Facebook's entire business model relies on collecting and sharing users' personal information with advertisers in order to sell targeted ads. This presents an ethical dilemma between users' privacy and Facebook's need to generate revenue. Facebook's privacy policies and features have been weak, lacking transparency around how much data is collected and shared. For the company to be profitable, it will be difficult for Facebook to change its current business model that invades users' privacy through data collection and use.

1. F ACEBOOK: ITS’ ABOUT THE MONEY
GROUP 7

2. INTRODUCTION
• Social Networking service launched in
February 2004.
• Founded by Mark Zuckerberg with his college
roommates and fellowHarvard
University students
• Facebook Fast Facts:

4. PROBLEM STATEMENT

5. QUESTION OF CASE STUDY
• 1) Perform an ethical analysis of Facebook.
What is the ethical dilemma presented by
this case?
- Advertisers (engage with users based upon
the information shared by users such as age,
gender, location, education, work history or
specific interests)
- Facebook wants the world to be more open
and connected because it stands to make
more money in that world.

6. 2) What is the relationship of privacy to
Facebook’s business model?
- Facebook’s entire business model is based on
aggregation and sharing user information
- Give people a free social media platform to
use and in turn sell advertising.
- Facebook has massive capabilities to collect,
store and analyze data.
- Facebook to sell very targeted advertising

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

8. a) Beacon advertising service:
- Service served as a way to inform users of
purchases and activities of their friends
outside of Facebook
- Problems: 1) Users themselves had to turn off
the service to not have their information
shared.
- 2) Even when users turned off the service it
continued to share their information.

9. b) News feed:
- 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.

10. 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?
• No, because Facebook as a social networking
website provides people with many kinds of
advantages to communicate with others
• Business model intends to generate revenue and
profits. As more and more people register the
site, the brand image is increasing
• Facebook’s value and growth potential is
determined by how effectively it can leverage the
personal data is aggregated about its users to
attract advertisers

11. CONCLUSION
Advertising is the mainly revenue of Facebook.
Therefore, in my opinion, we don’t think
Facebook will be able to have a successful
model without invading privacy.