Implications For Practice: What Should Managers Do?
Implications For Practice: What Should Managers Do?
Implications For Practice: What Should Managers Do?
powerful search facilities, ease of communication, and sophisticated analysis capabilities. When
the data is sensitive and personal, however, this can lead to serious abuse, because it opens the
way for the data to be used for purposes quite different from its intended use. This can happen
for a number of reasons. The rules governing who can use the data and for what purpose may not
be clear or restrictive enough to protect the intentions and interests of the subjects. Or those who
control the data may not enforce the rules. Or they may not have sufficient control over who
accesses the data. Whatever the reason, this can lead to severe problems.
While there is an ethical argument for protecting consumers because they are vulnerable and
because it is what a firm ought to do, there are also business reasons for doing so. First,
problems resulting from a failure to protect consumer information can also, ultimately, threaten
the fiduciary relationship with shareholders if a breach has a negative impact on the bottom line
as a result of customer defections, fines, or other costs incurred in addressing a breach. Second,
a firm that recognizes its moral responsibilities is also likely to gain legitimacy in the eyes of
important internal audiences like employees or the board of directors, and external audiences
such as regulators, the media, and special interest groups such as privacy advocates.
Third, incidents experienced by a single firm can cause spill-over effects with repercussions
affecting an entire industry. This process is often fueled by external institutional intermediaries
such as the media or regulators who influence the views of other stakeholders.
Implications for Practice: What Should Managers Do?
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organizations
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best
practices
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