Privacy Case

Dilemmas

During the E-kin quarterly board meeting a report from the customer service department head Maria Whinnor surfaced. Its focus was the question of the revenue possibilities from the sale of customer preference information as well as its implications. The discussion was deferred in part to the company sponsored golf outing.

CIO It would be a violation of traditional ethics if we were to sell personal information provided to us by our customers.

Sales Mgr. We can make big money and cover a significant portion of our fixed costs if we sell the information provided by our customers. Frankly with the startup nature of our operations it could mean the difference between a break-even position or a deficit.

CEO We are earmarking a significant amount of our capitol expenditures toward this web site and online systems. Those areas must be self-sustaining. As CIO I am looking to you to cover your costs. I do not want you to violate your ethical and moral values but at the same time you must cover these costs. Find a way to do the necessary. I am not going to make the decision for you.

CIO I believe we must establish impeccable integrity in the eyes of our customers. It is not only the ethical thing to do it is good for business. We must establish trust. That trust will allow us the ability to maintain a long-term relationship providing those customers with goods and services. I refuse to violate that trust.

Sales Mgr. Don’t get me wrong I agree with you both, at the same time we must generate the level of revenue needed to keep our operations afloat. Let's work together to build a stronger company based on integrity with quality goods and services.

CEO Gentlemen your suggestions are appreciated. Please keep in mind that this is a real life business not some theoretical operation in the mind of some academic. We will need to balance integrity with planning, organizing, producing and monitoring results if we are to be successful. At the end of the day this is why you each were hired. I look to you to make all of these things a reality.

Questions for discussions:

1. Would it be ethical for E-Kin to sell customer information? If so, when? If so, what type of information? Why or why not?
2. Should E-kin disclose to customers their privacy policy concerning customer information that is collected? Will this affect their credibility? Profitability?
3. What is the relationship between privacy and ethics in e-commerce?

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E-Kin1: A Case Study
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