The TJX Companies

The case study ‘The TJX Companies, Inc. V.A.L.U.E. Corporate Social Responsibility Report 2013’ is a perfect example why all companies should strive to develop strategies to control the damage as well as respond to crisis and get to understand the importance of its stakeholders that are most important (Klarsfeld and Delpuech, 2014). Therefore, the essay will discuss some of the short- term and long- term effects of the case on the business sustainability.

The incident had substantial effects on the business sustainability of TJX. They are both long term and short effects (Tomsho and Rob, 2014). The short-term effects; the employee at TJX companies was fired, he had posted messages on an online forum which disclosed that he was still practicing unsecured networks practices, this is one year after the breach had been discovered. The long-term effect is; TJX has been assumed to be covering up as it delayed in the making of a public announcement when the law requested saying that it was a business decision and it was for the best interests of its customers (Lavoie and Denise, 2017). For instance, TJX companies refused to say the exact number of cards that were stolen yet this information existed as the banks were on trying to replace their customers’ cards. The company has refused to admit that it had never been compliant with the PCI security standards. In this case, the company has still not committed to becoming compliant with these new ads, which will negatively affect their profitability.

References

Lavoie, Denise (2017). "Credit cos. watchful after TJX breach". Archived from the original on 2007-01-23. Retrieved 2007-01-18

Tomsho, Rob (2014). Hacker pleads guilty in TJX security breach. The Wall Street Journal, Retrieved September 12, 2008

Klarsfeld, A., Delpuech, C. (2014). Hard law, soft law, weak law: the implications of the neo-institutional and social regulation theories on CSR and the distinction between hard and soft law, Working Paper, Toulouse Business School