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280 Chapter 10 • Global, Ethics, and Security Management

must therefore be proactive in embedding the best practices on privacy principles to increase the
confidence of management and users in organizations.

ACCURACY The accuracy principle of ethics requires organizations that collect and store data
on consumers to have a responsibility in ensuring the accuracy of this data. Its major concern is
to protect an individual or consumer from negligent errors and to prevent intentional manipula-
tion of data by organizations for their advantage. With the amount of data that is being collected
today and integration of data from multiple sources there is a great possibility of these data being
corrupted. There needs to be policy and mechanisms to prevent and correct these errors. ERP
systems must embed these best practices on data accuracy and make them available to organiza-
tions. Through an ERP system companies can enforce traceability and manage data quality
across the supply chain. Data tracing enables you to comply with such regulations as the EU
General Food Law Regulation, the U.S. Public Health Security and Bioterrorism Preparedness
and Response Act of 2002, and other import–export regulations. In addition, ERP systems can
help in synchronizing data with the trading partners.
For example, most consumers who use credit cards have their profiles maintained by
companies like Visa and MasterCard, but they are also reported to credit reporting agencies
(CRA) that collect and disseminate information about consumers to be used for credit evaluation
and certain other purposes. They hold the databases that are the origins of a consumer’s credit
report. Examples of CRA in the United States are companies like Experian (which purchased the
files and other assets of TRW), Equifax, and TransUnion. These organizations are for-profit
entities and possess no governmental affiliation. During this reporting what if errors occur by
these credit card companies or during the storage process by credit reporting agencies? This can
create problems for the individuals because it affects their credit rating, and they may not be able
to get loans or approval for new credit cards. The accuracy principle was developed to prevent
this problem. Such laws passed by the federal government as the Fair Credit Reporting Act
23
(FCRA) have focused on this issue of accuracy by regulating the collection, dissemination, and
use of consumer credit information. Along with the Fair Debt Collection Practices Act
(FDCPA), 24 it forms the base of consumer data rights with credit reporting agencies in the
United States. These laws require information providers to report under the following guidelines:

•They must provide complete and accurate information to the credit rating agencies.
•The duty to investigate disputed information from consumers falls on them.
•They must inform consumers about negative information that has been or is about to be
placed on a consumer’s credit report within 30 days.
When organizations are caught violating these guidelines, a consumer may collect $1,000
for each willful or negligent act that results in the violation of the FCRA. Any person may file
suit in local court to enforce the FCRA, which entitles individuals to repair their credit report.
You have a legal right to dispute any information you find on your credit report. The FCRA,
which was enacted in 1971, stipulates that the credit bureaus investigate all consumer disputes if
they challenge credit information on their credit reports. As per this act, the credit bureaus must
complete the investigations within a 30-day period. Any information that cannot be verified or is
found to be inaccurate must be deleted immediately.

23 www.ftc.gov/opa/2004/06/factaidt.htm (accessed February 10, 2007).
24 FTC Statutes. www.ftc.gov/os/statutes/fdcpa/fdcpact.htm (accessed February 10, 2007).