Addressing Data Privacy Issues at Facebook

Introduction

The lack of regulation and the growing influence of algorithms have eroded trust in

Facebook, thereby necessitating a thorough analysis of the organization's structure. By utilizing

the "6 elements of Organization structure," this response will identify the underlying problems,

stakeholders affected, and propose a solution plan.

Problem

Facebook's specialization lies in connecting people, but it has led to unintended

consequences concerning data privacy. The company's algorithm-driven business model

prioritizes engagement and targeted advertising, which can compromise user privacy (Wiese,

Martínez-Climent & Botella-Carrubi, 2020). Moreover, Facebook's complex and ever-evolving

privacy policies contribute to confusion and mistrust. Ambiguous guidelines can lead to

inconsistent enforcement and privacy breaches. Furthermore, the organization hierarchical

structure has impeded efficient decision-making thereby hindering the prioritization of data

privacy. Additionally, Facebook centralized decision-making could overlook the significance of

privacy concerns (Distefano et al., 2019). The organization centralized data management

approach increases the risk of data breaches, as a single point of control presents a lucrative

target for malicious actors. Furthermore, it limits user control over their data. The combination of

all these issues have made users increasingly wary of how their personal information is collected,

stored, and utilized by the platform. This lack of trust stems from Facebook's failure to

effectively address data breaches, misuse of personal data by third parties, and the prominence of

algorithms that often result in harmful content dissemination.

Stakeholders Affected
a. Users: The primary stakeholders affected are Facebook's users who entrust the platform with

their personal information. Their privacy concerns and lack of trust have led to a decline in user

engagement and, subsequently, a negative impact on the platform's reputation and user base.

b. Advertisers: These rely on accurate and reliable user data for targeted advertising. The erosion

of user trust and concerns over data privacy can lead to a decrease in ad revenues and potentially

damage relationships with advertisers (Distefano et al., 2019).

c. Regulators: Government bodies and regulatory authorities play a crucial role in ensuring data

privacy and protection. Facebook's data privacy issues have drawn significant scrutiny from

regulators, leading to investigations, fines, and potential legal ramifications.

d. Shareholders: These have a vested interest in the financial performance and long-term

sustainability of Facebook. Data privacy concerns can impact the company's stock price and

investor confidence.

Proposed Approach

To address the data privacy issues at Facebook, a combination of mitigation and

adaptation approaches is recommended. Mitigation involves minimizing the risks associated with

data privacy breaches, while adaptation focuses on reshaping the organization's structure,

policies, and practices to align with privacy regulations and user expectations.

Proposed Solution

a. Strengthen Data Privacy Policies and User Control

Facebook should provide clearer and more accessible explanations of data collection and usage

practices, ensuring users have a better understanding of how their information is handled. In

addition, they should implement robust privacy settings that allow users to easily customize the
level of information shared and provide clear opt-in mechanisms for data collection and targeted

advertising (Hollenbaugh, 2019).

b. Enhance Data Security and Breach Response

Facebook should strengthen data encryption, access controls, and intrusion detection systems to

protect user data from unauthorized access and potential breaches (Hollenbaugh, 2019). In

addition, they should develop a dedicated team trained to handle data breaches swiftly, ensuring

timely communication, proactive measures, and support for affected users. By instilling a culture

of privacy awareness and accountability, employees will be better equipped to handle user data

responsibly.

c. Algorithmic Accountability and Content Moderation

Facebook should provide clearer explanations of how algorithms curate and prioritize content,

ensuring transparency and mitigating the spread of harmful or misleading information (Ayaburi

& Treku, 2020). They should also expand and improve the content moderation team to

effectively identify and remove harmful or false content, reducing the dissemination of harmful

speech.

d. Collaboration with Regulators and External Experts:

The organization should also proactively engage with regulatory authorities to ensure compliance

with data privacy regulations and collaborate on industry-wide standards. Moreover, they should

collaborate with independent experts and organizations specializing in privacy and data

protection to conduct regular audits, assess policies, and provide recommendations for

improvement.

f) Increased Transparency and External Audits

verification of compliance. Transparency reports detailing data requests from governments and

law enforcement agencies should also be regularly published.

Impact on Facebook

Implementing the proposed solution will have several positive impacts on Facebook. To

start with, strengthening data privacy policies, user control, and security measures will foster

trust among users, potentially leading to increased user engagement and retention (Ayaburi &

Treku, 2020). Secondly, collaborating with regulators and adopting best practices will position

Facebook as a responsible corporate citizen, reducing legal risks and potential fines. Thirdly,

transparency, improved content moderation, and algorithmic accountability will bolster

Facebook's brand reputation, attracting both users and advertisers. Fourthly, by addressing data

privacy concerns, Facebook can establish a solid foundation for sustainable growth, ensuring

long-term success and shareholder value (Ayaburi & Treku, 2020). In addition, by leading the

industry in data privacy practices, Facebook can differentiate itself from competitors, attracting

privacy-conscious users and advertisers.

Conclusion

Addressing Facebook's data privacy issues requires a holistic approach that encompasses

various elements of organizational structure. By adopting a combination of mitigation and

adaptation strategies, Facebook can rebuild trust among stakeholders, enhance transparency,

strengthen user control, and demonstrate a commitment to privacy protection. Implementing the

recommended solutions will position Facebook as a responsible leader in the digital landscape,

fostering long-term sustainability and continued growth while upholding user privacy rights.

References
Ayaburi, E. W., & Treku, D. N. (2020). Effect of penitence on social media trust and privacy

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171-181.

Distefano, D., Fähndrich, M., Logozzo, F., & O'Hearn, P. W. (2019). Scaling static analyses at

Facebook. Communications of the ACM, 62(8), 62-70.

Hollenbaugh, E. E. (2019). Privacy management among social media natives: An exploratory

study of Facebook and Snapchat. Social Media+ Society, 5(3), 2056305119855144.

Wiese, M., Martínez-Climent, C., & Botella-Carrubi, D. (2020). A framework for Facebook

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76-87.