Chapter 13 Managing Technology and Innovation Violations of Privacy Causes and Costs o Privacy violations can come from many different places have gotten more aggressive and there has been an increase in information secutity attacks Advancements in technology have led to more posisbilities for privacy violations Companies can monitor their employees technology usage which may make them more worried about the possibility of privacy invasions Cyber criminals o Cybercrime has emerged as a formidable threat thanks to deeply determined highly skilled and well organized cyber criminals from nation states to hacktivists from criminal gangs to lone wolf perpetrators Organizations need to be aware and adjust to this changing landscape PricewaterhouseCoopers executive o In a survey of 583 U S companies 90 percent said their companies computers were breached at least once by hackers over the past year Nearly 60 percent reported two or more breaches More than 50 percent said they had little confidence of being able to stave off future attacks o Instances of identity theft along with the losses associated have been increasing Ways privacy violations may occur Managing the Protection of Privacy o Recent technological advances have increased the number of ways that privacy violations may occur Employees making mistakes Computer hackers breaching information security systems using Zombies a hijacked computer that can be remote controlled by the attacker to respond to the attacker s commands Trojan horses enables hackers to gain access to computers when people clicked on dangerous links Worms that would replicate spread and corrupt computer files within the company s system Logic bombs that could hide in computers and then go off and delete files at a specific time o Since 2007 representatives from the United States and 27 European countries have gathered annually for Data Privacy Day The event which brings together privacy professionals government leaders academics and students and business executives was designed to raise awareness and generate discussion about data privacy practices and rights o The Children s Online Privacy Protection Act of 1998 COPPA commercial websites to collect a verifiable form of consent from the parent or guardian of any user below the age of 13 requires o In 2010 the U S government launched the Perfect Citizen program to detect cyber assaults on private U S companies and government agencies running critical infrastructures such as the electricity grid and nuclear power plants o Governments must act with businesses themselves both Internet companies and any firm collecting and storing sensitive information to secure information Business Response to Information Security Invasions o Businesses have really tried to build strong defenses to protect information and ensure stakeholder privacy They re now using honeypots to lure hackers to made up websites and track their movements Chief Information Officer CIO o Is responsible for managing technology including its many security issues for companies This has been elevated a lot recently and most report directly to the CEO They now have broader responsibilities and more infleuce over corporate policies and practices They have to enable or drive business innovation through the use of technology Protecting Intellectual Property o Intellectual property ideas concepts symbolic creations These are protected in the US by copyrights patents and trademarks o Theft of intellectual property artistic performance or copyrighted material exploded with the entrance of the Internet and global connectivity o Whether it is computer based software musical recordings video movie productions or electronic versions of books piracy is on the rise and victims are retaliating turning to governments for enforcement and protection of their rights or seeking collaborative solutions to this ethical challenge Business and Government Responses to Violations of Intellectual Property o Companies tried to get the government to help them on the issue of software piracy and also the courts both inside and outside the United States In 1998 the United States passed the Digital Millennium Copyright Act making it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturer and the user In China where experts estimate that 90 percent of all software in use is unlicensed government officials have also take steps to curb piracy o Despite efforts at the international national and business levels piracy continues to rise each year globally Managing Scientific Breakthroughs o Nanotechnology The application of engineering to create materials on a molecular or atomic scale The US government hasn t regulated the use of nanoparticles or nanomaterials in consumer products yet o Human genome When Celera Genomics Group announced that it completed the first sequencing of human DNA makeup the achievement was hailed as the most significant scientific breakthrough since landing on the moon This is a new era of medicine and a great opportunity for biotechnology companies Managing Scientific Breakthroughs o Biotechnology and Stem Cell Research o Cloning Tissue engineering is the growth of tissue in a laboratory dish for experimental research Stem cell research is research on nonspecialized cells that have the capacity to self renew and to differentiate into more mature cells Clearly stem cell research leading to the possibility of human cloning and the human consumption of food cloned from animals are important issues and will likely increase in prominence in the near future In 2008 the F D A declared that food from cloned animals and their offspring was safe to eat but imposed a voluntary ban on the sale of cloned animals Managing Scientific Breakthroughs o Genetically engineered foods Genetic engineering is altering the natural makeup of a living organism allowing scientists to insert any gene in to a plant This has significant economic implications for the agricultural industry Genetically modified foods is food processed from genetically engineered crops Early on there was a backlash against genetically modified food in Europe but the initial opposition has weakened By 2007 developing countries planting genetically modified seeds outnumbered developed countries according to a report from the International Service for the Acquisition of Agri biotech Applications Chapter 14 Stockholder Rights and Corporate Governance