Legal and ethical issues for companies can negatively impact a company in many ways. In a study, “73% of professionals say they take an organization’s values into account and would not apply to a company unless it’s values aligned with their own, 82% of works say they would prefer to be paid less and work for a company with ethical business practices rather than receive higher pay at a company with questionable ethics, 43% of consumers have stopped buying brands they find unethical, and 71% say they carefully consider corporate values when making a purchase” (Ethical dilemmas: How scandals damage companies 2021). As a consumer myself, when purchasing from new brands and companies I try to research about the company itself. I try to support businesses that align in the same social injustices that I am passionate about as well.
In 2017, Equifax had a data breach, where 147 million people’s private records were compromised (Equifax Data Breach Settlement 2020). Even further, the company did not report the stolen data for two months after the breach (Ethical dilemmas: How scandals damage companies 2021). The ethics in question are honesty and integrity (Ethical dilemmas: How scandals damage companies 2021). After the breach, research and investigations showed that the breach could have been preventable. The privacy and security systems that Equifax was using at the time were out-of-date, and had they been updated, it would have prevented the breach (Ethical dilemmas: How scandals damage companies 2021). Consumers had an initial deadline of January 22, 2020 to file a claim in the Equifax settlement, however, consumers can still file a claim for expenses they incur between January 23, 2020 and January 22, 2024 (Equifax Data Breach Settlement 2020).
Equifax Data Breach Settlement. Federal Trade Commission. (2020, July 15). Retrieved October 9, 2021, from https://www.ftc.gov/enforcement/cases-proceedings/refunds/equifax-data-breach-settlement.Western Governors University. (2021, August 9).
Ethical dilemmas: How scandals damage companies. Western Governors University. Retrieved October 9, 2021, from https://www.wgu.edu/blog/ethical-dilemmas-how-scandals-damage-companies1909.html#close.