Information Policy and Governance

This article discusses the policy and governance issues related to information security and privacy, with a focus on the Apple iCloud hack in 2014. It explores the vulnerabilities in Apple's iCloud system, the company's response to the hack, and the implications for user privacy. The article also examines the advantages and disadvantages of good governance in organizations, including the impact on efficiency, reputation, and compliance with federal laws and regulations. Recommendations for improving governance systems are provided, along with key takeaways from the course.

Running Head: INFORMATION POLICY AND GOVERNANCE
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Information Policy and Governance
Students Name
Course Name
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Information Policy and Governance
In 2014, Apple was hacked causing leakage of nude photos of various celebrities because
of an attack on its iCloud system. Apple knew about the security vulnerability in its iCloud
service for a while and did not make any steps to protect its users (Auerbach, 2014). The fact that
the vulnerability was patched immediately after the leak proves that it is highly probable that it
had something to do with the leak. Apple denied the allegations that the vulnerabilities caused
the leakage and blamed the users instead. They claimed that the users should have used a strong
password with a two-step verification to protect them from the breach of privacy (Kovach,
2014).
Apple has a couple of problems with its policy. The company’s terms and conditions for
anything a user uploads on the iCloud state that the user permits Apple a worldwide, royalty-
free, non-exclusive license to use, distribute, reproduce, modify, adapt, publish, translate,
publicly perform and publicly display the data uploaded. The problem with this policy is that it
allows Apple to have unlimited access to individuals’ confidential data for its personal use at any
given time. It violates the users’ privacy since a person’s stored data is confidential.
Apple also states that the users are solely responsible for the content that they download,
post, upload, store, and transmit by using their iCloud service. The company claims ownership of
individuals data, but when they are quick to defend themselves during a crisis. They claim that
the user is responsible for what happens to their data. The company blamed the users that were
hacked and refused to acknowledge the role they played in failing to defend their system against
the hack (“Who is to blame,” n.d.).
After the hacking incident, Apple changed its system governance. The company
strengthened its security measures. It sent all users push notifications, messages that appear in

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iPads and iPhones when someone tries to change their passwords to log in to their accounts from
an unknown device. The company added a security measure that alerted the user when someone
tried to upload their backed-up data to a new device (Chen, 2014). The measure was to prevent
future incidents of hacking and stealing data from occurring.
Following the investigation of nude photos of celebrities including, Kate Upton spreading
like wildfire, Apple reported that hackers specifically targeted the celebrities’ accounts. They
reported that the hackers used methods such as phishing and cracking their password to gain
access to their private data. In the past, users received push notifications only when someone
logged in to their accounts from a new device or when someone reset the password. As opposed
to the old system, the new system can now send a notification to the user when someone tries to
back the users’ stored data into another device.
Good governance is the heart of every public and private organizations because it is
simply a concern for any size of a business of any shape and type. Governance refers to the
methods used to manage an organization to maintain it at its highest level and the systems used
for achieving it (Tylecote, 2007). Good governance has several advantages. It enhances the
efficiency of processes by that tasks are done consistently and repeatedly. It affects the
company’s performance its appetite to risks and its ability to innovate. It goes without
mentioning that it is very crucial for an organization to achieve its objectives and its drive for
improvement as well as maintain its ethical and legal standing in the view of the shareholders,
regulators, customers and the society at large. Good governance also ensures that errors are more
visible through the implementation of systems that detect errors quickly. Another advantage is
that it improves the reputation of an organization. Sharing private information on governance
methods used by a company, transparency allows stakeholders to be more confident that the

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company has nothing to hide and to trust the company. Lenders will be able to see that the
company has adequate internal controls and fiscal policies, thus enhancing the success of the
business.
Governance includes setting up policies that comply with federal law and regulations.
Complying with federal law and regulations is advantageous to the company because it will
reduce the number of suits, penalties, and fines that they may get if they do not follow some laws
and regulations set by the government. Governance also disallows room for the potential for the
bad behavior of employees by enforcing rules that inhibit them from committing crimes such as
fraud or conflict of interest (Ashe-Edmunds, 2019). Good practices of governance further help
companies to reduce costs and wastage through the ethical training of employees to follow
ethical business practices that might lead to excessive wastage of the resources of the
organization. Finally, governance is advantageous since it enhances excellent management.
Management applies governance to take control of the company in a way that ensures the needs
of the company, and stakeholders are met.
Some individuals argue that strong governance produces inconclusive market returns,is
expensive and will dampen the entrepreneurial spirit and that the requirements for good
governance can be intrusive and costly. One of the drawbacks of governance is that following
federal rules and regulations is costly. Administrative costs that a corporation needs to comply
with governance rules are more significant than that of other companies. The administrative costs
of a corporation include maintenance of documents such as annual registration, stock sales and
purchases, and legal compliance records.
Another disadvantage occurs when the directors and officers to fulfill their fiduciary
duty; they risk facing personal liability (“Pros and cons,” n.d.). Large corporations have to

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provide insurance to their directors and officers. Maintenance of separation is another peril of
governance. Board of directors, corporations, and shareholders are required to abide by all the
corporate formalities; this includes taking and keeping annual meeting minutes for all meeting
that takes place, and taking a record of major approved by the board (Wright, n.d.). The
formalities are disadvantageous to corporations owned and governed by one shareholder since
they have to follow all the formalities. Further, good governance means both corporate and
federal laws are adhered to at all costs. To comply with these laws, it can be very expensive. The
need to comply with the governance rules the administrative costs of corporations are typically
much larger than normal entities. The administrative costs includes stock sales and purchase,
legal compliance records and annual registration. Corporations must abide to a variety of
formalities which may include holding and documenting and recording big decisions approved
by directors. The law doesn’t allow failure to formalities and you an individual takes it lightly
they may be pierces by the court and further the shareholders will be liable for company debts.
Some of the changes I would recommend are setting up clear rules and objectives to
ensure the successful implementation of policies to ensure good governance. The anticipation of
problems by taking an extensive evaluation of the policies can help to prevent the failure of
systems. In addition, technology can be used to address the issues of poor governance by making
it more efficient. Advancing technology can ease the process of distributing information to boost
transparency and improve public participation. Executing changes in governance also require
effective and clear communication to enhance the successful optimization of resources and
avoidance of mistrust from stakeholders. Excellent communication incorporates both internal
and external communication that happens between stakeholders and directors of the firm.
Monitoring the implementation of policies can also contribute to the change in governance

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systems. One of the challenges corporations face is the failure of management to monitor and
supervise ongoing programs.
The main things that I have learned from the course are:
 The positive impacts that governance has on companies
 The adverse effects of implementing information policies on consumers
 The negative effects of governance
If I were to meet a friend on the streets, I would tell him or her that I learned how a company
could change its systematic ways of governance to improve how their system works. I would
also inform them of the policy problems that I learned that violates the privacy of data of
individual who store their data in the cloud. Finally, I also learned that an individual should not
trust the cloud to keep their data safe since it could be leaked at any time, and the individual will
bear the responsibility by himself or herself.

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References:
Ashe-Edmunds Sam. (2019). The Advantages of Corporate Governance. Retrieved from
https://smallbusiness.chron.com/advantages-corporate-governance-65692.html
Auerbach David. (2014). Five reasons why celebrities and civilians should never trust apple with nude
photos, or any data at all. Blame Apple. Retrieved from
https://slate.com/technology/2014/09/celebrity-photo-hack-blame-apple-for-its-disregard-for-
user-security.html
Chen X. Brian. (2014). Apple Says It Will Add New iCloud Security Measures After Celebrity Hack.
Security. Retrieved from https://bits.blogs.nytimes.com/2014/09/04/apple-says-it-will-add-new-
security-measures-after-celebrity-hack/
Kovach Steve. (2014). We Still Don't Have Assurance From Apple That iCloud Is Safe. Business
Insider. Retrieved from https://www.businessinsider.com/apple-statement-on-icloud-hack-2014-
9?IR=T
Pros and Cons of Corporate Governance. (n.d). Retrieved from https://www.upcounsel.com/pros-and-
cons-of-corporate-governance
Tylecote, A., & Visintin, F. (2007). Corporate governance, finance and the technological advantage of
nations. Routledge.
Who Is To Blame When Icloud Is 'hacked' – You Or Apple? (n.d.). Retrieved from
http://theconversation.com/who-is-to-blame-when-icloud-is-hacked-you-or-apple-31
Wright C. Tiffany. (n.d). The Disadvantages of Corporate Governance. Retrieved from
https://smallbusiness.chron.com/disadvantages-corporate-governance-76573.html