GSBS 6040 T3 2018 HRM Report: Equifax Data Breach and Ethical Issues

This report provides an in-depth analysis of the Equifax data breach, focusing on the role of Human Resource Management (HRM) in addressing the crisis. The report begins with an executive summary that highlights the key issues and findings, followed by an introduction to HRM and business ethics. It then describes the Equifax data breach situation, detailing the sensitive information compromised and the company's response. The core of the report explores various HRM strategies for addressing the conflict, including forensic investigations, monitoring data usage, and promoting ethical behavior. The report discusses the importance of employee relations, data security, and risk management within the context of the breach. It also emphasizes the significance of ethical and professional conduct in preventing and mitigating such incidents. Finally, the report concludes by summarizing the key takeaways and recommendations for organizations to prevent future data breaches and manage crises effectively.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the student
Name of the University
Author note

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Executive Summary
The primary purpose of this report is to elucidate on the incident of data security breach that
took place at Equifax. It discusses about the various options that human resources can use of
for addressing the conflict. The report discusses that forensic investigation of the computer
system of Equifax can help in dealing with the issue of data breach. The report states that the
investigative measures by the human resources of Equifax that can monitor data usage of that
of the organisation. It discusses about the choice that I would take in the case of data security
breach in relation to professional behaviour.

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Table of Contents
Introduction................................................................................................................................3
Description of the situation........................................................................................................3
Ways of addressing conflict.......................................................................................................5
Conclusion..................................................................................................................................9
References:...............................................................................................................................10

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Introduction
Human Resource Management (HRM) refers to strategic approach that helps in
effectively managing the workers within an organization. It helps a business in gaining
competitive advantage. It helps in maximising the performance of the employees that helps
an employer in meeting the strategic objectives. Human resources helps in managing the
people in an organization on the basis of the policies and the systems. The department
pertaining to human resources of an organization helps in overseeing the employee-benefit
design, recruitment and the performance appraisal. The human resources deal with that of the
organizational change along with the industrial relations. It helps in balancing the
organizational practices with the requirements that arise from that of the governmental laws.
Business Ethics refer to study of business policies and the practices in relation to issues like
bribery, discrimination and corporate governance. Business ethics helps in providing basic
framework that the business can follow for gaining the public acceptance. Business ethics
helps in ensuring that here exists trust between the consumers and that of the business.
Business ethics helps in reconciling what the companies should do legally that can help them
in maintaining an edge in the market. This report discusses about a business situation that
exhibits unethical behaviour on the part of management of an organization. It also discusses
about the different options that can help a company in resolving conflict. The report makes
use of HRM strategies for discussing the issue. It also talks about the importance of ethical
and professional behaviour in an organization.
Description of the situation
Equifax has been instrumental in disclosing important data about the Americans that
can affect a large part of US population. The company helps in keeping track about financial
affairs of the Americans that can help them in gauging risk that they can face for the

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borrowing of money. The company has a lot of sensitive information and disclosing the data
can put into jeopardy the financial lives of many Americans (Apnews.com., 2018). Equifax
has invited a lot of anger owing to its activities and it has breached trust of the employees of
company. The hacking was discovered earlier but it was announced that was unethical from
the point of view of the company. The people who were trying to find whether they had been
affected got some information that confused them. The number that was being called by the
people was received by uninformed representatives that created complication for the
company. The phones lines were jammed that created complication for the consumers. There
were many people who did not get any kind of response but a notice which stated that they
could come back at a later point of time for registering for the purpose of identity protection
(Jouini & Rabai, 2016). There has been rise in relation to data collection which has placed
pressure on the organizations for preserving privacy while at the same time leveraging the
data for that of the business purpose. Sensitive data can create liabilities in the case of a
breach. The threats to data can be diverse and it can jeopardise the welfare of the workers of
an organization.
Equifax data breach scandal can be said to be the worst among the breaches owing to
its immense scale. The hackers were able to procure complete data of the company that posed
a threat to the security of the company. The hackers can steal vital information about a person
that was disastrous for the reputation of the company. The hackers would be able to take out
the credit card of the name of the people and they would not be able to know anything about
it (Safa & Von Solms, 2016). The Equifax data breach can make the victim face serious
financial danger. The situation turned out to be more complex because Equifax knew about
the incident of the data breach since the month of July but no step was taken that can help in
mitigating the crisis. The gravity of the situation was because of the fact that the company
had waited for six weeks till the month of September before the information was released.

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The severity of the situation was due to the fact that there could have been several people
who may have been jeopardized owing to the stealing of important information. Equifax do
not provide the people with any kind of chance that can help them in preparing and
preventing the loss. This incident raised question as to whether the managing of the crisis was
done in an ethical manner by Equifax.
The executives of Equifax took the advantage of that of the information which they
had in relation to the data breach. John Gamble who was the Chief Financial Officer of that
of Equifax had sold a large number of the shares in the first week when Equifax found out
regarding the catastrophic incident. This raised issue in relation to ethics as it diverted the
incident from mismanagement to one that had a criminal intent. It was stated at that time by
the spokesperson of Equifax that Chief Financial Officer was not aware regarding the data
breach. The questions arose because of the fact that how can someone who was of the stature
of that of Chief Financial Officer could not be aware regarding this incident of such a large
magnitude. It accounted to be unethical behaviour on the part of Equifax that caught the
attention of the public.
Ways of addressing conflict
The human resources (HR) of the organization should encourage the workers to speak
up in the event of a breach taking place within the organization. The human resources should
ask the people who are instrumental in handling the Personally Identifiable Information to
speak up that can help in addressing the conflict in the case of data breach of company
(Armstrong & Taylor, 2014). The human resources should notify appropriate staff that can
help in resolving conflict in the case of a data breach. The human resources department of an
organization should provide notices to the employees in the case of compromising of
information. The human resources should forensically investigate into the computer system
of the employees of the organization. Investigative measures should be taken by the HR of

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Equifax that can help in monitoring the aspect of data usage of the company. The matching
model of HRM helps in achieving organizational objectives by application of five functions
related to HRM in a very effective manner. The contribution of that of the human resources
has to be evaluated by making use of the appropriate techniques. The employees in a
company should be provided with rewards on the basis of performance of the employees in
an organization. This theory holds that the process of HRM is a cyclical process within which
every function can be said to be interdependent (Bratton & Gold, 2017). The matching
model talks about the utilization of the functions of HRM in a manner that is comprehensive.
The human resources of Equifax taking into account the activities of each employees of the
organization can help them in case of any crisis emerging in the company.
The human resources in an organization should take care of the fact that data security
measures are embedded in that of the business practice of Equifax. The system in Equifax
should be designed with that of integrated security that can help in protecting the computer
systems of Equifax from any kind of data breach. Safe coding practices should be followed at
the time of building of a system. Security can be built into that of the business process of
Equifax that can be crucial for safeguarding the data of a company. There should be a
position of that of information security officer that can help in taking charge of that of cyber
security within that of the organization (Brewster, Chung & Sparrow, 2016). Security
aspects should be added after that of the enterprise architecture that can help in safeguarding
the IT system of the company. The HR of the organization should influence senior
management of the company that can help in preventing incidences of any kind of data threat.
The HR in the organization should follow the security procedures that can play an important
role in resolving any kind of issue related to data breach. Organizations should engage in
needs analysis that can help in the determination of the system that should be purchased by
the organization. The needs analysis can help in deciding what system can do and the

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technical specifications that the equipments should have in an organization. The vendors
should be evaluated by the company in the case of breach of any kind of data privacy. The
human resources of an organization should build a culture of compliance that can help in
bringing together representatives from the different business functions of Equifax like I.T.,
Finance and the HR. Social Systems Theory in relation to HR helps in the aspect of
understanding and planning of the organization (Marchington et al., 2016). Systems theory is
indicative of management methodology that helps in analysing about an organization.
Systems theory states the fact that the success of an organization is dependent on synergy and
the interdependence that exist between the various subsystems (Cavusoglu et al., 2015).
Employee relations is indicative of the creation of a collaborative group dynamic that can
help in increasing the efficiency of an organization. Synergy can help in bringing together the
different departments of the organization and it can help in the creation of a workplace
environment that works in a collaborative manner. The companies having strong relationship
with the employees can help in the creation of a atmosphere that supports the aspect of
creativity along with innovation.
The HR should investigate into the smartphones and the data storage devices of that
of the company for addressing the conflict that can arise in the case of data breach. The HR
should get the consent of the employees in organization so that they can access the company
data which can be involved in the case of the data breach. Complexity can have an impact on
the ability of an organization in relation to responding to that of the data breach. The HR in
Equifax should carry out vulnerability identification along with risk identification that can be
helpful in the case of a data breach. The HR of Equifax should make a Risk Management
Plan that can help in the aspect of managing of risk (Albrecht et al., 2015). The usage of the
cloud based applications along with data sharing have increased the chances of that of data
breach and the IT security of a company cannot monitor the growing workforce. The security

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standards should be set clear by the HR of Equifax that can help in producing an accountable
system. Training has limitations and it cannot always help the employees in matching the
security needs of the organization. The HR department of an organization should work in a
cohesive manner with that of the IT function that can help in mitigation of any kind of
chances in relation to security breach (Soomro, Shah & Ahmed, 2016). The contingency
theory can be applied by the HR of Equifax that can help in the creation of an ideal structure
that is dependent on the dynamics of that of internal sub-system. The organizational structure
can have great consequences on the relationships that the company has with the employees
that makes the contingency theory highly relevant in the case of any kind of data security
breach.
The option that I would choose as an HR in the case of data security breach is that I
would investigate into the computer systems of the company that can help in revealing
important information regarding that of the data security breach. Cloud based applications
should be reviewed by the Human Services of Equifax that can help in bringing forward the
reasons behind that of the data security theft of the company. I would work alongside with
that of the IT team of Equifax that can help in revealing the identity of the employees who are
involved in that of the data security breach of the company. I would make the investigation
plan along with that of the external lawyers. I would install the anti-malware software that
can help in detection in the case of a data security breach. I would destroy the restricted data
that can help me in managing the issue of that of data security breach. I would make a trained
professional check for that of application security vulnerabilities that can help me in finding
the areas that needs scrutiny in the case of data security breach. I would communicate the
details to that of the appropriate internal personnel that can help me in the case of managing
the issue of data security breach. I would review the e-mails and the internet records that can
help in revealing vital information pertaining to data security breach. The HR would

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understand the security limitations that are in place that can help in the elimination of the
avenues of the investigation. A notification should be made to that of the Information
Commissioners’s Office that can help in revealing important information pertaining to data
security at Equifax. I would notify the regulator at that of the appropriate time and in a
manner that is right. In the event of the information coming from the third parties within that
of data ownership chain, it has to be considers that to what extent the contracts have
obligations related to reporting. I would try to identify the recipients of the third party that
can help in ascertaining whether it would be possible to handle breach by recovering of the
information. I would try to focus on how to recover the data before it is spread and if any
alternative course of the action was necessary.
Conclusion
Human Resource Management can help in managing the employees within an
organization that can help a business in rising ahead of the competitors. Equifax has sensitive
information and the revealing of the data can put into threat the lives of the Americans.
Equifax has invited criticism as it has breached the trust of that of employees of company.
The hacking was unethical on the part of the company. The data breach scandal of Equifax
can be said to be the worst owing to the massive scale of the security breach. The hackers got
all the data of company that posed harm to that of security of company. The stealing of
important information by the hackers would severely harm that of the reputation of company.
The human resources should ask workers in speaking up in relation to event that can help in
disclosing crucial information about the data security breach. Human Resources should ask
the people who handle Personally Identifiable Information that can address conflict at the
time of data security breach. Human Resources should embed data security measures that can
help in addressing the challenge of data security breach. The coding practices that should be
followed should be safe that would be helpful in dealing with the data security breach. I

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would carry out investigation into that of computer system of company that can help in
unravelling important information about the data security threat of the company. I would
review the cloud applications of Equifax that can bring forward reasons of that of data
security breach.

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References:
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People
and Performance, 2(1), 7-35.
Apnews.com. (2018). Getting up to speed on the Equifax data breach scandal. Retrieved from
https://www.apnews.com/6c421e44a081451a821732b7f7ed03de
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management.
Routledge.
Cavusoglu, H., Cavusoglu, H., Son, J. Y., & Benbasat, I. (2015). Institutional pressures in
security management: Direct and indirect influences on organizational investment in
information security control resources. Information & Management, 52(4), 385-400.
Jouini, M., & Rabai, L. B. A. (2016). A security framework for secure cloud computing
environments. International Journal of Cloud Applications and Computing
(IJCAC), 6(3), 32-44.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Safa, N. S., & Von Solms, R. (2016). An information security knowledge sharing model in
organizations. Computers in Human Behavior, 57, 442-451.