Ethics in Online Business (E-Commerce)

Current technological advances have greatly impacted the economic development and lifestyle of Indonesian society. Technological advances provide many conveniences for every user.

Today's society can carry out its activities efficiently regarding time, energy, and costs, especially in trading activities or buying and selling goods, services, or other things.

In the previous era, buying and selling activities were carried out face-to-face between the seller and the buyer, usually in markets, supermarkets, or shops. It is still felt that this has many obstacles, such as walking to a market or shop, or the item we are looking for is unavailable or in the shop, and the item we want does not match the shop's stock.

Nowadays, this activity has changed to online buying and selling. By utilizing internet technology, it is easier for people to shop for goods that we expect at competitive prices, even cheaper if we go directly to the market or shop; besides that, there are many choices of goods in online shops commonly known as marketplaces.

Today's world development has entered the era of Industrial Revolution 4.0, which combines automation technology with cyber technology. This is a trend of automation and data exchange in manufacturing technology in cyber-physical systems, the Internet of Things (IoT).

Current technological developments are not only for long-distance communication tools. Many business actors are taking advantage of developments in internet technology to market and carry out online buying and selling business activities known as E-Commerce.

The online buying and selling process differs from ordinary buying and selling transactions in that the buying and selling actors must meet in one place. Online buying and selling is not limited by distance, space, and time, so it can be done easily anytime and anywhere; with just a computer, laptop, or smartphone and an internet connection, the buying and selling process can be done easily.

Many marketplace providers, such as Tokopedia, Shopee, Lazada, and others, make the transaction process easier for us. The user interface provided by these marketplace applications is also easy to understand, making it easier for new users.

There are many payment methods for online buying and selling, including cash on delivery (CoD), bank account transfer, credit card, or using tokens that can be paid at retail outlets such as Indomart or Alfamart. Buyers can choose one of the desired payment methods; this makes it very easy for prospective buyers. Currently, there are many providers of bailout funds to buy goods, and we can pay when they are due, with very easy conditions.

As the times progress with the conveniences that can be enjoyed, online buying and selling transactions do not mean they do not have risks and negative impacts. However, fraud often occurs in online business because goods are not sent after payment or money transfer is made. The physical and quality of the goods are not as expected because we can only see them through the photos on the website. Transportation or shipping costs apply, so there are additional costs. And, you can't see or try the items ordered directly; it takes time for the items to arrive because of the shipping process.

Trust is the main capital in carrying out e-commerce transactions because electronic commerce does not meet between sellers and buyers. Therefore, e-commerce transactions in selling goods and/or services do not first show the condition of the goods being sold to consumers.

Online buying and selling ethics must be applied in e-commerce transactions; the rights and obligations of sellers and buyers must be carried out so that the buying and selling process can create satisfaction for both parties. If the buyer is satisfied, they will usually give a positive review of the shop or goods being sold; this has very positive value for online sellers because it will bring in new potential buyers and build trust between sellers and buyers, and ultimately, there will be many items that can be sold.

The presence of e-commerce as a new trading technology has triggered several irresponsible individuals to misuse it to gain one-sided profits and harm one party. Generally, the crimes that occur in e-commerce are fraud.

The research results show that people still abuse social media to spread crime in cyberspace. Most cybercriminals on social media will be trapped by Law Number 11 of 2008 concerning Information and Electronic Transactions (UU ITE), intentionally or unintentionally.

The Ministry of Communication and Information, or Kominfo, recorded 1,730 online frauds from August 2018 to February 16, 2023. Losses due to online fraud in Indonesia reached IDR 18.7 trillion during 2017 - 2021.

Regulations regarding consumer protection law have been regulated in Law No. 8 of 1999 concerning Consumer Protection. Based on Article 1 number 1 UUPK, it is stated that consumer protection is all efforts to ensure legal certainty to provide protection to consumers.

Legal certainty to provide protection to consumers in the form of protection of consumer rights, which is strengthened through special laws, gives hope that business actors will not act arbitrarily, which always harms consumer rights. This is an effort by the government to suppress criminal acts of fraud and an effort to protect consumers or buyers.

Ethics are values and morals in social life, values that are considered to make people behave well and correctly, which is a necessity. Society is a factor in the existence of these values in life because, without values that can maintain togetherness, people will behave as they please and harm other people, which will end the existence of society itself.

The term ethics comes from the Greek word ethos, which in its plural form (ta etha) means custom or habit. In this case, ethics relates to values, good living procedures, good rules of life, and all living habits that are adhered to and passed down from one person to another from one generation to another.

Ethics in online business is very important because sellers and buyers do not meet each other, so it is necessary to build trust by implementing ethics.

Ethics and business values are two important things that should not be ignored in an increasingly competitive business environment. By having business ethics and values, the business you run will not only generate material profits but also non-material profits in an effort to gain a positive image, trust, and sustainability of the business itself.

The principles of online business ethics are:

1. Justice, namely not harming or benefiting either party, both parties can feel satisfied with online business transactions.
2. Honesty is very important in online transactions because the two parties do not meet each other, so honesty in offering goods or services, not lying to either party so that no one feels cheated, and appropriate and timely payment from consumers is a very important factor.
3. Trustworthy: as a buyer or seller, you should be trustworthy by not reducing or exaggerating the goods being sold, explaining in detail the condition of the goods, both advantages and disadvantages.
4. Mutual respect between sellers and buyers by not using harsh words, asking each other questions, answering using polite words, and not putting other people down.

The role of ethics in online business is the root of advancing online company business. By carrying out business ethics, consumers are provided with comfort in shopping, thus supporting the sustainability of online business because currently, many online business actors provide services and convenience in shopping for consumers.

Business ethics in e-commerce shows that there is a need for clear principles so that you can build a business in e-commerce that can be trusted, especially in this case, to build consumer trust through business ethics.

If online business ethics are not implemented, it is not impossible that online business actors will be abandoned by their consumers. With so much online business competition, business actors are competing to build consumer trust while still implementing online business ethics.

Conclusion

In the era of Industrial Revolution 4.0, the development of online buying and selling or e-commerce is very popular with the public.

In the world of online business, implementing business ethics is a fixed price in the continuity of the business being run, considering that e-commerce prioritizes trust.

Business ethics can make each other feel comfortable and safe in online transactions; no one feels disadvantaged, and if there is a problem, it can be resolved well and make business competition healthier. Apart from that, the benefit of implementing e-commerce business ethics is that credibility in the eyes of customers will increase; this will, of course, increase customer trust, build a strong image so that the business will be easily recognized by many people, and maintain good relations between business people and customers.

E-commerce business ethics are closely related to transactions or buying and selling. Currently, there is an ITE law on electronic information and transactions and a law on consumer protection. With the existence of this law, it is hoped that there will be no more violations of e-commerce business ethics, which result in losses for one party, and all parties can apply e-commerce business ethics.

Bibliography

Norman, Efrita, and Idha Aisyah. "Online Business in the Era of Industrial Revolution 4.0 (Muamalah Fiqh Review)." Al-Kharaj: Journal of Sharia Economics, Finance & Business 1.1 (2019): 30-44.

Azizah, Mabarroh. "Application of Islamic Business Ethics in Online Buying and Selling Transactions at the Shopee Online Store." Humani (Law and Civil Society) 10.1 (2020): 83-96.

Sahetapy, Wilma Laura. "Business Ethics in E-commerce." Tambun Bungai Legal Sciences Journal 2.2 (2017): 170-186.

Habibi, Miftakhur Rokhman, and Isnatul Liviani. "Information Technology Crime (Cyber Crime) and its Management in the Indonesian Legal System." Al-Qanun: Journal of Islamic Legal Thought and Reform 23.2 (2020): 400-426.

Maharani, Alfina, and Adnand Darya Dzikra. "Functions of Consumer Protection and the Role of Consumer Protection Institutions in Indonesia: Protection, Consumers and Business Actors (Literature Review)." Economic Journal of Information Systems Management 2.6 (2021): 659-666.

Mardoni, Yosi. "Business Ethics in an Islamic Perspective." Entrepreneurship in Multi Perspectives (2017): 31-41.

Sari, Depita, Dhita Anastasia, and Adinda Ferdiani. "Business Ethics In E-Commerce." Research in Accounting Journal (RAJ) 1.3 (2021): 508-513.

[1] Norman, Efrita, and Idha Aisyah. "Online Business in the Era of Industrial Revolution 4.0 (Muamalah Fiqh Review)." Al-Kharaj: Journal of Sharia Economics, Finance & Business 1.1 (2019): 30-44.

[2] Azizah, Mabarroh. "Application of Islamic Business Ethics in Online Buying and Selling Transactions at the Shopee Online Store." Humani (Law and Civil Society) 10.1 (2020): 83-96.

[3] Sahetapy, Wilma Laura. "Business Ethics in E-commerce." Tambun Bungai Legal Sciences Journal 2.2 (2017): 170-186.

[4] Habibi, Miftakhur Rokhman, and Isnatul Liviani. "Information Technology Crime (Cyber Crime) and its Management in the Indonesian Legal System." Al-Qanun: Journal of Islamic Legal Thought and Reform 23.2 (2020): 400-426.

[5] Maharani, Alfina, and Adnand Darya Dzikra. "Functions of Consumer Protection and the Role of Consumer Protection Institutions in Indonesia: Protection, Consumers and Business Actors (Literature Review)." Economic Journal of Information Systems Management 2.6 (2021): 659-666.

[6] Mardoni, Yosi. "Business Ethics in an Islamic Perspective." Entrepreneurship in Multi Perspectives (2017): 31-41.

[7] Sari, Depita, Dhita Anastasia, and Adinda Ferdiani. "Business Ethics In E-Commerce." Research in Accounting Journal (RAJ) 1.3 (2021): 508-513.

Writer:

Agung Wijayanto (Panca Sakti University Bekasi Student - Information Systems Faculty of Science and Technology)

Dr. Son Haji, S.Ag, MM (as teaching lecturer)

Script Editor:

Nurdiansyah