1. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Case Title :
Facebook : It’s About the Money
Group Members: No
Name
Student ID
Program 1
SAYNUL ISLAM
P13D092P
MBA 2
DATO NABIL ABD KADIR
P000000P 3
MOHAMMAD GHAZALI MOHD DAUD

2. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Background
Facebook, a company grew up from a small network site to a $50 billion company. Facebook was founded by 2004 by Harvard student Mark Zuckerberg and originally called the facebook. It was quickly successful on campus and expanded beyond Harvard into other Ivy League schools. Facebook allow users control and see their actions on advertisements.

3. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Perform an ethical analysis of Facebook. What is the ethical dilemma presented by this case?

4. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Ethical Analysis
Identify & Describe the Facts Clearly
Define the Conflict or Dilemma and Identify the Higher-Order Values involved
Identify & Describe the Facts Clearly
Define the Conflict or Dilemma and Identify the Higher-Order Values involved
Define the Conflict or Dilemma and Identify the Higher-Order Values involved

5. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Facebook Ethical Dilemma
Facebook faces controversy over the handling and usage of the extensive information it collects from its users. FB user’s biggest concerns are the privacy and user controls over the information granted to Facebook. Facebook faces the dilemma of how to gain revenues from user information without violating their privacy. The management and organization failed to consider its users privacy concern when it introduced new software that users felt to be invasive. Facebook provides a free service that users pay for, in effect, by providing details about their lives, friendships, interests and activities.

6. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Facebook, in turn, uses that trove of information to attract advertisers, app makers and other business opportunities. Facebook occasionally isn't enforcing its own rules on data privacy. Facebook requires apps to ask permission before accessing a user's personal details. However, a user's friends aren't notified if information about them is used by a friend's app. Facebook provides people a specific social networking platform and facilitates contents sharing and communication. It targets global netizens, advertisers, and also application developers. Facebook partners with different parties in the functionality, application developing, and advertisers for enabling various features to meet users’ different social needs. To give better services to right customers, Facebook exploits and analyzes customer information, shares info with third party and provides ads to targeted ones. It meanwhile gives users control on privacy setting, enables a safe and trusted internet environment, which maintains a good relationship with customers.

7. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
What is the relationship of privacy to Facebook's business model?

8. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Talking privacy to Facebook is a bit ironic. Facebook’s entire business model is based on aggregation and sharing user information. They give people a free social media platform to use and in turn sell advertising and insights based on what they learn about user. Facebook has massive capabilities to collect, store and analyse data. This allows Facebook to sell very targeted advertising. Therefore, privacy is the Facebook business model.

9. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Facebook states its regulations concerning to the rights and responsibilities derive from the Facebook Principles, and govern the relationship with users and others who interact with Facebook. The relevant statements include Privacy Policy, Payment Terms, Platform Policies, Ads Guidelines, Promotion Guidelines, Claims of Intellectual Property Infringement, Claims of Copyright Infringement, etc. All Facebook parties must comply with this policies.

10. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Describe the weaknesses of Facebook’s privacy policies and features. What management, organization, and technology factors have contributed to those weaknesses?

11. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Allowing user’s information to be shared and made public. Continued to let other users know what you were doing until disabled it manually.
The incorporation and handling of its news feed feature. The news feed feature provided other users that you are friends with updates of actions that you performed while logged into FB.
Unable to delete FB account or any of the information that is on user account. FB keeps a copy of user entire account even after they deactivate it and no longer wish to have any affiliation with Facebook.

12. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
What management, organization, and technology factors have contributed to those weaknesses?

13. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Management:
Facebook assumed it had the consent of users to share information about them that it collected through the Beacon advertising service if they did not use the opt-out feature.
The company utterly failed to grasp the extent to which the service violated its users’ privacy as well as the uproar such a service was likely to cause.
Generally, it is a strategic management of FB’s to get its user to share as much data as possible so that FB can serve relevant advertisement to users. This is because FB revenue comes almost entirely from advertising.

14. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Organization:
The personal information collected on the site represents a mother load to advertisers, but one that will remain largely untapped if Facebook users do not feel comfortable enough or have sufficient incentive to share it.
Users that attempted to delete their accounts were met with resistance and often required outside assistance from watchdog groups.
FB wants the world to be more open and connected, because it stands to make more money. However, the privacy controls over the personal data is far from what FB currently offers. Moreover, most of users are not really aware of the privacy setting in their FB’s account.

15. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Technology:
Facebook grossly miscalculated user privacy demands when it launched the company’s Beacon advertising service because it shared information about users that they had not explicitly intended or agreed to share.
The service originally began as an “opt-out” feature. Even after users opted-out, the service continued to send information to Facebook regardless of whether or not the user was logged into Facebook at the time.
A FB user’s friends are not notified if information about them is collected by that user’s application. Many of FB’s features and services are enabled by default when they are launched without notifying users.

16. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Will facebook be able to have a successful business model without invading privacy? Explain your answer. Are there any measures Facebook could take to make this possible?

17. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
No, obviously we don’t think that Facebook will be able to have a successful business model without invading privacy.
Facebook currently is serving as much to advertise and reach people as it earns from those advertisements.
There are no fees that are to be paid to join FB or for its use, it all seems like they threw in a few advertisements and hoped that its exposure would bring in consumers.
Obviously, the backbone of FB’s business model is advertisement. As a result, FB needs more users data to customized its ads and indirectly invading individual privacy.
It is a critical challenge for FB to avoid offends user’s privacy.

18. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083
Are there any measures Facebook could take to make this possible?
To alert all the members of FB with an electronic detailed letter stating that for advertising purpose information that is submitted to your information pages will be used by Fb company.
To give the users the options to either accepts or reject this offer in order to install a legal standing that with the users of the site as well as protect the integrity of the company.
To offer applications that could be put on their pages in terms of interactive games and trivia, in return for allowing FB to access users account for advertising purposes.

19. INFORMATION SYSTEM AND ELECTRONIC COMMERCE GST-5083