chapter14 e-commerce regulatory-ethical-and social environments 13
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E-Commerce: Regulatory, Ethical, and Social Environments
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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.
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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?
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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
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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
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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
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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
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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
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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
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Intellectual Property LawFAN AND HATE SITES
cyberbashing
Domain name that criticizes an organization or person
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Privacy Rights,
Protection, and Free SpeechSOCIAL NETWORKS CHANGING THELANDSCAPE OF PRIVACY AND ITS PROTECTION
Global View
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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
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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
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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
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Privacy Rights,Protection, and Free Speech
RFIDs Threat to Privacy Other MethodsPrivacy of Employees
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Privacy Rights,
Protection, and Free SpeechPRIVACY PROTECTION BY INFORMATIONTECHNOLOGIES
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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
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Privacy Rights,
Protection, and Free SpeechPRIVACY PROTECTION BY ETHICAL PRINCIPLES
Notice or awareness
Choice or consent Access or participationIntegrity or security Enforcement or redress
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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
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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
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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
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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
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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?
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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
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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
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Public Policy and Political EnvironmentsINTERNET CENSORSHIP BY COUNTRIES
Internet censorshipThe control or suppression of the publishing oraccessing of information on the Internet
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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
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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
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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
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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?
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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
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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
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