Privacy and Corporate Liability

Red Clays senior leadership team are reviewing the company’s Annual Report, which the CEO will present at the next quarterly shareholder’s meeting. That report includes the following risk statement.

We could be liable if third-party equipment recommended and installed by us, i.e. voice activated smart home controllers, infringes on the privacy of our residential clients.

Research how smart devices sense and record information from the environment around them. For example, an device might be designed to listen and record voice inputs OR it might record other sources of private information about movement, locking / unlocking of doors with dates and times, use of devices, etc.

Using your research, write a two-page briefing paper (five to seven paragraphs) that corporate board members can use to explain how the third party equipment could infringe on customer privacy and why the company might be liable for damages if customers experience a loss of privacy. Your target audience is Red Clay Renovation’s to shareholders. Provide specific examples of the types of risk events that could occur and the potential impacts (e.g. financial, reputation, client trust, etc.) Your examples should relate to Red Clay and the course case study. Remember, the board members and shareholders are likely non-technical, so make sure your paper can be understood by laymen.

Provide in-text citations and references for 3 or more authoritative sources. Put the reference list at the end of your posting.