H.L.

Reynolds/ Umar

Ethics and Law

Ethics and Law Week 4 H.L. Reynolds/ Umar University of Phoenix MGT/400- E Business GA06BSM08 Larry Gray May 15, 2008

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Ethics and Law

Ethics, Law, and Regulations apply across the board for both Business to Business (B2B) and Business to Customer (B2C) for standardization. Businesses online must apply to equal and higher morals in the ecommerce industry. Accountability to clients and customers is very necessary quality. Ethics, Laws, and Regulations are to protect consumers and companies to enhance good business practices. Since business spilled over the World Wide Web, issues and controversies have played their part in its growth. The governments hold internet companies constantly to regulations, the music industry has sued individuals for file sharing, and consumers have been caught in illegal marketing pyramids. All these issues revolve to evolve proper ethical practices. Boundaries are set in order to prevent transgression from consumers and/ or companies. Limits stating proper protocol ensure fair transactions. Ethics, a general standard of rights practiced should start from within the company and read on its online framework. Usually these standards can be found in terms and conditions, displaying an open practice. Consumers look for these words throughout online services. Most are terms and conditions are rarely read, until an issue arises. Online frameworks set boundaries through terms, transaction agreements, and/ or mission statements. Parameters that creates jurisdiction for compliance, informing all parties involved. Without boundaries chaos would exist companies would be in court and businesses and consumers would not trust each other. When these boundaries are transgressed, it is no longer ethical and now law takes over. Law, a rule of conduct or action prescribed; instances that must apply. What happens when a United States company violates a law in Japan, who laws supercedes, United States or Japan?

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Ethics and Law

Of course, companies must abide by the ethics within their terms and conditions it serves as a code of honor, and every online whether Business to Business (B2B) or Business to Customer (B2C) site must comply with foreign international policy. United States companies enter territorial boundaries when consumers from within a foreign country log onto their perspective website. This action creates liability for businesses to the consumer, regardless of state. International countries enforce their policies when doing business within its framework. A Business to Business (B2B) or Business to Customer (B2C) should know and be able to accept foreign currency, through payment processing gateways. This is the concept of constructive notices when crossing a territory without a physical sign or warning. Application of new laws would then apply to businesses transacting with foreign consumers. Legitimacy of state governs the consumer and business for safe transactions. Should Business to Business (B2B) or Business to Customer (B2C) and/ or consumers violate any international laws the violated can file a case against the accused in either locations according to jurisdiction. Microsoft constantly finds opposing legalities in Europe. Rupert Murdock would have created a monopoly in the state of New York, upon acquisition of Newsday. The unforgettable breakup of the Bell phone companies; establishments doing business in acquiring, but subsequently creating an ethical issue that opposes sovereign policy. On taminthebeast.net lists the Top 10 internet crimes; Identity Theft, Home Shopping, and Sweepstakes ranked high. The normal point of contact is through email and email fraud up 11% from 2005 and 35% were credit card fraud followed by wire

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Ethics and Law

transfers and bank account debits. Internet is high and visible from the trained eye upon notification. The regulation of these acts had to take place once the internet became a valuable tool for fraud. Congress starting applying existing laws to internet users and acts such as; the Copy Right Act of 1976 had to updated and regulate for digital rights and the United Kingdom fraud Act of 2007 for phishing. Laws which came into play in the advent of internet use. Regulation, to bring under the control of law or constituted authority. New industries or areas such the World Wide Web and in its infant stages, fall under regulation. For websites, as mentioned before regulation would be found under terms and conditions, service agreements, or the famous disclaimer. In these a consumer should the companys liabilities standards, ethical code, or operation process. A set of principles, once agreed by consumer holds parties to a binding contract. Companies online whether a Business to Business (B2B) or Business to Customer (B2C) website must adhere to; Ethics, Law, and Regulation in order to operate domestically or with international consumers. Without set principles there would be no accountability and fraud cases would be the way of life online. A good set of terms and conditions will protect both and all parties involved for fair transactions and ensure safe environments for business.

H.L. Reynolds/ Umar Reference

Ethics and Law

Regulatory definition found on May 15, 2008 at http://www.merriamwebster.com/dictionary/regulatory Fraud Stats found on May 15, 2008 at http://www.tamingthebeast.net/blog/ecommerce/internet-fraud-statistics-0207.htm Law definition found on May 14, 2008 at http://www.merriamwebster.com/dictionary/law