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Cas3701 Assignment 10 2024 Whastapp 0 6 4 5 1 6 7 2 7 5
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Cas3701 Assignment 10 2024 Whastapp 0 6 4 5 1 6 7 2 7 5
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EMAIL 1Memorandum: Ethical and Corporate Governance Concerns Regarding Use of Customer Data
To: Mr. Vavi, Board Chairperson
From: [Professional Accountant's Name]
Date: [Insert Date]
Subject: Ethical and Corporate Governance Concerns in Data Handling Practices at LamLam Hub
Dear Mr. Vavi,
I appreciate your email and understand the importance of addressing the ethical issues related to
our data practices. I have prepared the requested memorandum, focusing on the ethical and
corporate governance concerns associated with LamLam's handling of customer data. This analysis
applies the "good for self and good for others" principle, along with Principles 1 and 3 from the King
IV Report on Corporate Governance.
1. Introduction
The recent data breach at LamLam Hub has highlighted significant ethical and governance concerns
regarding how customer data is collected, handled, and used. In light of these events, it is imperative
to evaluate these practices using the principles of "good for self and good for others" from the King
IV Report on Corporate Governance, along with Principles 1 and 3, which focus on ethical leadership
and responsible corporate citizenship.
2. Ethical Concerns
The principle of "good for self and good for others" underscores the need for balancing self-interest
with the broader impact on all stakeholders. In this context, LamLam's aggressive data collection
practices—gathering excessive user information without proper transparency—exemplify a breach of
this balance. These actions serve the company’s interest in targeted advertising but fail to consider
the potential harm to customers, such as privacy violations and the risk of identity theft. The lack of
informed consent further exacerbates this issue, as users are often unaware of the extent of data
collection and its implications.
3. Governance Concerns: Principle 1
Principle 1 of the King IV Report states that the governing body should lead ethically and effectively.
The failure of LamLam's leadership to establish and enforce robust data protection measures reflects
poorly on the company’s ethical governance. By prioritizing revenue generation over data security,
the leadership has compromised the integrity of the organization. The intentional delay in reporting
the data breach and the subsequent attempt to downplay its severity further indicate a disregard for
ethical governance, undermining stakeholder trust and exposing the company to legal risks.
4. Governance Concerns: Principle 3
Principle 3 emphasizes the responsibility of the governing body to ensure that the organization is
seen as a responsible corporate citizen. The data breach and the unethical practices surrounding it,
, such as deceptive data collection and manipulation of user consent, have damaged LamLam’s
reputation as a trustworthy entity. This failure to uphold the values of responsible corporate
citizenship not only erodes public trust but also jeopardizes the company’s long-term sustainability.
Moreover, the potential legal repercussions from the Information Regulator of South Africa highlight
the risks of failing to comply with regulatory requirements and the ethical standards expected of a
public entity.
LamLam Hub's current practices regarding the use, gathering, and handling of customer data raise
significant ethical and governance concerns. The principle of "good for self and good for others,"
along with Principles 1 and 3 of the King IV Report, provides a framework for understanding the
severity of these issues. Moving forward, it is crucial that LamLam Hub implements more stringent
data protection policies, enhances transparency in its data practices, and demonstrates a
commitment to ethical leadership and responsible corporate citizenship.
Please let me know if further clarification or additional information is required.
Kind regards,
[Professional Accountant's Name]
[Professional Title]
[Contact Information]
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