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Why is corporate governance important when thinking about ethical considerations for the development of data-driven technologies?

1) It helps the organization have a document to point towards in case an ethical violation occurs.
2) It binds the employees in a moral code that limits the kind of actions they can engage in.
3) It provides an accountability framework for stakeholders of the organization to prevent ethical violations.
4) It helps the organization showcase to its customers that it has ethical guidelines.

1 Answer

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Final answer:

Corporate governance provides a framework of accountability in organizations, ensuring ethical conduct and decision-making, especially regarding data-driven technologies. It encompasses the roles of the board of directors, auditing firms, and large shareholders, aligning with professional codes of ethics. Option 3 is the correct answer.

Step-by-step explanation:

Corporate governance is critically important for ethical considerations in the development of data-driven technologies because it constitutes the framework through which organizations ensure accountability, ethical conduct, and transparency in their operations.

Such governance involves not only the board of directors, who provide oversight for top executives, but also external entities like auditing firms and large shareholders who help ensure accurate financial reporting and ethical business practices. Codes of ethics, such as the Software Engineering Code of Ethics provided by the IEEE-CS, play a central role in advising professionals on the ethical implications of their work, particularly when dealing with emerging technologies that have significant societal impacts, such as artificial intelligence.

These codes of ethics help ensure that technologies do not harm the environment, infringe on privacy rights, or diminish the quality of human life. Considering the options provided, option 3) It provides an accountability framework for stakeholders of the organization to prevent ethical violations best encapsulates the importance of corporate governance in ethical decision-making within organizations.

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