Reasons Businesses Need A Solid Security Policy For Personal Information

Law Blog

Since most companies rely heavily on the use of computers for storing information pertinent to their business, one of the most serious threats a business today faces is the threat of hackers or viruses compromising their data. Not only can this type of issue make it difficult for the company to operate correctly, but if data belonging to customers or clients is included in a security breach, it can also create legal, ethical and social issues for the business, as well:

Legal Responsibilities

Many corporate and business lawyers today are recognizing how important it is that their clients make sure the information they collect from their customers is protected and secure. While there are several reasons for this, the main concern to most lawyers is the legal and liability issues such a security breach can cause to the company.

One of the main considerations a lawyer will need to discuss with a business owner is the legal problems they will encounter if they do not have a solid security policy and procedure in place. If this happens, the business may be found in violation of the Personal Information Protection and Electronic Documents Act or PIPEDA. This can become a serious issue.

This act is designed to help in ensuring personal information is protected from unauthorized access, theft, loss or other issues. If a company is found to be negligent in complying with this Act, they may face penalties or legal actions involving lawsuits and more.

Ethical Responsibilities

In addition to legal issues, a lawyer will often advise their client to be diligent about ensuring their customer's information is safe and secure because of ethical responsibilities as well. To accomplish this, a business may need to have special types of hardware, software or other technologies to limit the likelihood the data they collect is at risk. This can be important not only to customers, but to employees, shareholders, suppliers and others as well.

Social Responsibilities

Making sure customer's data is protected is also important in meeting the social responsibilities a company has as well. Customers and the public expect a legitimate company to take measures to make sure the personal information they obtain during a transaction is safeguarded.

If a business is careless and does not take proper measures to do this, they may begin to lose the confidence of their customers and this can have a negative impact on the business as a whole.

To make sure a business is meeting its legal, social and ethical responsibilities, it can be a good idea to have a lawyer review their security policy. This can help in ensuring the policy is solid and meets the necessary requirements. To learn more, contact a company like Heather Sadler Jenkins LLP commercial law with any questions or concerns you have.


4 May 2015