A few years ago, Clare Applewood started a small outdoor equipment business called Mountain Top View. The company is a sole proprietorship. The company began as a single storefront and has grown rapidly to include online ordering through the company website. The company’s website includes the statement, “We are committed to keeping customer information secure and protected.” Clare also uses social media sites to market the company.

A few years ago, Clare Applewood started a small outdoor equipment business called Mountain Top View. The company is a sole proprietorship. The company began as a single storefront and has grown rapidly to include online ordering through the company website. The company’s website includes the statement, “We are committed to keeping customer information secure and protected.” Clare also uses social media sites to market the company.

2.3 Scenario

Introduction

Ethics is the study of moral principles and ideals. It Determines whether an action is right or wrong, good or bad. There are many different theories of ethics out there (utilitarianism, deontology, virtue ethics), but at its core, ethics is about trying to do what is best for all people involved in a given situation. This can be contrasted with law which aims to uphold peace and order by creating rules that guides people in a given environment. There are a few key ways in which ethics and law differ when it comes to regulating corporate behavior. First, ethics are voluntary whereas laws are mandatory. This means that companies can choose to ethical even if they aren’t required to by law. Secondly, ethical standards tend to be broader and more internally focused than legal ones. Ethics usually aim to promote certain values within a company such as honesty or fair dealing, while laws focus on specific areas of conduct such as consumer protection or environmental regulations. Finally, ethical violations often result in internal sanctions such as reprimands or job loss, while legal violations can lead to external penalties like fines or jail time. There is a close relationship between ethical business practices and corporate social responsibility (Ferrell & Fraedrich, 2021). Corporate social responsibility (CSR) is the business practice of voluntarily undertaking activities that are intended to benefit society. CSR includes things such as donating money to charity, investing in renewable energy, reducing environmental impact, and employee volunteering. CSR is important because it helps businesses to be seen as ethical and responsible members of society. It can also help businesses to attract and retain customers, employees, and investors. Additionally, CSR can help businesses to reduce their risk of litigation and regulatory penalties. The purpose of this assignment is to analyze the ethical and/or legal issues involved in scenario 2.3 given.

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Analysis

From the scenario given, there are different ethical issues surrounding the hacking of databases as witnessed by Steve, the company’s Information Technology lead. There are a few ethical issues associated with the hacking of databases and the loss of customer data from the scenario given. First, there is the issue of privacy. The customer’s data and information were leaked and this happened a result of an error in the database code. When someone’s personal information is leaked, it can be used for identity theft or other malicious purposes. Second, there is the issue of security. The hacked customer databases led to the loss of information which could otherwise be used by criminals to commit fraud or other crimes. Finally, there is the issue of responsibility (Barkacs et al., 2020). When a company’s database is hacked, the company may be held responsible for not protecting its customers’ data adequately. Even though Steve was solely responsible for the leak of information, the company could have been held liable.

In light of recent high-profile hacking cases, the question of privacy and security of data has taken on new urgency. It is now widely accepted that ethical considerations must be taken into account when dealing with data, especially when it comes to protecting people’s privacy. There are a number of reasons why hackers target databases. In some cases, they are simply after sensitive information that they can sell or use for criminal purposes. In other cases, they may be trying to make a political statement or cause disruption (Barkacs et al., 2020). Regardless of their motivations, hackers can do serious damage when they breach a database. From the scenario given, the loss of personal data can have a devastating impact on individuals.

The relevant stakeholders in this case are the company whose database was hacked, the customers whose data was lost, and the authorities and personnel who were responsible. In particular, Steve, the database manager, Clare and Carlos are some of the internal stakeholders responsible for the hack and data breach. The key facts are that a database containing customer information was hacked and that this information was leaked online. The potential implications or impact of this incident could be very serious, depending on the nature of the information that was lost (Barkacs et al., 2020). If customer credit card or social security numbers were part of the leak, then identity theft could be a very real possibility for those affected. In addition, if any private or sensitive customer information was revealed, then there could be a loss of trust in the company by its customers. This hack could also lead to increased regulation or stricter laws governing how companies store and protect customer’s information.

There are a variety of ethical and legal considerations that need to be taken into account. However, in general, the management of Mountain Top View have a responsibility to their customers to protect their data and inform them if there is a breach (Ferrell & Fraedrich, 2021). In addition, the company should work with law enforcement to help investigate and prosecute anyone who engages in cybercrime. Taking these steps will help ensure that all the customers are protected and that justice is served.

Recommendation

One of the best ways to protect the company from database hacking is to stay up-to-date on the latest security measures. This means keeping the company’s software and operating system up-to-date, using strong passwords, and encrypting data. There are a number of resources that the management can use to stay informed about database security (Ferrell & Fraedrich, 2021). The US Computer Emergency Readiness Team (US-CERT) publishes security alerts and advisories, as does the European Union Agency for Network and Information Security (ENISA). The SANS Institute also offers a range of resources, including a course on ethical hacking.

In addition to these general resources, it is important for Steve, the company’s Information Technology lead, and other members of the management to be familiar with the specific laws and practices in within their jurisdiction.

From the scenario given, the management has an ethical and/or legal obligation to report the breach to their customers and to regulators, if applicable. In addition, the management should take steps to prevent a similar breach from happening in the future. This may include implementing more rigorous security measures, training employees on data security best practices, and conducting regular risk assessments. There are a number of data security best practices that employees should be trained on in order to reduce the chances of a database breach. Some of these include ensuring that all sensitive data is properly encrypted, creating strong and unique passwords for all accounts, and regularly backing up data to an offsite location (Ferrell & Fraedrich, 2021). Additionally, employees should be made aware of the importance of keeping their computer systems and software up to date with the latest security patches. By following these and other data security best practices, organizations can greatly reduce the risk of a costly and damaging database breach.

Conclusion

Technology advances have led to companies collecting and storing more data than ever before. Along with this increase in data comes an increase in the legal and ethical implications of how that data is used. Businesses must be careful to collect and use data ethically, lest they open themselves up to legal liabilities. There are a number of ways technology can be used illegally or unethically in business. For example, companies may illegally gather customer data without their consent or knowledge. They may also use that data to unfairly manipulate markets or engage in illegal anti-competitive practices. Furthermore, new technologies such as artificial intelligence raise additional ethical concerns about how businesses should use these powerful tools. There are a variety of ethical and legal considerations that need to be taken into account. However, in general, the management of Mountain Top View have a responsibility to their customers to protect their data and inform them if there is a breach.

References

Barkacs, L., Browne, N., Dhooge, L., Herron, D., Kubasek, N., (2020) Dynamic Business Law, 5th Edition. dynamic-business-law-kubasek-browne/M9781260247893.html

Ferrell, O. C., & Fraedrich, J. (2021). Business ethics: Ethical decision making and cases. Cengage learning.

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Competency
In this project, you will demonstrate your mastery of the following competency:
• Differentiate between matters of law and matters of ethics in business situations
Scenario
A few years ago, Clare Applewood started a small outdoor equipment business called Mountain Top View. The company is a sole proprietorship. The company began as a single storefront and has grown rapidly to include online ordering through the company website. The company’s website includes the statement, “We are committed to keeping customer information secure and protected.” Clare also uses social media sites to market the company.
Carlos Rodriguez has worked for the company since the beginning. He oversees both store and online operations. Clare and Carlos make most decisions together.
Steve, the company’s Information Technology lead, discovered that the company database of customer information was hacked. Customer names, addresses, and phone numbers were accessed for only those customers who placed online orders in the first quarter of the year. Steve was able to correct the code that allowed the hack and is confident that the database is now secure.
When Carlos overhears Steve talking about the database fix in the store break room, he questions Steve about why he did not bring the breach to anyone’s attention. Steve explains that because he was able to quickly correct the code that led to the breach, and because only address and phone number information for a handful of customers was accessed, he didn’t think it was necessary to say anything.
Clare asks Carlos to evaluate whether the company has an ethical and/or legal obligation to report the breach to their customers and to recommend a course of action. She also asks Carlos to select an ethical test or framework that all employees can use in the future to help guide their decisions.
Directions
Report
Evaluate whether the company has an ethical and/or legal obligation to report the breach to its customers. Your evaluation should be framed as a report for the owner, Clare, that includes the following sections and information. Cite your sources using APA style.
1. Introduction
. Include a definition of ethics and explanation of how ethics compares to law.
A. Provide an explanation of corporate social responsibility and how it relates to ethical business practices.
2. Analysis
. Provide a summary of the ethical and/or legal issues involved in this situation.
A. Briefly describe the relevant stakeholders, the key facts, and the potential implications or impact of the situation.
3. Recommendation
. Provide your recommendation for a course of action supported by relevant resources, such as specific laws and commonly accepted ethical practices.
A. Explain the reasoning behind your recommendation and use reliable sources, such as the textbook and other course resources, to support your position.
4. Conclusion: Describe how advances in technology in today’s business world have both legal and ethical implications.
Ethical Test or Framework
Select a test or framework for all employees in this company to use. Demonstrate how it can be used when faced with an ethical dilemma. Cite your sources using APA style.
1. Test or framework
. Select a text or framework option from among those described in the textbook.
A. Name the option you selected and describe the test or framework, including its advantages and potential shortcomings.
B. Explain why the test or framework that you selected is appropriate for this company; justify your selection.
2. Apply the test or framework to the scenario to demonstrate how Steve could have used it to guide his decision making and actions.
What to Submit
To complete this project, you must submit the following:
Report
Your submission should be a 3- to 5-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
Ethical Test or Framework
Your submission should be a 1- to 2-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
Project Two Rubric
Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Introduction Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Accurately defines ethics and its comparison to law; includes an explanation of social corporate responsibility and how it relates to ethical business practices Shows progress toward proficiency, but with errors or omissions; areas for improvement may include accuracy in content, scope of content, and greater insight about the relationships among ethics, law, and corporate social responsibility Does not attempt criterion 15
Analysis Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Provides a complete and accurate summary of the ethical and/or legal issues, relevant stakeholders, key facts, and potential implications or impact of the situation Shows progress toward proficiency, but with errors or omissions; areas for improvement may include accuracy in content, scope of content, and greater insights into the ethical and legal implications Does not attempt criterion 15
Recommendation Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Includes a viable recommended course of action that is supported by relevant resources Shows progress toward proficiency, but with errors or omissions; areas for improvement may include justification for the recommended course of action, supported by specific laws and accepted ethical practices Does not attempt criterion 15
Conclusion Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Includes a clear description of how advances in technology have both legal and ethical implications for businesses Shows progress toward proficiency, but with errors or omissions; areas for improvement may include greater insights into the legal and ethical implications of advancing technology in business Does not attempt criterion 15
Test or Framework Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Provides a logical justification for the selection of a test or framework and includes an accurate description of that selection Shows progress toward proficiency, but with errors or omissions; areas for improvement may include justification for the test or framework selection and greater insights into the description of the test or framework advantages and potential shortcomings in relation to the scenario Does not attempt criterion 15
Application of Ethical Test or Framework Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Clearly demonstrates how text or framework could have been used in the scenario to guide decision making and actions Shows progress toward proficiency, but with errors or omissions; areas for improvement may include greater insights into the use of the test or framework in the scenario situation Does not attempt criterion 15
Articulation of Response Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability Submission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas 5
Citations and Attributions Uses citations for ideas requiring attribution, with few or no minor errors Uses citations for ideas requiring attribution, with consistent minor errors Uses citations for ideas requiring attribution, with major errors Does not use citations for ideas requiring attribution 5
Total: 100%