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  2. 2. facebook <ul><li>Agenda </li></ul><ul><li>Introduction </li></ul><ul><li>Company Background </li></ul><ul><li>Privacy concerns </li></ul><ul><li>Content and censorship </li></ul><ul><li>Psychological effects and Responses </li></ul><ul><li>Solutions </li></ul>
  3. 3. facebook <ul><li>Introduction </li></ul><ul><li>The case will take a high level approach to defining and analyzing social networking. </li></ul><ul><li>It will outline the data controversies of facebook. </li></ul><ul><li>The case will focus on the reaction of facebook and the overall impact of privacy concerns amongst users of facebook. </li></ul>
  4. 4. facebook <ul><li>What is Social Networking? </li></ul><ul><li>The interaction between a group of people who share common interest and/or activities. </li></ul><ul><li>Social networking has increasingly shown a direct correlation in marketing. </li></ul><ul><li>Social networking architecture consists of a profile, friends, groups, discussions, blogs and widgets. </li></ul>
  5. 5. facebook <ul><li>Mark Zuckerberg was a well known sophomore for his creation of facemash. </li></ul><ul><li>Facebook was launched in February 2004 by Mark Zuckerberg, and co-founders Eduardo Saverin, Dustin Moskovitz and Chris Hughes from their Harvard dorm room. </li></ul><ul><li>Initially facebook’s service only extend to the students of Harvard College, however by March 2004 </li></ul><ul><li>facebook had stretched its operations to other </li></ul><ul><li>Ivy League schools. </li></ul><ul><li>By Septmber 2006, facebook was opened to </li></ul><ul><li>all individuals over the age of 13 with a valid </li></ul><ul><li>e-mail address. </li></ul>
  6. 6. facebook <ul><li>Vision and Mission </li></ul><ul><li>“ Giving people the power to share and make the world more open and connected.” </li></ul>
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  10. 10. facebook <ul><li>The beginning of Privacy issues.. </li></ul><ul><li>2006- Introduced News Feed & Mini Feed </li></ul><ul><li>Appears on member’s homepage and profile, shows new updates and recent information about friends. </li></ul>
  11. 11. facebook <ul><li>Criticized…. </li></ul><ul><li>Protest groups </li></ul><ul><li>-Students against Facebook News Feed (official petition to Facebook)” </li></ul><ul><li>-Bring Back the Old Facebook </li></ul><ul><li>“ News feed put everyone’s </li></ul><ul><li>lives on display.” </li></ul>
  12. 12. facebook <ul><li>FB explanation.. </li></ul><ul><li>“ News feed and Mini-feed are a different way of looking at news about your friends, but they do not give out any information that wasn’t already visible.” </li></ul><ul><li>- Ruchi Sanghvi, Product Manager of NF & MF </li></ul><ul><li>Criticism and Protest groups… </li></ul><ul><li>If you were Mark Zuckerberg, what would have been your actions? </li></ul>
  13. 13. facebook <ul><li>Mark Zuckerberg’s actions </li></ul><ul><li>New privacy settings to control information in News Feed and Mini-feed. </li></ul><ul><li>Apology letter from Mark Zuckerberg </li></ul><ul><li>Were Zuckerberg’s efforts enough to protect the users privacy? </li></ul>
  14. 14. facebook <ul><li>Privacy page allows users to choose which type of stories go into Feed of your friends’ homepage. </li></ul>
  15. 15. facebook <ul><li>2007- Public facing search function </li></ul><ul><li>Beacon </li></ul><ul><li>Purchase activity of users </li></ul><ul><li>on 40 partner websites </li></ul><ul><li>could be viewed. </li></ul>
  16. 16. facebook <ul><li>Criticism </li></ul><ul><li>Protest group & Online Petition </li></ul><ul><li>Involvement of Federal Trade Commission (FTC) </li></ul><ul><li>From an ethical perspective, was launching Beacon a correct decision? </li></ul>
  17. 17. facebook <ul><li>Remedy: Opt-in System </li></ul><ul><li>Option to decline to take part in the advertising system, by selecting – ‘No, Thanks.’ </li></ul><ul><li>Switched to opt-in system </li></ul><ul><li>“ We appreciate feedback from all Facebook users and made some changes to Beacon” - statement from Facebook Inc. </li></ul><ul><li>Beacon was eventually shut down and $ 9.5 million were donated to various privacy groups in legal settlement. </li></ul>
  18. 18. facebook <ul><li>2009 – Revised privacy policy,“ Terms of Use” </li></ul><ul><li>Removes the statement mentioning that FB could not use member’s information after they remove it or discontiue their accounts. </li></ul>
  19. 19. facebook <ul><li>“ The reason we updated our terms was to make this more clear. We wouldn’t share your information in a way you wouldn’t want.” </li></ul><ul><li>- Mark Zuckerberg </li></ul><ul><li>Announced ‘ Statement of Rights and Responsibilties’. Facebook clearly mentioned that they did not claim ownership of user’s content. </li></ul>
  20. 20. facebook <ul><li>Instant Personalization </li></ul>Instant personalization means that if you show up to the Internet radio site Pandora for the first time, it will now be able to look directly at your Facebook profile and use public information Microsoft’s Docs.com, Yelp And Pandora
  21. 21. facebook <ul><li>Mark Zuckerberg invited for an interview at D8? Should he accept/reject the invitation? </li></ul><ul><li>Why or why not? </li></ul>
  22. 22. facebook <ul><li>Zuckerberg accepts the invitation, but was </li></ul><ul><li>unprepared…. </li></ul><ul><li>http://www.youtube.com/watch?v=o3hu3iG8B2g </li></ul>
  23. 23. facebook <ul><li>Redesigning the Website </li></ul><ul><li>March 11 th , 2009 – FB redesigned its homepage. </li></ul><ul><ul><li>Filter news-feed </li></ul></ul><ul><ul><li>Update status </li></ul></ul><ul><li>Filter information shared from homepage </li></ul><ul><ul><li>E veryone </li></ul></ul><ul><ul><li>Friends of friends </li></ul></ul><ul><ul><li>Friends only </li></ul></ul><ul><ul><li>Custom </li></ul></ul>
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  25. 25. facebook http://www.facebook.com/video/video.php?v=681507022303
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  27. 27. facebook <ul><li>Facebook in China </li></ul><ul><li>Why did Facebook enter China? </li></ul><ul><li>Why was Facebook banned? </li></ul><ul><li>Banned since July 2009 </li></ul><ul><li>Guide coverage of sensitive issues. </li></ul><ul><li>Business advantage to Chinese Competitiors </li></ul><ul><li>Facebook was becoming a political tool. </li></ul>
  28. 28. facebook <ul><li>“ The lesson Beijing has taken from the Middle East uprisings is that the Internet can be the starting point of large-scale popular protests and that it has indeed contributed to the spread of “global values,” such as freedom of expression and human rights. In the minds of the leadership, these factors generate an urgent need to reassert control.” </li></ul><ul><li>(New York Times, 7 th April 2011) </li></ul>
  29. 29. facebook <ul><li>If Facebook decides to re-enter China, how can it do so? </li></ul><ul><li>Should they be ethical in their approach or accept the Chinese censorship? </li></ul><ul><li>How should Facebook deal with this dilemma, keeping their vision & mission </li></ul><ul><li>at the same time? </li></ul><ul><li>Google & Facebook facing the same issues? </li></ul><ul><li>Why or why not? </li></ul>
  30. 30. facebook <ul><li>Facebook re-enters China </li></ul><ul><li>Bloomberg Article – 11 th April, 2011 </li></ul>
  31. 31. facebook <ul><li>Psychological effects </li></ul><ul><li>Makes people jealous, unhappy and increase stress in their lives. </li></ul><ul><li>Responses </li></ul><ul><li>Governments of China, Vietnam, Iran, Syria, Uzbekistan banned access to facebook. </li></ul>
  32. 32. facebook <ul><li>Solutions </li></ul><ul><li>TRUSTe certified privacy policy </li></ul><ul><li>Privacy settings & redesigned </li></ul><ul><li>website </li></ul><ul><li>Hired lobbyists to push the </li></ul><ul><li>agenda </li></ul><ul><li>Established ‘Global Safety Advisory Board’ </li></ul><ul><li> http://www.youtube.com/watch?v=m0nVGWi_6eM&feature=related </li></ul>
  33. 33. facebook <ul><li>Future Challenge </li></ul><ul><li>Compliance with new regulations on privacy set up of different countries. </li></ul><ul><li>Food for thought.. </li></ul><ul><li>It is ethical for future employers to scan social networking sites such as Facebook and Twitter when evaluating a candidate? Why or why not. </li></ul>
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