In my first post I would like to talk about something global, something that we all have to deal with – one of the biggest companies in the world Facebook and their ethical issues. You can’t really compare Facebook to any other company because they have a huge number of users (around 1 billion), following they have to make their service safe and comfortable for everyone. The problem with Facebook is that they constantly change privacy settings in order to make users information public, so when we usually click through “Terms and Condition”, it’s better stop and read, because somewhere there you agree to reveal your personal information to the whole world. The reason why Facebook does it is that our information gets to search engine and will appear more often, following it will also generate more “clicks” or “views”. Facebook makes 90% of revenue from ads, majority of them are priced per-click. Here is the answer: facebook makes revenue by selling their users.
There are two types of big companies: great investments and great businesses. Great businesses care about what consumer’s needs, how they can improve their service for users. Following their profit builds on consumer’s satisfaction. However, there are great investments type of companies that just try to flip their users over, in a dirty way, basically assuming that “they’re not that sharp to see a couple of details in Terms and Conditions, and who really cares?” That’s what makes facebook not a great business, but just a great investment.
Article : http://calacanis.com/2009/12/13/is-facebook-unethical-clueless-or-unlucky/
Video, you have to see that “Mark Zuckerberg gets hot under the collar over your privacy issues and sweats” : https://www.youtube.com/watch?v=o3hu3iG8B2g .