Aveneu Park, Starling, Australia

1. and competitive disadvantage for businesses. In

Ethical issues


We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

One issue the hotel industry is facing is
computer crime, as it has been experiencing a ‘cyber-crime wave’ (Financial
Times, 2016). For many businesses’ this has highlighted how important cyber
security is. It is
crucial that the Charnwood Hotel protects themselves against security breaches
across all markets. If data is stolen or lost especially customer data, it
can result in brand damage and competitive disadvantage for businesses. In Verizon’s 2009 data breach investigation
report they found that database
breaches see an average of 75% of the organization’s records compromised in an
attack. A key solution for this is password encryption of databases. While it
cannot guarantee 100% protection from hackers, it can minimize the company’s
exposure to them. Database encryption is becoming increasingly vital across
different sectors, especially for the public sector as it is used to protect
citizen privacy and national security (Kirsch, 2009).



Within a business, a duty of care needs to be understood
towards consumers and their data. It is important that a code of conduct is
established, to which every member of staff at the hotel is upheld to the highest
professional standard. If the hotel is considering entering the world of social
media they must implement an effective social media policy. Guidance on social
media policies need to be reviewed and implemented periodically due the
fast-paced changing social media environment. To demonstrate their commitment
to their code of conduct the hotel could join the Digital Analytics Association
(Digital Analytics Association,


Legal issues


An issue that often arises is
control over data. The ownership rights to data can pose a problem as they
result in a competitive advantage as the owner of the data controls how it is
shared and used. Twitter
has developed a data licensing business which has led to new fast-growing
revenue. Twitter can sell its 500 million daily tweets to different companies
who then process the information for use. Largely
the business value in big data is in integrating data from various sources. In
terms of analytics, the ownership of data is also key. Typically, you can find
rights to data in the terms of service and privacy policy for mobile apps,
online services and websites.

Signed agreements can be used
in business to business transactions. E.g. a signed agreement may be utilised
between an Internet of Things provider and its farm clients in a smart
agriculture application.  Often
shared ownership is a happy medium for an ownership quota in some business to
business contracts.


Property Protection is a key issue here. In order to make sure a business analytics
system is protected, IP should always be part of the business plan. This will
mean that any technology or data systems that the Charnwood hotel develop will
be protected and it will allow them to set themselves apart from their
competitors. For the Charnwood Hotel, it is vital that they protect any special
product or services they own. If
not, competitors may be able to copy them and steal market share, resulting in
a loss of revenue or slower business growth. Losing market share during a
business’s development can be damaging and time consuming. They must also
remember that people will not check to see if their intellectual property has
been infringed; it is their responsibility to make sure that people are not
abusing their intangible assets.



One legal risk of data is consumer privacy. Many laws and
regulations are focused on the security and privacy of consumers personal
information. Arguably the most important regulation is The Data Protection Act 1998 (c 29) designed to protect personal data stored
on computers or in an organised paper filing system. The hotel needs to have a
best practice method for dealing with data under the Data Protection Act. In
order for this to be successful they must train staff effectively and have the
CEO trained in data protection. If best practice is breached then it must be
reported to a senior management executive on the board who can manage how it
should be handled. It is crucial that the Charnwood Hotel takes these measures
seriously as the Information Commissioner can fine the company up to £500,000 for a
breach of the Data Protection Act that is deemed likely to cause substantial distress or damage and the
data controller has failed to take reasonable steps to prevent it. 


I'm Simon!

Would you like to get a custom essay? How about receiving a customized one?

Check it out