Ethical, Social, and Political Issues in E-commerce Chapter 7 Ethical, Social, and Political Issues in E-commerce

Basic Ethical Concepts Ethics Study of principles used to determine right and wrong courses of action Responsibility Accountability Liability Laws permitting individuals to recover damages Due process Laws are known, understood Ability to appeal to higher authorities to ensure laws applied correctly

Privacy and Information Rights Moral right of individuals to be left alone, free from surveillance, or interference from other individuals or organizations Information privacy Subset of privacy Includes: The claim that certain information should not be collected at all The claim of individuals to control the use of whatever information is collected about them

Privacy and Information Rights (cont.) Major ethical issue related to e-commerce and privacy: Under what conditions should we invade the privacy of others? Major social issue: Development of “expectations of privacy” and privacy norms Major political issue: Development of statutes that govern relations between recordkeepers and individuals

Social Networks and Privacy Encourage sharing personal details Pose unique challenge to maintaining privacy Facebook’s facial recognition technology and tagging Personal control over personal information vs. organization’s desire to monetize social network

Issues with E-Commerce Safe harbor programs: Private policy mechanism to meet objectives of government regulations without government involvement Major ethical issue: How should we treat property that belongs to others? Major social issue: Is there continued value in protecting intellectual property in the Internet age? Major political issue: How can Internet and e-commerce be regulated or governed to protect intellectual property?

Intellectual Property Protection Three main types of protection: Copyright Patent Trademark law Goal of intellectual property law: Balance two competing interests—public and private

Public Safety and Welfare Protection of children and strong sentiments against pornography Passing legislation that will survive court challenges has proved difficult Efforts to control gambling and restrict sales of drugs and cigarettes Currently, mostly regulated by state law Unlawful Internet Gambling Enforcement Act

Legalities of the Internet While most transactions and behaviors on the Internet are ethical, some individuals and groups attempt to use the Web for disreputable or illegal purposes.   Consumers and sellers who participate in e-commerce transactions have ethical responsibilities. 9

Cyberlaw Just as the real world requires rules and regulations to keep things running smoothly, the Internet has given birth to cyberlaw. cyberlaw an evolving legal framework that governs Internet activities; covers topics ranging from copyright infringement to e-mail privacy, identity theft, and interstate e-commerce 10

Cyberlaw Today’s businesses realize that having a domain name that is the same as their company’s or product’s name can be extremely valuable. As a result, disputes over domain names have become more common. You have two options if the domain name you want is already taken: Attempt to buy the domain name from its owner. Select another domain name. 11

Ethical Considerations on the Internet Because the Internet is constantly changing, adherence to an ethical framework is more important than ever.   While there may not be written laws governing every e-business situation, an ethical person will do the right thing in these circumstances. 12

Digital Protection E-businesses are connected to the Internet 24 hours a day, seven days a week.   Maintaining the security of corporate data is one of the highest priorities of any e-commerce business. 13

Security of Data Though a company may spend millions of dollars to secure sensitive data, a hacker may still be able to break in to the company’s computer system. Some virus attacks have been perpetuated by people who were unhappy about a job loss or who had a personal grudge against a company or organization. hacker a person who uses technical expertise to break into computer systems for malicious purposes 14

Security of Data Another problem e-businesses face is cybersquatters. cybersquatter person who registers domain names of well-known companies or individuals with the sole purpose of selling the names back to the rightful owners to make a profit 15

Security of Data The failure of e-businesses to adequately protect consumer data has led to an increase in identity theft.   Identity theft is the practice of running up bills or committing crimes in someone else’s name. 16