Facebook has over one billion users, and a large number of them are likely wary of Facebook’s privacy policy; I know I am.

That’s where Ello comes in.

Ello, a new social media platform, offers a unique value proposition or “manifesto”; it won’t collect users’ personal data nor generate advertisement revenue. Instead, it will profit by offering add-ons at an additional fee, like a “freemium”.

Although Ello is invite-only, it has been rapidly gaining signups thanks to a flaw in Facebook’s business model. Not only does Facebook track and sell users’ online activity to third parties, its policy requiring users signup with real identities has left users (especially musicians, artists, and LGBTQ community) feeling exposed.

Ello isn’t the first social network to protect user privacy from advertisers, but it’s one of the first to  brand and position themselves as such. Their logo – a black circle with a white smile – seems welcoming yet protected. Consequently, Ello has created a  niche in the social media market where they dominate – a niche  Facebook cannot penetrate unless they restructure their business model and revenue streams.

However, this doesn’t mean  I’ll be moving over to Ello now. It simply isn’t established enough yet. But, Ello does give users a glimpse at where social media is headed. Privacy protection is a point of difference Ello holds now, but it may be a direction other social networks follow suit in soon.

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References:

Article: http://www.cbc.ca/news/business/ello-social-network-making-waves-as-facebook-twitter-alternative-1.2777640

Text Hyperlink: http://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide/

Image Source: http://cbs997now.files.wordpress.com/2014/09/ello.jpg?w=620&h=349&crop=1

Milton Friedman argued business managers should not focus on corporate social responsibility, because that detracts from the ultimate goal of a business – to maximize profits. Well, with all due respect to the late Mr. Friedman, I’d say his theory no longer applies.

Times have changed.

To maximize profits, products must be engineered towards consumer preferences. These days, consumer preferences are leaning towards transparent and ethical companies. According to an International Business Times article, even big food firms are aiming to become more socially responsible. The article cites an example from NPR, which had reported on Nestle’s new rules concerning treatment of animals. The article also mentioned a  Reuters piece which had covered Kellogg’s Co.’s promises of reducing greenhouse gas emissions.

Edward Freeman’s stakeholder theory says all internal and external stakeholders must work together to prevent a business from declining. Consequently, consumers (external stakeholders), are now getting a say in company operations. They want companies with good business ethics, and if shareholders don’t listen, even if they are industry leaders (like Nestle and Kellogg’s), they’ll find themselves in decline.

Perhaps the shift these companies have made towards corporate social responsibility is less about morals and more about marketing a brand image. But if this change maximizes profits, helps the environment and community, and leaves consumers happy, then it could be considered a win-win situation.

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References:

Article: http://www.ibtimes.com/big-food-must-invest-social-responsibility-thrive-experts-say-16719

Image Source: http://www.naturalfoodfinder.co.uk/sites/default/files/images/kelloggs2.jpg

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