Life
Essays

Brett Flayton, CEO of Flayton Electronics, is facing the most critical crisis of his career when it is discovered that 1,500 of 10,000 transactions have been compromised through an unprotected wireless link in the real-time inventory management system. Brett has to evaluate his obligation to let customers know of the massive leak of private data, define a communication strategy that would notify customers across all states of the potential security breach, and also evaluate the extent to which the Flayton Electronics' brand has been damaged in the security breach. In addition, steps that the company can take in the future to avert such a massive loss of customer data also needs to be defined and implemented. Assessing the Obligations to Customers Versus Keeping It Quiet Ethically, Brett Flayton has a responsibility to tell the customers immediately of the security breach (Sanderson, 2011). How he chooses to sequence the communicating of the breach to customers has clear implications on the ongoing investigation by the security service. It will also have a major impact on the ability to completely solve the firewall situation, determine if it was negligence or if in fact the company was hacked, and whether those responsible have greater control than the senior management team at Flayton Electronics realize. In all data breaches there are major impacts on profitability and long-term viability of a business (Gatzlaff, McCullough, 2010). The costs associated with a data breach, both directly and indirectly, can cripple a business. Worse still, not responding at all and being seen as trying to cover it up can virtually assure a business will not be trusted anymore. Brett, the CEO, must decide if this risk is worth taking or not, and whether disclosing the information to customer's would lead to the investigation being compromised. The also has to consider how pervasive the potential link is as well. Based on these considerations and the potential that customer's credit cards are being used without their knowledge, he needs to make a statement immediately. Before making the statement however he needs to contact Experian, Transunion and Equifax, the three top credit reporting agencies, and tell them the credit cards numbers that have been breached. He also needs to pay for lifetime monitoring for all credit cards and identities of those affected, offering it to the victims of the theft at no charge if they choose to enroll. He needs to move beyond just protecting his company to actively protecting his customers too, no matter what the cost.

Human Aggression and the Stanford Prison Experiments

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¶ … HR, Communications, Integration Management

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