©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
IDSC 3001 Final Exam Questions With
Correct Answers
Stockholder theory - answer✔✔the managerial obligation is to *maximize the financial returns
of the stockholders*, with two constraints and one assumption:
-through legal, non-deceptive means
---cannot cheat
-to have a long-term orientation
---don't just shoot for short term
--> pursuing profits also promotes the interests of the society
information ethics - answer✔✔a theory or philosophy to examine moral and ethical problems
that can arise in making IT related decisions
stakeholder theory - answer✔✔-stakeholders are anyone with a stake or claim on the firm such
as stockholders, customers, employees, suppliers, and the local community
---respect the rights of each stakeholder
---give equal consideration to the legitimate interests of all stakeholders and to adopt corporate
policies that produce the optimal balance among them
differences between stockholder + stakeholder theory - answer✔✔-stockholder theory sees all
parties except stockholders as means to the end of profitability.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
----executives consider stakeholders as means to end of profitability, if they don't affect profits,
not considered
-stakeholder theory sees all stakeholders as ends in themselves.
----all important even if they don't impact profits
blockbuster video case - answer✔✔blockbuster was going to categorize customers by movie
interests and sell to direct mailers
by stockholder it is ethical because it increases profits and is legal
by stakeholder it is not ethical because it is most likely misleading and does not balance
customer needs of privacy (but could depend on nature of situation)
steps in stockholder perspective - answer✔✔-review legislation and administrative mandates
-avoid deception and fraud
-assign probabilities to possible outcomes from alternative actions
steps in stakeholder perspective - answer✔✔-identify all stakeholders
-determine each stakeholder's right
-consider each stakeholder's right
opt-in - answer✔✔unless the data subject has given an overt *permission* for some future use of
the data, it must be assumed that there is no consent for that use
-much safer option for companies
opt out - answer✔✔unless the data subject registers an overt *objection*, it is assumed that the
additional use of the data is acceptable.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
six managerial decisions - answer✔✔-data collection and storage
-secondary data use
-data accuracy
-authorized access
-automated judgement
-data merging + profiling
collection + storage of personal data - six managerial decisions - answer✔✔-don't ask more data
than subjects believe is really needed
-explain clearly how the data will be used, how much data they need
-offer options to provide part of the data ("not take it or leave it")
secondary data use - six managerial decisions - answer✔✔-many companies now share customer
data with third parties
-significant restriction of it on medical only
-car dealership takes questionnaire from customer, tells them will be used for choosing a good
car, but will be used for selling strategy
-businesses have been utilizing friendship networks on facebook (inferring credit scores of
friends) to assess risks
data accuracy - six managerial decisions - answer✔✔-alice arias: housing application got denied
since other applicant had same name, lost 15K
-errors in databases could result in significant consequences
-fair credit reporting act (FCRA) allows data subjects to sue
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
authorized access - six managerial decisions - answer✔✔-concerning personal data, very
important for finance and medical sectors
-need technical controls to allow restricted access to sensitive data
----also policies need to describe who needs to know what (block curiosity - george clooney,
member of hospital checked records)
automated judgement - six managerial decisions - answer✔✔-using expert systems in automated
decisions
-richard nolan: widow kept getting letters from American Express, she sent in requests to stop
letters but they were ignored by system
-careful attention to automatic process (algorithmic bias)
data merging + profiling - six managerial decisions - answer✔✔-google: profile customers for
targeted advertising
-disparate data may be somewhat uninformative by themselves, but they become powerful when
combined into one profile from which inferences are made
algorithmic bias - answer✔✔-whatever causes an algorithm to produce unfair actions or
representations
the instances when the application of an algorithm compounds existing inequities in
socioeconomic status, race, ethnic background, religion, gender, disability or sexual orientation
to amplify them and adversely impact inequities
recruitment - algorithmic bias - answer✔✔amazon gender bias against women
-AI tools to automatically scan resumes to determine fit, Amazon is predominantly male, so this
data is training the algorithm --> deems women unfit
word association - algorithmic bias - answer✔✔associate women with arts, not science
IDSC 3001 Final Exam Questions With
Correct Answers
Stockholder theory - answer✔✔the managerial obligation is to *maximize the financial returns
of the stockholders*, with two constraints and one assumption:
-through legal, non-deceptive means
---cannot cheat
-to have a long-term orientation
---don't just shoot for short term
--> pursuing profits also promotes the interests of the society
information ethics - answer✔✔a theory or philosophy to examine moral and ethical problems
that can arise in making IT related decisions
stakeholder theory - answer✔✔-stakeholders are anyone with a stake or claim on the firm such
as stockholders, customers, employees, suppliers, and the local community
---respect the rights of each stakeholder
---give equal consideration to the legitimate interests of all stakeholders and to adopt corporate
policies that produce the optimal balance among them
differences between stockholder + stakeholder theory - answer✔✔-stockholder theory sees all
parties except stockholders as means to the end of profitability.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
----executives consider stakeholders as means to end of profitability, if they don't affect profits,
not considered
-stakeholder theory sees all stakeholders as ends in themselves.
----all important even if they don't impact profits
blockbuster video case - answer✔✔blockbuster was going to categorize customers by movie
interests and sell to direct mailers
by stockholder it is ethical because it increases profits and is legal
by stakeholder it is not ethical because it is most likely misleading and does not balance
customer needs of privacy (but could depend on nature of situation)
steps in stockholder perspective - answer✔✔-review legislation and administrative mandates
-avoid deception and fraud
-assign probabilities to possible outcomes from alternative actions
steps in stakeholder perspective - answer✔✔-identify all stakeholders
-determine each stakeholder's right
-consider each stakeholder's right
opt-in - answer✔✔unless the data subject has given an overt *permission* for some future use of
the data, it must be assumed that there is no consent for that use
-much safer option for companies
opt out - answer✔✔unless the data subject registers an overt *objection*, it is assumed that the
additional use of the data is acceptable.
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
six managerial decisions - answer✔✔-data collection and storage
-secondary data use
-data accuracy
-authorized access
-automated judgement
-data merging + profiling
collection + storage of personal data - six managerial decisions - answer✔✔-don't ask more data
than subjects believe is really needed
-explain clearly how the data will be used, how much data they need
-offer options to provide part of the data ("not take it or leave it")
secondary data use - six managerial decisions - answer✔✔-many companies now share customer
data with third parties
-significant restriction of it on medical only
-car dealership takes questionnaire from customer, tells them will be used for choosing a good
car, but will be used for selling strategy
-businesses have been utilizing friendship networks on facebook (inferring credit scores of
friends) to assess risks
data accuracy - six managerial decisions - answer✔✔-alice arias: housing application got denied
since other applicant had same name, lost 15K
-errors in databases could result in significant consequences
-fair credit reporting act (FCRA) allows data subjects to sue
, ©THEBRIGHT EXAM STUDY SOLUTIONS 8/27/2024 12:01 PM
authorized access - six managerial decisions - answer✔✔-concerning personal data, very
important for finance and medical sectors
-need technical controls to allow restricted access to sensitive data
----also policies need to describe who needs to know what (block curiosity - george clooney,
member of hospital checked records)
automated judgement - six managerial decisions - answer✔✔-using expert systems in automated
decisions
-richard nolan: widow kept getting letters from American Express, she sent in requests to stop
letters but they were ignored by system
-careful attention to automatic process (algorithmic bias)
data merging + profiling - six managerial decisions - answer✔✔-google: profile customers for
targeted advertising
-disparate data may be somewhat uninformative by themselves, but they become powerful when
combined into one profile from which inferences are made
algorithmic bias - answer✔✔-whatever causes an algorithm to produce unfair actions or
representations
the instances when the application of an algorithm compounds existing inequities in
socioeconomic status, race, ethnic background, religion, gender, disability or sexual orientation
to amplify them and adversely impact inequities
recruitment - algorithmic bias - answer✔✔amazon gender bias against women
-AI tools to automatically scan resumes to determine fit, Amazon is predominantly male, so this
data is training the algorithm --> deems women unfit
word association - algorithmic bias - answer✔✔associate women with arts, not science
