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20CS2024
Ethics in Information Technology
Module 5
Social Networking, Ethics of Information Technology Organizations
Social Networking Web Site - Business Applications of Online Social
Networking-Social Networking Ethical Issues. Online Virtual Worlds-
Key ethical issues for Organizations- Outsourcing-Whistle Blowing-
Green Computing-ICT Industry Code for Conduct.
Dr.A.Kathirvel, Professor,
DCSE, KITS
kathirvel@karunya.edu
SOCIAL MEDIA
• What is Social Media?
• Social media are web-based communication channels and
tools that enable people to interact with each other by
creating online communities-can share information, ideas,
messages, and other content, including imag. audio, video.
—Common features of social media are user accounts, profile
pages (for individuals, groups, and businesses), friends or
followers, event pages, news feeds, media-sharing features, like
buttons, comments sections, and reviews—among others.
—Different types of social media are blogs, discussion forums,
media-sharing networks, wikis, social bookmarking tools, social
messaging apps, and social networking, news, and shopping
platforms.
SOCIAL NETWORKING PLATFORMS
• A social networking platform creates an online
community of Internet users that enables members to
break down barriers created by time, distance, and cultural
differences.
• Social networking platforms allow people to interact with
others online by sharing opinions, insights, information,
interests, and experiences.
• Some platforms, such as LinkedIn, are more text focused.
Others, such as Instagram, Snapchat, Tumblr, and
YouTube, are primarily focused on audio and visual
content.
SOCIAL NETWORKING PLATFORMS
• Members of an online social network may use the
platform to interact with friends, family members, and
colleagues
• With the number of Internet users worldwide approaching
4 billion (just under 50 percent of the world population)
• Some platforms cater to a specific—and sometimes
narrow—audience, while others, such as Face book and
Twitter, allow users to explore a range of interests by
following friends, public figures, media organizations,
specific brands, and sports teams all via one platform
SOCIAL NETWORKING PLATFORMS
SOCIAL NETWORKING PLATFORMS
BUSINESS APPLICATIONS OF SOCIAL
MEDIA
• social networking platforms were originally targeted at
nonbusiness users, many organizations now use social
media tools to advertise, assess job candidates, and sell
products and services.
• An increasing number of business-oriented social
networking platforms including Facebook, LinkedIn,
Instagram, Twitter, Google/YouTube, and Yelp can be used
to encourage and support relationships with consumers,
clients, potential employees, suppliers, and business
partners around the world.
• Over 1.1 billion unique visitors each month, FB includes the
largest blend of demographics of all the social networks
BUSINESS APPLICATIONS OF SOCIAL
MEDIA
• Social Media Marketing
—Two significant advantages of social networking marketing
over more traditional media—such as radio, TV, and
newspapers—are that marketers can create an opportunity to
generate a conversation with viewers of the message, and those
messages can be targeted to reach people with the desired
demographic characteristics.
—The overwhelming majority of social media marketers use
Facebook ads (87%), Google ads (39%), Twitter ads (19%), and
LinkedIn ads (17%) are the next most popular.
—Organizations may employ one or more social media marketing
strategies including organic, paid, and earned social media
marketing.
BUSINESS APPLICATIONS OF SOCIAL
MEDIA
—Two common methods of charging for paid media are cost per thousand
impressions and cost per click.
—Cost per thousand impressions (CPM) ads are billed at a flat rate per 1,000
impressions, which is a measure of the number of times an ad is displayed—
whether it was actually clicked on or not.
—There is no additional charge for any clicks that the ad receives.
—Cost per click (CPC) ads are paid for only when someone actually clicks on
them.
—Earned media refers to the media exposure an organization gets through press
and social media mentions, positive online ratings, and reviews, tweets and
retweets, reposts (or “shares”), recommendations, and so on
—Viral marketing is an approach to social media marketing that encourages
individuals to pass along a marketing message to others, thus creating the
potential for exponential growth in the message’s exposure and influence as one
person tells two people, each of those two people tell two or three more people,
and so on. It create a buzz about a product or idea that spreads wide and fast.
BUSINESS APPLICATIONS OF SOCIAL
MEDIA
• Social Media in the Hiring Process
—According to CareerBuilder, 60 percent of employers used social
media to research job candidates in 2016.
—Nearly half of those companies found information on social
media that gave a negative impression of the candidate.
—The offending content included inappropriate photographs and
videos, information about the candidate drinking or using drugs,
and discriminatory comments related to gender, race, and
religion.
BUSINESS APPLICATIONS OF SOCIAL
MEDIA
• Improving Customer Service Using Social Media
—In the past, companies relied heavily on their market research
and customer service organizations to provide them with insights
into what customers think about their products and services
• Social Shopping Platforms
—Social shopping platforms combine two highly popular online
activities—shopping and social networking.
—Their growth in popularity can be attributed to two things: choice
overload and users eager for expert advice to decide what to
purchase
SOCIAL NETWORKING ETHICAL
ISSUES
• When you have an Internet community of nearly 4
billion people online, not everyone is going to be a good
“neighbor” and abide by the rules of the community.
• Many will stretch or exceed the bounds of generally
accepted behavior.
• Some common ethical issues that arise for members of
social networking platforms are online abuse,
harassment, stalking, cyberbullying, encounters with
sexual predators, the uploading of inappropriate material,
and the participation of employees in social networking.
SOCIAL NETWORKING ETHICAL
ISSUES
• Cyberabuse, Cyberharassment, and Cyberstalking
• Cyberabuse is any form of mistreatment or lack of
care, both physical and mental, based on the use of an
electronic communications device that causes harm and
distress to others
• Cyberstalking is a subcategory of cyberabuse that
consists of a long-term pattern of unwanted, persistent
pursuit and intrusive behavior (involving the use of an
electronic communications device) that is directed by
one person against another and that causes fear and
distress in the victim.
SOCIAL NETWORKING ETHICAL
ISSUES
SOCIAL NETWORKING ETHICAL
ISSUES
• Encounters with Sexual Predators
—Some social networking platforms, law enforcement, and the
courts have been criticized for not doing enough to protect minors
from encounters with sexual predators.
—The Sex Offender Registration and Notification Provisions
(SORNA) of the Adam Walsh Child Protection and Safety Act of
2006 improved on the Wetterling Act, as shown in Table 9-7.
• Uploading of Inappropriate Material
• Employee Participation on Social Media Networks
—dismissed employees because of something they posted on social
media
• Miscellaneous Social Media Issues
—self-image manipulation
SOCIAL NETWORKING ETHICAL
ISSUES
SOCIAL NETWORKING ETHICAL
ISSUES
ETHICS OF IT ORGANIZATIONS
• USE OF CONTINGENT WORKERS
—The Bureau of Labor Statistics defines contingent work as a job
situation in which an individual does not have an explicit or
implicit contract for long-term employment.
—For example, contingent workers may be hired as consultants on
an organizational restructuring project, as technical experts on a
product development team, and as supplemental staff for many
other short-term projects, such as the design and installation of a
new information system.
—Typically, these workers join a blended team of full-time
employees and other contingent workers for the life of the project
and then move on to their next assignment.
—contingent workers thro’ temp. staffing firms, employee leasing
organizations, and professional employer organizations (PEOs)
USE OF CONTINGENT WORKERS
• Temporary staffing firms recruit, train, and test job
seekers in a wide range of job categories and skill levels,
and then assign them to clients as needed.
• In employee leasing, a business (called the subscribing
firm) transfers all or part of its workforce to another firm
(called the leasing firm), which handles all human resource-
related activities and costs, such as payroll, training, and the
administration of employee benefits.
• Employee leasing creates a coemployment relationship, in
which two employers have actual or potential legal rights
and duties with respect to the same employee or group of
employees..
USE OF CONTINGENT WORKERS
• professional employer organization (PEO) is a business
entity that coemploys the employees of its clients and
typically assumes responsibility for all human resource
management functions.
• PEO typically remits wages and withholdings of the
worksite employees and reports, collects, and deposits
employment taxes with local, state, and federal authorities.
• PEO also issues the Form W-2 for the compensation paid by
it under its EIN (Employer Identification Number).
• The exact terms of the arrangement are specified in a client
service agreement.
The Gig Economy
• The term gig, which originated in the entertainment business,
refers to a short-term job.
• The Bureau of Labor Statistics refers to a gig as a “a single
project or task for which a worker is hired—often through a
digital marketplace—to work on demand.”
• The gig economy refers to a work environment in which
temporary positions are common and organizations contract
with independent workers for short-term engagements.
• In the gig economy, instead of earning a regular hourly wage,
workers get paid for specific gigs, such as complete testing of
a unit of software code, writing end user documentation, or
delivering a training class via webinar
The Gig Economy
• Independent Contractors
• An independent contractor is an individual who provides
services to another individual or organization according to
terms defined in a written contract or within a verbal
agreement.
• A study by Intuit predicted that by 2020, more than 40 percent
of American workers would be independent contractors
• Advantages of Using Contingent Workers
• not usually have to provide benefits such as insurance, paid
time off, and contributions to a retirement plan
• release contingent workers when they are no longer needed
• a firm does not customarily incur training costs
The Gig Economy
• more efficiently, lower its labor costs, and respond more
quickly to changing market conditions
• Disadvantages of Using Contingent Workers
• workers may not feel a strong connection to the company
• low commitment
• assets are lost to the company when a contingent worker departs
at a project’s completion
• Deciding When to Use Contingent Workers
• it should recognize the trade-off it is making between completing a
single project quickly and cheaply vs dev.people within its own org.
• contingent workers when those workers are likely to learn corporate
processes and strategies
• own way of distinguishing bet. emp and independent contractors
H-1B WORKERS
• An H-1B visa is a temporary work visa granted by the U.S.
Citizenship and Immigration Services (USCIS) for people
who work in specialty occupations—jobs that require at
least a four-year bachelor’s degree in a specific field, or
equivalent experience.
• People working in the United States on H-1B visa are
referred to as “nonimmigrant workers” because they are in
the country on a temporary work visa
• H-1B employee for a maximum continuous period of six
years.
• Top countries of birth for H-1B workers in 2015 were India
with 70.9% of all approved H-1B petitions and China 9.7%
H-1B WORKERS
Using H-1B Workers Instead of U.S.
Workers
• Most H-1B workers are brought to the United States
to fill a legitimate gap that cannot be filled from the
existing pool of workers.
• skilled foreign workers can be found to fill critical
positions, why invest thousands of dollars and
months of training to develop the available pool of
U.S. workers?
• use of H-1B workers can lessen the incentive for U.S.
companies to educate and develop their own
workforces
Using H-1B Workers Instead of U.S.
Workers
• Companies using H-1B workers, as well as the workers
themselves, must also consider what will happen at the
end of the six-year H-1B visa term.
• stopgap nature of the visa program can be challenging
for both sponsoring companies and applicants.
• If a worker is not granted a green card, the firm can
lose a worker without having developed a permanent
employee.
• Many of these foreign workers, finding that they are
suddenly unemployed, are forced to uproot their
families and return home
Gaming the H-1B Visa Program
• Even though companies applying for H-1B visas
must offer a wage that is at least 95 % of the
average salary for the occupation, some
companies use H-1B visas as a way to lower
salaries.
• Because wages in the IT field vary substantially,
unethical companies can get around the average
salary requirement.
• Determining an appropriate wage is an imprecise
science at best.
Gaming the H-1B Visa Program
The Need for H-1B Workers
• The heads of many U.S. companies complain that they
have trouble finding enough qualified IT employees and
have urged the USGIS to loosen restrictions on visas for
qualified workers.
• Meanwhile, unemployed and displaced IT workers in the
United States, as well as other critics, challenge whether
the United States needs to continue importing tens of
thousands of H-1B workers every year.
• The Bureau of Labor Statistics (BLS) estimates that as of
2014, there were 4.3 million people employed in the
United States in the IT-related positions shown in Table
10-6.
Need for H-1B Workers - next 10 years
Need for H-1B Workers
Need for H-1B Workers
OUTSOURCING
• Outsourcing is another approach for meeting staffing needs.
• Outsourcing is a long-term business arrangement in which a
company contracts for services with an outside organization that
has expertise in providing a specific function.
• A company may contract with an organization to provide
services such as operating a data center, supporting a
telecommunications network, developing software, or staffing a
computer help desk.
• Coemployment legal problems with outsourcing are minimal
because the company that contracts for the services does not
generally supervise or control the contractor’s employees.
Offshore Outsourcing
• Offshore outsourcing is a form of outsourcing in which
services are provided by an organization whose employees
are in a foreign country
• companies can reap large financial benefits by reducing
labor costs through offshore outsourcing.
• large supply of experienced IT professionals is readily
available in certain foreign countries
• India, with its rich talent pool (speak English) and low
labor costs, is considered one of the best sources of
programming skills outside Europe and North America.
Other sources of skilled contract programmers are China,
Russia, Poland, Switzerland, and Hungary
Offshore Outsourcing
Pros and Cons of Offshore Outsourcing
• Wages that an American worker might consider low
represent an excellent salary in many other parts of the
world, and some companies feel they would be foolish not
to exploit such an opportunity.
• Why pay a U.S. IT worker a six-figure salary, they reason,
when they can use offshore outsourcing to hire three India-
based workers for the same cost?
• Because of this, Indian offshore suppliers have begun to
charge more for their services.
• The cost advantage for offshore outsourcing to India used
to be 6:1 or more—you could hire six Indian IT workers
for the cost of one U.S. IT worker.
Pros and Cons of Offshore Outsourcing
• The cost advantage is shrinking, and once it reaches about
1.5:1, the cost savings will no longer be much of an
incentive for U.S. offshore outsourcing to India.
• Another benefit of offshore outsourcing is its potential to
dramatically speed up software development efforts virtual
“24-hour workday”
• Many of the jobs that go overseas are entry-level positions
that help develop employees for future, more responsible
positions.
Strategies for Successful Offshore Outsourcing
• Successful projects require day-to-day interaction between
software development and business teams, so it is essential for
the hiring company to take a hands-on approach to project
management.
• Companies cannot afford to outsource responsibility and
accountability.
• a company must carefully evaluate whether an outsourcing firm
can provide the following:
—Emp. with the req. expertise in the technologies involved in project
—Project manager who speaks the emp. company’s native language
—A pool of staff large enough to meet the needs of the project
—A reliable, state-of-the-art communications network
—High-quality, on-site managers and supervisors
WHISTLE-BLOWING
• Whistle-blowing is an effort to attract public attention to a
negligent, illegal, unethical, abusive, or dangerous act by
an individual or organization.
• employees who act as informants on their company,
revealing information to enrich themselves or to gain
revenge for a perceived wrong.
• In most cases, however, whistle blowers act ethically in
an attempt to correct what they think is a major
wrongdoing, often at great personal risk
WHISTLE-BLOWING
• Protection for Whistle-Blowers
—to alert the proper authorities to employer actions that are
unethical, illegal, or unsafe, or that violate specific public
policies
• Whistle-Blowing Protection for Private-Sector Workers
—Under state law, an employee could traditionally be terminated
for any reason, or no reason, in the absence of an employment
contract.
• Dealing with a Whistle-Blowing Situation
—Assess the Seriousness of the Situation
—Begin Documentation
Dealing with a Whistle-Blowing Situation
—Attempt to Address the Situation Internally
—Consider Escalating the Situation Within the Company
—Assess the Implications of Becoming a Whistle-
Blower
—Use Experienced Resources to Develop an Action Plan
—Execute the Action Plan
—Live with the Consequences
GREEN COMPUTING
• Electronic devices such as computers and smartphones
contain hundreds—or even thousands—of components,
which are, in turn, composed of many different materials
• including some (such as beryllium, cadmium, lead,
mercury, brominated flame retardants (BFRs), selenium,
and polyvinyl chloride) that are known to be potentially
harmful to humans and the environment.
• Electronics manufacturing employees and suppliers at all
steps along the supply chain and manufacturing process
are at risk of unhealthy exposure to these raw materials
GREEN COMPUTING
• Green computing is concerned with the efficient and
environmentally responsible design, manufacture,
operation, and disposal of IT-related products, including
all types of computing devices (from smartphones to
supercomputers), printers, printer materials such as
cartridges and toner, and storage devices.
• Green computing has three goals:
• (1) reduce the use of hazardous material,
• (2) allow companies to lower their power-related costs,
• (3) enable the safe disposal or recycling of computers and
computer-related equipment.
GREEN COMPUTING
• Electronic Product Environmental Assessment Tool (EPEAT) is a
system that enables purchasers to evaluate, compare, and select
electronic products based on a total of 51 environmental criteria.
• Products are ranked in EPEAT according to three tiers of
environmental performance: Bronze (meets all 23 required criteria),
Silver (meets all 23 of the required criteria plus at least 50 percent of
the optional criteria), and Gold (meets all 23 required criteria plus at
least 75 percent of the optional criteria), as shown in the table
ICT Industry Code for Conduct
• Individual purchasers as well as corporate purchasers of
computers, printers, scanners, and multifunction devices
can use the EPEAT website (www.epeat.net) to screen
manufacturers and models based on environmental
attributes.
• The European Union’s Restriction of Hazardous
Substances Directive, which took effect in 2006, restricts
the use of many hazardous materials in computer
manufacturing.
• The directive also requires manufacturers to use at least 65
percent reusable
ICT Industry Code for Conduct
• By the start of 2010, the Apple iPad was free of arsenic,
mercury, PVC (polyvinyl chloride), and BFRs.
• In addition, according to Apple, the iPad’s aluminum and
glass enclosure is “highly recyclable
• Lenovo is a Chinese manufacturer of personal computers,
using increasing amounts of recycled plastics to meet new
customer requirements, satisfy corporate environmental
objectives and targets, and achieve EPEAT Gold
registrations for its products
• The company’s efforts have resulted in the avoidance of
up to 248 million pounds of CO2 emissions since 2007
Questions?

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20CS024 Ethics in Information Technology

  • 1. 20CS2024 Ethics in Information Technology Module 5 Social Networking, Ethics of Information Technology Organizations Social Networking Web Site - Business Applications of Online Social Networking-Social Networking Ethical Issues. Online Virtual Worlds- Key ethical issues for Organizations- Outsourcing-Whistle Blowing- Green Computing-ICT Industry Code for Conduct. Dr.A.Kathirvel, Professor, DCSE, KITS kathirvel@karunya.edu
  • 2. SOCIAL MEDIA • What is Social Media? • Social media are web-based communication channels and tools that enable people to interact with each other by creating online communities-can share information, ideas, messages, and other content, including imag. audio, video. —Common features of social media are user accounts, profile pages (for individuals, groups, and businesses), friends or followers, event pages, news feeds, media-sharing features, like buttons, comments sections, and reviews—among others. —Different types of social media are blogs, discussion forums, media-sharing networks, wikis, social bookmarking tools, social messaging apps, and social networking, news, and shopping platforms.
  • 3. SOCIAL NETWORKING PLATFORMS • A social networking platform creates an online community of Internet users that enables members to break down barriers created by time, distance, and cultural differences. • Social networking platforms allow people to interact with others online by sharing opinions, insights, information, interests, and experiences. • Some platforms, such as LinkedIn, are more text focused. Others, such as Instagram, Snapchat, Tumblr, and YouTube, are primarily focused on audio and visual content.
  • 4. SOCIAL NETWORKING PLATFORMS • Members of an online social network may use the platform to interact with friends, family members, and colleagues • With the number of Internet users worldwide approaching 4 billion (just under 50 percent of the world population) • Some platforms cater to a specific—and sometimes narrow—audience, while others, such as Face book and Twitter, allow users to explore a range of interests by following friends, public figures, media organizations, specific brands, and sports teams all via one platform
  • 7. BUSINESS APPLICATIONS OF SOCIAL MEDIA • social networking platforms were originally targeted at nonbusiness users, many organizations now use social media tools to advertise, assess job candidates, and sell products and services. • An increasing number of business-oriented social networking platforms including Facebook, LinkedIn, Instagram, Twitter, Google/YouTube, and Yelp can be used to encourage and support relationships with consumers, clients, potential employees, suppliers, and business partners around the world. • Over 1.1 billion unique visitors each month, FB includes the largest blend of demographics of all the social networks
  • 8. BUSINESS APPLICATIONS OF SOCIAL MEDIA • Social Media Marketing —Two significant advantages of social networking marketing over more traditional media—such as radio, TV, and newspapers—are that marketers can create an opportunity to generate a conversation with viewers of the message, and those messages can be targeted to reach people with the desired demographic characteristics. —The overwhelming majority of social media marketers use Facebook ads (87%), Google ads (39%), Twitter ads (19%), and LinkedIn ads (17%) are the next most popular. —Organizations may employ one or more social media marketing strategies including organic, paid, and earned social media marketing.
  • 9. BUSINESS APPLICATIONS OF SOCIAL MEDIA —Two common methods of charging for paid media are cost per thousand impressions and cost per click. —Cost per thousand impressions (CPM) ads are billed at a flat rate per 1,000 impressions, which is a measure of the number of times an ad is displayed— whether it was actually clicked on or not. —There is no additional charge for any clicks that the ad receives. —Cost per click (CPC) ads are paid for only when someone actually clicks on them. —Earned media refers to the media exposure an organization gets through press and social media mentions, positive online ratings, and reviews, tweets and retweets, reposts (or “shares”), recommendations, and so on —Viral marketing is an approach to social media marketing that encourages individuals to pass along a marketing message to others, thus creating the potential for exponential growth in the message’s exposure and influence as one person tells two people, each of those two people tell two or three more people, and so on. It create a buzz about a product or idea that spreads wide and fast.
  • 10. BUSINESS APPLICATIONS OF SOCIAL MEDIA • Social Media in the Hiring Process —According to CareerBuilder, 60 percent of employers used social media to research job candidates in 2016. —Nearly half of those companies found information on social media that gave a negative impression of the candidate. —The offending content included inappropriate photographs and videos, information about the candidate drinking or using drugs, and discriminatory comments related to gender, race, and religion.
  • 11. BUSINESS APPLICATIONS OF SOCIAL MEDIA • Improving Customer Service Using Social Media —In the past, companies relied heavily on their market research and customer service organizations to provide them with insights into what customers think about their products and services • Social Shopping Platforms —Social shopping platforms combine two highly popular online activities—shopping and social networking. —Their growth in popularity can be attributed to two things: choice overload and users eager for expert advice to decide what to purchase
  • 12. SOCIAL NETWORKING ETHICAL ISSUES • When you have an Internet community of nearly 4 billion people online, not everyone is going to be a good “neighbor” and abide by the rules of the community. • Many will stretch or exceed the bounds of generally accepted behavior. • Some common ethical issues that arise for members of social networking platforms are online abuse, harassment, stalking, cyberbullying, encounters with sexual predators, the uploading of inappropriate material, and the participation of employees in social networking.
  • 13. SOCIAL NETWORKING ETHICAL ISSUES • Cyberabuse, Cyberharassment, and Cyberstalking • Cyberabuse is any form of mistreatment or lack of care, both physical and mental, based on the use of an electronic communications device that causes harm and distress to others • Cyberstalking is a subcategory of cyberabuse that consists of a long-term pattern of unwanted, persistent pursuit and intrusive behavior (involving the use of an electronic communications device) that is directed by one person against another and that causes fear and distress in the victim.
  • 15. SOCIAL NETWORKING ETHICAL ISSUES • Encounters with Sexual Predators —Some social networking platforms, law enforcement, and the courts have been criticized for not doing enough to protect minors from encounters with sexual predators. —The Sex Offender Registration and Notification Provisions (SORNA) of the Adam Walsh Child Protection and Safety Act of 2006 improved on the Wetterling Act, as shown in Table 9-7. • Uploading of Inappropriate Material • Employee Participation on Social Media Networks —dismissed employees because of something they posted on social media • Miscellaneous Social Media Issues —self-image manipulation
  • 18. ETHICS OF IT ORGANIZATIONS • USE OF CONTINGENT WORKERS —The Bureau of Labor Statistics defines contingent work as a job situation in which an individual does not have an explicit or implicit contract for long-term employment. —For example, contingent workers may be hired as consultants on an organizational restructuring project, as technical experts on a product development team, and as supplemental staff for many other short-term projects, such as the design and installation of a new information system. —Typically, these workers join a blended team of full-time employees and other contingent workers for the life of the project and then move on to their next assignment. —contingent workers thro’ temp. staffing firms, employee leasing organizations, and professional employer organizations (PEOs)
  • 19. USE OF CONTINGENT WORKERS • Temporary staffing firms recruit, train, and test job seekers in a wide range of job categories and skill levels, and then assign them to clients as needed. • In employee leasing, a business (called the subscribing firm) transfers all or part of its workforce to another firm (called the leasing firm), which handles all human resource- related activities and costs, such as payroll, training, and the administration of employee benefits. • Employee leasing creates a coemployment relationship, in which two employers have actual or potential legal rights and duties with respect to the same employee or group of employees..
  • 20. USE OF CONTINGENT WORKERS • professional employer organization (PEO) is a business entity that coemploys the employees of its clients and typically assumes responsibility for all human resource management functions. • PEO typically remits wages and withholdings of the worksite employees and reports, collects, and deposits employment taxes with local, state, and federal authorities. • PEO also issues the Form W-2 for the compensation paid by it under its EIN (Employer Identification Number). • The exact terms of the arrangement are specified in a client service agreement.
  • 21. The Gig Economy • The term gig, which originated in the entertainment business, refers to a short-term job. • The Bureau of Labor Statistics refers to a gig as a “a single project or task for which a worker is hired—often through a digital marketplace—to work on demand.” • The gig economy refers to a work environment in which temporary positions are common and organizations contract with independent workers for short-term engagements. • In the gig economy, instead of earning a regular hourly wage, workers get paid for specific gigs, such as complete testing of a unit of software code, writing end user documentation, or delivering a training class via webinar
  • 22. The Gig Economy • Independent Contractors • An independent contractor is an individual who provides services to another individual or organization according to terms defined in a written contract or within a verbal agreement. • A study by Intuit predicted that by 2020, more than 40 percent of American workers would be independent contractors • Advantages of Using Contingent Workers • not usually have to provide benefits such as insurance, paid time off, and contributions to a retirement plan • release contingent workers when they are no longer needed • a firm does not customarily incur training costs
  • 23. The Gig Economy • more efficiently, lower its labor costs, and respond more quickly to changing market conditions • Disadvantages of Using Contingent Workers • workers may not feel a strong connection to the company • low commitment • assets are lost to the company when a contingent worker departs at a project’s completion • Deciding When to Use Contingent Workers • it should recognize the trade-off it is making between completing a single project quickly and cheaply vs dev.people within its own org. • contingent workers when those workers are likely to learn corporate processes and strategies • own way of distinguishing bet. emp and independent contractors
  • 24. H-1B WORKERS • An H-1B visa is a temporary work visa granted by the U.S. Citizenship and Immigration Services (USCIS) for people who work in specialty occupations—jobs that require at least a four-year bachelor’s degree in a specific field, or equivalent experience. • People working in the United States on H-1B visa are referred to as “nonimmigrant workers” because they are in the country on a temporary work visa • H-1B employee for a maximum continuous period of six years. • Top countries of birth for H-1B workers in 2015 were India with 70.9% of all approved H-1B petitions and China 9.7%
  • 26. Using H-1B Workers Instead of U.S. Workers • Most H-1B workers are brought to the United States to fill a legitimate gap that cannot be filled from the existing pool of workers. • skilled foreign workers can be found to fill critical positions, why invest thousands of dollars and months of training to develop the available pool of U.S. workers? • use of H-1B workers can lessen the incentive for U.S. companies to educate and develop their own workforces
  • 27. Using H-1B Workers Instead of U.S. Workers • Companies using H-1B workers, as well as the workers themselves, must also consider what will happen at the end of the six-year H-1B visa term. • stopgap nature of the visa program can be challenging for both sponsoring companies and applicants. • If a worker is not granted a green card, the firm can lose a worker without having developed a permanent employee. • Many of these foreign workers, finding that they are suddenly unemployed, are forced to uproot their families and return home
  • 28. Gaming the H-1B Visa Program • Even though companies applying for H-1B visas must offer a wage that is at least 95 % of the average salary for the occupation, some companies use H-1B visas as a way to lower salaries. • Because wages in the IT field vary substantially, unethical companies can get around the average salary requirement. • Determining an appropriate wage is an imprecise science at best.
  • 29. Gaming the H-1B Visa Program
  • 30. The Need for H-1B Workers • The heads of many U.S. companies complain that they have trouble finding enough qualified IT employees and have urged the USGIS to loosen restrictions on visas for qualified workers. • Meanwhile, unemployed and displaced IT workers in the United States, as well as other critics, challenge whether the United States needs to continue importing tens of thousands of H-1B workers every year. • The Bureau of Labor Statistics (BLS) estimates that as of 2014, there were 4.3 million people employed in the United States in the IT-related positions shown in Table 10-6.
  • 31. Need for H-1B Workers - next 10 years
  • 32. Need for H-1B Workers
  • 33. Need for H-1B Workers
  • 34. OUTSOURCING • Outsourcing is another approach for meeting staffing needs. • Outsourcing is a long-term business arrangement in which a company contracts for services with an outside organization that has expertise in providing a specific function. • A company may contract with an organization to provide services such as operating a data center, supporting a telecommunications network, developing software, or staffing a computer help desk. • Coemployment legal problems with outsourcing are minimal because the company that contracts for the services does not generally supervise or control the contractor’s employees.
  • 35. Offshore Outsourcing • Offshore outsourcing is a form of outsourcing in which services are provided by an organization whose employees are in a foreign country • companies can reap large financial benefits by reducing labor costs through offshore outsourcing. • large supply of experienced IT professionals is readily available in certain foreign countries • India, with its rich talent pool (speak English) and low labor costs, is considered one of the best sources of programming skills outside Europe and North America. Other sources of skilled contract programmers are China, Russia, Poland, Switzerland, and Hungary
  • 37. Pros and Cons of Offshore Outsourcing • Wages that an American worker might consider low represent an excellent salary in many other parts of the world, and some companies feel they would be foolish not to exploit such an opportunity. • Why pay a U.S. IT worker a six-figure salary, they reason, when they can use offshore outsourcing to hire three India- based workers for the same cost? • Because of this, Indian offshore suppliers have begun to charge more for their services. • The cost advantage for offshore outsourcing to India used to be 6:1 or more—you could hire six Indian IT workers for the cost of one U.S. IT worker.
  • 38. Pros and Cons of Offshore Outsourcing • The cost advantage is shrinking, and once it reaches about 1.5:1, the cost savings will no longer be much of an incentive for U.S. offshore outsourcing to India. • Another benefit of offshore outsourcing is its potential to dramatically speed up software development efforts virtual “24-hour workday” • Many of the jobs that go overseas are entry-level positions that help develop employees for future, more responsible positions.
  • 39. Strategies for Successful Offshore Outsourcing • Successful projects require day-to-day interaction between software development and business teams, so it is essential for the hiring company to take a hands-on approach to project management. • Companies cannot afford to outsource responsibility and accountability. • a company must carefully evaluate whether an outsourcing firm can provide the following: —Emp. with the req. expertise in the technologies involved in project —Project manager who speaks the emp. company’s native language —A pool of staff large enough to meet the needs of the project —A reliable, state-of-the-art communications network —High-quality, on-site managers and supervisors
  • 40. WHISTLE-BLOWING • Whistle-blowing is an effort to attract public attention to a negligent, illegal, unethical, abusive, or dangerous act by an individual or organization. • employees who act as informants on their company, revealing information to enrich themselves or to gain revenge for a perceived wrong. • In most cases, however, whistle blowers act ethically in an attempt to correct what they think is a major wrongdoing, often at great personal risk
  • 41. WHISTLE-BLOWING • Protection for Whistle-Blowers —to alert the proper authorities to employer actions that are unethical, illegal, or unsafe, or that violate specific public policies • Whistle-Blowing Protection for Private-Sector Workers —Under state law, an employee could traditionally be terminated for any reason, or no reason, in the absence of an employment contract. • Dealing with a Whistle-Blowing Situation —Assess the Seriousness of the Situation —Begin Documentation
  • 42. Dealing with a Whistle-Blowing Situation —Attempt to Address the Situation Internally —Consider Escalating the Situation Within the Company —Assess the Implications of Becoming a Whistle- Blower —Use Experienced Resources to Develop an Action Plan —Execute the Action Plan —Live with the Consequences
  • 43. GREEN COMPUTING • Electronic devices such as computers and smartphones contain hundreds—or even thousands—of components, which are, in turn, composed of many different materials • including some (such as beryllium, cadmium, lead, mercury, brominated flame retardants (BFRs), selenium, and polyvinyl chloride) that are known to be potentially harmful to humans and the environment. • Electronics manufacturing employees and suppliers at all steps along the supply chain and manufacturing process are at risk of unhealthy exposure to these raw materials
  • 44. GREEN COMPUTING • Green computing is concerned with the efficient and environmentally responsible design, manufacture, operation, and disposal of IT-related products, including all types of computing devices (from smartphones to supercomputers), printers, printer materials such as cartridges and toner, and storage devices. • Green computing has three goals: • (1) reduce the use of hazardous material, • (2) allow companies to lower their power-related costs, • (3) enable the safe disposal or recycling of computers and computer-related equipment.
  • 45. GREEN COMPUTING • Electronic Product Environmental Assessment Tool (EPEAT) is a system that enables purchasers to evaluate, compare, and select electronic products based on a total of 51 environmental criteria. • Products are ranked in EPEAT according to three tiers of environmental performance: Bronze (meets all 23 required criteria), Silver (meets all 23 of the required criteria plus at least 50 percent of the optional criteria), and Gold (meets all 23 required criteria plus at least 75 percent of the optional criteria), as shown in the table
  • 46. ICT Industry Code for Conduct • Individual purchasers as well as corporate purchasers of computers, printers, scanners, and multifunction devices can use the EPEAT website (www.epeat.net) to screen manufacturers and models based on environmental attributes. • The European Union’s Restriction of Hazardous Substances Directive, which took effect in 2006, restricts the use of many hazardous materials in computer manufacturing. • The directive also requires manufacturers to use at least 65 percent reusable
  • 47. ICT Industry Code for Conduct • By the start of 2010, the Apple iPad was free of arsenic, mercury, PVC (polyvinyl chloride), and BFRs. • In addition, according to Apple, the iPad’s aluminum and glass enclosure is “highly recyclable • Lenovo is a Chinese manufacturer of personal computers, using increasing amounts of recycled plastics to meet new customer requirements, satisfy corporate environmental objectives and targets, and achieve EPEAT Gold registrations for its products • The company’s efforts have resulted in the avoidance of up to 248 million pounds of CO2 emissions since 2007