- Perform an ethical analysis of Facebook. What is the ethical dilemma presented by this case?
The ethical issue presented in this case involves how Facebook has used the personal information of its million users to make huge profits through advertising. Most of its revenue has been generated from the advertising. Based on the case study this has constituted 85% of the total revenue that they earned in 2011. The amount of personal information gathered by Facebook becomes a problem since it can be used to harm the user in so many different ways. Despite the fact that people may view Facebook as a way of finding and keeping in touch with families and friends, Facebook’s goal is to obtain as much as much personal information it can as this will help them be able to provide more relevant advertisement hence they will be able to generate more revenue. Furthermore, the levels of privacy controls used in Facebook seem to be inadequate to the amount of personal data they collect. Additionally, Facebook has a reputation of having privacy violations in the past, which makes it necessary to ensure that they have better privacy controls as they have personal data for millions of users.
- What is the relationship of privacy to Facebook’s business models?
Based on the case study, it is evident that Facebook generates most of its revenue through advertisements. In 2011, 85 % of its revenue came through advertisements. 15 % came through the sale of virtual goods. Furthermore, Facebook is free to all users thus; it has to focus on other ways of generating revenue. Additionally, if Facebook has more access to the personal information of the users, it can be able to provide accurate advertisements that suit the users. According to Alang (2010), the more Facebook knows about its users the more the specific the ads can be. Therefore, Facebook tracks the life of its users through the personal information it obtains thus can customize the advertisements to match the interests of the users. Consequently, one can make the conclusion that the privacy policies are the suggest hindrance to Facebook successfully implementing its business model.
- Describe the weakness of Facebook’s privacy policies and features. What management, organization and technology factors have contributed to those weaknesses?
According to Trepte and Reinecke (2011), Facebook’s privacy policies are burdensome and confusing. Furthermore, the privacy features are invasive and deceptive. For instance, the default setting for its privacy features is usually at the lowest and most open level (Trepte and Reinecke, 2011). Furthermore, the opt-out procedures are difficult and complex. This implies the users will have to be hands-on to ensure they protect their privacy. According to van Dijck (2013), one of the factors that have contributed to the weaknesses in the privacy policies of Facebook includes the frequent changing of the terms of services without proper means of notifying the users. This has made it difficult for users to be able to keep up with the updated information with issues regarding the policy adjustments.
- 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?
Facebook cannot be able to have a successful business model without invading privacy. Most of its revenue depends on the more information they have on the users. To reduce the dependence on privacy, Facebook needs to have more effective privacy policies. This will make their business model more dependent on information that users have provided willingly rather from the use of information without the users consent.
References
Alang, N. (2010). We're Not Fooled: Ignoring Privacy Is Facebook's Business Model. Techi. Retrieved August 23, 2013, from www.techi.com/2010/05/were-not-fooled-ignoring-privacy-is-facebooks-business-model/
Trepte, S., & Reinecke, L. (2011). Privacy Online. Dordrecht: Springer.
Dijck, J. v. (2013). The Culture of Connectivity: A Critical History of Social Media. New York: Oxford University Press.
