Gender discrimination continues to plague organizations. While the advent of the Internet and the digitization of commerce have provided both a mechanism by which goods and services can be exchanged, as well as an efficient way for consumers to voice their opinions about retailers, recent work has begun to uncover significant biases that manifest during the review process. In particular, it has been suggested that the gig-economy’s elimination of previously anonymous arm’s-length transactions may re-introduce bias into perceptions of quality. In (...) this work, we build upon research that has identified biases based on ascriptive characteristics in rating systems of ridesharing platforms. In doing so, we conduct an online experiment using a series of factorial vignettes to consider not only willingness to transact but post-transaction perceptions of quality. Findings suggest that female drivers are not penalized ex ante for taking on gender incongruent roles, i.e., driving, and experience no penalty when a rider reports a high-quality experience. However, conditional upon a lower quality experience, there is a disproportionate penalty for female drivers. Strikingly, we also observe that historic high quality does not serve as a buffer against such penalties, as prior literature would suggest. These findings underscore the challenges platforms face in ensuring their participants are being evaluated in a fair and impartial way, and highlight the difficulties present when non-employees are rating non-employees of the firm. (shrink)

Privacy issues surrounding the use of social media sites have been apparent over the past ten years. Use of such sites, particularly Facebook, has been increasing and recently business organizations have begun using Facebook as a means of connecting with potential customers or clients. This paper presents an empirical study of perceived privacy violations to examine factors that influence the expectations of privacy on Facebook. Results of the study suggest that the more important Facebook is to users, the more likely (...) they are to perceive privacy violations and the more likely those violations are to be considered serious. Furthermore, how information is used is more important than the way this information is accessed. (shrink)

Recent scholarship in philosophy, law, and information systems suggests that respecting privacy entails understanding the implicit privacy norms about what, why, and to whom information is shared within specific relationships. These social contracts are important to understand if firms are to adequately manage the privacy expectations of stakeholders. This paper explores a social contract approach to developing, acknowledging, and protecting privacy norms within specific contexts. While privacy as a social contract—a mutually beneficial agreement within a community about sharing and using (...) information—has been introduced theoretically and empirically, the full impact on firms of an alternative framework to respecting the privacy expectations of stakeholders has not been examined. The goal of this paper is to examine how privacy norms develop through social contract’s narrative, to redescribe privacy violations given the social contract approach, and to critically examine the role of business as a contractor in developing privacy norms. A social contract narrative dealing specifically with issues of privacy is an important next step in exploring a social contract approach to privacy. Here, the narrative is used to explain to analyze the dynamic process of privacy norm generation within particular communities. Based on this narrative, individuals within a given community discriminately share information with a particular set of obligations in mind as to who has access to the information and how it will be used. Rather than giving away privacy, individuals discriminately share information within a particular community and with norms governing the use of their information. Similar to contractual business ethics’ impact on global commerce in explaining how and why norms vary across global contexts, the social contract approach to privacy explains how and why norms vary across communities of actors. Focusing on agreements around privacy expectations shifts the responsibility of firms from adequate notification to the responsibility of firms as contractors to maintain a mutually beneficial and sustainable solution. (shrink)

Recent scholarship in business ethics has revealed the importance of privacy expectations as they relate to implicit privacy norms and the business practices that may violate these expectations. Yet, it is unclear how and when businesses may violate these expectations, factors that form or influence privacy expectations, or whether or not expectations have in fact been violated by company actions. This article reports the findings of three studies exploring how and when the corporate dissemination of consumer data violates privacy expectations. (...) The results indicate that consumer sentiment is more negative following intentional releases of sensitive consumer data, but the effect of data dissemination is more complex than that of company intentionality and data sensitivity alone. Companies can effectively set, and re-affirm, privacy expectations via consent procedures preceding and succeeding data dissemination notifications. Although implied consent has become more widely used in practice, we show how explicit consent outperforms implied consent in these regards. Importantly, this research provides process evidence that identifies perceived violation of privacy expectations as the underlying mechanism to explain the deleterious effects, on consumer sentiment, when company actions are misaligned with consumers’ privacy expectations. Ethical implications for companies collecting and disseminating consumer information are offered. (shrink)

Motivated by advances in mass customization in business practice, explosion in the number of internet of things devices, and the lack of published research on privacy differentiation and customization, we propose a contextual information relevance model of privacy. We acknowledge the existence of individual differences with respect to unique security and privacy protection needs. We observe and argue that it is unfair and socially inefficient to treat privacy in a uniform manner whereby a large proportion of the population remain unsatisfied (...) by a common policy. Our research results provide quantifiable means to measure and evaluate the customized privacy. We show that with privacy differentiation, the social planner will observe increases in demand and overall social welfare. Our results also show that business practitioners could profit from privacy customization. (shrink)