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Kenyatta University *
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MISC
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Information Systems
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Nov 24, 2024
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Purpose: The Purpose of This Assignment Is to Conduct a Case Study Analysis.
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Discuss the impact of technology on Flayton Electronics. What were some of the
technological and non-technological factors critical to the success of the company? Based
on your analysis, what technologies, business processes, and practices Flayton Electronics
had in place to protect customer data.
Flayton Electronics, navigating the digital landscape, witnessed technology's pivotal
impact on its success. Technological factors, such as robust cybersecurity systems and adherence
to Payment Card Industry standards, played a critical role. Non-technological aspects, like
effective leadership and customer trust, were equally vital. Flayton invested in modern payment
processing, secure data transmission, and compliance protocols, safeguarding customer data
(Smith & Hasnas,1999). Their adherence to PCI standards demonstrated commitment to data
protection. Additionally, cultivating a customer-centric culture, instilling ethical practices, and
continuous employee training formed non-technological pillars, fostering trust. This holistic
approach fortified Flayton Electronics against data threats and contributed to sustained success in
the dynamic technology-driven market.
Discuss and justify key decisions that are made by the management team in response to the
threat. Discuss two different ethical dilemmas that the management team of Flayton.
Electronics faced with. Also discuss issues (at least primary and secondary) with each of the
ethical dilemmas.
The management team at Flayton Electronics faced critical decisions in response to the
data breach threat. Initially, they grappled with the choice of immediate public disclosure versus
maintaining silence to aid law enforcement (McNulty, 2007). Disclosing the breach would
uphold transparency but risk legal repercussions, while silence prioritizes aiding law
enforcement over customer awareness. This dilemma underscores the tension between customer
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trust and societal security. Another ethical challenge involves notifying customers directly or
waiting for law enforcement to reveal the breach. Direct notification could provide customers
with timely information but might expose the company to legal liabilities. Balancing legal
obligations, customer trust, and aiding law enforcement showcases the complexity of ethical
decision-making in the face of a cybersecurity breach.
Who are the stakeholders of Flayton Electronics? Discuss the impacts of the team’s ethical
dilemmas on various stakeholders.
Flayton Electronics' stakeholders encompass customers, employees, banks, law
enforcement, and shareholders. The management team's ethical dilemmas significantly impact
these stakeholders. Non-disclosure may momentarily protect the company's reputation but risks
eroding customer trust and loyalty (Smith & Hasnas,1999). Delayed customer notification, while
aiding law enforcement, puts customers at prolonged risk and may result in legal and financial
repercussions. Shareholders face potential damage to the company's value and reputation.
Employees may experience heightened job insecurity. Banks may need help maintaining trust
with customers. Striking the right ethical balance is crucial to mitigate adverse effects on Flayton
Electronics' diverse stakeholders.
Based on your analysis, what are some of the possible options (solutions) the Flayton team
have in response to their ethical dilemmas? Discuss each of the options from different
stakeholders' perspectives
.
Flayton Electronics has several options in response to its ethical dilemmas. From the
perspective of customers, immediate disclosure ensures transparency and empowers them to
protect themselves. However, delaying disclosure may align with law enforcement interests.
Shareholders might favour a cautious approach, prioritizing the long-term reputation of the
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company. Employees may prefer swift action to uphold job security (McNulty, 2007). Banks
may support prompt disclosure to maintain trust. Balancing these perspectives is challenging, but
a proactive communication strategy, coupled with enhanced data security measures, could
provide a comprehensive solution that aligns with the interests of diverse stakeholders and helps
rebuild trust in Flayton Electronics.
Using your understanding of the ethical framework, what is the most appropriate
resolution of their ethical dilemma? Justify your decision.
Flayton Electronics faces ethical dilemmas with various stakeholders. One option is
immediate disclosure, appeasing customers seeking transparency but potentially hindering law
enforcement efforts (Smith & Hasnas,1999). Delayed disclosure may safeguard the investigation
but risks damaging customer trust. Shareholders may favour cautious approaches for long-term
reputation protection, while employees may value swift action for job security. Banks might
support prompt disclosure to maintain trust. Striking a balance through a strategic
communication plan, reinforced with robust data security measures, could address stakeholders'
concerns and rebuild trust in Flayton Electronics.
How should the Flayton Electronics team respond to the crisis? Compare and contrast the
different advice presented by four commentators in the study.
The four commentators provide divergent advice on Flayton Electronics' crisis response.
Eric McNulty emphasizes immediate customer disclosure, prioritizing transparency. John Philip
Coghlan advocates for disclosure to protect customers, aligning with industry standards. Jay
Foley suggests maintaining silence until law enforcement concludes its investigation to aid
criminal apprehension (McNulty, 2007). The fourth commentator advises a balanced approach,
combining immediate disclosure with enhanced security measures. While opinions differ on
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timing and communication, all stress the importance of safeguarding customer trust and
implementing robust data security practices. The challenge lies in reconciling legal, ethical, and
strategic considerations in response to the data breach crisis.
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References
Smith H. Jeff & Hasnas J. (1999). Ethics and Information Systems: The Corporate Domain1
McNulty E. (2007). Boss, I Think Someone Stole Our Customer Data
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