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FacebookBy:Arwa Al-IssaBushra Al-KadhiEtessam Al-HazzaLujain Al-TamimiLujain AlthunayanMay Al-Humaimeedi

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Outline

• Background• Issues • Statistics• Conclusion and Recommendations

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Background

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History

2004 20062005

thefacebook.com founded by Mark

Zuckerberg and the co-founder Eduardo Saverin.

thefacebook.com reached a large

portion of U.S and Canada universities

The company dropped ‘The’ from the domain

name and acquires facebook.com domain

Facebook expanded to include more than 2000 international university,

25,000 high school and few recognized institutions.

Facebook became public for everyone aged 13 and above.

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Investments

Jim Breyer

$12.7 million of venture capital

Peter Thiel $500,000 for 10.2% of the

company

Li Ka-shing

invested $60 million

1.6% share of Facebook

for $240 million

Microsoft

Profitability and Marketing

• Revenue models:1. Advertising.2. Game development companies.

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Facebook Ethical Issues

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• Mark Zuckerberg has been sued by three students from Harvard University who claimed that Facebook was their idea.

• The complainants asked a judge to give them all of the assets and ownership rights over the entire Facebook site, and be paid damages equal to its value.

• In 2008, they got a financial settlement of $20 million in cash as well as stock in Facebook worth at least $10 million

Copyright infringement

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Privacy

Many users today share their personal information online through social networks. Facebook has an ethical responsibility to provide its users with a high degree of privacy so the users should have full control over the use of their personal information. However, it has made a number of highly controversial moves related to privacy.

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News Feed (2006)

• Users’ friends are being notified when they made changes to their profiles.

• News Feed includes information such as profile changes, upcoming events, and birthdays, among other updates.

• It upset many users by not giving them control of who could see their updates, or the ability to opt out so, friends can easily tracks their activities.

• Mark Zuckerberg apologized to users and changed this feature to be appropriate customizable privacy feature.

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Beacon (2007)

• It was a part of Facebook's advertisement system that allows third party websites to broadcast information to a user’s Facebook friends notifying them about the user’s activities and actions in a specific website.

• In addition, Facebook records information about a user’s browsing habits on all Beacon partner sites which enable the company to target users with specific ads.

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Beacon (2007)

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Places

• A location based service that allows users to check in at a particular real-world location and shares information with their friends.

• It provides users the option to check in a friend at a location, even without the friend’s permission. This check-in is then automatically broadcast out to the friend’s Facebook contacts and the friend is being notified that s/he has been checked in somewhere.

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Opt-Out and Informed Consent

Opt-Out:• Facebook follows an opt-out approach as its default privacy setting.• Sometimes users are giving an option to opt-in but they must go

through a sophisticated user interfaces in order to adjust their privacy settings. So, users simply ignore these interfaces and left their settings at the default.

• Facebook has a specific goal in mind when it designed the options in this manner.

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Opt-Out and Informed Consent

Informed Consent• Users are not being aware about the implications of their privacy choices

that are being taken upon them due to the poor explanation of the meaning of privacy settings that Facebook provides.

• Facebook sees that these two strategies help in the financial and business growth of the company, although they do not appear as the most ethical approach.

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Facebook Social Issues

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Pressure to be entertaining

Guilt from rejecting user

requests or being blocked

by friends

Fear of missing important social

information

Criticism from other Facebook

users

Fear of offending contacts

Stress:

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Lead to depression, self-loathing, rage and hatred, and social isolation.

Envy:

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Facebook Political Issues

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Conclusion and Recommendations

Due to the loud public outcry regarding violations: Facebook improved the user control over the use of their personal

information by simplifying the privacy settings interface and made it much easier to deal with.

Facebook switched most of the privacy setting to be opt-in and improved user awareness to ensure fully informed consent before implementing privacy changes or new features.

Facebook started to consider any possible implications in different countries that may result from its contentand hence take the proper action accordingly.

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Statistics

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Online Survey

Social Media Rank

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References• [1] M. Sparkes. (2011, Augest 23). The Ten Most Popular Social Networking Websites [Online]. Available:

http://www.telegraph.co.uk/technology/google/8718580/The-ten-most-popular-social-networking-websites.html• [2] D. Kirkpatrick, “Social Networking and The Internet,” in The Facebook Effect, 1st ed. New York, 2010, ch.3, pp. 77.• [3] S. Phillips. (2007, July 25). A brief history of Facebook [Online]. Available: http://www.guardian.co.uk/technology/2007/jul/25/media.newmedia• [4] D. Kirkpatrick, “The Future,” in The Facebook Effect, 1st ed. New York, 2010, ch.8, pp. 321.• [5] D. Kirkpatrick, “Investors,” in The Facebook Effect, 1st ed. New York, 2010, ch.5, pp. 125. • [6] D. Kirkpatrick, “Investors,” in The Facebook Effect, 1st ed. New York, 2010, ch.5, pp. 126-127• [7] D. Kirkpatrick, “The Facebook Effect,” in The Facebook Effect, 1st ed. New York, 2010, ch.1, pp. 170-171.• [8] E. Auchard. (2008, Mar 27). Li Ka-Shing Ups Facebook Stake To $120 Million: Source [Online]. Available: http://www.reuters.com/article/2008/03/28/us-facebook-

li-idUSN2731908420080328 • [9] T. Johansmeyer. (2012, Feb 1). Facebook’s Financials [FACEBOOK S-1] [Online]. Available: http://www.insideipo.com/2012/02/revealed-facebooks-financials-

facebook-s-1/ • [10] B. Carter, Cis, “The Like Effect: The Power of Positive Marketing,” in The Like Economy: How Businesses Make Money With Facebook, 2nd ed. New York, 2012,

ch.1, pp 2-3.• [11] D. Zarrella, A. Zarrella, “Introduction to Social Networking,” in The Facebook Marketing Book, 2nd ed. Sebastopol, Canada, 2011, ch.1, pp 7.• [12] Facebook Team. (2012, September). Facebook Payments [Online]. Available: http://developers.facebook.com/docs/payments/• [13] D. Kirkpatrick, “Investors,” in The Facebook Effect, 1st ed. New York, 2010, ch.5, pp. 74-84. • [14] T. Simmons, The Ethics of Privacy on Facebook, St. Edward‟s University, 2011.• [15] D. Palmer, “Privacy Revisited,” in Ethical Issues in E-Business: Models and Pennsylvania, 2010, ch. 10, pp. 142.• [16] K. Laudon, C. Traver, “Ethics, Law and E-commerce,” in E-Commerce 2011, 7th ed. Prentice Hall, 2011, ch. 8, pp. 553-555.• [17] AFP. (2011, Jan 26). Facebook reported inaccessible in Egypt [Online]. Available:

http://www.google.com/hostednews/afp/article/ALeqM5jK3UhbzReiwvzyJImym-FEeZb87A?docId=CNG.737c6f9342ecee94153df06ff00b5617.a1 • [18] (2011, Jan 6). Censorship_of_Facebook [Online]. Available: http://en.wikipedia.org/wiki/Censorship_of_Facebook • [19] K. Sibal. (2011, Dec 6). Government 'Censorship'? Facebook To Remove Content That Violates Its Terms [Online]. Available:

http://articles.economictimes.indiatimes.com/2011-12-06/news/30481657_1_objectionable-content-kapil-sibal-facebook-page • [20] (2007, Oct 14). Criticism of Facebook [Online]. Available: http://en.wikipedia.org/wiki/Criticism_of_Facebook • [21] M. Sachoff. (2011, Feb 18). Does Facebook Stress You Out? [Online]. Available: http://www.webpronews.com/too-many-facebook-friends-causes-stress-2011-02 • [22] Population Country Comparison TOP 100, [Online]. Available: http://www.indexmundi.com/g/r.aspx?t=100&v=21&l=en • [23] Facebook Statistics by Continent [Online]. Available: http://www.socialbakers.com/countries/continents/

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Thank you

Questions