chapter14 e-commerce regulatory-ethical-and social environments 13

7/28/2019 Chapter14 E-Commerce Regulatory-Ethical-And Social Environments 13

1/38

E-Commerce: Regulatory, Ethical, and Social Environments


2/38

Learning Objectives1. Understand the foundations for legal and ethical issues in

EC.2. Describe intellectual property law and understand its

adjudication.

3. Explain privacy and free speech issues and theirchallenges.

4. Describe types of fraud on the Internet and how toprotect against them.

5. Describe the needs and methods to protect both buyersand sellers.

6. Describe EC-related societal issues.7. Describe Green EC and IT.

Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall 14-1


3/38

Ethical Challenges and GuidelinesETHICAL PRINCIPLES AND GUIDELINES

Example: Who Owns User-Generated Content?

business ethics A form of applied ethics that examines ethicalprinciples and moral or ethical problems that arise in abusiness environment

The Issues of Internet Abuse in the WorkplaceMonitoring Employees Is It Ethical?



4/38

Ethical Challenges and GuidelinesethicsThe branch of philosophy that deals with what is

considered to be right and wrongprivacy The right to be left alone and free of unreasonablepersonal intrusions



5/38



6/38

Ethical Challenges and GuidelinesEC ETHICAL ISSUES

Related to legal issues:Intellectual property rightsPrivacy Free speech versus censorshipConsumer and merchant protection against fraud

Nonwork-Related Use of the InternetCodes of Ethics



7/38


8/38

Intellectual Property LawINTELLECTUAL PROPERTY IN E-COMMERCE

intellectual property(IP)

Creations of the mind, such as inventions, literary andartistic works, and symbols, names, images, and designs,used in commerceintellectual property law

Area of the law that includes patent law, copyright law,trademark law, trade secret law, and other branches of the law such as licensing and unfair competition



9/38

Intellectual Property Lawcopyright An exclusive right of the author or creator of a book,movie, musical composition, or other artistic property toprint, copy, sell, license, distribute, transform to anothermedium, translate, record, perform, or otherwise use

infringementUse of the work without permission or contracting for

payment of a royalty



10/38

Intellectual Property Lawdigital rights management (DRM) An umbrella term for any of several arrangements thatallow a vendor of content in electronic form to controlthe material and restrict its usage

fair useThe legal use of copyrighted material for noncommercialpurposes without paying royalties or getting permission

patent A document that grants the holder exclusive rights to aninvention for a fixed number of years



11/38

Intellectual Property Lawtrademark A symbol used by businesses to identify their goods andservices; government registration of the trademarkconfers exclusive legal right to its use

trademark dilutionThe use of famous trademarks in public that diminishes thecapacity of the mark to distinguish goods or services, or

tarnishes the mark in the eyes of the consumer



12/38

Intellectual Property LawFAN AND HATE SITES

cyberbashing

Domain name that criticizes an organization or person



13/38

Privacy Rights,

Protection, and Free SpeechSOCIAL NETWORKS CHANGING THELANDSCAPE OF PRIVACY AND ITS PROTECTION

Global View



14/38

Privacy Rights,

Protection, and Free SpeechPRIVACY RIGHTS AND PROTECTION

opt-out

Business practice that gives consumers the opportunity to refuse sharing information about themselvesopt-in Agreement that requires computer users to take specific

steps to allow the collection of personal information



15/38

Privacy Rights,

Protection, and Free SpeechFREE SPEECH ONLINE VERSUS PRIVACY PROTECTION

Free Speech Online Versus Child Protection Debatelegal precedent A judicial decision that may be used as a standard insubsequent similar cases

THE PRICE OF PROTECTING AN INDIVIDUALSPRIVACY



16/38

Privacy Rights,

Protection, and Free SpeechHOW INFORMATION ABOUT INDIVIDUALS ISCOLLECTED AND USED ONLINE

Website RegistrationCookiesspyware All unwanted software programs designed to steal

proprietary information, or that target data storescontaining confidential information



17/38

Privacy Rights,Protection, and Free Speech

RFIDs Threat to Privacy Other MethodsPrivacy of Employees



18/38

Privacy Rights,

Protection, and Free SpeechPRIVACY PROTECTION BY INFORMATIONTECHNOLOGIES



19/38

Privacy Rights,

Protection, and Free SpeechPRIVACY ISSUES IN WEB 2.0 TOOLS AND SOCIALNETWORKS

Presence, Location-Based Systems, and Privacy Free Speech via Wikis and Social Networks



20/38

Privacy Rights,

Protection, and Free SpeechPRIVACY PROTECTION BY ETHICAL PRINCIPLES

Notice or awareness

Choice or consent Access or participationIntegrity or security Enforcement or redress



21/38

Privacy Rights,

Protection, and Free SpeechOnline Privacy ClarificationThe USA PATRIOT Act Versus Privacy Government Spying on Its Citizenry Platform for Privacy Preferences Project (P3P) A protocol allowing websites to declare their intendeduse of information they collect about browsing users

PRIVACY PROTECTION IN COUNTRIES OTHER THAN THE UNITED STATES



22/38


23/38

Other EC Legal IssuesTHE LEGAL AND REGULATORY ENVIRONMENTelectronic discovery (e-discovery)

Discovery in civil litigation that deals with informationin electronic format; also referred to as electronicallystored information (ESI)

Types of Data E-Discovery

How Electronic Discovery Is UsedE-Discovery and Social Networks



24/38

Other EC Legal IssuescyberbullyingThe use of information and communicationtechnologies to support deliberate, repeated, andhostile behavior by an individual or group, that isintended to harm others

Cyberbullying Versus CyberStalking

The Possible Damage of Cyberbulllying



25/38

Consumer and Seller

Protection from Online FraudCONSUMER (BUYER) PROTECTION

Representative Tips and Sources for YourProtectionThird-Party Assurance Services

Protection by Third-Party Intermediary TRUSTes Trustmark Better Business Bureau Which? Web Trust Seal and OthersEvaluation by Consumers



26/38

Consumer and Seller

Protection from Online FraudComputer Fraud and Abuse Act (CFAA)Major computer crime law to protect governmentcomputers and other Internet-connected computers

SELLER PROTECTION What Can Sellers Do?



27/38

Consumer and Seller

Protection from Online FraudPROTECTING BUYERS AND SELLERS:ELECTRONIC AND DIGITAL SIGNATURES

electronic signature A generic, technology-neutral term that refers to the various methods by which one can sign an electronicrecord Authentication and Biometric ControlsFraud Detecting Systems

GOVERNMENT REGULATION OF E-COMMERCE



28/38

Public Policy and Political EnvironmentsNET NEUTRALITY APPROVED BY THE FCCTAXATION OF EC TRANSACTIONS

taxationThe process whereby charges are imposed on individualsor property by the legislative branch of the federalgovernment and by many state governments to raisefunds for public purposes



29/38

Public Policy and Political EnvironmentsINTERNET CENSORSHIP BY COUNTRIES

Internet censorshipThe control or suppression of the publishing oraccessing of information on the Internet



30/38

Public Policy and Political Environmentsregulatory complianceSystems or departments in an organization whose jobis to ensure that personnel are aware of and take stepsto comply with relevant laws, standards, policies, andregulations



31/38


32/38


33/38

Societal Issues and Green ECGreen computingThe study and practice of eco-friendly computingresources; is now a key concern of businesses in allindustries not just environmental organizationsGreen ITBegins with manufacturers producing environmentally friendly products and encouraging IT departments toconsider more friendly options like virtualization, powermanagement, and proper recycling habits



34/38

Societal Issues and Green ECHow to Operate Greener Businesses, Data Centers,and Supply ChainsGlobal Green RegulationsElectronic Product Environmental AssessmentTool (EPEAT) A searchable database of computer hardware that meets

a strict set of environmental criteria



35/38


36/38

Managerial Issues1. What legal and ethical issues should be of major concernto an EC enterprise?

2. What are the most critical ethical issues?3. How can intellectual property rights be protected when it

comes to digital content?4. How can patent costs be monitored effectively?5. What is the ethical principle of protecting the privacy of

customers?6. How can a company create opportunities in the global

trend toward green EC?



37/38

Summary1. Understanding legal and ethical challenges and how

to contain them2. Intellectual property law

3. Privacy, free speech, defamation, and theirchallenges

4. Fraud on the Internet and how to protect consumersagainst it

5. Protection of buyers and sellers6. Societal impacts of EC7. Green EC



38/38

C i h 2012 P Ed i I

All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior writtenpermission of the publisher. Printed in the United States of America.

Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall

chapter14 e-commerce regulatory-ethical-and social environments 13

Documents