SUBMITTED BY:-

PARVESH SHARMA
MANPREET KAUR
AKSHAY TIWARI
PUNEET GULERIA
GAGANDEEP KAUR

INTRODUCTION TO FACEBOOK
Type Public
Traded as NASDAQ: FB
Founded February 4, 2004
(10 years ago)
Headquarters Menlo Park, California, US
Area served United States (200405)
Worldwide (2005present)
Founder(s)
Mark Zuckerberg
Eduardo Saverin
Andrew McCollum
Dustin Moskovitz
Chris Hughes
Key people Mark Zuckerberg
(Chairman and CEO)
Sheryl Sandberg
(COO)
Industry Internet
Revenue US$7.87 billion (2013)
Operating income US$2.80 billion (2013)
Net income US$1.50 billion (2013)
Total assets US$17.89 billion (2013)
Total equity US$15.47 billion (2013)
Employees 7,185 (June 2014)
Subsidiaries Instagram
WhatsApp
Oculus VR
PrivateCore
Website facebook.com
Written in C++, PHP and D language
Alexa rank 2 (September 2014)
Type of site Social networking service
Registration Required
Users 1.28 billion (monthly active, March 2014)
Available in Multilingual (70)
Introduction
Facebook is a social networking site launched at Harvard
by Mark Zuckerberg in February 2004. Facebook was
expanded throughout colleges in America before; in
September 2006 it was launched worldwide.

As of January 2008 Facebook had over 60 million users, an
average daily growth of about 200000 new users, and
around 65 billion page viewings every month.
FACEBOOK CASE STUDY
In November 2007, social media giant, Facebook
introduced a controversial marketing tool, the Beacon tool.
The tool immediately drew criticism from the online
community, claiming violation of privacy and breach of
user agreement by the company.
Beacon was applied to all Facebook users by default
Users were not permitted to disable all data sharing
activity and Beacon tracked activity every time Facebook
users accessed a partner website
To bring additional money to shareholders, this tool
promised potential financial innovation.

Facebook Wants You To Be Less
Private
PROBLEM OF THE CASE AND
RELEVANCE TO BUSINESS ETHICS

The moral issue of the case centers on privacy concerns
Beacon, which is embedded into a Facebook partners
The information of the user would be made available to the
other user.
Which would reduce the privacy of the user and would
make it more of public to the user.
As per the business ethics sharing of the personal context
of the people is an illegal offence which makes facebook
and beacon a part of business unethical practices.

Project Beacon The Facebook Beacon is similar to a
news feed. When you buy something or view
something on another site this information will appear
in your Facebook newsfeed.

Originally intended as an opt out application,
Facebook have been forced to change their stance due
to a user backlash and have now given users the chance
to opt out instead.

What is Project Beacon?

Facebook Claims
The makers of the site claim the application will give
its users even more information on what their friends
are currently watching, doing, eating and whatever
else.
Marketers on the other hand will have much greater
scope for attracting new customers.
The best way to market any product is by the use of
friends sharing information
Is it an invasion of our privacy?
Some may argue just by having a Facebook account
that we are already relinquishing rights to our privacy.
Although we agree with this to an extent we still
currently have some semblance of control over the
personal details which we reveal to our Facebook
friends.
By tying into the Facebook ad's application we are
losing much of this control.
Beacon Issues
The main issue we have with the beacon is do we really
want people to know what we have been buying and
viewing.
Most people 'friends' on Facebook are not exactly what
could be called close. Many are passing
acquaintances and some may even be people we have
never met.
Do we really want these people to know intimate
details about our buying preferences and private life?
Do we want friends or relations to know what we have
bought; they could be gifts for these friends.

CHALLENGES FACED BY FACEBOOK
Lawsuits from those who feel their privacy rights have been
violated.
Loss in revenue generation.
Alternative way to generate revenue if they quit beacon.
Develop an alternative solution to generate revenue.
Cultural and Social factor prevailing in new potential
market do not allow such a activity.
Loss in business opportunity.
Escalating tension amoung existing users.

SOLUTION TO THE FACEBOOK
Questions
Q.1 Why does social networking website appeal to so many
people? What are people gaining and sacrificing by using
social networking website?
Q.2 What ethical issues does beacon raise for facebook and
its various stakeholders?
Q.3 Do you support Mark Zuckerbergs position that Beacon
is merely a natural technological extension of word of
mouth referrals or the facebook critics position that beacon
is an unwarranted commercialized invasion of privacy?
Explain your position?
Q.4 In your view, how, is at all, can the battle between
facebook advertiser and facebook user is resolved?


CONCLUSION
Not to hurt the personal feeling of the users they just
introduce beacon.
To generate revenue and aid companies for advertising
there new products
But after the complains they realize that they dont have to
revel the personal data of the users without their
permission.
Users are very conservative about there personal
information they should not resort to such practises.




It is obvious Facebook needs to find some means of
generating a significant income to justify their share-price.
Facebook ads gives them this opportunity, but is this
invasion into our privacy going to ostracise users and cause
them to choose a different social network.
At this time Facebook may well consider they are
untouchable when it comes to the world of social
networking.
This is a dangerous attitude to take, the internet is littered
with social network sites who at the peak have taken a
similar stance. Believing that having gained all these users
means they will stay forever is a falsehood.