CASE STUDY 4: FACEBOOK
Question 1: Perform an ethical analysis of Facebook. What is the ethical
dilemma presented by this case?
o Ethical analysis:
1. Identify and describe the facts clearly: Facebook uses highly specific
details such as relationship status, location, employment status and
other demographic information, as well as users online activity to
develop an incredibly accurate picture of your life. The information
are collected whether with or without the users’ permission. The
purpose is to serve more relevant advertisements to the users than
anywhere else on the Web. However, the personal information
gathered by Facebook can also be used against the users in other
ways both with and without the consent of the users.
2. Define the conflict or dilemma and identify the higher-order values
involved :Violation of privacy right by Facebook. Storage of personal
information requires higher level protection and security which
Facebook does not offer. Dilemma: To supply relevant ads to users vs.
to protect users’ privacy.
3. Identify the stakeholders: Facebook, advertisers, data collecting
agencies, Electronic Privacy Information Center, and individual users.
Dilemma: The ethical dilemma in this case study is Facebook monitors its
subscribers and then sells the information to advertisers and app developers
hence the Facebook’s critics are concerned that the repository of personal data
of the size that Facebook has amassed requires protections and privacy
controls that extend far beyond those that Facebook currently offers.
Question 2: What is the relationship of privacy to Facebook’s business
model?
The relation between users’ privacy and Facebook business model is very
important because advertising is the main revenue of Facebook. Facebook
wants the world to be more open and connected because it stands to make
more money in that world stated by the Facebook’s CEO Mark Zuckerberg. The
entire concept of making profits from a social networking site is based on using
customers’ personal information in order to generate revenue. Facebook sells
customers’ information to external marketing companies in order to allow
them to cater their products to a more specific market segment.
The less privacy Facebook offers to its users, the more valuable and useful its
business model becomes. They give people a free social media platform to use
and in turn sell advertising and insights based on what they learn about the
user. This allows Facebook to sell much-targeted advertising. Therefore,
privacy is the Facebook business model.
Question 3: Describe the weaknesses of Facebook’s privacy policies and
features. What management, organization, and technology factors have
contributed to those weaknesses?
Weaknesses:
o Poor protection and privacy control
o User’s activities are trespassed by other parties
o Allows third parties to collect users private information without
permission
o don’t ask for consent for
technology
o that is clearly invasive like
facial recognition software
o Don’t ask for consents for technology that is clearly invasive like facial
recognition software.
o Exposure of user’s biometric database without users acceptance
o Unequal privacy protection standards in different countries
Management factors
Management at Facebook automatically assumed that its users are okay with
their information shared with advertisers, corporations, and its very own News
Feed. Management failed to understand the simple concept of consent.
Especially the News Feed feature, it violates the privacy of the user. It is
acknowledged that Facebook needs the advertisement revenue to keep its
services going, but there is a need for better communication/clarification
between the user and Facebook.
Organizational factors
The user is often not aware of the full extent of the privacy and control policies
on Facebook. It is simply too hard to be comprehended by someone with no
knowledge of technology terms (your day to day users).
Technology factors
Users are not notified when their information was collected via a friend, the
safety and security features are disabled by default. Facebook’s verification
system is also not the best, it can be easily bypassed by bots. Attempts by bots
trying to obtain user information isn’t uncommon. There is no user consent on
“tag suggestions” feature and facial recognition software.
Question 4: Will Facebook be able to have a successful business model
without invading privacy? Explain your answer. Could Facebook take any
measures to make this possible?
In my opinion, I don’t think Facebook will be able to have a successful model
without invading privacy because Facebook is currently 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 customize its ads and indirectly
invading individual privacy. It is a critical challenge for FB to avoid offends
user’s privacy but yes measures can be taken by making active changes to
improve users’ privacy such as:
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.
Once the Facebook management can do this then a broader, more organized
and more successful advertising campaigns can be launched.
