Canadian Tool Box is a home improvement retailer that has 259 stores across Canada, all operated by franchise dealers. The stores sell automotive supplies, tools and sporting goods. The company maintains a presence on social media and participates at various community-based events. In particular, it is a major sponsor of minor hockey in Canada.
Canadian Tool Box has recently been the victim of a cyber hack attack. Criminals used unique, custom-built malware to steal numbers from the company’s point-of-sale systems. Based on its preliminary investigation, Canadian Tool Box believes that the hack may have affected as many as 2.5 million credit and debit cards in Canada.
The Company has announced that it has completed a security upgrade that should prevent any further breach of its systems. Terminals identified with the malware have been replaced and the malicious code has been eliminated from customer systems. The company has also rolled out enhanced encryption of payment data and assured customers that there is no evidence the cybercriminals gained access to their PINs.
The Stakeholder, the federal Office of the Privacy Commissioner, has received several complaints from concerned Canadian Tool Box customers. The Privacy Commissioner has accepted the complaints as formal complaints and referred them to Investigation. The investigator assigned to the matter has written to Canadian Tool Box, seeking to gather information about the security safeguards that ought to have been in place in order to prevent the data breach and what steps have been taken in order to prevent future data breaches. The investigation by the Privacy Commissioner has drawn attention form the national media and arguably, damaged the company’s brand.
You are members of the Stakeholder Relations team at Canadian Tool Box. The Stakeholder Relations team is responsible for planning, establishing, and maintaining stakeholder relationships; creating and implementing strategic plans for engagement with stakeholders; working to understand the diverse nature of stakeholder groups; and coordinating of key stakeholder relations projects.
1)Has this issue reached the level of a crisis for the Company? Explain.
As I am member of the Stakeholder Relations team at Canadian Tool Box, i should analysis the situation with prompt approach and try to fix the mistakes from the company for the benefits for stakeholders and enhancement of brand image of company in future term.
Situations analysis:
Effect:
The situation may consider as the crisis condition for the company ,
A Crisis is characterized here as a noteworthy danger to tasks that can have negative results if not dealt with appropriately. In Crisis the board, the risk is the potential harm a Crisis can incur on an association, its partners, and an industry. A Crisis can make three related dangers: (1) open well being, (2) budgetary misfortune, and (3) notoriety misfortune. A few emergencies, for example, mechanical mishaps and item hurt, can bring about wounds and even loss of lives. Emergencies can make money related misfortune by disturbing tasks, making lost piece of the pie/buy expectations, or generating claims identified with the Crisis. As Dilenschneider (2000) noted in The Corporate Communications Bible, all emergencies take steps to discolor an association's notoriety. A Crisis thinks about inadequately an association and will harm a notoriety somewhat. Plainly these three dangers are interrelated.
Powerful Crisis the executives handles the dangers consecutively. The essential worry in a Crisis must be open security. An inability to address open security escalates the harm from a Crisis. Notoriety and budgetary concerns are considered after open well being has been helped. Eventually, Crisis the executives is intended to shield an association and its partners from dangers as well as diminish the effect felt by dangers.
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