In this assignment, I will establish how Facebook utilizes the four components of a legally astute social media marketing manager who utilizes social media outlets for consumer transactions and how each component can mitigate the risk involved in doing business in cyberspace. Also, it will list and analyze methods of alternative dispute resolution and determine which would be most effective in resolving genuine disputes that arise with consumers who may make purchases from businesses that provide links via social media. I will also determine how the federal government can best control these transactions, since consumer transactions on social media can occur across state lines. In addition, ...view middle of the document...
The social media market has a future marketing success, and Facebook is a prime marketing component in that success.
For Facebook to achieve and maintain the business dominance it has achieved in the virtual world, Facebook has adopted the core legal knowledge that is a necessity for the business to be managed properly. As shown by Bagley (2013), in the “Managers in the legal environment” textbook, the four components of legal astuteness are:
• a set of value laden attitudes about the importance of the law to the firm’s success
• A proactive approach to legal issues and regulation
• The ability to exercise informed judgment when managing the legal aspects of business
• Context-specific knowledge of the law and the appropriate use of legal tools (Bagley, 2013 pg 11).
These four components are used by Facebook ensure that the company maintains its proper legal balance between social media provider and social media marketing provider. This is accomplished through the establishment of corporate compliance directorates, and the inherent sponsor –client arrangements for the products that are marketed through the website. Facebook works to ensure that all legal issues are resolved as fairly, justly and timely as possible. Facebook’s ability to mediate any of these matters contributes to the company’s capability to manage the operations as a whole. Facebook has a working understanding of the context in which the services that are provided, so that in the likelihood of a legal issue, Facebook is able to mitigate the legal actions to the product manufacturer/seller. All of these aspects work to defend Facebook in the event of legal conflicts. The company legal compliance directorate ensures that all products advertised are in legal standing and does not support the sale of substandard products, such as pirated or copyright conflicted merchandise. The third and fourth aspects, with their ability to work as a mediator and in as such, have a working knowledge of any legal issues to ensure that all grievances are being addressed, and no other pending action will occur, or be left outstanding.
If there is ever a situation that requires any type of mediation, Facebook works with the marketing directorates to provide some form of alternate dispute resolution (ADR). Bagley states, ADR methods, policies and procedures work to maintain the working relationship with the “opposing party”, and “reduce legal expenses, dispose of issues relatively quickly, and allow for flexible business-oriented solutions” (Bagley, 2013, pg. 67). In as such, there are three types of ADR: negotiation, mediation and arbitration. Bagley defines negotiation as “the give and take people engage in when coming to terms with each other” (pg 67). Mediation is defined as “a form of dispute resolution whereby the parties agree to try to reach a solution themselves with the assistance of a neutral third party who helps them find a mutually...