MANAGEMENT INFORMATION

SYSTEMS
ASSIGNMENT
 CASE STUDY ANALYSIS -4
FACEBOOK PRIVACY: YOUR LIFE FOR SALE

Five Forces The case study goes into Facebook's rocky history, showcasing its
ambition to bring people closer together despite severe data breaches and
scandals. Facebook's inability to protect user data, as seen by the Cambridge
Analytica scandal and Russian election meddling, damaged confidence and
raised questions about its privacy policies.
Despite assertions that Facebook is improving privacy protections and
complying with rules such as GDPR, its data practices remain contentious.
Users frequently unintentionally divulge sensitive information, making efforts
to govern data use difficult. The company's economic model is mainly based on
user data for advertising reasons, creating ethical concerns regarding privacy
and consent. While Facebook promises to prioritise privacy in the future,
questions persist about its commitment and the efficiency of its efforts. The
case underscores the complexities of combining user privacy with commercial
interests in the digital era, sparking debates about social media regulation and
consumer rights.

QUESTION ANSWERS
1. Perform an ethical analysis of Facebook. What is the ethical dilemma
presented by this case?
Ans) The ethical dilemmas are:
 Balancing Privacy and Profit Facebook's principal income strategy involves
collecting user data for targeted advertising, which may violate users'
privacy rights. The widespread collecting of personal information, including
search history and contacts, raises worries about users' autonomy and
privacy.
 Uncertainty in gaining user permission owing to complicated privacy rules
that are often revised. This lack of transparency undercuts the idea of
informed consent by leaving consumers unsure about how and where their
data is used.
 The Cambridge Analytica incident highlighted the dangers of using user data
for malevolent ends, threatening democracy and social peace. Such
violations highlight the importance of Facebook reassessing its
responsibility in terms of user data protection.
 Facebook has been criticized for its lack of openness and accountability
over privacy issues. The company's activities have damaged user and
regulatory trust.
 Facebook's Business Model, Despite providing a free service, the company
relies on user data as a currency. When users accept the platform's Terms
of Service, they implicitly consent to these practices.
 User Empowerment it allow individuals to handle their personal
information without compromising privacy. Using a "free" service should
not come at the expense of exchanging private data.

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

Ans) Facebook earns money largely by showing adverts to its users. To make
these advertising more successful, Facebook collects a variety of data on its
users, such as their likes, clicks, and interactions with others. This enables
Facebook to display adverts personalised to each user's interests and choices.
However, the practice of gathering user data for advertising reasons raises
serious privacy issues. A significant example is the Cambridge Analytica
controversy, in which a corporation obtained access to the personal
information of millions of Facebook users without their knowledge. This
information was subsequently utilised to influence political campaigns,
generating significant ethical concerns regarding user privacy. Facebook has
been chastised for its lack of transparency surrounding data collection and
usage rules. The length and complexity of its privacy regulations make it
difficult for customers to completely comprehend what they are consenting to.
Despite these problems, Facebook's principal income source remains targeted
advertising. Nonetheless, there is an increasing need for Facebook to find a
balance between its commercial interests and its users' privacy rights. This
includes increasing openness about data practices and giving people more
choice over their privacy preferences.

3. Describe the weaknesses of Facebook’s privacy policies and features.

What management, organization, and technology factors have contributed
to those weaknesses?
Ans) Weaknesses in Facebook's privacy policies and features stem from various
management, organizational, and technology factors:

1. Facebook's privacy policies are confusing, making it difficult for users to

comprehend how to keep their data private.
2. When you use Facebook to log into other applications, those apps may get
unauthorised access to your Facebook information. This can lead to your
data being abused.
3. Facebook has not been careful in monitoring how other firms use your data.
They fail to verify that these corporations follow privacy regulations.
4. Despite promises to change, Facebook continues to share user data with
phone makers and app developers without first gaining user approval. This
breaches their claims to protect users' privacy.
5. Facebook's platform is vulnerable to abuse, making it easier for
unscrupulous actors to propagate false news or messages, especially during
elections.
6. Despite the fact that Facebook gives alternatives for controlling your data,
many users either don't understand them or ignore them.
7. While Facebook is compelled to follow privacy laws, these restrictions may
not fully address all privacy problems.
To address these concerns, Facebook should simplify its user interface,
constantly monitor third-party data use, and adhere to its user privacy
obligations.

4. Will Facebook be able to have a successful busi- ness model without

invading privacy? Explain your answer. Could Facebook take any mea-
sures to make this possible?
Ans) If Facebook wants to continue doing business without harming people's
privacy, it will face a difficult challenge. The item we read describes how
Facebook has occasionally let people's sensitive information fall into the wrong
hands. To address this, Facebook must do a few things:
1. Ensure transparency around data usage. People should understand exactly
what happens to their information when they use Facebook.
2. Facebook should offer users greater control over their privacy settings. This
includes allowing people to pick what information they wish to share and
with whom.
3. Facebook must adhere to privacy policies. It must follow the law while also
taking into account what the people want.
4. Facebook must take responsibility and promptly address errors.
5. Facebook should utilise users' data in a fair and courteous manner. It should
not utilise people's information just for profit.
If Facebook can do all of these tasks, it may be able to rebuild people's
confidence and keep its company running. However, if it continues to infringe
on people's privacy, it may face much more serious consequences.