E-Business Evolution

2009 March 19
by Safe Shaikh

In the realm of modern businesses, it is difficult to find a business organization that does not conduct at least a part of its business on the internet. When an organization decides to enter the electronic world of e-business, that organization can find itself operating in a virtual world without borders. Suddenly that company can be receiving business from consumers and businesses located in several countries, across several time zones. Furthermore, that company possibly subject to international and ethical challenges.
E-Business
People are becoming dependent more often on computer these days. Computers are being used for all aspect of people’s life from personal to business. Furthermore, recent trend in use or perhaps addiction to internet has gain even more attention. Large portion of population worldwide is hooked to internet for popular increase in demand for emails, communication, information, entertainment and even doing business. For this new addictions trend e-business has become important part of business. “E-Business is the conduct of automated business transactions by means of electronic communications networks.” (M. Papazoglou, P. Ribbers, 2006) Today, E-Business has become a crucial part of organization in ways that it would be impossible to operate without it.
Legal Issue
There are many legal issues that companies deals with as result of conducting e-business. One is such where the information of product presented on website must be appropriately presented. Not displaying sufficient information of product can misled buyer something which can be a liability to that company. Secondly, fraud is greater risk as there is no personal one-on-one relationship between buyers and sellers through e-business. As a result of not having boundaries, buyer could be any where in world. In some instance buyer could be in country which United States does not have any international trade agreement. Additionally, it is also important for organization to consider how to handle export control restriction. For example, the buyer could be in country of Iraq conducting e-business. Therefore, the organization must be able isolate the transaction which involves export to restricted countries and take appropriate actions. The organization could face a fine if not complied with export control restriction.
Privacy and security would also important legal issue for the organization. In conducting e-business, there are always risks of computer viruses, worms, and even hacker stealing personal customer information along with credit cards information. There are many securities, and virus protection software which can help the organization in conducting e-business while reducing risk, however, these risks can never be eliminated. Therefore, legal issue of security and privacy still is concern for many if not all organization.
When e-business is conducted within the United States, the laws governing criminal activity fall within the jurisdiction of the United States. But when e-business is conducted between countries, they are governed by international law. International law is the law that governs affairs between nations and that regulates transactions between individuals and businesses of different countries. However, there is no single legislative source of international law. All countries of the world and numerous international organizations are responsible for enacting international laws. There is no single world court that is responsible for interpreting international law. There are, however, several courts or tribunals that hear and decide international legal disputes of parties that agree to appear before them. (Cheesman, Chapter 8, 2004). International laws are usually generated from four different sources. The four sources are treaties and conventions, custom, general principals of law, and judicial decisions and teachings. The courts having jurisdiction over criminal activity on the internet would be decided by the court systems in the country of origination and the country of reception. However, an e-business dispute involving possible civil litigation would be handled differently. When civil disputes develop between e-business corporations that are operating across international boundaries, determining who has jurisdictional authority over the dispute can be complicated. In most disputes, this problem can be alleviated or even prevented by both parties drafting and agreeing to a comprehensive contract.
Ethical Issue
Business ethics defines how a company integrates a core values such as honesty, trust and fairness into policies, practices, process and procedure. “ethics is a branch of philosophy that deals with what is considered to be right and wrong. Over the years, philosophers have proposed many ethical guidelines, yet what is unethical is not necessarily illegal. Ethics are supported by common agreement in a society as to what is right and wrong.” (E. Turban, D. Viehland, J. Lee, 2006) Businesses have many on going trainings for their employees to ensure all employees are following policies and procedures. Some time even good managers commit unethical act because they do not carefully think through. All companies have policies that are supposed to help managers make right decision. Even then sometime manager gives in to what they perceive to be the pressure. For example, when boss tells them “Achieve specific sale, period,” In my opinion, those mangers will do every thing they can to achieve specific sale, even if they have to break their own beliefs. This action is not acceptable. These actions are unethical. It is manager’s obligation to do what is right, just and fair. Since Enron corporate scandal, the ethic in business world has taken even more attention. Especially in e-Business, the ethical issues are even difficult to alleviate. The main reason is due to complexity in difference of culture, background, and region.
Conclusion
In Summary, almost all the companies conduct e-business via internet. Internet provides company opportunity to conduct business globally. It opens door to global trade market. It provides information, and method of exchanging data. Positive outcome as result of e-business has changed the way business operates these days. E-business is a virtual store which is open to world. It has no geographic or jurisdictional boundaries. As a result, legal and ethical issues are primary problem in conducting e-business.

References
M. Papazoglou and P. Ribbers Wiley, (2006) e-Business: Organizational and Technical Foundations (1st ed.) Hoboken, NJ
Cheesman, H. (2004). Business Law: Legal, E-Commerce, Ethical, and International Environments. Prentice-hall, Inc. A Pearson Education Company.
E. Turban, D. King, J. Lee, and D. Viehland (2006) E-Commerce: A Managerial Perspective (4th ed.) Prentice Hall Upper Saddle River, NJ

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