8/12/2019 Q3 MIS

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Q3.There are a number of business practices that Harrahs follows which may not be

deemed entirely ethical:

1. While the potential is there to sell customer data, Harrah's has said that it will not sellcustomer data to third parties. ome ar!ue that Harrah's is e"ploitin! !amblers, perhaps

!amblers with a !amblin! addiction. #f this ar!ument is true, then encoura!in! a person witha !amblin! addiction to spend more of his money is ob$iously wron!. Harrah's counters bysayin! that it is only encoura!in! people who !amble to do their !amblin! at a Harrah'scasino, as opposed to !amblin! at a non%Harrah's location.

&. The database technolo!y and customer relationship mana!ement software help Harrah'sachie$e a competiti$e ad$anta!e in the !amblin! industry. The database technolo!y andcustomer relationship mana!ement software enable Harrah's to maintain sharp customerprofiles, analye its data to identify the most profitable customers, impro$e its customerser$ice, and offer consistent customer ser$ice. The database technolo!y and customerrelationship mana!ement software cannot address or!aniational issues, such as the switchfrom a casino%focus to a customer focus, loss of pri$acy fears, and !ambler e"ploitation

criticisms.

3. (i$en the nature of their business, they promote !amblin!. )eople !o to the casinobecause they want to feel *e"uberantly ali$e+. Harrahs wor at enticin! customers to feel theadrenaline rush of !amblin!. -ost of their offers are tar!eted towards this. This has definiteethical issues since !amblin! can become an addicti$e practice and Harrahs offersencoura!e such beha$iour.

. Harrahs #T system relies on tracin! customer beha$iour, ri!ht from their playin!

strate!ies to their personal information includin! address and birth date. This raises issues

of pri$acy, particularly when Harrahs can trac customers spendin! patterns on !amblin!.

Howe$er, in times of social media, this loos less lie a security issue than earlier. With

/aceboo around, concerns o$er Harrahs pri$acy in$asion sound o$errated.

0. The bi!!er debate around data minin! is the problem of sharin! Harrahs internal data

with credit card companies. This sort of data cartel can ha$e far%reachin! conseuences for

a customers credit profile and ability to secure credit. o far, howe$er, Harrahs has not

been accused of breachin! this line.

2. Harrahs also runs the ris of too much profilin! throu!h its data. /orcin!

beha$iouralpsycho!raphic patterns on users can bacfire, when all customers are looin!

for is a !ood time. 4ustomers beha$iour in Harrahs may only be a reflection of their less

!uarded sel$es, and an incorrect pointer to their beha$iour metrics andor psycho!raphicpositionin!.