WGU Ethics-In-Technology - WGU Ethics In Technology QCO1

The Gramm-Leach-Bliley Act (GLBA) is a U.S. federal law that governs the privacy and security of consumer financial information. It contains three key rules:

Financial Privacy Rule – Regulates how financial institutions collect and disclose personal financial information.

Safeguards Rule – Requires financial institutions to implement security programs to protect consumer data.

Pretexting Protection Rule – Prohibits deceptive attempts to obtain personal financial information.

In this case, the Financial Privacy Rule is relevant because it provides consumers with a way to control how their financial data is shared. This rule:

Requires financial institutions to provide privacy notices detailing how they collect, use, and share customer information.

Gives customers the right to opt-out of sharing certain types of financial information with third parties.

Since the customer is concerned about their mortgage details being shared, they can use the Financial Privacy Rule to control such disclosures.

B. Pretexting – Involves identity theft or fraudulent attempts to access financial data, which is not relevant here.

C. Consumer Protection – A broad concept that does not specifically address financial data privacy.

D. Safeguards – Focuses on securing customer data from breaches, not on controlling data sharing.

Why Not the Other Options?Thus, the correct answer is A. Financial privacy as it directly addresses the customer’s concern.

Gramm-Leach-Bliley Act (1999), 15 U.S.C. §§ 6801-6809.

Federal Trade Commission (FTC) Guide to the GLBA Financial Privacy Rule.

Solove, D. J. (2020). The Privacy Law Fundamentals. IAPP.

References in Ethics in Technology:

A trade secret refers to confidential business information that provides a company with a competitive advantage. In this scenario, the software company continuously refines and updates its predictive algorithm but does not fully disclose these changes, ensuring that competitors and customers remain unaware of its proprietary methods.

Unlike trademarks (which protect branding), trade dress (which protects product appearance), or tradecraft (which refers to espionage techniques), trade secrets involve valuable, undisclosed business methods or formulas.

Trade Secret Protection (Defend Trade Secrets Act, DTSA, 2016) – Protects companies from misappropriation of confidential information.

Intellectual Property Ethics – Companies must balance secrecy with ethical transparency in product updates.

Utilitarian vs. Deontological Perspectives – Keeping trade secrets protects business interests but may impact consumer trust.

ACM Code of Ethics (Intellectual Property & Transparency) – Encourages responsible innovation without misleading consumers.

Relevant Ethical References in Technology:Thus, the correct answer is B. Trade secret, as the company protects its undisclosed algorithm updates.

The company honestly discloses its realistic project timeline to the client without misleading or misrepresenting its capabilities.

Why is this ethical?

The company does not engage in deception; it clearly states that it requires four months rather than falsely promising three.

It offers added value by completing the project 20% under budget, which is beneficial for the client.

This aligns with ethical principles of honesty, transparency, and fairness.

Why is this legal?

There is no law requiring the company to meet the three-month deadline if it discloses its timeline honestly.

Misrepresentation would be illegal, but the company truthfully communicates its capabilities.

A. Ethical and Illegal: There is no violation of any law.

B. Unethical and Illegal: The company does not engage in fraud or deception.

C. Unethical and Legal: The action is not unethical since it follows principles of honesty and integrity.

Why Not the Other Options?Thus, the correct answer is D. Ethical and Legal because the company acts transparently while complying with business ethics and legal standards.

ACM Code of Ethics (2022).

IEEE Code of Conduct (2020).

Brenkert, G. G. (2008). "Marketing Ethics." Blackwell Encyclopedia of Management.

References in Ethics in Technology:

IT leaders can encourage ethical behavior by conducting social audits to evaluate the organization's ethical performance and then communicating clear goals for improvement.

A social audit is a structured evaluation of a company’s ethical, social, and environmental impact, ensuring transparency and accountability. By sharing ethical goals, IT leaders create an organizational culture that values integrity and responsibility.

Corporate Social Responsibility (CSR) – Ethical leadership requires accountability in areas like employee welfare, environmental impact, and digital ethics.

Stakeholder Theory (Freeman, 1984) – Ethical leadership involves transparency and engagement with employees, customers, and society.

IEEE and ACM Ethical Guidelines – Highlight the importance of corporate ethics policies and performance reviews.

Ethical IT Governance (ITIL & ISO 26000) – Emphasize corporate responsibility, ethical leadership, and transparency in IT decision-making.

Relevant Ethical References in Technology:Thus, conducting social audits and communicating ethical goals is the most effective way to promote an ethical culture.

Proxy discrimination occurs when a seemingly neutral variable (e.g., zip code) serves as a proxy for a protected characteristic, such as race, gender, or socioeconomic status. In this case, the AI uses zip codes to determine learning support for racial segments, introducing unintentional racial bias because zip codes often reflect historical segregation and economic disparities.

Since historical housing policies (e.g., redlining) led to racial and economic segregation, using zip codes as a decision factor unfairly correlates race with access to educational resources—a classic example of proxy discrimination.

Algorithmic Bias & Fairness (FAT/ML Guidelines) – AI systems must avoid using proxies that reinforce systemic discrimination.

Civil Rights Laws (Fair Housing Act, Title VI of the Civil Rights Act) – Policies that disproportionately harm racial groups violate anti-discrimination laws.

ACM & IEEE Ethics in AI – Developers must mitigate biases in AI models that result in unfair treatment.

Deontological Ethics & Fairness – AI systems should not perpetuate historical biases through indirect discrimination.

Relevant Ethical References in Technology:Thus, the correct answer is C. Proxy discrimination, as zip codes indirectly introduce racial bias into the AI system.

Under the General Data Protection Regulation (GDPR), organizations are required to store personal data only for as long as necessary and must securely erase or anonymize data once it is no longer needed for its original purpose.

This aligns with GDPR’s "Storage Limitation Principle" (Article 5(1)(e)), which mandates that data should be:

Kept only for as long as necessary for processing purposes

Deleted or anonymized when no longer required

Stored securely to prevent unauthorized access

GDPR Compliance (Article 5: Principles of Processing Personal Data) – Enforces storage limitation and secure erasure.

Data Ethics (Fair and Responsible Use of Personal Data) – Ethical obligation to limit storage and prevent misuse.

Privacy by Design (Cavoukian, 1995) – Encourages secure deletion of unnecessary data.

Utilitarian Ethics & Data Protection – Secure erasure prevents potential misuse and data breaches.

Relevant Ethical References in Technology:Thus, the correct answer is D. Securely erasing data that is no longer needed, as it complies with GDPR storage limitation requirements.

Industrial espionage refers to the unauthorized theft or copying of trade secrets, proprietary information, or intellectual property from one company to another, often to gain a competitive advantage.

Why is this Industrial Espionage?

The sibling stole proprietary source code from Employee A’s laptop.

This act provides unfair competitive advantage to the sibling’s company.

Unauthorized access to trade secrets violates legal and ethical standards (e.g., Economic Espionage Act).

A. Nepotism – Favoring family members in hiring or promotions, but this case involves theft.

B. Conflict of Interest – Would apply if Employee A voluntarily shared information, but here, it was stolen.

D. Corruption – Involves bribery or unethical business practices but does not specifically relate to corporate theft.

Why Not the Other Options?Thus, the correct answer is C. Industrial Espionage, as it involves theft of confidential trade secrets.

Economic Espionage Act (1996), 18 U.S.C. §§ 1831-1839.

OECD Guidelines on Corporate Ethics and Intellectual Property Protection.

References in Ethics in Technology:

Since the organization is hiring external software engineers for a fixed six-month project, independent contractors are the best option.

Why Independent Contractors?

They work on a project basis, as defined in a legal contract.

The organization does not provide full-time benefits.

Contractors are specialists hired for short-term needs, making them ideal for temporary projects.

A. Full-time employees: Not suitable, as the work is temporary (six months only).

B. In-house expertise: The company is hiring external workers, not relying on existing staff.

C. Part-time salaried workers: Part-time employees receive benefits, while contractors do not.

Why Not the Other Options?Thus, the correct answer is D. Independent contractors, as they are ideal for temporary project-based work.

U.S. Department of Labor Guidelines on Independent Contractors.

Harvard Business Review (2022). Managing Independent Contractors Effectively.

References in Ethics in Technology:

The National Council of Examiners for Engineering and Surveying (NCEES) is responsible for licensing engineers, including software developers who implement safety-critical and health-related software in the United States.

Why NCEES?

NCEES administers the Principles and Practice of Engineering (PE) exam, which is required for licensed professional engineers.

Certain software developers working in regulated industries (e.g., medical, aerospace, and infrastructure software) must hold a Professional Engineer (PE) license.

The PE license ensures engineers adhere to safety, ethics, and public welfare regulations.

A. National Society of Professional Engineers (NSPE): Promotes engineering ethics but does not license engineers.

B. Accreditation Board for Engineering and Technology (ABET): Accredits engineering programs but does not issue licenses.

C. American Society for Engineering Education (ASEE): Focuses on engineering education, not professional licensing.

Why Not the Other Options?Thus, the correct answer is D. National Council of Examiners for Engineering and Surveying (NCEES) as it licenses engineers, including software engineers working on safety-critical systems.

National Council of Examiners for Engineering and Surveying (NCEES) PE Exam Guide.

IEEE Software Engineering Body of Knowledge (SWEBOK).

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