Compliance to the fair information practices: How are the Fortune 500 handling online privacy disclosures? Kathy Stewart Schwaig a, * , Gerald C. Kane b , Veda C. Storey c a Michael J. Coles College of Business, Kennesaw State University, Kennesaw, GA 30144, United States b Carroll School of Management, Boston College, 140 Commonwealth Ave, Chestnut Hill, MA 02467, United States c Robinson College of Business, Georgia State University, P.O. Box 4015, Atlanta, GA, United States Received 8 June 2005; received in revised form 26 June 2005; accepted 23 July 2006 Abstract Privacy concerns and practices, especially those dealing with the acquisition and use of consumer personal information, are at the forefront of global business and social issues associated with the information age. Our research examined the privacy policies of the Fortune 500 to assess the substance and content of their stated information practices and the degree to which they adhered to the fair information practices (FIP). From the observations, we developed a Privacy Policy Assessment Matrix that can be used to evaluate how well a firm addresses information privacy concerns. The matrix was used to analyze the Fortune 500 firms to understand their privacy maturity. The results provided practical and theoretical implications for addressing information privacy issues. # 2006 Elsevier B.V. All rights reserved. Keywords: Information privacy; Web surveys; Electronic commerce; Fair information practices; Ethics 1. Introduction As the use of computer and network technologies expands, so do concerns about the collection and sharing of personal information [4]. Collecting personal data allows businesses to track consumers’ online activities and obtain information on their interests and preferences. Personal data are valuable in helping companies tailor products and services to their customers’ needs [12]. Personal information captured and stored in corpo- rate databases is analyzed, manipulated, shared, and enhanced with other data, allowing organizations to develop customer profiles. Development of data mining and other data analysis techniques have created powerful tools for handling consumer information but such practices present a possible threat to the consumer’s privacy. Conversely, corporations are now better equipped to provide consumers with personalized service and products. Information privacy, therefore, is a complex issue. Consumers benefit when sound practices and safeguards are in place but when consumer personal information is used haphazardly, violations of rights occur. Concern over the appropriate collection and use of personal information continues to rise as e-commerce matures. Areas of particular concern include computer monitoring [1]; public data and access to it [9]; personal information privacy [10,20]; and individuals’ attitudes towards privacy on the Internet [14,15]. Numerous international policy guidelines exist to address these concerns. Most argue that consumers are www.elsevier.com/locate/im Information & Management 43 (2006) 805–820 * Corresponding author. E-mail addresses: kschwaig@kennesaw.edu (K.S. Schwaig), gerald.kane@bc.edu (G.C. Kane), Vstorey@gsu.edu (V.C. Storey). 0378-7206/$ – see front matter # 2006 Elsevier B.V. All rights reserved. doi:10.1016/j.im.2006.07.003