Read this sample breach letter “SAMPLE DATA BREACH NOTIFICATION” and describe how two different economics theories and two different social sciences theories relate to the letter.
Looking at the breach notification letter for two economic theories I choose:
- Classical Economics: The breach notification letter reflects principles of classical economics through the company’s reliance on self-interest. The company is motivated to protect its reputation and maintain customer trust in them, even without government intervention mandating such actions. The letter emphasizes the company’s proactive measures to safeguard customer data.
- Keynesian Economics: The breach notification letter underscores the potential role of government intervention in managing economic fluctuations. The delay in notifying customers until after law enforcement investigation suggests a lack of immediate action, potentially prolonging customer uncertainty and economic instability.
Looking at the breach notification letter for two social sciences theories I choose:
- Social Contract Theory: The breach notification letter can be understood through the lens of social contract theory, which shows that individuals enter into agreements with institutions, like businesses, they expect to be protected and their information protected so that can lead to trust and support. The breach violates the contract, leading to customers feeling as if they were tricked or betrayed in a way. The company’s response, including notifying customers and providing resources for protection, can be seen as an attempt to repair this social contract and regain trust.
- Routine Activities Theory: This theory suggests that crimes occur when three elements converge: a motivated offender, a suitable target, and the absence of a capable guardian. The breach notification underscores the importance of implementing robust security measures to deter potential offenders and protect against cybercrimes.
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