MICT710: A Comprehensive Ethical Analysis of Telstra's Case Study

This report provides an ethical analysis of Telstra's case study using the 'doing ethics technique,' focusing on privacy and security concerns for customers and crowdsupport platform users. It discusses IT governance issues, analyzes Telstra's technology usage, and assesses security and data control policies. Recommendations are provided to enhance Telstra's security infrastructure, including data encryption, customer awareness programs, and firewall implementation. The analysis considers utilitarian, deontological, contractarian, and virtue ethics perspectives to evaluate the ethical implications of Telstra's digital transformation, highlighting the balance between improved customer service and increased cybersecurity risks. It also explores the use of decision support systems and business analytics, and the IT standards needed for these innovations.

Professional Practice
and Ethics
Case Study Analysis
2018

EXECUTIVE SUMMARY
This report will conduct an ethical analysis of the case study of Telstra by implementing
doing ethics technique. By using this technique, simple questions are evaluated in the report
to analyse the ethical issues raised in the case study. The key ethical issues in the case study
are related to the privacy and security of customers of Telstra and individuals who use its
crowdsupport platform. Furthermore, various IT governance issues raised in the report are
discussed along with an analysis of technologies used by the corporation and their
advantages. The security and data control policies of the corporation are discussed in the
report and recommendations are given to Telstra for improving its security infrastructure to
protect the privacy of its users such as encryption of data, awareness among customers and
use of firewalls to protect the data of customers.

TABLE OF CONTENTS
List of Abbreviations...................................................................................................................3
Introduction...............................................................................................................................3
Analysis of the situation (DET)...................................................................................................4
Assessment of the ethical consequences................................................................................10
Recommendations...................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

LIST OF ABBREVIATIONS
ICT – Information and communication technology
DET – Doing ethics techniques
IT – Information technology
INTRODUCTION
The use of technology has increased between organisations, and they rely on them to
provide products and services to their customers. While using these technologies,
companies perform various business functions such as marketing, selling, promoting,
manufacturing and others. In order to provide effective and efficient customer service
experience, corporations implement information and communication technology (ICT)
(Sarkar, 2012). Due to these services, corporations are able to offer high-quality customer
service experience to its users. Use of technologies in the business enables enterprises to
find new solutions for business problems and implement new and creative solutions for
addressing such issues. It also reduces the operating costs of a company by making business
processes more efficient and effective. However, there are many disadvantages faced by
corporations while using modern technologies in their operations. One of the most common
threats face by enterprises is cyber-attacks; the number of cyber-attack on business has
grown rapidly along with the use of technologies (Uma and Padmavathi, 2013). These
attacks pose a significant threat to the privacy of companies along with their customers. This
report will evaluate the case study of Telstra by using doing ethics technique (DET).
Furthermore, the role of IT governance will be discussed along with the technologies used
by Telstra in the company. Recommendations for improving the cybersecurity will be
included in the report, and a conclusion will be drawn based on the analysis.

ANALYSIS OF THE SITUATION (DET)
In order to evaluate ethical issues raised in a case, the doing ethics technique (DET) can be
used which evaluate the case by asking few simple questions. Based on the answers given in
each question, the ethical issues can be analysed by parties in a particular scenario. The
doing ethics technique focuses on evaluating a particular scenario from an ethical
perspective rather than finding the best solution for the ethical problems raised in the
scenario (Lekakas, Vlachos and Koritos, 2014).
What’s going on?
In this report, the case study of Telstra will be analysed. It is an Australia based
telecommunication corporation. The company was founded in 1975, and it is the largest
enterprise in Australia telecommunication industry (Telstra, 2018a). The corporation has
gained a competitive advantage in the industry by being the fastest network in the country.
Other than Australia, the operations of the company are situated in more than 20 countries
across the globe. The enterprise has become the largest telecom organisations in Australia
by adopting digital technologies to perform its business functions. The senior level
executives of the company understand the importance of digital disruptions, and they
leverage the modern technologies to perform their business functions. In 2010, the
corporation adopted a digital structure to provide better customer service experience to its
members (Carter-Steel et al., 2017). The main purpose of this digital disruption was to
ensure that the customers are able to resolve their queries as quickly as they can increases
brand loyalty. Telstra has introduced its 24/7 mobile application which provides in-house
services to its customers. Based on this application, the customers are able to get access to
their data, and they can easily manage their services through this application. Furthermore,
the corporation introduced a crowdsupport platform for its members where they can post
their queries and instantly get a solution for the issues face by them (Telstra, 2017). These
services provide substantial success to the enterprise based on which it expanded its market
share. However, it also increased the risk of privacy breach and security of data of the
enterprise because cybercriminals can hack the online servers of the company.

What are the facts?
Following are the facts provided in the case study.
 In order to improve its customer services, Telstra introduced a 24/7 mobile
application which can be used by its members from the comfort of their homes.
 The corporation also introduced a crowdsupport platform where people can post
their queries, and they easily get solutions for such issues (Telstra, 2018b).
 The company received success in the market due to these services, and it became
one of the largest telecom enterprises in Australia.
 While using these services, the threat of cyber-attacks and hacking of people and
company’s private data has increased.
 It has become easier for cybercriminals to access the confidential files of the
company by hacking into their servers.
What are the issues?
Following are a number of issues which raised in this case study.
 The purpose of the company to introduce 24/7 mobile application and a
crowdsupport platform is to offer better and efficient customer service experience to
its customers.
 However, it increased the threat of cyber-attacks on the servers of the company. It
has provided a platform for cybercriminals where they can access and breach the
privacy of customers of Telstra.
 In case of crowdsupport platform, a large number of private data is stored on the
platform of the company which resulted in increasing the threat of data breach and
cyber security.
 Phishing emails are the primary way of cyber-attacks, and over one-third of
Australian businesses have experienced its attack (Gallo, 2017).
Who is affected?

Telstra Corporation
The purpose of adaptation of digital technology in the business is to provide a competitive
advantage in the industry. The goal of the company is to provide high quality and efficient
customer service experience to its members. By relying on these technologies, customers
can easily manage their account and resolve their queries from the comfort of their homes
(Morley, 2017). The company is also able to provide a faster network connection to its
customers by using digital technologies. Another objective of the company is to reduce its
operating costs by relying on digital technologies. By using these technologies, the
enterprise is able to maintain a low operating expense which resulted in increasing its
profitability. However, implementation of these technologies has increased the vulnerability
of data breach in the company. Cybercriminals can hack into the servers of the company
and access their confidential data; they can also collect and harvest the private data of
customers who use the digital technologies of the company (Redrup, 2018). Therefore,
along with advantages, there are many risks associated with the implementation of digital
technologies as well.
Customers of Telstra
The implementation of these technologies has improved the customer service experience of
the members of Telstra. They are able to manage their services and resolve their queries by
using the digital-based services of the company. The corporation has made the process of
customer service experience efficient and reliable. However, the use of digital technologies
has increased the risk of cyber-attacks and data breaches. The customers who use the
mobile application and crowdsupport platform are vulnerable to cyber-attacks.
Cybercriminals can hack into their data and collect their private data which breached their
privacy. For example, in 2014, Telstra was filed by the court after breaching the privacy of
over 15,775 customers which was being available online (ABC, 2014).
Hackers

It becomes easier for cybercriminals to hack into the servers of Telstra and collect the
confidential data regarding the company and its customers. The adaptation of a digital
structure has made it easier for cybercriminals to breach the privacy of Telstra’s customers.
A recent report on cyber-attacks published by Telstra provided that over 59 percent Asian
organisations face a business interrupting focused towards breaching their data at least
once a month (Moon, 2018). Thus, the risks associated with adaptation of a digital structure
are substantial which affects the interest of Telstra and its customers.
What are the ethical issues and implications?
 Consequence-based (Utilitarianism): As per this theory, an action is ethical if its
consequences bring happiness to a large number of people. It did not judge a
situation based on rightness or wrong of the actions; it judges based on the
consequences of the actions. The actions of Telstra are not wrong, and they are
focused towards achieving the common goals of the organisation by fulfilling
requirements of customers and increasing the profits of the company. However, its
consequences resulted in a breach of privacy of its users which can have a negative
effect on their security.
 Duty-based (Deontology): As per this theory, the morality of a situation is judged
based on the rightness or wrongness of actions rather than their consequences.
Ethically, the intention of Telstra is rights, and they are taking appropriate actions to
protect the security of its customers. In July 2017, the corporation introduced two
new cybersecurity centres which manage the security of the corporation (Reichert,
2017). Furthermore, the implication of a digital structure resulted in improving the
customer service experience which is beneficial for the members of Telstra.
 Contract-based (Contractarianism): This theory focuses on the legitimacy of the
actions in order to determine whether a situation is ethical or not. The actions of
Telstra are legal, and the company is focused towards improving its cybersecurity to
protect the interest of its customers. Thus, the actions of Telstra are ethical because
they are focused towards fulfilling the interest of the company and its customers.
 Character-based (Virtue): As per this theory, a situation is judged based on the
honesty of the character. The objective of Telstra is to improve it customer service

experience by adopting a digital structure. The company is also taking precautionary
measures for protecting the privacy of its customers.
 There is a significant risk of data privacy face by customers who use the mobile
application because it exposes them to the threat of cyber-attack. Due to lack of
awareness among people who use the crowdsupport platform, it has become easier
for cybercriminals to hack into the data of users.
What can be done about it?
In this case, Telstra can decide to shut down its mobile application and crowdsupport
infrastructure to ensure that it is protected from cyber-attack. But, it will negatively affect
the interest of its customers, and it will reduce the profitability of the company. On the
other hand, the corporation can improve the security of its crowdsupport platform and
mobile application by implementing the latest cybersecurity technology to ensure that it is
protected from cyber-attacks and data breach. Customers can also avoid using the digital
services of Telstra to ensure that their data is protected.
What are the options?
Following are different options available in this case.
 The corporation can increase its investment in the cybersecurity to ensure that the
data of the company and its customers are protected from unauthorised access and
data breach.
 The company can shut down its mobile application and crowdsupport platform to
protect the data of its customers.
 Customers could stop using the online services of Telstra which would avoid sharing
their data and breach of their privacy.
Which option is best – and why?

The best option in this scenario is that the company should increase its investment in the
cyber security structure to ensure that the data of the corporation and its customers are
secured. This option is the best because it enables the company to ensure that customers
are receiving high-quality services and their data is protected at the same time. This option
also benefits the company because it maintains its profitability.

ASSESSMENT OF THE ETHICAL CONSEQUENCES
Telstra decided to move to a digital firm in order to improve the customer services
experience of its members and to reduce its overall costs. However, there are many ethical
consequences relating to the adaptation of a digital structure which affects the privacy and
security of its customers.
IT governance
The principles of IT governance focus on aligning the corporate objectives along with IT
investments of the company. The provisions of IT governance provide information about
various principles which are necessary to follow by companies while performing their
business actions. Compliance with these principles ensures that the corporation made
ethical decisions while making decisions regarding IT investments of the company (Tallon,
Ramierz and Short, 2013). It ensures that the IT investments which are made by a
corporation are focused towards achieving its corporate goals while at the same time they
are focused towards protecting the interest of its stakeholders. While implementing the
principles of IT governance, there are a number of issues faced by organisations such as IT
risk management, delivery of value through IT, the establishment of the governance
framework, auditing, activist IT department and directors and sense of teamwork (Chong
and Tan, 2012). In case of Telstra, the establishment of an IT risk management is a key issue
because the company deals with the data of a large number of people and it is required to
implement appropriate measures to ensure that such data is protected from unauthorised
access.
IT governance and issues
The Australian government is strict towards implementation of IT governance principles in
organisations. There are a number of rules which corporations have to follow in order to
ensure that they avoid any ethical dilemma during their business operations.

 Organisations have a responsibility for ensuring that they effectively use their IT
infrastructure to achieve their corporate objectives. They should use the IT
infrastructure to influence different stakeholders positively. Telstra uses its IT
infrastructure to improve its customer service experience, and the company takes
responsibility to protect the privacy of its customers (LeMay, 2014).
 The IT infrastructure strategy should align with the corporate objectives of a
company. Telstra focuses on fulfilling its corporate objectives by leveraging its IT
infrastructure based on which it maintains a competitive advantage in the telecom
industry of Australia.
 While taking business decisions regarding IT infrastructure, the corporation should
evaluate both internet and external factors in order to make appropriate business
decisions. Telstra has implemented an IT structure which supports both internet and
external operations of the company.
 The IT infrastructure should align with the capacity of the corporation to ensure that
it is able to provide appropriate resources and services. In case of Telstra, the
corporation focuses on implementing an appropriate IT infrastructure that is focused
towards protecting the privacy of its customers.
 The regulations regarding effective operations of both internal and external
operations of the company should be clearly communicated by the corporation to
avoid any discrepancies and Telstra complies with the same as well.
 The IT infrastructure and its regulations should be focused on the requirements of
the human capital in the business to fulfil their needs. Telstra focuses on the
requirements of its employees as well. The corporation has established two new
cybersecurity centres to ensure that its employees have enough technical support to
protect the privacy of customers (Reichert, 2017).
Technologies
In order to establish an effective IT structure, Telstra uses a number of technologies which
provides them a competitive advantage.

 Firstly, in order to resolve the queries of its customers and provide them high-quality
services, the corporation has developed a 24/7 mobile application which can be
downloaded by its customers. Customers can manage their account and services
directly through the mobile application of the company.
 The corporation has also implemented a crowdsupport platform through which
customers can easily resolve their queries. The data of the customers who use these
services stored on the servers of the company which are managed by the IT
department of the company.
 In case of service downtime or outage, the corporation has implemented a dedicated
department that manages such situation in order to ensure that customers’ data is
secured.
 In order to provide high-speed internet facility to its customers, Telstra relies on
‘Fibre to the Premises (FTTP)’ technology (Telstra, 2018c). It ensures that the data
transmitted by the customers are secured during the transmission, and it is
protected from unauthorised access.
Advantages
 Firstly, implementation of a crowdsupport platform is a cost-effective way of
managing customer services in a company which provides it a competitive
advantage. By using this platform, the corporation is able to reduce its overall
operating costs which resulted in increasing its profitability.
 Secondly, developing a 24/7 mobile application assist the company in reaching a
larger audience which expands its customer base.
 Use of a digital framework assists the corporation in improving the efficiency of its
customer service experience which increased brand loyalty.
Security and Data Control
Along with strict IT regulations, the corporation has established two cybersecurity centres in
order to ensure that the data of the company and its customers are protected from cyber-
attacks and data breaches (Reichert, 2017). Furthermore, Security Operations Centre (SOC)

has been established by the enterprise to ensure that the cyber-attacks faced by the
enterprise are affectedly managed. Moreover, the corporation has implemented different IT
guidelines which are necessary to comply by its employees to ensure that they did not
mistakenly leak any of its classified data which can be used by cybercriminals to hack into its
system. Additionally, the corporation ensures that its computer systems and data servers
are physically protected to avoid unauthorised access to its data.
RECOMMENDATIONS
Telstra can comply with following recommendations to improve its cybersecurity and IT
governance structure.
1. Due to use of 24/7 mobile application and a crowdsupport platform, the data of the
company and its customers are continuously transmitted between different devices.
In order to protect data during transmission, the corporation is required to use
encryption. It will protect its data from unauthorised access because it can only be
accessed by the person who has the key to decode such data.
2. Customers who use the crowdsupport platform of the company should be aware of
the data which is collected by the corporation to ensure their data is protected from
the breach.
3. The company should implement new firewalls to protect its data from the breach. It
should invest in building new cybersecurity infrastructure to protect the data of its
customers from unauthorised access.

CONCLUSION
From the above observations, it can be concluded that Telstra has become the largest
telecom corporation in Australia by relying on digital disruptions. The company has
introduced 24/7 mobile application and a crowdsupport platform to provide high-quality
customer service experience to its members. However, due to use of these technologies,
issues regarding security and privacy of customers have increased because it has become
easier for cybercriminals to hack into the data of its customers. In this case, the best
solution is that the company should increase its investment in the cybersecurity
infrastructure to protect the privacy of its customers and its data. The importance of IT
governance and different technologies which are used by the company are discussed which
provide a competitive advantage to the company. Recommendations are given in the report
which can be used by the enterprise to improve its cybersecurity infrastructure.

REFERENCES
ABC. (2014)
Telstra fined after breaching privacy of 15,775 customers. [Online] ABC.
Available at: http://www.abc.net.au/news/2014-03-11/telstra-breaches-privacy-of-15775-
customers/5312256 [Accessed on 5th June 2018].
Cater-Steel, A., Rajaeian, M.M., Toleman, M. and Troup, D. (2017) The phenomenon of P3
community for IT support: a crowd-support case study.
AIS Electronic Library.
Chong, J.L. and Tan, F.B. (2012) IT governance in collaborative networks: A socio-technical
perspective.
Pacific Asia Journal of the Association for Information Systems,
4(2).
Gallo, P. (2017)
Key takeaways from the Telstra Cyber Security Report 2017. [Online]
Netway Network. Available at: https://www.netwaynetworks.com.au/telstras-cyber-
security-report-2017/ [Accessed on 5th June 2018].
Lekakos, G., Vlachos, P. and Koritos, C. (2014) Green is good but is usability better?
Consumer reactions to environmental initiatives in e-banking services.
Ethics and
Information Technology,
16(2), pp.103-117.
LeMay, R. (2014)
Australian standard published for IT governance. [Online] Delimiter.
Available at: https://delimiter.com.au/2014/01/22/australian-standard-published-
governance/ [Accessed on 5th June 2018].
Moon, H. (2018)
Auditors face evolving cybersecurity challenges. [Online] ACCA Global.
Available at: http://www.accaglobal.com/in/en/member/member/accounting-business/
2017/06/practice/cybersecurity-cpd.html [Accessed on 5th June 2018].
Morley, I. (2017)
Telstra maximised their real estate utilisation, streamlined their move
process and saved millions. [Online] Serraview. Available at: https://serraview.com/telstra-
case-study/ [Accessed on 5th June 2018].

Redrup, Y. (2018)
Telstra warns of record number of ransomware attacks. [Online] Financial
Review. Available at: http://www.afr.com/technology/web/security/telstra-warns-of-
record-number-of-ransomware-attacks-20180404-h0yb0q [Accessed on 5th June 2018].
Reichert, C. (2017)
Telstra announces two cybersecurity centres, new managed security
service. [Online] ZDNet. Available at: https://www.zdnet.com/article/telstra-announces-
two-cybersecurity-centres-new-managed-security-service/ [Accessed on 5th June 2018].
Sarkar, S. (2012) The role of information and communication technology (ICT) in higher
education for the 21st century.
Science,
1(1), pp.30-41.
Tallon, P.P., Ramirez, R.V. and Short, J.E. (2013) The information artifact in IT governance:
toward a theory of information governance.
Journal of Management Information
Systems,
30(3), pp.141-178.
Telstra. (2017)
Telstra 24X7 application. [Online] Telstra. Available at:
https://crowdsupport.telstra.com.au/t5/Telstra-24x7-App/Telstra-24X7-application/td-p/
693421 [Accessed on 5th June 2018].
Telstra. (2018a)
Our history, leaders & value. [Online] Telstra. Available at:
https://www.telstra.com.au/aboutus [Accessed on 5th June 2018].
Telstra. (2018b)
Support. [Online] Telstra. Available at: https://www.telstra.com.au/support
[Accessed on 5th June 2018].
Telstra. (2018c)
Fibre to the Premises. [Online] Telstra. Available at:
https://www.telstra.com.au/broadband/nbn/fibre-to-the-premises [Accessed on 5th June
2018].
Uma, M. and Padmavathi, G. (2013) A Survey on Various Cyber Attacks and their
Classification.
IJ Network Security,
15(5), pp.390-396.