Q: 17
SCENARIO
Please use the following to answer the next QUESTIO N:
Amira is thrilled about the sudden expansion of NatGen. As the joint Chief Executive Officer (CEO)
with her long-time business partner Sadie, Amira has watched the company grow into a major
competitor in the green energy market. The current line of products includes wind turbines, solar
energy panels, and equipment for geothermal systems. A talented team of developers means that
NatGen's line of products will only continue to grow.
With the expansion, Amira and Sadie have received advice from new senior staff members brought
on to help manage the company's growth. One recent suggestion has been to combine the legal and
security functions of the company to ensure observance of privacy laws and the company's own
privacy policy. This sounds overly complicated to Amira, who wants departments to be able to use,
collect, store, and dispose of customer data in ways that will best suit their needs. She does not want
administrative oversight and complex structuring to get in the way of people doing innovative work.
Sadie has a similar outlook. The new Chief Information Officer (CIO) has proposed what Sadie
believes is an unnecessarily long timetable for designing a new privacy program. She has assured him
that NatGen will use the best possible equipment for electronic storage of customer and employee
dat
a. She simply needs a list of equipment and an estimate of its cost. But the CIO insists that many
issues are necessary to consider before the company gets to that stage.
Regardless, Sadie and Amira insist on giving employees space to do their jobs. Both CEOs want to
entrust the monitoring of employee policy compliance to low-level managers. Amira and Sadie
believe these managers can adjust the company privacy policy according to what works best for their
particular departments. NatGen's CEOs know that flexible interpretations of the privacy policy in the
name of promoting green energy would be highly unlikely to raise any concerns with their customer
base, as long as the data is always used in course of normal business activities.
Perhaps what has been most perplexing to Sadie and Amira has been the CIO's recommendation to
institute a
privacy compliance hotline. Sadie and Amira have relented on this point, but they hope to
compromise by allowing employees to take turns handling reports of privacy policy violations. The
implementation will be easy because the employees need no special preparation. They will simply
have to document any concerns they hear.
Sadie and Amira are aware that it will be challenging to stay true to their principles and guard against
corporate culture strangling creativity and employee morale. They hope that all senior staff will see
the benefit of trying a unique approach.
If Amira and Sadie's ideas about adherence to the company's privacy policy go unchecked, the
Federal Communications Commission (FCC) could potentially take action against NatGen for what?
Options
Discussion
Option A, Deceptive practices comes up because changing how the privacy policy is followed can mislead customers. Pretty sure that's where FCC steps in if the public-facing statements aren't matched internally. Agree?
D. not A
D
I'm thinking D here. The CEOs want to let low-level managers handle privacy policy interpretation and compliance, which could mean inconsistent or weak training for staff. That sounds like an FCC issue if employees aren't properly trained on policy. Anyone else see it that way?
A , clear scenario. Letting departments tweak privacy policy would look deceptive if public promises are broken. Seen similar in practice sets.
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