Aisling McCartney 12:44, 9 Sep 2004 (EST)
ECommerce has revolutionized the business world by expanding the marketplace and redefining the traditional organizational structure. Its economic influence has been considerable resulting in implications for politics, society and ethics. The future for eBusiness is bright. It will continue its rapid expansion and may eventually take over from traditional business practices however in today’s society, there are very few laws enabling an effective transition. ECommerce is a global concept (Hill, 2003, p12). Society, on the other hand, believes in state sovereignty, patriotism and segregation. Political and social barriers continue to prevent effective online transactions and hinder the potential for growth in eBusiness.
One barrier to effective eCommerce is security. Author and eBusiness practitioner, Paul May (2000, p.35), describes the World Wide Web as being “inherently insecure� and this insecurity is a “fundamental drawback to its use in a commercial setting�. The introduction of the Internet has encouraged growth in areas such as commerce and telecommunications however it has also enabled a new type of crime: computer crime. The infrastructure of the Internet and anonymity of its users make it ideal for offences such as money laundering, hijacking system accounts, piracy and computer viruses (Adam, Dogramaci, Gangopadhyay and Yesha, 1999, p.156). Intangible or intellectual property is highly valuable in the New Economy (Hartley, 2002, p. 162) but continual advances in piracy and computer virus technology makes it very difficult to protect.
Ownership and accountability is another issue preventing eCommerce expansion. Currently, the Internet operates as a separate entity, not owned by an individual, company or state (Rowley, 2002, p.25). This independence allows for uninhibited access by every individual with a computer however it also makes accountability virtually impossible. What is socially, politically and ethically acceptable in one country might be illegal in another. For example, advertising cigarettes is legal in countries such as the United States however in Australia, there are severe penalties for companies that breach laws regarding cigarette promotion. If a cigarette company utilizes the World Wide Web for its marketing and advertising activities, they may reach Australian audiences yet they are not breaking any laws.
When Tim Berners-Lee developed the World Wide Web in 1989, he wanted it to become a communications facilitator free from regulation (Berners-Lee, 1996). Unfortunately, this type of facility is just not commercially viable. If the World Wide Web is to be successfully utilized for eBusiness, regulatory bodies need to standardize practices across the globe. Although individual countries have implemented laws regarding computer crimes, these laws do not affect offenders outside of that sovereign state. International legislation must ensure security for all parties involved. Laws regarding intellectual property should be continuously updated and there must be tougher penalties for online crimes. This may mean the end of Berners-Lee’s regulation-free vision, but it provides an opportunity for a new, eCommerce-friendly online environment.
Aisling McCartney 06:42, 29 Oct 2004 (EST)
ECommerce - Legal and Ethical Issues
E-commerce and the Law-Regulation of E-commerce
Adam, N.R., Dogramaci, O., Gangopadhyay, A., and Yesha, Y. (1999) Electronic Commerce: Technical, Business and Legal Issues, New Jersey: Prentice-Hall Inc.
Berners-Lee, T. (1996) “The World Wide Web: Past, Present and Future�, retrieved October 24, 2004, from http://www.w3.org/People/Berners-Lee/1996/ppf.html
Hartley, J. (2002) Communication, Cultural and Media Studies: The Key Concepts Third Edition, London: Routledge.
Hill, C.W.L. (2003) Global Business Today Second Edition, New York: McGraw-Hill Higher Education
May, P. (2000) The Business of eCommerce: From Corporate Strategy to Technology, Cambridge: Cambridge University Press.
Rowley, J. (2002) E-business: Principles and Practice, New York: Palgrave
