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

2. 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

3. 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

4. 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

5. 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

6. 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?

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

8. 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

9. 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

10. 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 privacy, identity theft, and interstate e-commerce 10

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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