Ethical, Legal and Regulatory Issues Paper

Topics: Electronic commerce, Ethics, Marketing Pages: 2 (580 words) Published: October 5, 2010
Ethical, Legal and Regulatory Issues Paper
Ethical, legal and regulatory issues are concerns that traditional brick-and-mortar businesses have dealt with for years. Becoming an e-business increases the number of concerns that business-to-consumer and business-to-business establishments must address. Many of the ethical, legal and regulatory issues faced by business-to-consumer and business-to-business companies are similar; however, some differences do exist. This paper will explain how ethical, legal and regulatory issues differ on a business-to-consumer site compared to a business-to-business site.

Ethics can be defined as a set of moral principles or values. Basically, ethics are treating people, or in the case of businesses, customers, with respect by providing the customer with an environment that protects privacy. With business-to-business organizations the customer is other businesses. Business-to-business organizations know information concerning each other’s business so ethical behavior is imperitive for these types of companies. With business-to-consumer organizations the customer is the individual purchasing the product. If an account is created by the customer the business-to-consumer organization has access to the customer’s personal information; therefore, ethical consideration is important. An example of non-ethical behavior is when Amazon.com pushed certain books on the web-site while accepting kickbacks from the publishers of the books (Schneider, 2009). Due to the lapse in ethical judgment Amazon.com faced the possibility of consumers and businesses losing faith in the services that Amazon.com could provide. Amazon.com fixed the problem by offering rebates to consumers that purchased the books; however, if Amazon.com had not taken swift action to rectify the situation they could have caused serious problems for their company.

Legal and regulatory issues are another concern that business-to-consumer and business-to-business organizations...

References: Schneider, G. (2009). Electronic Commerce (8th ed.). Retrieved July 8, 2010 from UOP
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