

Answer 26

c) Accessibility

Question 27

16. A manager who primarily focuses on the shareholders of the corporation rather than all of the vested parties in the businesses operations and activities is practicing which theory of normative business ethics? a) Stakeholder theory b) Investor theory c) Stockholder theory d) Shareholder theory e) Social contract theory

Answer 27

c) Stockholder theory

Question 28

17. This theory of normative business ethics seeks to create value for people in a manner that is just and nondiscriminatory. a) Stakeholder theory b) Investor theory c) Social contract theory d) Shareholder theory e) Stockholder theory

Answer 28

c) Social contract theory

Question 29

18. This act of 1996 is designed to safeguard the electronic exchange of patient records in the health care industry. a) SoX b) HIPAA c) IETF d) COBIT e) PAPA

Answer 29

b) HIPAA

Question 30

19. Information privacy guidelines should come from what level in a company? a) CEO and top-level executives b) Middle management c) Employees d) Federal regulations e) State laws

Answer 30

a) CEO and top-level executives

Question 31

20. The European Union relies on a government data protection agency and specific privacy protection standards outlined in the ___________. a) Safe Harbor Framework b) PAPA Principles c) Directive on Data Protection d) HIPPA e) SoX Act

Answer 31

c) Directive on Data Protection

Question 32

21. Google Flu Trends aggregates personal search data in order to estimate world-wide flu activity. Google’s site has drawn criticism due to the sharing of users’ online behavior without getting their consent. This, in essence, violates the user’s right to: a) Privacy b) Property c) Accuracy d) Accessibility e) Identity

Answer 32

a) Privacy

Question 33

22. An Internet web site that wishes to abide by fair privacy practices will do all of the following EXCEPT: a) Allow the consumer the choice to participate in the site or not b) Post policies about how personal information gathered from consumers will be used c) Afford the consumer the opportunity to view and contest the accuracy of the data collected d) Secure collected consumer information e) All of the above

Answer 33

e) All of the above

Question 34

23. Target found out a teenager was pregnant by (1) ________ and revealed that fact to her dad by (2) _______ a) (1) Overhearing the teen in the store; (2) Calling her dad b) (1) Her purchases of diapers; (2) sending an official letter to the dad c) (1) Her purchases of unscented soap, cotton balls and vitamins; (2) mailing her some ads for diapers and maternity clothes d) (1) Her sudden elation when visiting the children's department; (2) sending a video of her tears of happiness in that department e) None of the above

Answer 34

c) (1) Her purchases of unscented soap, cotton balls and vitamins; (2) mailing her some ads for diapers and maternity clothes

Question 35

24. Unlike the European Union, the U.S. has no general legislature ensuring Internet privacy rights. Instead, the U.S. encourages self-regulation and has introduced industry-specific regulations as needed.

Answer 35

T

Question 36

25. Over time it becomes easier to maintain the accuracy of information.

Answer 36

F

Question 37

26. The Stakeholder theory requires managers to pursue projects in ways that are compatible with the well-being of society.

Answer 37

F

Question 38

27. Green computing is a passing phase and will likely be less strategic to companies in the very near future.

Answer 38

F

Question 39

28. “Digital natives” are uncomfortable building relationships on the Internet because they understand the consequences of sharing information publically.

Answer 39

F

Question 40

29. Those who possess the “best” information and know how to use it, win.

Answer 40

T

Question 41

30. The concern about privacy on Facebook and other social media sites is greater in the U.S. than it is in Europe.

Answer 41

F

Question 42

31. This is a growing service designed to help individuals and companies clean up their online presence so that a search for their name produces favorable results.

Answer 42

Ans: Reputation management

Question 43

32. This term is used to define energy-efficient computing resources.

Answer 43

Ans: Green computing

Question 44

33. The social contract theory is made up of two distinct components – social welfare and _________.

Answer 44

Ans: Justice

Question 45

34. Green computing benefits _____ which is sometimes referred to as “People, Planet, Profit”.

Answer 45

Ans: 3BL or triple bottom line

Question 46

35. In today’s digital word, individuals can control their privacy through ______, consent, and correction.

Answer 46

Ans: Choice

Question 47

36. List the four areas, as outlined in the text, which deal with control of information.

Answer 47

Ans: Privacy, Accuracy, Property, and Accessibility

Question 48

37. Give an example of U.S. legislature designed to ensure the privacy and protection of information for a specific industry.

Answer 48

Ans: HIPAA, Gramm-Leach-Bliley, Fair Credit Reporting