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Facebook Case Study: It's About the Money

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by

gonca sönmez

on 1 January 2015

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Transcript of Facebook Case Study: It's About the Money

Introduction
Perform an ethical anaylsis of Facebook. What is the ethical dilemma presented by this case?

What is the relationship of privacy to Facebook's business model?

Describe the weaknesses of Facebook's privacy policies and features. What management, organization,and technology factors have contributed to those weaknesses?

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?
Case Study Questions
What is the relationship of privacy to Facebook's business model?
1) Facts
Perform an ethical anaylsis of Facebook. What is the ethical dilemma presented by this case?
Facebook
It's About the Money
2) Define the conflict or dilemma and identify the higher order values involved.
3) Identify the stakeholders
Describe the weaknesses of Facebook's privacy policies and features. What management, organization,and technology factors have contributed to those weaknesses?
Launched in February 2004

Connect people easily

Hundreds million accounts

Almost all revenue from advertising (%85)

Big benefit from advertising

No laws to say what the networks companies do

Lots of information,only to bring in revenue

Engage with users highly possible

Is used for you or against you
A revenue stream

No laws in US to know what information FB has collected

EPIC(Privacy Inf.Center) wants FB to restore its privacy

Some of the higher order values involved are:
Self-enhancement vs. self-transcendence

Power and achievement oppose universalism&benevolence

Concern for the welfare and interests
The owners of the company
The employees of the company
The users of the website
The advertisers that use the service of Facebook
4) Identify the options that you can reasonably take
Notice and awareness
Choice and consent
Access and Participation
5) Identify the potential consequences of the options
Nobody lets the company collect the information
Decreasing the company revenue
But creation of a reliable social networking
All Facebook parties must comply with the policies:
Privacy Policy,

Payment Terms,

Platform Policies,

Ads Guidelines,

Promotion Guidelines,

Claims of Intellectual Property Infringement

Claims of Copyright Infringement etc.
Management Factors
Strategic management of FB's

Revenue comes almost from advertising
Organization Factors
To be more open and connected the world

Privacy setting awareness is less
Technology Factors
Applications helps to collect data of users

Without notifying users
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?
DEFINITELY,NO!
Are there any measures?
To alert all the members of FB
To give the users the option
To offer some applications

Be aware what you post!
Thank you for your attention!
Management Information Systems
Gediz University
Yrd.Doç.Dr.Aziz BAKAY

Zeynep Tüysüz
Gonca Sönmez
Narmin Necefli
Nimet Sabancı
Full transcript