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Diminished or Just Different? A Factorial Vignette Study of Privacy as a Social Contract


  • Kirsten Martin



A growing body of theory has focused on privacy as being contextually defined, where individuals have highly particularized judgments about the appropriateness of what, why, how, and to whom information flows within a specific context. Such a social contract understanding of privacy could produce more practical guidance for organizations and managers who have employees, users, and future customers all with possibly different conceptions of privacy across contexts. However, this theoretical suggestion, while intuitively appealing, has not been empirically examined. This study validates a social contract approach to privacy by examining whether and how privacy norms vary across communities and contractors. The findings from this theoretical examination support the use of contractual business ethics to understand privacy in research and in practice. As predicted, insiders to a community had significantly different understandings of privacy norms as compared to outsiders. In addition, all respondents held different privacy norms across hypothetical contexts, thereby suggesting privacy norms are contextually understood within a particular community of individuals. The findings support two conclusions. First, individuals hold different privacy norms without necessarily having diminished expectations of privacy. Individuals differed on the factors they considered important in calculating privacy expectations, yet all groups had robust privacy expectations across contexts. Second, outsiders have difficulty in understanding the privacy norms of a particular community. For managers and scholars, this renders privacy expectations more difficult to identify at a distance or in deductive research. The findings speak directly to the needs of organizations to manage a diverse set of privacy issues across stakeholder groups. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Kirsten Martin, 2012. "Diminished or Just Different? A Factorial Vignette Study of Privacy as a Social Contract," Journal of Business Ethics, Springer, vol. 111(4), pages 519-539, December.
  • Handle: RePEc:kap:jbuset:v:111:y:2012:i:4:p:519-539
    DOI: 10.1007/s10551-012-1215-8

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    References listed on IDEAS

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    Cited by:

    1. Wei Zhou & Selwyn Piramuthu, 2015. "Information Relevance Model of Customized Privacy for IoT," Journal of Business Ethics, Springer, vol. 131(1), pages 19-30, September.
    2. Kirsten Martin, 2016. "Do Privacy Notices Matter? Comparing the Impact of Violating Formal Privacy Notices and Informal Privacy Norms on Consumer Trust Online," The Journal of Legal Studies, University of Chicago Press, vol. 45(S2), pages 191-215.
    3. repec:eee:jbrese:v:82:y:2018:i:c:p:103-116 is not listed on IDEAS
    4. Kirsten Martin, 2016. "Understanding Privacy Online: Development of a Social Contract Approach to Privacy," Journal of Business Ethics, Springer, vol. 137(3), pages 551-569, September.


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