RUNNING HEAD TITLE Report: Ethical and Legal Obligations Regarding Customer Data Breach Anita Flores Southern New Hampshire University Busi-206 4/2/24
2 Evaluation Report: Ethics, the discipline concerned with what is morally good and bad and morally right and wrong (Singer, 2024) . It involves distinguishing between what is right and what is wrong. Ethics often coincide with the law, but they are not always the same. While laws are formal rules set by governing bodies that must be followed, ethics are more about personal or organizational principles and values. When comparing ethics to law, ethics are more about the moral compass guiding individuals and organizations to make decisions that are considered right or good, even if those actions are not explicitly required by laws. Many regions have regulations protecting consumer rights to be informed about data breaches that may impact them. Relation to Ethical Business Practices: Corporate Social Responsibility (CSR) refers to a business approach that involves integrating social and environmental concerns into a company's operations and interactions with various stakeholders. CSR entails taking responsibility for the impact of a company's activities on society, the environment, and its own employees. Ethical Conduct: CSR encourages businesses to operate ethically by considering the impact of their decisions on stakeholders, including employees, customers, communities, and the environment. In the case of Mountain Top View's customer data breach, there are both ethical and legal considerations to consider regarding the obligation to report the breach to customers. Ethical
3 considerations are that the customers trust companies to protect their personal information so failing to disclose a breach may lead to a breach of trust, customer welfare customers have a right to know if their data has been compromised to take necessary precautions to protect themselves from potential harm, being transparent about the breach demonstrates accountability and a commitment to customer well-being. Corporate Social Responsibility is closely linked to ethical business practices as it guides companies to operate in a socially responsible manner, considering the impact of their decisions on various stakeholders and the environment. Embracing CSR not only benefits society and the environment but also enhances the reputation and long-term sustainability of businesses. The situation at Mountain Top View involves ethical and legal considerations related to a data breach. Key issues include the company's obligation to report the breach to affected customers, uphold transparency, and comply with data protection laws. The decision not to disclose the breach raises concerns about customer privacy, trust, and potential legal repercussions. Relevant Stakeholders: Clare Applewood (Owner): Responsible for the overall, Carlos Rodriguez (Employee): Oversees store and online operations, involved in decision- making processes, Steve (IT Lead): Discovered the data breach and corrected the code but chose not to report it initially, Customers: Those whose data was compromised in the breach, impacted by potential privacy risks, and Regulatory Authorities: Enforce data protection laws, may require reporting of data breaches. The key facts are that there was a Data breach which involved customers information getting accessed, as well the fact IT