Chapter 17 Legal, Ethical, and Social Impacts of EC Learning Objectives Describe the differences between legal and ethical issues in EC Understand the difficulties of protecting privacy in EC Discuss issues of intellectual property rights in EC Describe unsolicited ad problems and remedies Understand the conflict between free speech and censorship on the Internet Electronic Com merce Prentice Hall © 2006 Learning Objectives Describe major legal issues in EC Describe the types of fraud on the Internet and how to protect against them Describe representative societal issues in EC Describe the role and impact of virtual communities on EC 10 Describe the future of EC Electronic Com merce Prentice Hall © 2006 Legal Issues Versus Ethical Issues ethics The branch of philosophy that deals with what is considered to be right and wrong Electronic Com merce Prentice Hall © 2006 Legal Issues Versus Ethical Issues • The Major Ethical and Legal Issues Discussed in this Chapter – – – – – Privacy Intellectual property rights and online piracy Unsolicited electronic ads and spamming Free speech versus censorship Consumer and merchant protection against fraud Electronic Com merce Prentice Hall © 2006 Legal Issues Versus Ethical Issues • EC Ethical Issues – Non-Work-Related Use of the Internet • • • Employees are tempted to use e-mail and the Web for non-work-related purposes In some companies, this use is tremendously out of proportion with its work-related use The utility of monitoring employee usage can be considered “one of the most controversial EC issues” Electronic Com merce Prentice Hall © 2006 Legal Issues Versus Ethical Issues – Codes of Ethics: Useful guidelines for a corporate Web policy: • • • • Issue written policy guidelines about employee use of the Internet Make it clear to employees that they cannot use copyrighted trademarked material without permission Post disclaimers concerning content, such as sample code, that the company does not support Post disclaimers of responsibility concerning content of online forums and chat sessions Electronic Com merce Prentice Hall © 2006 Legal Issues Versus Ethical Issues • Codes of Ethics: Useful guidelines for a corporate Web policy: – – – – – Make sure that Web content and activity comply with the laws in other countries Make sure that Web content and activity comply with the laws in other countries Make sure that the company’s Web content policy is consistent with other company policies Appoint someone to monitor Internet legal and liability issues Have attorneys review Web content to make sure that there is nothing unethical, or illegal, on the company’s Web site Electronic Com merce Prentice Hall © 2006 Privacy • privacy The right to be left alone and the right to be free of unreasonable personal intrusions Collecting Information about Individuals – – – – – – Web Site Registration Cookies Spyware and Similar Methods RFID’s Threat to Privacy Privacy of Employees Privacy of Patients Electronic Com merce Prentice Hall â 2006 ã Protection of Privacy Notice/awareness – Choice/consent opt-out clause Agreement that requires computer users to take specific steps to prevent the collection of personal information opt-in clause Agreement that requires computer users to take specific steps to allow the collection of personal information Electronic Com merce Prentice Hall â 2006 10 Virtual (Internet) Communities ã virtual (Internet) community A group of people with similar interests who interact with one another using the Internet Characteristics of Communities One possibility is to classify members as traders, players, just friends, enthusiasts, or friends in need Electronic Com merce Prentice Hall © 2006 36 Virtual (Internet) Communities Commercial Aspects of Communities Search communities Trading communities Education communities Scheduled events communities Subscriber-based communities Electronic Com merce Community consulting firms E-mail-based communities Advocacy communities CRM communities 10.Mergers and acquisitions activities Prentice Hall © 2006 37 Virtual (Internet) Communities • Types of Virtual Communities – – – – • Transaction Purpose or interest Relations or practice Fantasy Financial Viability of Communities: Revenue model of communities can be based on: – – – – – Sponsorship Membership fees Sales commissions Advertising Combination of these Electronic Com merce Prentice Hall © 2006 38 Exhibit 17.5 Value Creation in Electronic Communities Electronic Com merce Prentice Hall © 2006 39 Virtual (Internet) Communities Eight critical factors for community success: Increase traffic and participation in the community Focus on the needs of the members; use facilitators and coordinators Encourage free sharing of opinions and information—no controls Obtain financial sponsorship This factor is a must Significant investment is required Electronic Com merce Consider the cultural environment Provide several tools and activities for member use; communities are not just discussion groups Involve community members in activities and recruiting Guide discussions, provoke controversy, and raise sticky issues This keeps interest high Prentice Hall © 2006 40 Virtual (Internet) Communities Key Strategies for Successful Online Communities Handle member data sensitively Maintain stability of the Web site with respect to the consistency of content, services, and types of information offered Provide fast reaction time of the Web site Offer up-to-date content Offer continuous community control with regard to member satisfaction Establish codes of behavior (netiquette/guidelines) to contain conflict potential Electronic Com merce Prentice Hall © 2006 41 The Future of EC • Nontechnological Success Factors – – – – – – – – Internet Usage Opportunities for Buying M-Commerce Purchasing Incentives Increased Security and Trust Efficient Information Handling Innovative Organizations Virtual Communities Electronic Com merce Prentice Hall © 2006 42 The Future of EC • Nontechnological Success Factors – – – – – – – – – Payment Systems B2B EC B2B Exchanges Auctions Going Global E-Government Intra-business EC E-Learning EC Legislation Electronic Com merce Prentice Hall © 2006 43 The Future of EC • EC Technology Trends – – – – – – – – Clients Embedded Clients Wireless Communications and M-Commerce Pervasive Computing Wearable Devices RFID Servers and Operating Systems Networks Electronic Com merce Prentice Hall © 2006 44 The Future of EC • EC Technology Trends – – – – – – – – EC Software and Services Search Engines Peer-to-Peer Technology Integration Web Services Software Agents Interactive TV Tomorrow’s Internet Electronic Com merce Prentice Hall © 2006 45 The Future of EC • EC Technology Trends utility computing Computing resources that flow like electricity on demand from virtual utilities around the globe—always on and highly available, secure, efficiently metered, priced on a pay-as-you-use basis, dynamically scaled, self-healing, and easy to manage – Grid Computing coordinates the use of a large number of servers and storage, acting as one computer Electronic Com merce Prentice Hall © 2006 46 The Future of EC • Integrating the Marketplace with Marketspace – – – Probably the most noticeable integration of the two concepts is in the click-and-mortar organization A major problem with the click-and-mortar approach is how the two outlets can cooperate in planning, advertising, logistics, resource allocation, and so on and how the strategic plans of the marketspace and marketplace can be aligned The impact of EC on our lives will be as much as, and possibly more profound than, that of the Industrial Revolution Electronic Com merce Prentice Hall © 2006 47 Managerial Issues What sorts of legal and ethical issues should be of major concern to an EC enterprise? What are the most critical ethical issues? Should we obtain patents? What impacts on business is EC expected to make? Do we have a community? Electronic Com merce Prentice Hall © 2006 48 Summary Differences between legal and ethical issues Protecting privacy in EC Intellectual property rights in EC Unsolicited ads and spamming Conflict between free speech and censorship Electronic Com merce Prentice Hall © 2006 49 Summary Legal issues Protecting buyers and sellers online Societal issues and EC The role of virtual communities 10 The future of EC Electronic Com merce Prentice Hall © 2006 50 ...Learning Objectives Describe the differences between legal and ethical issues in EC Understand the difficulties of protecting privacy in EC Discuss issues of intellectual property rights in EC Describe... Legal Issues Versus Ethical Issues • The Major Ethical and Legal Issues Discussed in this Chapter – – – – – Privacy Intellectual property rights and online piracy Unsolicited electronic ads and. .. access electronic technology in general, and the Internet and EC in particular Other Societal Issues – – – Education Public safety, criminal justice, and homeland security Health aspects Electronic