Ethical Responsibility in Technology - Essay Example

Ethical Responsibility in Technology Introduction: Microsoft Corporation was charged with misleading s of its latest operating system Microsoft Vista by stating that all computes bearing the label "Microsoft Vista Compatible" is compatible to run the above mentioned software. It later turned that all customers who purchased the labeled computers found that it was only capable of running Vista Basic, a tuned down version of the software. This paper deals with Principal-Agent theory and fiduciary duty with reference to the above mentioned case.

Principal-Agent Theory: A certain relationship exists between two parties, namely the principal and the agent, in the event of a contract. The principal is the person who requires some action on the part of the agent for which the agent receives some remuneration. The agent is required to act in the best interests of the principal while performing what is required of him. But in most instances, the principal is unable measure the behavior of the agent and control the outcome of the contract, which puts him at a disadvantage vis--vis the agent.

(Eisenhardt, 1989). Problems arise when there exists a conflict between the interests of the principal and the agent, which is the case in most contractual relationships.Fiduciary Duty: In general terms fiduciary duty is the obligation of a person to act in the best interests of another. In case of a principal and agent, it is the fiduciary duty of the agent to act in the best interests of the principal. This duty includes due diligence and due care by the agent in performing his services for the principal.

"A fiduciary duty is an obligation to act in the best interest of another party." (Breach of Fiduciary Duty Law and Legal Definition, 2007). Critical Analysis: It has been stated the relationship between an agent and principal and the fiduciary duties of an agent. The principals in this instance are the future customers of Vista software who bought 'vista compatible' machines on the promise of Microsoft. The agent is Microsoft who was offering its agents or customers software in return for consideration, money.

Microsoft Corporation is accused of not exercising due diligence and care in their actions. The company did not verify whether the machines bought by their future customers of Vista would in fact run the full software. It was true that the full version was not yet ready for release and the company had made its offer in the premise that the computers would in fact be adequate for the purpose. Negligence implies that reasonable care was not undertaken in performing an action. On the other hand malpractice is where, an action was performed without the requisite skill or knowledge required to perform that action, and which may or may not have resulted in injury to a person for whom the action was performed. Lectlaw.com defines misfeasance as "The performance of an act which might lawfully be done, in an improper manner, by which another person receives an injury.

" (Misfeasance). Microsoft, in this case is not guilty of malpractice since it had the expertise and skill, but could be accused of both negligence and misfeasance.ReferencesEisenhardt. (1989). Retrieved March 13, 2008, from http://turbo.kean.edu/jmcgill/BPS10.ppt#303,6,Principal-Agent TheoryBreach of fiduciary duty law and legal definition. (2007). Legal Definitions, US Legal , Defenitions.uslegal.com. Retrieved March 13, 2008, from http://definitions.uslegal.com/b/breach-of-fiduciary-duty/Misfeasance.

The 'Lectric Law Library's Lexicon on Misfeasance. Retrieved March 13, 2008, from http://www.lectlaw.com/def2/m124.htm