A method for managing shared passwords on a multi-user computer system is disclosed. A set of shared passwords and an administrator internal key are initially generated. After the receipt of an administrator external key, the administrator internal key is encrypted with the administrator external key. For each user level within the computer system, an internal key is generated by hashing the administrator internal key. For each user level within the computer system, each of the shared passwords encrypted with a respective one of the internal keys. The internal keys and the encrypted shared passwords are then stored in a non-volatile storage device.