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Chapter 10 • Global, Ethics, and Security Management 297

Review Questions

1. What is outsourcing and why would a company 7. What are the components of a good information
choose to outsource? technology security plan?
2. What are the advantages and disadvantages to 8. With ERP implementations why would an auditor
outsourcing? get involved?
3. What are the key challenges in offshore outsourcing? 9. Why is the Sarbanes–Oxley Act important to
4. List five best practices in outsourcing. investors?
5. What is SaaS and why is it considered as another 10. What should a disaster recovery and business
outsourcing option? continuity plan include and who should be
6. Discuss the components of PAPA. involved?

Discussion Questions

1. Outsourcing is becoming more and more popular 3. Discuss how PAPA principles of ethics can be
in companies today. Discuss why a company applied to ERP implementation.
would want to outsource and how they should out- 4. The Sarbanes–Oxley (SOX) Act is important in a
source ERP implementation. financial environment. Discuss how the operations
2. Compare and contrast traditional outsourcing with of an ERP system are affected by SOX.
the Software as a Service. Under what conditions 5. Discuss the major security concerns in ERP systems.
should a company choose SaaS over traditional
outsourcing?

CASE 10-2
Real-World Case
TJX Security Breach

The TJX Companies, Inc., is the leading off-price apparel and home fashions retailer in the
United States and worldwide, with $16 billion in revenues in 2005, 8 businesses, and more
than 2,300 stores, with a rank of 138 in the most recent Fortune 500 rankings. TJX’s
off-price concepts include T.J. Maxx, Marshalls, HomeGoods, and A.J. Wright, in the
United States, Winners and HomeSense in Canada, and T.K. Maxx in Europe. Bob’s Stores
is a value-oriented casual clothing and footwear superstore in the Northeastern United
States. Our off-price mission is to deliver a rapidly changing assortment of quality brand
name merchandise at prices that are 20–60 percent less than department and specialty store
regular prices, every day. Our target customer is a middle to upper-middle income shopper,
who is fashion and value conscious. This customer fits the same profile as a department
store shopper, with the exception of A.J. Wright, which reaches a more moderate-income
market, and Bob’s Stores, which targets customers in the moderate to upper-middle income
range. 40
In mid-December 2006, TJX discovered that a hacker had illegally accessed the
network that handles credit card, debit card, check, and return transactions. The stores
(continued)

40 www.TJIX.com (accessed February 2001).