ASSIGNMENT 3

LEGAL AND OPERATION

ISSUES IN BUSINESS
OPERATION What is the Whistleblowing?
ISSUES

WHISTLEBLOWING

• Whistleblowing is central to a company’s

system of checks and balances.

• Whistleblowing shields companies from

reputational and other risks. The ability to
blow the whistle reflects shared
responsibility and positive culture
LEGAL ISSUES What is the GDPR?

THE GDPR

• The General Data Protection Regulation

(GDPR) is the toughest privacy and security
law in the world.
• The purpose of GDPR protection is to help
organizations in managing personal data
more efficiently, reduce the risk of data
breaches, and improve interactions with
clients and consumers.
LEGAL ISSUES What is the GDPR?

THE GDPR
• If you process data legally, you have to do so according to seven protection and
accountability principles legal including:
1. Lawfulness, fairness, and transparency
2. Purpose limitation
3. Data minimization
4. Accuracy
5. Storage limitation
6. Integrity and confidentiality
7. Accountability
GOOGLE &
THEIR
PRIVACY
 What is the case about? When did it happen?

• In March 2018, Google discovered a security

vulnerability but they kept it a secret.

• Until August 2018, the incident was exposed by the

Wall Street Journal.

• Up to 500,000 user accounts may be exposed to

personal information
INFRINGEMENT
 What was the infringement?

• GDPR violations involved “failure to protect the personal data of

more than 500,000 consumers”

• GDPR’s principle of integrity & confidentiality was infringed.

This means Google should have processed personal data “in a
manner that ensures appropriate security of the personal data,
including protection against unauthorized or unlawful
processing…”
• Google also didn’t notify users of
problems with their personal information.

• Therefore, Google didn’t comply with the

GDPR on “The right to be informed”.
CONSEQUENCE
 How did the organization respond?

According to The Wall Street Journal,

Because of fears that it would draw regulatory

scrutiny and cause reputational damage,
Google's top executives opted not to disclose
the issue and said that the company found no
evidence the user data had been improperly
accessed or misused.
 How did the organization respond?

“Whenever user data may

have been affected, we go
beyond our legal
requirements and apply
several criteria focused on our
users in determining whether
to provide notice,”
- Ben Smith, Google’s vice
president of engineering, said
in a blog post revealing the
bug.

Ben Smith - Google’s vice president of Engineering

 What was the impact?

The influence is not great

• As part of its response to the incident, shares

of Google parent fell more than 2%
immediately after the report.
• The stock was last seen roughly 1% down.
 What measures were done after?

• The company immediately decided to

permanently shut down all consumer
functionality of Google+.
• Users will be able to download and migrate
their data to another service.
• After the scandal for six months, Google
officially closed the G+ platform.
DRAW A
LESSON
 Non-compliance with the right and the consequences of GDPR

• Under the terms of GDPR, not only are organizations

required to ensure that personal data is collected legally and
under strict conditions, but all data collectors and managers
are obligated to protect the data from abuse and exploitation,
and respect the rights of data owners.
 Non-compliance with the right and the consequences of GDPR

• Fines for violations of GDPR regulations are very high.

There are two types of penalties:
1. Up to 20 million euros
2. 4% of global revenue (whichever is higher) plus data
subjects have the right to claim damages.
 Personal lesson

• Understanding and complying with international laws and regulations

is critical to maintaining legal and ethical standards in the global
business environment.

• The lawful use of business

information is a legal obligation
and a strategic business
practice.
 Personal lesson

• By complying with legal

requirements:
1. Businesses protect
themselves
2. Build trust with stakeholders
3. Establish a strong
foundation for sustainable
growth and success
Thanks For Watching!