THE ETHICS OF BUSINESS INTELLIGENCE

Norman O. Schultz Empirical paper

Allison B. Collins
Michael McCulloch

Journal of Business Ethics 

Vol. 13, No. 4 (Apr., 1994), pp. 305-314

I. Objectives of the paper

The papers aim at defining new criteria that would set, first of all, a frame on how and
on what we should judge actions of people involve in Business Intelligence but also a
frame of policies that would be implemented in this sensitive area.
Context of the study
Nowadays, companies use business intelligence as a way to gain a competitive
advantage on their competitors. This method is inspired by military commanders that
wanted to gain a competitive edge on their opponents. It consists of collecting,
processing, evaluating and communicating resources and data to be more efficient
and effective in business.
This gathering of information could improve business decisions, plans and strategies.
But one subject has been neglected in this method : ethics.
Two questions are distinguished:
 Is the gathering and the usage of data an ethical practice?
 Which of the specific methods of collection and use of business intelligence
are allowable and which methods are not?
Definition of the study
We shall redefine what is a business and what purpose and motive it has.
Business is a human activity and therefore has a moral dimension. The central
motive is note love nor charity but profit.
This motive is acceptable to most, but however, this objective to profit and on how it
can be attain can ask several ethical question.
Business intelligence aim’s is to “help managers assess their competition, their
vendors, their customers and the business and technological environment”. It allows
“the managers to avoid surprises, forecast changes in business relationships, identify
opportunities, predict a competitor’s strategy and develop a successful business
plan”.
 II. Theorotical framework

In order to judge which activity is socially acceptable, the authors proposed a

framework which considered the moral duties of the intelligence collectors and all the
parties with whom he interacts.
Intelligence collection activities can be classified in two categories which are also
subdivided into two categories, acceptable or unacceptable:
1. Internal business intelligence activity: Collection activities that involve only
principals, owners or employees of the firm or individuals who are acting as
contractors
Example:
Acceptable internal activity: Require former employees to safeguard company
secrets.
Unacceptable Internal activity: Engage in illegal activity such as trespass, theft
and bribery to collect data
2. External business intelligence activity: Collection activities that depend on
the cooperation of a third party: firm's vendors, customers, employees,
customers’ vendors and customers of competitors.
Example:
Acceptable external activity: seek information from a third party who
unknowingly divulges a secret
Unacceptable external activity: cause third parties to violale their ethical duty
to another party