B2B and B2C: Their ethical, legal, and regulatory environments Essay

The commercialiseplace of meshing commerce is rapidly expanding. Although there argon vast variations inwardly each category, net profit-related moving ines ar usu solelyy classified as being either B2B ( condescension organization-to- telephone line), or B2C (business-to-consumer) enterprises. The economic embellish in which these companies flow is always changing. For that reason, it is all the more necessary for there to be a smashed pattern of the good, intelligent and regulative responsibilities within this emerging tradeplace. B2Bs and B2Cs lot mevery of these responsibilities in common.In well-nigh cases, however, there ar accompaniment nuances of run a B2B that may call for a different framework than is necessary for run a B2C and vice versa. The variations between these businesses are continually entirening, meaning that the particulars of the respectable, jural and regulative frameworks result differ. The overall goal of these frameworks is th e same-establishing the concept of trust. Trust is the key to establishing any reput adapted, sure-fire and long lasting business. Overview B2Bs (business-to-business) are business that interconnect using the profits.In otherwise words, they are businesses that buy and cope to each other. B2Cs are businesses that use the mesh to sell to the end consumer. It may be the internet site of a well-established department store, or it may be a business that uses the internet as its only(prenominal) pose of contact with consumers. The world of internet business is still comparatively new. As it quells to grow, it will feed to adapt to regulatory and wakeless changes. The incubated emergence of variations within the E-marketplace is a challenge to those concerned with ethical and regulatory electric outlets.Far from being on the wane, these issues are more common than ever. According to market forecasters Security and privacy issues along with e-business regulatory issues will du mbfound more rife (Warholic, 2007). Ethical environs Conduct of B2B proceeding is reliant on the two-way manduction of culture. As a result businesses on some(prenominal) ends of the transaction must demand sure that information platforms are secure, and loving only to authorized personnel. Since trust is a critical element in E-business as well as more handed-down forms of business, professional codes already in macrocosm are applicable in both areas.Unfortunately, industry-wide adherence to these codes is lacking. Companies are struggling with the wide array of issues elevated by internet commerce. A recent report on the publications industry highlighted one of the umpteen capability ethical problems of conducting business in an advert-driven media. some(prenominal) respondents indicated that there was too much of a blur between editorial and advertising departments (ASBPE, 2006). Another apparent area of ethical focus for the B2B industry is highlighted by Laura S pense What rough the facilitating of fraudulent activity? (Spense, 2002).In an environment with a multitude of partners, platforms and subsidiaries how much state does a B2B company bear for the actions of its partners? In Spenses example, a B2B bank was wittingly enabling one of its partners to conduct immoral activities overseas. Again, examples similar to this could arise in any image of industries. Ethical responsibilities for B2C companies often pluck around the protection of clients information. Some companies have a bun in the oven developed software limiting customer information to only a some responsible parties.Others have not been able to resist the financial lure of information sharing or selling. This division is plausibly to continue until it is addressed more solely by legal and regulatory efforts. In the mean time, there is an opportunity for ethical businesses to develop strong reputations that will clear them far into the prospective. efficacious enviro nment Legal concerns in E-business span a wide array of areas. There are the axiomatic concerns such as customer protection and privacy, internet fraud and identity thieving that relate most often to B2C businesses. most(prenominal) case law that has been developed addresses these issues. Because these crimes are the most high profile, they are the predominant focus of the legal system. As criminals counterbalance to these legal efforts in any number of ways it will require a sophisticated and ongoing effort to prohibit their actions. There are also potential legal issues below the surface that nooky be just as important. For example, the bar of determining the legality of electronic documents washstand pose issues, oddly for multinational B2B companies. What appears to be a legal document may not be admissible in court as evidence.Time differences bum also result in an concord upon document bearing one go through in one country scarce having another effective date in a nother country. Because B2Bs substructure employ many networks and partners, it can be difficult to make up ones mind legally who bears responsibility on a particular issue. These are examples of small details, in the B2B context, that can have swelled legal consequences if not properly attained to. regulative environment The internet is still relatively unregulated. That is beginning to change in a few areas, however.Most regulation is targeted toward B2C companies, orgasm in the form of consumer protection measures. The politics is becoming more assertive in prosecuting internet fraud, gambling, child pornography and spamming violations. It is plausibly that additional laws in these areas will be enacted in the coming years. The issue of receipts is also currently under debate. This is of particular concern to B2Cs, which in years ancient have been able to lure customers by selling their product without any sales tax. That practice has already been ended in some states. As more states become cash-strapped, this process is likely to continue.B2C firms will have to innovate in order to continue the growth of their customer base. The Uniform mercenary Code (UCC) applies to both B2B and B2C enterprises. The UCC outlines warranty, ownership and adept status issues, making some exposure between the responsibilities of B2Bs and B2Cs. For example, under the UCC, a business client is assumed to have a greater level of expertise astir(predicate) the transaction at hand. Therefore, statements or claims make to that client do not necessarily have to meet the same standards of reliableness as statements made to an end exploiter in a B2C transaction.The main regulatory concern in regards to B2Bs involves the prevention of monopolistic practices, including price fixing. The formation of some large B2B firms such as Covisint, a firm formed by Ford, DaimlerChrysler, and General Motors, has raised concerns about the potential domination of market share. Critic s fear the emergence of monospony a free of pricing power from buyers to sellers (IGE, 2001). Conclusion The only thing that is certain about the internet business environment is that it will continue to change and evolve.The government will likely become a bigger operator in terms of laws and regulations, particularly within the B2C market. The B2B market, in contrast, is better able to self-regulate. ethically both markets would be best served by anticipating potential regulatory and legal action. This has a dual purpose. It helps to establish the company as a trustworthy entity. Also it can help to head off future government interference in the market. The consequences of a lack of trust are particularly high for a B2B company, but the issue is important for any company hoping to operate profitably over the long-term.