Tjx data breach case study

Copyright © 2014. Berrett-Koehler Publishers. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 4 TH E CO RPO R ATI O N AN D EXTERNAL STAKEH O LD ERS Corporate Governance: From the Boardroom to the Marketplace 4.1 Managing Corporate Social Responsibility in the Marketplace Chapter Summary Questions Ethical Insight 4.1 Exercises Point/CounterPoint Real-Time Ethical Dilemma 4.2 Managing Corporate Responsibility with External Stakeholders Ethical Insight 4.2 4.3 Managing and Balancing Corporate Governance, Compliance, and Regulation Ethical Insight 4.3 4.4 The Role of Law and Regulatory Agencies and Corporate Compliance Cases 9. Conscious Capitalism: What Is It? Why Do We Need It? Does It Work? 10. Goldman Sachs: Hedging a Bet and Defrauding Investors 11. Google Books Notes 4.5 Managing External Issues and Crises: Lessons from the Past (Back to the Future?) OP E N I NG CAS E When you read “The TJX Companies, Inc. V.A.L.U.E. Corporate Social Responsibility Report 2013” and see Carol Meyrowitz’s letter, you would never believe the crisis that rocked the company in 2008 ever happened. This case illustrates one difference between companies that learn, change, and grow, and those that do not. TJX seems to practice its VALUE proposition, “Vendor Social Compliance, Attention to Governance, Leveraging Differences, United With Our Communities and Environmental Initiatives.” Forbes reported in 2013 that the TJX Companies (NYSE: TJX) has taken over the #95 EBSCO Publishing : eBook Collection (EBSCOhost) - printed on 10/22/2018 11:19 PM via SOUTHERN NEW HAMPSHIRE UNIV AN: 667095 ; Weiss, Joseph W..; Business Ethics : A Stakeholder and Issues Management Approach Account: shapiro 183 Copyright © 2014. Berrett-Koehler Publishers. All rights reserved. May not be reproduced in any form without permission from the publisher, except fair uses permitted under U.S. or applicable copyright law. 184 Business Ethics spot from Capital One Financial Corp (NYSE: COF). Although the company, as with several other retailers, could improve its customer satisfaction index score, it has recovered from the 2008 crisis recounted here.1 On January 17, 2008, TJX Companies, Inc., a leading retailer in the field of clothing and home fashions that operates stores domestically and internationally, announced that the organization had experienced an unauthorized intrusion of its computer systems.2 Customer information, including credit card, debit card, and driver’s license numbers, had been compromised. This intrusion had been discovered in December of 2006, and it was thought that data and information as far back as 2003 had been accessed and/or stolen. At the time, approximately 45.6 million credit card numbers had been stolen. In October of 2007, the number rose to 94 million accounts.3 This is one of the largest credit card thefts or unauthorized intrusions in recent history. Because of the lax security systems at TJX, the hackers had an open doorway to the company’s entire computer system. In 2005, hackers used a laptop outside of one of TJX’s stores in Minnesota and easily cracked the code to enter into the Wi-Fi network. Once in, the hackers were able to access customer databases at the corporate headquarters in Framingham, Massachusetts. The hackers gained access to millions of credit card and debit card numbers, information on refund transactions, and customer addresses and phone numbers. The hackers reportedly used the stolen information to purchase over $8 million in merchandise.4 TJX used an outdated WEP (wired equivalent privacy) to secure its networks. In 2001, hackers were able to break the code of WEP, which made TJX highly vulnerable to an intrusion.