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An Ethical Analysis of the Customer Data Breach in Target Corporation

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An Ethical Analysis of the Customer Data Breach in Target Corporation
An Ethical Analysis of the Customer Data Breach in Target Corporation

Introduction to Target Corporation
Target Corporation, which is one of the leading retail companies the United States, was founded in 1902. The first target store was opened in 1962. Through the 52 years rapid development, Target stores are now located in over 1,924 places. About 90% of the stores are located within the United States, the other 10% stores are in Canada, Australia, and other countries (Target, 2014). All the Target stores are selling products at discount, from clothes to shoes, toys to electronics, home furniture to cosmetics etc., almost cover everything in people’s daily life. Target’s biggest competitors are Walmart and Kmart. However, the competitive advantage of Target is that Target provides not only low price, but also upscale and fashionable products, which is also coincided with the slogan: Expect More, Pay Less. 2012 Target Annual Report shows that Target annual sales is $71,960 million U.S. dollars, and net earnings $2,999 million U.S. dollars (Target, 2014). With the business expansion, more and more loyal customers applied for Target’s REDcard. This debit/credit card gives loyal customers further benefits, including 5% extra discount and everyday free shipping.

Details of the Scandal
In the late of 2013, we start hearing the scandal that our customers’ personal information is leaking. The customer private information including customer’s name, phone number, home address, and even credit card information. Our customers entered their private information when purchasing our products online at target.com, and registering for our loyal reward card REDcard. According to the latest customer survey in United States, there are around 189.4 million digital shoppers in 2013 and will be expected 210.2 million digital shoppers in 2017 (Statista, 2014). From the feedback in stores, about 20% customers use REDcard to pay for their purchase

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