Summary: Kudler Frequent Shopper Program

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Kudler Frequent Shopper Program BSA/310 September 23, 2013 Kudler Frequent Shopper Program Kudler Fine Foods is looking to develop a new frequent shopper program. The object of this new program is to track the purchases of individual customer’s to award loyalty points through a partnership for redemption such as airline first-class upgrades, high end gift items, or other specialty foods. When developing a new frequent shopper program the potential legal, ethical, and information security concerns must be identified as well as the cost related to these issues. Once these issues are understood and dealt with this frequent shopper program will greatly benefit Kudler Fine Foods. When adding any type of new program or system to a business…show more content…
Since the new frequent shopper program will be considered E-Commerce there are laws that have to be adhered to. The Federal Trade Commission regulates E-Commerce as well. These regulations deal with the customer’s privacy. It is the company’s responsibility to ensure the personal information of the customers are protected, and are compliant with federal and state privacy laws (Beal, 2013). Kudler Fine Foods will have to provide a privacy policy to the customers on the businesses website. As long as Kudler Fine Foods follows all laws in regards to these areas there should not be many legal costs to the company. Most of the legal costs will come from setting up the program and all the legal documents that come…show more content…
Again this has a lot to do with the customer’s personal information and privacy. There is a fine line between unethical behavior and illegal. A major ethical concern with this program is exploiting the customer’s information for the businesses gain. There are business professionals that will deal with sensitive data such as client’s personal information. This can lead to an ethical issue for example using the information for profit by selling it to third party companies. This can become a liability for the company and to prevent this safety precautions must be set up (Hickman, 2013). This could also lead to Kudler Fine Foods losing their customers trust and losing their business. Kudler’s partners in this program could also decide to end the partnership due to unethical behavior. Both of these concerns would be terrible for the business and end up costing a fortune, if not the entire company. The Golden Rule, Immanuel Kant’s Categorical Imperative, Descartes’ rule of change, Utilitarian Principle, Risk Aversion Principle, and the ethical “no free lunch” rule are the six main ethical principles (Laudon & Laudon, 2010). As long as Kudler Fine Foods uses these principles when making any ethical decision then the business will not have to worry about breaking any ethical

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