1.2

However, in spite of these apparent benefits the transition to the E-Economy has not been without problems. For many organisations there is continuing uncertainty over which operating model to adopt, and the rather intimidating lessons of some high profile failures. The global E-Business environment will continue to pose difficult and far-reaching management challenges to leaders of online businesses.Some of these challenges are already evident and have a profound effect upon the "ways of doing business". Among them, and of paramount importance, is the issue of "How E-Business can maximise its value to consumers and simultaneously retain their trust and confidence?" Building consumer trust and confidencerequires thoughtful analysis of the nature of the relationship between buyers and sellers. Not only are consumers concerned about sellers offering quality products and services, they are also concerned about their ability to exercise control over the use of their personal data. This is an issue that relates to an organisation's ability to respect and protect the personal data entrusted to it by consumers. In the E-Business environment, protection of online consumers' E-Privacy is a critical management responsibility. In any E-Business initiative, that duty has increasingly become a key determinant of business success.

1.3

The protection of personal data privacy is a corporate imperative worthy of the attention of the CEO. This does not mean that the responsibility rests solely with the CEO, but that a measured response to personal data privacy needs to be a top-driven.
In the USA the CEO may be assisted by a Chief Privacy Officer, a relative newcomer to corporate ranks. The consequence of this development is evident in management thinking and commitment to best privacy practices.

1.4

In the context of E-Business, E-Privacy has to be established as a core value that connects organisational culture with the best interests of the consumer. The value of E-Privacy can be viewed as an important indicator of business success. Worldwide, many high profile business failures are attributable to the lack of recognition accorded E-Privacy, and the lack of commitment to it as a consumer issue. The consequences of this oversight can lead to an erosion of consumer loyalty, negative publicity, and the loss of potential business. Such effects may directly and adversely affect stock price and market share.Not the least of these consequences though is the risk of litigation. If the early experience of the USA is any guide then there is likely to be growing sensitivity in Hong Kong around the rights of the individual insofar as their personal data are concerned. If these rights are violated then it is reasonable to anticipate that individuals will seek reparation for an alleged infringement.

1.5

E-Privacy is also a critical management consideration in evaluating and implementing
E-Business initiatives, plans and proposals. Effective E-Privacy planning and implementation requires the enterprise to adopt a systematic approach. Activities in the implementation cycle involve four components:

• E-Privacy Drivers
• E-Privacy Strategic Planning and Privacy Impact Assessment
• The Implementation of E-Privacy Strategies
• The Pursuit of Excellence in E-Privacy.

1.6

These components are the foundation to building an E-Privacy Policy framework for E-Business. The effectiveness of E-Privacy Policy needs to be evaluated against the following criteria.

• The extent to which it reflects and reinforces a commitment to E-Privacy as a core value.
• The extent to which it upholds the concept of informed choice and consent regarding the purposes for which a customer's personal data may be collected and use.
• In the event of an alleged infringement, the provision of a mechanism that offers online customers an effective and efficient redress procedure.
• Accountability and transparency: saying what you will do, and doing what you say in terms of the protection of personal data entrusted to online business providers. In essence, the compliance measures adopted.

1.7

Having laid claim to the CEO's time, it is reasonable to ask what the pay-off from this investment in E-Privacy is likely to be? One answer to that question is that, as some commentators have observed, it is not whether an organisation can afford to adopt an E-Privacy Policy, and related practices, but whether it can afford not to do so. Simply put, the choice is no choice. There is a clear articulation of the pay-off from E-Privacy both in terms of competitive need, and the competitive advantage to be derived. The latter range from the bottom line, to building trust and confidence, to the long-term rewards of consumer loyalty.