The ethical dilemma presented by Facebook's case is how the company can gain revenue from user information through advertising without violating user privacy. Facebook's business model relies on collecting extensive user data to serve targeted ads, but this conflicts with users' privacy expectations. While Facebook allows some privacy controls, its policies are complex and users may not understand how their data is used. For Facebook to be truly privacy-protecting yet profitable, it would need to give users clear notice and choice over data use through simpler privacy settings and controls.

1. Lecturer: Prof. Dr. Rusli Abdullah
(GST5083:MIS)
Prepared By:
Ismail Bin Mahedin
Samat Haron Bin Joll
Hjh. Sulzarina Bt Hj. Mohamed
Dyg Suhana Awg Bujang
Case Study:

2. Facebook Chief Executive
Mark Zuckerberg

3.  Facebook, a company grew up from a small network
site to a $50 billion company, gets almost all the
revenue from advertising.
 Facebook was founded 2004 by Harvard student
Mark Zuckerberg and originally called thefacebook.
 With the phenomenon growing in popularity,
Zuckerberg enlisted two other students, Duston
Moskovitz and Chris Hughes, to assist.
INTRODUCTION

4.  Ethical analysis is a systematic approach to figuring out
moral decision in a particular situation.
 5 steps involves in ethical analysis:
 Identify & clearly describe the facts
 Define the conflict or dilemma and identify the higher-order
values involved
 Identify the stakeholders
 Identify the options that can reasonably take
 Identify the potential consequences of your options
Question 1: Perform an ethical analysis
of Facebook. What is the ethical dilemma
presented by this case?

5.  According to ethical analysis of Facebook, ethical
dilemma presented are:
 Controversy over the handling and usage of the
extensive information it collects from its users.
 dilemma of how to gain revenues from user
information without violating their privacy.
 failed to consider its users privacy concern when it
introduced new software that users felt to be invasive.

6.  The more user share their data, the more accurate FB can
serve relevant advertisement to the users.
 FB wants the whole world being connected and
transparent, in order to gain income from that.
 FB’s best interest is to have
 users browsing habits, likes and interests as publicly accessible
as possible.
Question 2: What is the relationship of
privacy to facebook’s business model?

7.  User also can control shared information with 3rd party
applications and websites through their application settings.
 User also can control shared information with 3rd party
applications and websites through their application settings.
 FB allow advertisers to select characteristics of users they
want to show their advertisements
 Facebook’s privacy policy is difficult to comprehend
 user’s don’t really understand the options on privacy settings
Question 3: Describe the weakness
of Facebook’s privacy policies and
features?

8.  Management
 Its a goals of FB to gets its user to share as much data
as possible, so that they can serve the most relevant
advertisement to the user in order to generate income.
 Organization
 FB wants to be open and connected world wide, to
make more money but they are not offer the best
controls on their user personal data.
 Further more users are not really aware the privacy
setting in their FB’s account.
What management, organization
and technology factors have
contributed to those weaknesses?

9.  FB user’s friend are not notified if information about
them is collected by that user’s application. Many of
FB features and services are enabled by default when
they are launched without notifying users.
Cont..

10.  In our opinion, FB unable to have a successful
business model without invading privacy.
 FB currently serve as much as advertisement to their
user to earns income.
 No fees to be paid for joining FB, with hopes that
advertisement would bring in consumers.
 A critical challenge for FB to avoid offend user’s privacy.
Question 4: Will facebook be able to
have a successful business model
without invading privacy? Explain
your answer.

11.  FTC FIP principles:
 Notice/awareness (core principle)
 FB must disclose practices before collecting data.
 Choice/consent (core principle)
 Consumers must be able to choose how information is used
for secondary purposes.
 Access participation
 Consumers must be able to review and contest accuracy of
personal data.
 Security
 Data collectors (FB), must take steps to ensure accuracy,
security of personal data.
 Enforcement
 Must be mechanism to enforce FIP Principles.
Are there any measures Facebook
could take to make this possible?

12. THANK YOU