Employee Software Piracy in an Organization

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Table of Contents

Introduction
Analysis of the issues
Recommendations
Conclusion
References
Footnotes

Introduction

Software developer Samarin is at a very difficult place right now because he has been confronted by a series of ethical issues that need to be addressed as soon as possible. These actions have repercussions for both Orangewerks and this specific employee.

Analysis of the issues

Relevant course concepts, frameworks or theories

The first ethical issue is manipulation of the company’s market share by making press claims that 20,000 software licenses had been issued within two months yet one of the founders had created a 15, 000 fake email accounts to order the software. There are several reasons why this may be considered unethical. First, it shows a lack of respect for the law.

Corporations in Canada are obliged to behave honesty. Manipulating market shares or prices goes against the very principles of the law yet businessmen are obligated to respect it even if a rule can be easily flaunted. Failure to do this can result in chaos in these markets. Secondly, the latter issue is unjust and unfair. The Orangewerks founder who initiated the 15,000 email scam was acting unfairly because he misused his position.

As CEO, he is at a powerful position which needs to be dealt with responsibly. By using this position to gain unfair advantage, he was acting unethically as explained in Rawl’s theory of justice. The latter philosopher asserts that economic and social inequalities need to be arranged in a manner that is of an advantage to others. ¹ Thirdly, this behavior is outright immoral. Businesses cannot be run as though other individuals do not exist in the background.

Orangewerks is run by amoral agents who have been granted responsibility over their actions. Manipulative behavior is not in tune with good character as it is deceitful and outright wrong. Kantian ethics judges the morality of actions by their ability to be recreated or to serve as moral laws. These market manipulations therefore fail the Kantian ethics test.

The other issue that is of main concern is the pirated versions of software used to create the first beta version of the CIC program by Samarian. In conventional industries, when businesses source their materials from sweatshop labor or underage children, this would be considered a serious ethical violation. Conversely, in the IT industry, sourcing raw materials like software illegally would also be unethical.

This is because Orangewerks was not allowing the original software creators to gain actual benefits from their own efforts. The theory of utilitarianism postulates that moral actions should be assessed by their ability to increase value or pleasure to the highest number of people possible.² In this case, software piracy benefits illegal users but harms its creators. This means that only half the number of stakeholders is satisfied while the other half are hurt by it so it cannot be a moral action.

Another issue that should raise a lot of concern is the lack of insurance for the said workers. This organization was well aware that its employees needed to be protected. Canada has an internal responsibility system that requires workers to be responsible for their safety and occupational health so failure to do anything could be translated as a wrongful act. Furthermore, the company is giving profit making ventures more precedence over protection of workers.³

In utilitarianism, ethical acts are assessed based on their ability to cause the least harm to the least amount of people. In this case, the act of denying workers insurance so as to increase company profits would be unethical because it would be placing the needs of a few administrators over and above that of the majority who are the workers.

Workers could easily lose their lives or get injured and Orangewerks should prepare for this by insuring them. Samarin is required to take care of his health and this implies doing something if he realizes that his company is not carrying out its duties in this sector. He is also obligated to ensure that his coworkers’ safety is not at jeopardy. If he chooses to keep silent over the lack of health insurance then he would be acting unethically.

Impact of the issue(s) on Samarin and the organization

Software piracy has very serious repercussions in Canada. If the Canadian Alliance Against Software theft (CAAST) finds out about this, it is likely that Orangewerks will be required to pay back all the profits that they denied copyright owners. Alternatively, they can be sued by these owners who may require exorbitant amounts as damages – this can go up to $ 150, 000.

The organization’s name would be tainted and this would definitely be bad for business. Samarin himself could even face criminal charges from CAAST which could require him to serve a prison sentence of five years. It might also cost him $ 250, 000 if he goes through these felonies⁴. Alternatively, it might cost him his career if information comes out that he stayed on in a firm that was involved in a market share manipulation scam.

Perhaps the direst consequence at Orangewerks concerns workers’ safety. In the event that something happens like a broken back or any other injury, the company would not be in a position to take care of their workers. This could be very dangerous for them and may lead to loss of lives. Furthermore, the company’s name would be tarnished if it found that it has not complied with basic Canadian safety standards. It may face lawsuits from affected parties that could cost it even much more than the insurance premiums to be paid.

Recommendations

Possible alternatives on what Samarin should do and how the alternatives link to the analysis

Samarin can have the option of reporting himself for using pirated software to the watchdog CAAST which would launch investigations in Orangewerks and get to the bottom of the matter. They are most likely going to send a warning letter or may decide to prosecute him. Alternatively, Samarin may decide to talk to the founder and tell him about the email.

Here, he could also confess that he had used illegal software and should convince them to switch to legitimate software. The latter can be combined with education on importance of using un-pirated versions and centralization of license tracking⁵.

In terms of the issues of insurance coverage for workers, Samarin may report the matter to their workers’ union since it is their right that is being infringed. He may choose to inform his coworkers who may then decide on the next cause of action. Lastly, he could negotiate with his employers. He could start by asking them to insure the workers or present them with the option of taking the matter forward to the workers’ union.

Samarin has a very daunting task of deciding what to do concerning the manipulation of market share by the founder through creation of the fake fifteen thousand email accounts. He could go to the employers and ask them to issue a second press release that would acknowledge the matter. Alternatively, he could report the matter to the industry’s regulatory body which would deal with the matter.

Why the recommended action was chosen from possible alternatives

The alternative of reporting himself would be impractical because it is unlikely that Samarin would want to destroy his own career. Also, by negotiating with the founders of Orangewerks, he will be offering the company an opportunity to right a wrong and hence be better placed to compete fairly. Since software piracy in Canada accounts for 32% of the total software market then a personal initiative would be more effective than the country watchdog because the latter have a long list of wrongdoers that they need to tackle.

Samarin would be more effective if he chose to give his employers options first. Before taking the matter to an external body, he can actually exercise the responsibility for protecting other workers by presenting his ideas. In order to show the company founders that he is actually serious, he will be using the backing of the external workers’ body. He will have balanced the thin line between company profits and social or ethical concerns.

The last issue concerning manipulation of market share could actually be the trickiest one of them all. Samarin would be better off just taking the matter to the regulatory board. Given that the founder has engaged in such a serious ethical breach, it is unlikely that he would be willing to reverse it based on the threat of their software developer. It might cost Samarin his job if the company is confronted but it would be for the best interest of the entire industry because the report will be translated into fairness and justice⁶.

Conclusion

More often than not, some economists have asserted that business interests may clash with ethical, social and environmental concerns. This means that it can be exceedingly hard to have purely right answers in these matters. Companies always need to look for ways of running their businesses in profitable ways without necessarily sacrificing moral concerns. The remedies chosen in two of the three instances represent a middle ground that would still allow the firm to be ethical but still continue to be in business.

References

Filemaker incorporation (2010). Report software piracy. Retrieved from https://www.filemaker.com/.

Rockiness, Jill. & Merchant, Kim. (1994). The ethics of managing earnings. Accounting & public policy journal, 15(4), 303-313.

Rawls, J. (1972). A theory of justice. Oxford: OUP.

Fawzia, Sheikh. (2005). Perils of software piracy. Profit magazine, February.

Everest-Hill, Dedan. (2001). The big bang. Accident prevention, 48(3), 15-19.

Footnotes

¹Rawls, J. (1972). A theory of justice. Oxford: OUP

²Rockiness, Jill. & Merchant, Kim. (1994). The ethics of managing earnings. Accounting & public policy journal, 15(4), 303-313

³Everest-Hill, Dedan. (2001). The big bang. Accident prevention, 48(3), 15-19

⁴Filemaker incorporation (2010). Report software piracy

⁵Fawzia, Sheikh. (2005). Perils of software piracy. Profit magazine, February

⁶Rockiness, Jill. & Merchant, Kim. (1994). The ethics of managing earnings. Accounting & public policy journal, 15(4), 303-313

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