Do online privacy policies and seals affect corporate trustworthiness and reputation?

Abstract

In this study, we attempt to examine the effectiveness of online privacy policies and privacy seals/security icons on corporate trustworthiness and reputation management, and to clarify how young Japanese people evaluate the trustworthiness of B to C e-business sites in terms of personal information handling. The survey results indicate that posting online privacy policies and/or privacy seals/security icons by B to C e-businesses does not work for creating trust in business organisations by consumers actively. Instead, existing good name recognition and/or general reputation can engender trust and, increasingly, better their reputation in terms of personal information use and protection.