Equifax’s Data Breach
Read the Equifax’s Data Breach (attached). Then, answer the following four questions:
1. Do you think the company reacted appropriately upon learning about the breach? Why why not?
2. What type(s) of ethical climate existed at Equifax, and did this contribute to the hacking issues there?
3. What changes should managers and the board of directors make now to reduce the likelihood of an incident like this from occurring in the future?
4. What types of ethics training would you recommend for Equifax employees in the future to prevent such corrupt behavior?
Sample Solution
In response to Equifax\’s data breach, I do not believe that the company reacted appropriately upon learning about it. This is because they waited six weeks before informing customers about the hack and in some cases did not provide sufficient compensation for affected parties (Kesavan et al 2018). Furthermore, the way in which they communicated the issue was also criticized – with many feeling that their statements were confusing and lacking in transparency (Paganini 2019).
The type of ethical climate at Equifax prior to the attack could be classified as ‘defensive’ – meaning compliance with regulations was prioritized over individual integrity or social responsibility. This can be attributed largely to a lack of strong leadership from senior executives who failed to emphasize ethical behavior or actively promote corporate values within their organization (Hershey & Dachler 2017). It is possible therefore that this contributed to hacking issues at Equifax as employees may have been less likely to challenge unethical practices or report any suspicious activities.
