#8- MGT447 Ch-08 Ethical Social and Political Issues in E-commerce Laudon 9e 27 April 2024 (1).ppt

Chapter 8 Ethical, Social, and Political Issues in E-commerce Copyright © 2013 Pearson Education, Inc. People Resource  Technology-literate knowledge worker – knows how and when to apply technology  Information-literate knowledge worker  Can define in...

Chapter 8 Ethical, Social, and Political Issues in E-commerce Copyright © 2013 Pearson Education, Inc. People Resource  Technology-literate knowledge worker – knows how and when to apply technology  Information-literate knowledge worker  Can define information needs  Knows how and where to obtain information  Understands information  Acts appropriately based on information  Ethics – principles and standards that guide our behavior toward other people 1-2 People Resource - Ethics You always want your actions to fall in Quadrant I – both ethical and legal. 1-3  Understanding Ethical, Social, and Political Issues in E-commerce Internet, like other technologies, can:  Enable new crimes  Affect environment  Threaten social values Costs and benefits must be carefully considered, especially when there are no clear-cut legal or cultural guidelines Copyright © 2013 Pearson Education, Inc. Slide 8-4  A Model for Organizing the Issues Issues raised by Internet and e-commerce can be viewed at individual, social, and political levels Four major categories of issues:  Information rights  Property rights  Governance  Public safety and welfare Copyright © 2013 Pearson Education, Inc. Slide 8-5  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 Copyright © 2013 Pearson Education, Inc. Slide 8-6 Analyzing Ethical Dilemmas Process for analyzing ethical dilemmas: 1. Identify and clearly describe the facts 2. Define the conflict or dilemma and identify the higher-order values involved 3. Identify the stakeholders 4. Identify the options that you can reasonably take 5. Identify the potential consequences of your options Copyright © 2013 Pearson Education, Inc. Slide 8-7 Candidate Ethical Principles Golden Rule Universalism Slippery Slope Collective Utilitarian Principle Risk Aversion No Free Lunch The New York Times Test The Social Contract Rule Copyright © 2013 Pearson Education, Inc. Slide 8-8  Privacy and Information Privacy Rights  Moral right of individuals to be left alone, free from surveillance, or interference from other individuals or organizations Information privacy  Subset of privacy  Claims: Certain information should not be collected at all Individuals should control the use of whatever information is collected about them Copyright © 2013 Pearson Education, Inc. Slide 8-9  Privacy and Information Rights (cont.) Copyright © 2013 Pearson Education, Inc. Slide 8-10  Information Collected at E-commerce Sites Data collected includes  Personally identifiable information (PII)  Anonymous information Types of data collected  Name, address, phone, e-mail, social security  Bank and credit accounts, gender, age, occupation, education  Preference data, transaction data, clickstream data, browser type Copyright © 2013 Pearson Education, Inc. Slide 8-11  Social Networks and Privacy Social networks  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 Copyright © 2013 Pearson Education, Inc. Slide 8-12  Mobile and Location- based Privacy Issues Smartphone apps  Funnel personal information to mobile advertisers for targeting ads  Track and store user locations 42% of users say privacy a concern Mobile Device Privacy Act  Notyet passed  Requires informing consumers about data collection Copyright © 2013 Pearson Education, Inc. Slide 8-13  Profiling and Behavioral Profiling Targeting  Creation of digital images that characterize online individual and group behavior  Anonymous profiles  Personal profiles Advertising networks  Track consumer and browsing behavior on Web  Dynamically adjust what user sees on screen  Build and refresh profiles of consumers Google’s AdWords program Copyright © 2013 Pearson Education, Inc. Slide 8-14  Profiling and Behavioral Deep Targeting (cont.) packet inspection Business perspective:  Increases effectiveness of advertising, subsidizing free content  Enables sensing of demand for new products and services Critics’ perspective:  Undermines expectation of anonymity and privacy  Consumers show significant opposition to unregulated collection of personal information Copyright © 2013 Pearson Education, Inc. Slide 8-15  The Internet and Government Invasions of Privacy Various laws strengthen ability of law enforcement agencies to monitor Internet users without knowledge and sometimes without judicial oversight  CALEA, USA PATRIOT Act, Cyber Security Enhancement Act, Homeland Security Act Government agencies are largest users of private sector commercial data brokers Retention by ISPs and search engines of user data Copyright © 2013 Pearson Education, Inc. Slide 8-16  Legal Protections In United States, privacy rights explicitly granted or derived from:  Constitution First Amendment—freedom of speech and association Fourth Amendment—unreasonable search and seizure Fourteenth Amendment—due process  Specificstatutes and regulations (federal and state)  Common law Copyright © 2013 Pearson Education, Inc. Slide 8-17  Informed Consent U.S. firms can gather and redistribute transaction information without individual’s informed consent  Illegal in Europe Informed consent:  Opt-in  Opt-out  Many U.S. e-commerce firms merely publish information practices as part of privacy policy or use opt-in as default Copyright © 2013 Pearson Education, Inc. Slide 8-18  The FTC’s Fair Information Practices Guidelines (not laws)  Used to base assessments and make recommendations  Sometimes used as basis for law (COPPA) Fair Information Practice principles  Notice  Choice  Access  Security  Enforcement  Restricted collection Copyright © 2013 Pearson Education, Inc. Slide 8-19  The FTC’s Fair Information Practices New privacy framework (2010)  Scope  Privacy by design  Simplified choice  Greater transparency 2012 Report: Industry best practices  Do not track  Mobile privacy  Data brokers  Large platform providers  Development of self-regulatory codes Copyright © 2013 Pearson Education, Inc. Slide 8-20  The European Data Protection Directive Privacy protection much stronger in Europe than United States European approach:  Comprehensive and regulatory in nature European Commission’s Directive on Data Protection (1998):  Standardizes and broadens privacy protection in European Union countries Department of Commerce safe harbor program:  For U.S. firms that wish to comply with directive Copyright © 2013 Pearson Education, Inc. Slide 8-21  Private Industry Self- Regulation Safe harbor programs:  Private policy mechanism to meet objectives of government regulations without government involvement  Privacy seal programs  TRUSTe Industry associations include:  Online Privacy Alliance (OPA)  Network Advertising Initiative (NAI) CLEAR Ad Notice Technical Specifications Privacy advocacy groups Emerging privacy protection business Copyright © 2013 Pearson Education, Inc. Slide 8-22  Technological Solutions Spyware blockers Pop-up blockers Secure e-mail Anonymous remailers, surfing Cookie managers Disk/file erasing programs Policy generators Privacy Policy Reader—P3P Public key encryption Copyright © 2013 Pearson Education, Inc. Slide 8-23 Intellectual Property Rights Intellectual property:  All tangible and intangible products of human mind 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? Copyright © 2013 Pearson Education, Inc. Slide 8-24  Intellectual Property Three mainProtection types of protection:  Copyright  Patent  Trademark law Goal of intellectual property law:  Balance two competing interests—public and private Maintaining this balance of interests is always challenged by the invention of new technologies Copyright © 2013 Pearson Education, Inc. Slide 8-25  Copyright Protects original forms of expression (but not ideas) from being copied by others for a period of time “Look and feel” copyright infringement lawsuits Fair use doctrine Digital Millennium Copyright Act, 1998  First major effort to adjust copyright laws to Internet age  Implements WIPO treaty that makes it illegal to make, distribute, or use devices that circumvent technology-based protections of copyrighted materials Copyright © 2013 Pearson Education, Inc. Slide 8-26  Patents Grant owner 20-year monopoly on ideas behind an invention  Machines  Man-made products  Compositions of matter  Processing methods Invention must be new, non-obvious, novel Encourages inventors Promotes dissemination of new techniques through licensing Stifles competition by raising barriers to entry Copyright © 2013 Pearson Education, Inc. Slide 8-27  E-commerce Patents 1998 State Street Bank & Trust vs. Signature Financial Group  Business method patents Most European patent laws do not recognize business methods unless based on technology Patent reform  Patenttrolls  2011 America Invents Acts Copyright © 2013 Pearson Education, Inc. Slide 8-28  Trademarks Identify, distinguish goods, and indicate their source Purpose  Ensure consumer gets what is paid for/expected to receive  Protect owner against piracy and misappropriation Infringement  Market confusion  Bad faith Dilution  Behavior that weakens connection between trademark and product Copyright © 2013 Pearson Education, Inc. Slide 8-29  Trademarks and the Internet Cybersquatting  Anticybersquatting Consumer Protection Act (ACPA) Cyberpiracy  Typosquatting Metatagging Keywording Linkingand deep linking Framing Copyright © 2013 Pearson Education, Inc. Slide 8-30  Governance Primary questions  Who will control Internet and e-commerce?  What elements will be controlled and how? Stagesof governance and e- commerce  Government Control Period (1970–1994)  Privatization (1995–1998)  Self-Regulation (1995–present)  Government Regulation (1998–present) Copyright © 2013 Pearson Education, Inc. Slide 8-31  Who Governs E-commerce and the Internet? Mixed mode environment  Self-regulation, through variety of Internet policy and technical bodies, co-exists with limited government regulation ICANN : Domain Name System Internet can be easily controlled, monitored, and regulated from a central location Copyright © 2013 Pearson Education, Inc. Slide 8-32  Taxation Non-local nature of Internet commerce complicates governance and jurisdiction issues Sales taxes MOTO retailing tax subsidies Internet Tax Freedom Act Unlikely that comprehensive, integrated rational approach to taxation issue will be determined for some time to come Copyright © 2013 Pearson Education, Inc. Slide 8-33  Net Neutrality Neutrality: All Internet activities charged the same rate, regardless of bandwidth used Differentiated pricing strategies Cap pricing (tiered plans) Speed tiers Usage metering Congestion pricing Highway (“toll”) pricing Comcast slows users for certain traffic FCC’s 2010 “compromise” net neutrality rules Copyright © 2013 Pearson Education, Inc. Slide 8-34  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 Copyright © 2013 Pearson Education, Inc. Slide 8-35