Facebook’s Privacy Changes Leave Developers Steaming
by Sheera Frenkel
Bhaskar Chakravorti, senior associate dean at The Fletcher School at Tufts University, said Facebook had to walk a fine line. “They have taken a blunt instrument approach, which is the right thing to do from a public relations standpoint,” he said. “But now they need to reach out to developers and smooth things over.”
Read the full article in The New York Times
Why the Rest of the World Can’t Free Ride on Europe’s GDPR Rules
The digital industry is riding an important—and turbulent—wave of change right now. As Facebook and others grapple with tough questions about data privacy and security practices, trust in social platforms appears to be plummeting. Companies and analysts are scrambling to figure out how to make privacy rules clear, protect user data, and evolve the business models that made them successful in the first place.
Read the full piece from Dean Chakravorti in Harvard Business Review
The Countries that Trust Facebook the Most are also the Most Vulnerable to its Mistakes
Whatever solutions the good folks at Facebook devise – or have thrust upon them by regulators and lawmakers – must work not just for the more recently outraged American or the already skeptical European user. The solutions must work for the world from where Facebook picked up its second billion users, and is looking to pick up its third.
Read the full piece from Dean Chakravorti in The Conversation
How Facebook Can Really Fix Itself
Company founder and CEO Mark Zuckerberg says he wants to win back users’ trust. But his company’s efforts so far have ignored the root causes of the problems they intend to fix, and even risk making matters worse. Specifically, they ignore the fact that personal interaction isn’t always meaningful or benign, leave out the needs of users in the developing world, and seem to compete with the company’s own business model.
Read the full piece from Dean Chakravorti in Quartz
raceAhead: Unilever Threatens to Pull Ads from Facebook
by Ellen McGirt
How Facebook and others will respond will be instructive. Bhaskar Chakravorti, Senior Associate Dean, International Business & Finance, Tufts University, and digital trust expert says the issue is basic business.
“Our research finds that companies working toward corporate social responsibility will only succeed if their efforts align with their core business models,” he says. An advertising model, which is how Facebook makes most of its revenue, encourages quantity, including harmful or untrustworthy content, over material that’s been vetted and verified. And when it turns out that bogus stories, hate speech, and screaming memes are more engaging, judgments get even cloudier.
Read the full article featuring quotes from Dean Chakravorit in Fortune
by Venkat Prasath Perumal (MALD 2018)
The number of people using the internet around the world is increasing at a rapid pace. With that, there has been steep expansion in global e-commerce. According to Euromonitor, in the US (the world’s biggest consumer market by sales volume), e-commerce accounts for 10% of all retail sales. Further, Euromonitor predicts that share will increase to 16.6% in 2021. All this growth brings immense business opportunities for companies like Amazon and Alibaba. At the same time, the number of people using social platforms on the web is also on the rise. As of 2017, Facebook had 2 billion global monthly users, followed by YouTube’s 1.5 billion, WeChat’s 889 million, and Twitter’s 328 million. Many of these internet companies generate revenue using targeted, personalized ads.
Mark Patel, McKinsey Digital, San Francisco shared his insights on digital trust
The growth of any platform-based business depends fundamentally on digital trust — the trust that the platforms create between sellers and customers which leads customers to buy seller’s products and services. For example: if Amazon’s product listings — the goods sold directly by Amazon and its partner merchants — couldn’t be verified as authentic products, customers wouldn’t buy them and might switch to a competitor. Similarly, a fraudulent phishing attack using customer’s stolen credit card is common in platforms. When this happens, the seller would suffer because, in addition to loss of merchandise, he would have to bear the costs of preparing and shipping the merchandise.
How Facebook could really fix itself
[Facebook] founder and CEO Mark Zuckerberg says he wants to win back users’ trust. But his company’s efforts so far have ignored the root causes of the problems they intend to fix, and even risk making matters worse. Specifically, they ignore the fact that personal interaction isn’t always meaningful or benign, leave out the needs of users in the developing world, and seem to compete with the company’s own business model.
Read the full piece from Dean Chakravorti in the Chicago Tribune