How has TJX responded to the compliance issues involved in this case?The TJX Companies, Inc. were hard hit by the crisis, but by the look of things, it is hard to tell that the company had experienced such problems. The case study is clear that the company responded positively to the problem (Weiss, 2014). The company used the crisis as learning experienced that enabled the company to change and grow. The company responded by practicing V.A.L.U.E proposition because the company has highly improved as compared to other retailers. The companys consumer satisfaction index score has increased. The unauthorized intrusion had led to the theft of customers' personal information. The crisis was as a result of hacking into the companys systems (Bragdon, 2007).
Did TJX display a strategy in their response?
The company has demonstrated a great strategy while dealing with the problem. The company did not immediately because it did not want to cause any panic among its customers. The crisis could also have destroyed the companys image and reputation. The company publicized the intrusion a month after it had happened. The company played it part by complying with the law enforcement agencies. The information was held as confidential until TJX was given a go ahead to notify the public (Weiss, 2014). The company strategy allowed the company to give a concrete and informed explanation that will guarantee the stakeholders safety of their personal data.
Discuss how the timing of the response impacted stakeholders and the TJX corporatebrand. Did TJX keep the needs of stakeholders a priority in their decision-making process in the case?
The company withholding of the information about the issue was a significant step because it protected the customers and protected the reputation of the company. The company ensured that it involved the stakeholders in the process of publicizing the crisis. The company through its CEO Carol Meyrowitz informed the general public through the media and the companys website about the obligations of the company owes the stakeholders (Bragdon, 2007). The company involved various agencies in the investigation process. The timing of the response impacted the stakeholders positively; especially those were working directly with the company concerning doing business. The company assured them it had done enough to eliminate such a problem in future. The company established a website and a hotline that was aimed at accurately handling the intrusion issues.
Describe the short- and long-term effects of the case on the business sustainability of TJX.
The case has both positive and adverse effects on the sustainability of the company's business. The company spenT over a $120 million in tax charges and around $20 million that were future charges (Weiss, 2014). The company had many lawsuits filed against it by the stakeholders. The company's fortunes were not bad when it came to sales because in the second part of 2008 the sales had increased. The company ensured it reached agreements with the majority of the stakeholders through acceptance. The company also reimbursed its customers the costs that would be incurred to replace their documents. There was increased customer discontent immediately after the intrusion, but this eventually changed as customers choose brand loyalty and this led to an increase in sales. The company continued to make profits despite the effects created by the intrusion (Bragdon, 2007).
Bragdon, B,. (2007). TJX: How Not to Handle a Crisis. Cso.
Weiss, J., (2014). Business Ethics: A Stakeholder and Issues Management Approach. New York: Berrett-Koehler Publishers.
Weiss, J., (2014). TJX's V.A.L.U.E: Corporate Social Responsibility report 2013.http://www.tjx.com/images/corp_resp/pdf/TJX2013_CSR_online.pdf
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