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Ethical, Legal and Other Public Issues-Overview

Overview 
Undertaking e-commerce transactions with partners or procuring goods or services using e-commerce entails considering legal and ethical obligations (though these may be complicated by jurisdiction issues). In theory, trading using e-commerce should be conducted under the same rules and regulations as with paper-based, word-of-mouth or telephonic systems. The main complication that e-commerce presents is centred on copyright, ownership of data/information and matters of censorship. 

Ethics is about understanding right and wrong. The increased reliance by business on computers in recent years means that there are a number of contentious and evolving issues relating to ethics in cyberspace. Decision-making in business tends to focus on profit-maximisation, but it is increasingly being recognised that sustainable profit over the long-term may best be achieved by taking careful consideration of the consequences that decisions may have for trust between stakeholders such as employees, competitors, suppliers, customers, local community, and shareholders. Ethical decision-making is called 'enlightened self-interest' business managers take 'ethical' decisions because of the positive impact on the financial bottom line.

In the realm of the internet, many of the ethical issues are still finding legal precedent. In the global context of e-commerce, the law simply does not yet provide sufficient guidance on how business should behave. 

Legal Issues versus Ethical Issues 
Laws are passed by governments and developed through case precedents (common law). Laws are strict legal rules governing the acts of all citizens within a particular jurisdiction. If a person breaks the law, that person has done something illegal, and can be held liable for punishment by the legal system.

In contrast, ethics is a branch of philosophy that deals with what is considered to be right and wrong. Ethics are supported by common agreement in a society as to what is right and wrong, but they are not subject to legal sanctions (except when they overlap with activities that also are illegal). 

Ethical standards and laws frequently lag technological innovation. E-commerce is taking new forms and enabling new business practices that may bring numerous risks, particularly for individual consumers, along with their advantages.



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