You have just been appointed Senior Vice President of Internal Operations for a privately held corporation.

Your Director of Human Resources immediately advises you that employees have used the company's Internet site to download pirated music, videos and software. You are well aware that all of such activities are criminal in violation of the copyright laws.

However, the company does not have a formal policy on Internet use.

Things become further complicated, when you also receive a Cease and Desist Letter from Adobe, informing you that it has discovered that some of its products have been pirated and have been used by various employees. It asks for the names of all employees, who have used the pirated software in order to prosecute them for criminal copyright infringement.

The Director of Human Resources also informs you that, in dealing with the Adobe problem, IT has also determined that a few employees were accessing pornographic web sites, including those showing child pornography?

To add insult to injury, the Office Manager has also informed you that there is a constant drain on office supplies, especially just before school opens in the fall and in late January.

You realize that prior management has let things run amok and that is one reason why you have been hired?

What should be the company's response?

Please include your references.