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  • Essay / Ethics and corporate social responsibility in the...

    As the music industry is very diverse, it is therefore impacted by a large number of ethical issues. The problems extend from the production side to the consumption side of music. These issues range from things as inconsequential as lip-syncing to breaking laws while stealing music. While there are many different areas that can be examined within the industry, the most important ethical questions fall under the category of compensation. The first major aspect of remuneration concerns royalties. Royalties are defined as “a sum of money paid to the original creator of a product, book, or piece of music based on the number of copies sold” according to Webster's Dictionary. Artists make money from the sale of their original works. This means that any public performance of the artist's work, on radio, television or in a bar, does not earn him any money. The concept of royalties derives from copyright law as well as the idea that when radio stations gave airtime to an artist's music, it would consequently lead to more sales. It is this entire system of remuneration for artists which is now being called into question. This can be attributed to several different factors, but the most significant is the advent of the Internet. People are becoming more and more connected, leading to a complete reimagining of how music is shared. As the Internet grew, many new outlets for enjoying music emerged: some of them more ethical than others. When the online music sharing industry was evolving, there were many opportunities for innovation, but it was also possible to break laws. . In 1999, a music sharing website called Napster was founded, which raised many ethical questions...... middle of article...... July 17, 2014, from http:// www.billboard.com/biz/articles/news/5893800/investors-put-24-billion-into-music-in-2013-streaming-tops-list Pritchard, C. (January 1, 2014). Record contracts are evolving in the digital age. BBC News. Retrieved April 17, 2014 from http://www.bbc.com/news/business-25450130 Wilson, J. (February 27, 2014). Streaming media technology is attracting huge venture capital investments. E&T Magazine. Retrieved April 17, 2014 from http://eandt.theiet.org/news/2014/feb/streaming-investment.cfmRoyalty. (nd). Merriam Webster. Retrieved April 26, 2014 from http://www.merriam-webster.com/dictionary/royaltiesRIAA - Anti Piracy - May 1, 2014. (nd).http://www.riaa.com. Accessed May 1, 2014 from http://www.riaa.com/faq.php. Spotify artists earn $0.007 per coin. (nd). BBC News. Retrieved May 2, 2014 from http://www.bbc.com/news/entertainment-arts-25217353