1. Suppose Charlie had installed key logger software on all company computer systems and had made a copy of Peter’s encryption key. Suppose that Charlie had this done without policy authority and without anyone’s knowledge, including Peter’s

Would the use of such a tool be an ethical violation on Charlie’s part? Is it illegal?
2. Suppose that Charlie had implemented the key logger with the knowledge and approval of senior company executives, and that every employee had signed a release that acknowledged the company can record all information entered on company systems. Two days after Peter’s call, Charlie calls back to give Peter his key: “We got lucky and cracked it early.” Charlie says this to preserve Peter’s illusion of privacy. Is such a “little white lie” an ethical action on Charlie’s part?