The Cornell Hospitality Report, 'Data-driven Ethics: Exploring Customer Privacy in the Information Era,' by Erica L. Wagner and Olga Kupriyanova proposes an ethics-based approach to protect those personal data. Wagner, an assistant professor at the Cornell University School of Hotel Administration, and Kupriyanova, a recent graduate of the Cornell Hotel School, conducted their study among registered users of the Cornell Center for Hospitality Research website. The Report is available at no charge from the center's website at http://hotelschool.cornell.edu/research/chr/pubs/reports/2007.
In their study, Wagner and Kupriyanova found an almost fatalistic belief by many respondents that their personal data would be exploited contrary to their personal wishes. Long-term storage of their data especially bothered many respondents. That concern was not offset by the privacy policies found on most hospitality companies' websites.
'Frankly, we found that almost no one reads privacy policies,' said Wagner. 'One reason is that most policies are written in impenetrable legalese, and many customers can't be bothered. Instead, we suggest that hospitality firms make a straightforward statement of how personal data will be used upfront and then move into the more nuanced points -and that statement should be based on an ethical stance of acting in a trustworthy fashion. The basic principles that we suggest are to minimize harm, offer respect, and operate consistently. Doing so will likely manage reputation risk and build customer loyalty over the long term.'
One intriguing finding of the study is that respondents were less concerned about companies' acquiring identity-related information than what companies learned about the consumers' buying habits and preferences in the course of monitoring their commercial transactions. One reason that many respondents were unhappy that personal data could be stored long-term was the ability of companies to profit from this information by sharing data or selling data to third parties.
Respondents came principally from North America, Europe, and Asia. While these diverse respondents held many views in common, they split on government's use of personal data. Those from North America were highly concerned about government's collection of their personal data, while those in Europe seemed unfazed by the idea of government collecting their information. Europeans, however, are protected by strong European Union rules relating to personal data, while no such rules exist in the United States. The report suggests that as the U.S. government invests more heavily in acquiring privately held data, it is important for the hospitality industry to develop an ethical stance related to data handling.
Thanks to the support of the partners listed below, all Cornell Hospitality Reports and Tools are made available free of charge from the Center's website, www.chr.cornell.edu.
About The Center for Hospitality Research
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the Center's 57 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The Center also publishes the award-winning hospitality journal, the Cornell Hotel and Restaurant Administration Quarterly. To learn more about CHR and its projects, visit www.chr.cornell.edu.
CHR Partners and sponsors: AIG Global Real Estate Investment, Denihan Hospitality Group, Expedia, Inc., Four Seasons Hotels and Resorts, HVS International, JohnsonDiversey, Inc., Kohinoor Group, LRP Publications, Marriott International, Inc., Marsh's Hospitality Practice, Mobil Travel Guide, Nestlé, PricewaterhouseCoopers, Proskauer Rose LLP, Smith Travel Research, Southern Wine and Spirits of America, Inc., SynXis (a Sabre Holdings Corporation), Taj Hotels Resorts and Palaces, Thayer Group of Companies, Travelport, and Wimberly Allison Tong & Goo.
CHR friends: 4Hoteliers.com • Caribbean Hotel and Restaurant Buyers Guide • Cody Kramer Imports • Cruise Industry News • DK Shifflet & Associates • ehotelier.com • Estrela Marketing Solutions • Fireman's Fund Insurance Company • Gerencia de Hoteles & Restaurantes • Global Hospitality Resources • Hospitality Confections • Hospitality Financial and Technology Professionals (HFTP) • hospitalityInside.com • hospitalitynet.org • Hotel Asia Pacific • Hotel China • HotelExecutive.com • Hotel Interactive • Hotel Resource • International CHRIE • International Hotel and Restaurant Association • International Hotel Conference • iPerceptions • KPMG Japan/Global Management Directions • Lodging Hospitality • Lodging Magazine • PKF Hospitality Research • The Resort Trades • RealShare Hotel Investment & Finance Summit • RestaurantEdge.com • Shibata Publishing Co. • The Lodging Conference • TravelCLICK • UniFocus • WageWatch, Inc. • WIWIH.COM
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