Facebook Privacy:

There Is No Privacy
Jennifer Peterson
Seminole State College
 1. Perform an ethical analysis of Facebook. What is the ethical dilemma presented by the
case?

Facebook serves as the connection between lots of people around the world. Facebook does not
have diverse array of hot new gadgets or a full inventory of software for sale; instead, it has your
personal information, and the information of hundreds of millions of others with Facebook
accounts. Facebook can serve ads using highly specific details. For example, an Atlanta woman
who posts that she has become engaged might be offered an ad for a wedding photographer on
her Facebook page. In 2011, Facebook made $3.2 billion in advertising revenue, which
constituted 85% of its total revenue. That was good for Facebook, which launched its Initial
Public Stock Offering (IPO) in May 2012. However, this is not good news for the Facebook user.
Facebook is using users’ online activity to develop a frighteningly accurate picture of a
user’s life. Facebook’s partnership with the Department of Labor helps to connect job seekers
and employers as well as help families find lost pets after natural disasters and allow active duty
soldiers to stay in touch with their families. These are the reasons why so many people are on
Facebook. However, Facebook’s goal is to get it users to share as much data as possible, because
the more Facebook knows about user, the more accurately it can serve relevant advertisement to
users. Thirteen million users have never adjusted Facebook’s privacy controls, which allow
friends using Facebook applications to unwittingly transfer user data to a third party without the
users’ knowledge. The only option that user have is that Internet companies should be forced to
ask for permission before using users personal information and want the ability to opt out of
online tracking. The ethical dilemma in this case study is Facebook monitors its subscribers and
then sells the information to advertisers and app developers (Lauder & Lauder, 2016).

2. What is the relationship of privacy to Facebook’s business model?

The relation between users’ privacy and Facebook business model is very important because
advertising is the main revenue of Facebook. 70% of its five million users log in every day and it
is between 18 and 24 that advertisers want to collaborate with Facebook to make profits for both.
Talking privacy to Facebook is a bit ironic. Facebook’s entire business model is based on
aggregation and sharing user information. They give people a free social media platform to use
and in turn sell advertising and insights based on what they learn about the user. Facebook has
massive capabilities to collect, store, and analyze data. This allows Facebook to sell much
targeted advertising. Therefore, privacy is the Facebook business model. Facebook states its
regulations concerning to the rights and responsibilities derive from the Facebook principles, and
govern the relationship with users and others who interact with Facebook. Privacy is the claim of
individuals to be left alone, free from surveillance or interference from other individuals or
organizations, including the state. In terms of Facebook, the privacy of the individual is how
much information, personal or not, is seen by other users than the creator or provider of that
information. Internet technology has posed new challenges for the protection of individual
privacy. Facebook wants the world to be more open and connected, because it stands to make
more money in that world. Facebook wanting to make more money is not a bad thing, but the
company has a checkered past of privacy violations and missteps that raise doubts about whether
it should be responsible for the personal data of hundreds of millions of people (Lauder &
Lauder, 2016).

3. Describe the weaknesses of Facebook’s privacy policies and features. What management,
organization, and technology factors have contributed to those weaknesses?

The weakness behind Facebook’s privacy issues was a lack of communication between Facebook
and its users. Users were not aware that they were able to control what information was being
shared with external parties. The introduction of the “news feed” was met with opposition from
users because they felt it was too invasive. Instead of only sharing status updates, the news feed
shared additional information such as profile updates, adding new friends, and adding new
applications. Facebook incorrectly handling user information when deleting their accounts also
caused a backlash for Facebook. Facebook servers would keep user information permanently,
with the reasoning that it would be easier for the users to reactivate their accounts if they chose
to. Facebook states its regulations concerning to the rights and responsibilities derive from the
Facebook Principles, and govern the relationship with users and others who interact with
Facebook. There are no laws in the United States that give consumers the right to know what
data companies like Facebook have compiled. It is different in Europe where users can request
Facebook to turn over a report of all the information it has about users. Law enforcement
agencies use social networks to gather evidence on tax evaders, and other criminals; as well as
employers use social networks to make decisions about prospective candidates for jobs. In
August 2012, Facebook settled a lawsuit with the FTC in which they were barred from
misrepresenting the privacy or security of users’ personal information. Facebook was charged
with deceiving its users by telling them they could keep their information on Facebook private,
but then repeatedly allowing it to be shared and made public. Privacy advocate groups like the
Electronic Privacy Information Center (EPIC) want Facebook to restore its more robust privacy
settings from 2009, as well as to offer complete access to all data it keeps about its users (Lauder
& Lauder, 2016).

4. 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?

If Facebook would make active changes to improve users’ privacy then yes I believe they would
have a chance at a successful business model. If Facebook continues to wish to use the
information that people post on their accounts, a clear distinction must be made to the users
about what they are using the information for, and what information they will be using, in order
to reduce the legal risks and solidify the legality of their advertising. Once the Facebook
management can do this then a broader, more organized, and more successful advertising
campaign can be launched. Facebook is it is one of the largest social networking sites in the
world and is growing. Their interface is simplistic, clean, and tends to attract those looking for a
crisp, more structured, social networking environment. It represents a unique opportunity for
advertisers to reach highly targeted audiences based on their demographic information and
narrowly specified criteria. It is a gold mine of opportunity because of the information the site
has gathered and because of the richness of the social networking environment. Part of its status
as a first-mover in the social networking marketplace helps attract more users. But on the other
hand, Facebook has created large numbers of hostile users because of its privacy violations.
Facebook’s own popularity will injure its chances to attract advertisers to its site, claiming that
the engaging and immersive environment that draws visitors to the site makes users less likely to
click on the ads. Skeptics also believe that the current application system, where applications
tend to support one another via advertising through other applications without the aid of
extensive outside advertising, is an unsustainable model over the long term. Personally I do not
think Facebook can have a successful business model without invading privacy (Lauder &
Lauder, 2016).
References:
Laudon, J.P., Laudon K.C. (2015) Management Information Systems, Managing the
Digital Firm (14th ed.). Boston, MA: Prentice – Hall, Inc.