Ethical Issues Of Customer Relationship Management Essay

765 Words Dec 5th, 2015 4 Pages
Ethical Issues in Customer Relationship Management
Customer Relationship Management can be beneficial to both the company and the consumer. The company reduces costs by offering only products that are wanted, when they are wanted, and then passes the cost savings on to the customer who signed up for the company 's customer relationship management or VIP card as many stores have now. To start a program like this the company wishing to start the system must first gather a lot of information about each customer and store it. The ethical issue with this is customer privacy and the accuracy of the gathered information.
Ethical issues with the collection of customer information for these “VIP” systems are concerns about the security of the gathered information and an ethical manner to verify the accuracy of the information. Ethical companies make sure that sensitive information such as credit card numbers or medical histories are collected in a secure (encrypted) environment and sent back to the collection device securely. There needs to be a method for verifying the identity of a customer and if the information collected is correct. This process can be expensive and may cause a company to use a less secure method. It is ethically critical that the cost not be considered when dealing with the security of the information gathered. Although customers benefit from this information collected in many cases, it can become unethical depending on the purpose of the collection. As a…

Related Documents