Zappos and Lululemon
1/18/2021 Print Preview
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Chapter 11: Zappos: Taking Steps toward Maximizing Stakeholder Satisfaction: 11-10e Theft of Customer Information Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Toure Williams (taaw_15@yahoo.com) © 2019 Cengage Learning, Cengage Learning
11-10e Theft of Customer Information
In 2012 hackers broke into Zappos’s computer system, and the company had to respond to the theft of 24 million customers’ critical personal information. The stolen data included customers’ names, email addresses, shipping and billing addresses, phone numbers, and the last four digits of their credit cards. Zappos immediately addressed the situation by sending an email to customers notifying them of the security breach. Zappos assured customers the servers containing their full credit card information were not hacked. Its next move was to disconnect its call center, reasoning that the expected amount of calls would overload the system.
While Zappos has a reputation for delivering customer service that is unmatched by any competitor, some customers were unhappy with how Zappos handled the hacking. Many customers were upset by their information being hacked, but the situation was made worse by the company’s action of disconnecting its call center. Although this situation caused problems for Zappos and blemished its customer service record, the company has worked to restore its reputation.
Chapter 11: Zappos: Taking Steps toward Maximizing Stakeholder Satisfaction: 11-10e Theft of Customer Information Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Toure Williams (taaw_15@yahoo.com) © 2019 Cengage Learning, Cengage Learning
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