Executive Summary

Throughout the world, countries are facing the challenges associated with protecting citizens' information privacy while working to realize the potential of electronic government. While many of these governments are also striving to increase citizens' trust and confidence, technology and innovation continue to change the way individuals' personal information is collected, correlated, processed, communicated and traded as a valuable commodity. The literature in these areas gives evidence to the important and complicated roles that privacy and trust play in contemporary relationships, especially in interactions taking place in the online environment.

In order to learn how New Zealanders' experiences with, and concerns related to, information privacy affect the amount of trust they place in government organizations, three research projects collected data from New Zealanders: a series of eight focus groups comprising a variety of community groups, a survey of individuals who had submitted privacy-related complaints to the Office of the Privacy Commissioner, and a series of eight interviews with community representatives. The resulting data sets reflected a diverse range of attitudes about issues related to information privacy and the trustworthiness of government organizations.

The main findings of this study were:

• Participants' concerns about information privacy fell within two main categories: technology-related concerns (including the perception that there is greater potential for damaging privacy breaches, plus worries more closely associated with the Internet), and concerns specifically related to government organizations (including uncertainty about the training and competence of public servants, as well as concerns about the sharing of citizens' personal information among government organizations). While media stories were reported to be the primary cause of technology-related privacy concerns, worries about government organizations were more often the result of personal experiences and stories from family and friends.

• The majority of participants were unaware of their rights in relation to information privacy, were unlikely to be aware of the Privacy Act of 1993 (unless they dealt with this Act based on their occupation), and were largely unfamiliar with the obligations placed on organizations that request and collect their personal information.

• When providing personal information to government organizations, participants had the greatest confidence that their privacy would be protected if they provide their information in a face-to-face environment, followed by the post and then the Internet, with the least amount of confidence in the telephone. Participants reported that the most important confidence-promoting properties of channels were: some form of interaction with the recipient of the information (relationship), the ability to retain a record of the interaction, the ability to check the accuracy of the information being submitted, and the ability to understand how information is delivered to the destination.

• Although nearly all participants reported having low levels of confidence in the privacy and security of the Internet, many continue to use online services (e.g., online banking, electronic commerce websites, and online auction websites). Convenience was the most commonly cited benefit of using online services.

• The majority of participants reported having greater confidence that their privacy will be protected by government organizations in comparison to organizations that are not government. This was most often based on their perceptions about the objectives, motivations, transparency and accountability associated with government organizations.

• In discussing their attitudes towards government organizations, many participants emphasized that they believe they have little power in the relationships they have with these organizations (in contrast to their relationships with private businesses). This imbalance of power was said to contribute to beliefs that they have little control over what information government organizations have about them, and how their personal information is used.

• Most participants reported that they assess the trustworthiness of each government organization separately, and therefore, they trust some more than others. The factors that most significantly influenced individuals' assessment of organizational trustworthiness were: their personal experiences with the organization (and the resulting relationship), stories from family and friends, and stories from various media channels.

• In most cases, breaches of privacy appear to have an adverse effect on individuals' trust in the offending organization. While the majority of survey respondents reported that a breach by one government organization had diminished the amount of trust they had in government organizations in general, most focus group participants reported that a breach would only affect their attitude toward the offending organization. The factors most influential in determining the effect that a breach of privacy would have on trust related to: the perceived cause of the breach, the sensitivity of the information involved, the type of breach (e.g., improper disclosure), and the way the offending organization handled the situation.

In conclusion, government organizations are encouraged to ensure that privacy principles stated on their websites include information about how personal information is managed and protected when it is being requested for official purposes, as well as in the monitoring of website activity, while also ensuring that policies related to information privacy are well understood and observed by employees. A new model of communication between citizens and government organizations is needed in the e-government environment to ensure that citizens are able to maintain meaningful relationships with government organizations and develop trust in their interactions with these organizations through the Internet. This new model, based on ongoing research in the field, will better represent the necessary balance between the power of the state, and the empowerment of the individual which e-government claims to foster, and may help to promote citizens' confidence in the trustworthiness of government organizations.