Choicepoint

3743 WordsJul 22, 200815 Pages
Introduction Based in Alpharetta, Georgia, ChoicePoint was formerly a struggling insurance services unit of Equifax. Derek Smith successfully trimmed its labor-intensive operations and replaced them with technologically based ones, which resulted in both higher growth and higher margins. This allowed the company to spin off from Equifax and become publicly traded in 1997. The company’s initial focus was data services for the insurance industry. As its business matured and expanded, ChoicePoint also entered into non-insurance markets and was able to consolidate fragmented industries through acquisition and integration. ChoicePoint tapped various public and private sources to gather data, assembled it into proprietary databases, and…show more content…
Criticism 2: Data Inaccuracies Another issue from critics focused on inaccuracies in the industry’s records. Examples show that based on false information provided by ChoicePoint one employee had been fired from a company and another applying for job have been denied employment. “Another incident involved a ChoicePoint subsidiary charged with having supplied the state of Florida with a list of individuals mistakenly identified as felons. The state used the list to purge its voter roles in the 2000 presidential election—thus depriving individuals of their constitutional right to vote.” (CP, 5). Organizational Security Gaps: Organization & Critical Infrastructures ChoicePoint claims that they gave employees (but not independent contractors) a training manual which taught “investigatory procedures,” but when this was examined during a court case, the process was declared to be “opaque.” Clearly, if ChoicePoint had procedures in place that only applied to employees and not independent contractors working for the company, they left a big gap in the organization cornerstone. It would appear as though “senior management’s role to provide the leadership that establishes security as an important issue in the organization,” (Dutta, 77) was not in place. In addition, the proper scrutiny was not given to security procedures, to ensure that they would serve their purpose. Also, based
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