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512 tHe InternatIonal DIMenSIon International MIS

Variations in privacy laws can also affect the operation of an organization’s international sys-
tems. For example, in parts of Europe employers cannot read their workers’ emails, personal data
cannot be collected without an individual’s permission, organizations must provide individuals with
the ability to correct inaccuracies in the data they collect, and personal data cannot be shared by
companies without express permission. None of these apply to organizations in the United States.
Differences in privacy laws may become even more pronounced. In 2014, Google lost a le-
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gal battle and was forced to provide European users with the “right to be forgotten.” Individuals
can request references of them to be removed from any search results. This ruling will likely be
applied to other service providers as well. Unfortunately, none of these privacy protections ap-
ply to U.S. citizens.
Organizations need to be aware that laws related to privacy, content, and encryption will
affect the way they collect and store data. Consider how these laws might affect organizations
that use cloud-based services to store data. Organizations could operate in a country with loose
content laws and then store all of their data and applications in another country with stricter
privacy laws in order to protect their users. In other words, the intersection of international law
and technology is forcing organizations to carefully evaluate how they manage their informa-
tion systems, in particular, the location of their data.
Physical Security

Second, operating information systems internationally can be problematic because of different
physical environments. This includes threats to infrastructure in the form of natural disasters,
geopolitical risks, civil unrest, and terrorist attacks.
Place your data center in Kansas, and it’s subject to tornados. Place your data center inter-
nationally, and it’s potentially subject to typhoons/hurricanes, earthquakes, floods, volcanic
eruptions, or mudslides. For example, the data centers in Japan survived the terrible effects
of the 2011 earthquake, tsunami, and nuclear reactor meltdowns. They survived the shaking,
flooding, and widespread power outages because they were housed in special facilities with
shock-absorbing structures and had backup power generators.
An organization’s physical infrastructure is also vulnerable to outright seizure. In 2011, the
FBI seized several racks of servers from a data center in Reston, Virginia, that belonged to a
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Switzerland-based company named DigitalOne. DigitalOne’s owner, Sergej Ostroumow, said the
seizure knocked several sites offline, but declined to say which one of his clients was being targeted.
Employees who run critical infrastructure can be targeted as well. In 2014, Russian presi-
dent Vladimir Putin revoked visas for nearly 1,000 foreign workers when tensions flared be-
tween Russia and Western countries. Deloitte & Touche’s local chief operating officer, Quentin
O’Toole, was deported for his wife’s speeding tickets.

Cultural Norms

Finally, cultural norms can affect the way organizations manage their international information
systems. For example, bribery is generally considered unacceptable in the United States, but in
other countries it is accepted as a normal way of doing business.
In 2012, Walmart became embroiled in a bribery scandal that showed that local Walmart
executives in Mexico used bribes to get building permits and expedite its expansion in Mexico.
The fallout from the scandal resulted in departures of several key executives and $439 million
spent on investigations and a new compliance program. It’s important to note that this is just
one example. Graft is a worldwide problem. This example points out how differences in cultural
norms can affect an organization’s daily operations.

9 Julia Fioretti, “EU Says Firms Like Google and Facebook Must Meet Privacy Rules,” Reuters, June 6, 2014, www.
reuters.com/article/2014/06/06/us-eu-dataprotection-idUSKBN0EH1ER20140606.August 12, 2014.
10 Verne Kopytoff, “FBI Seizes Web Servers, Knocking Sites Offline,” The New York Times, June 21, 2011, accessed
June 27, 2014, http://bits.blogs.nytimes.com/2011/06/21/f-b-i-seizes-web-servers-knocking-sites-offline/.