Deck 10: Managing on the Ethical Frontier

Question 1

From your own experience, when do you feel like you are operating on the ethical frontier? What makes you think so?

Answer 1

In this case, the frontier being discussed is that of new technology. Starting in the 1990s, American culture entered a paradigm shift to the Information Age, in which previously successful businesses found themselves cloned and, in some cases, threatened by new applications on the Internet. The question posed is highly suggestive, but you may have worked in an industry severely downsized by the Web. Perhaps you've had to revamp your business to create an Internet presence or fend off online competitors.
The real sign one is on the ethical technology frontier occurs when an ethical question presents itself that has no direct antecedent. In other words, previous experience must be weighed, but you may find there are instances in which no pre-Internet scenario is an accurate or applicable model.

Question 2

How does the text characterize the ethical frontier? Is it tied solely to technology? Why is studying it important?

Answer 2

Your text certainly ties "the ethical frontier" to how business views and employs technological innovations; however, it also notes that scientific developments can have sweeping social effects. A large number of consumers view any new technology as inherently dangerous or evil. Social networks change the way people interact with each other and how they view privacy concerns. It's increasingly difficult to separate users' work and "off-hours" identities. Mass marketing has become almost immediate. Thus, one must examine not only new technology but how it will be seen, embraced, and reapplied by consumers.
Among the concerns raised by managing at the frontier are the reactions of stakeholders, including the possibility that new stakeholder relationships will be created. Innovation leads to situations in which the climate and character of an organization must be examined and, in some cases, redefined.

Question 3

What are risk and uncertainty and how do they play a role in managing at the frontier? What approaches are helpful in facing this?

Answer 3

The risk and uncertainty generated by technological innovation are a reflection of the fact that some outcomes simply cannot be predicted. Saras Sarasvathy defines risk as the probability that an undesirable outcome may occur. In the midst of a paradigm shift, however, there's no way to calculate the odds of all possible outcomes or to prepare for every negative result. Standard rules of probability and cause and effect no longer apply. Every new invention has unintended (and unpredictable) uses and, therefore, consequences.
Since products take on a life of their own after entering the market, it's important for businesses to stay actively involved by emphasizing maintenance and support. Previous business decisions must be revisited and reassessed frequently. It's important that businesses retain a sense of responsibility for a product even after it's been reapplied by users.

Question 4

What is privacy and why is it associated with managing at the frontier? What are some key examples of privacy issues at the frontier?

Question 5

What is responsibility at the frontier? How do managers need to think about responsibility in contexts where society and key stakeholders often have little idea of what is going on or who they might blame if something goes wrong?