STRATEGIC USE OF INFORMATION PRIVACY FOR ORGANIZATIONAL SUSTAINABILITY STRATEGIC USE OF INFORMATION PRIVACY FOR ORGANIZATIONAL SUSTAINABILITY

Abstract

The purpose of this paper was to provide understanding about the strategic use of information privacy for organizational sustainability and also examine the relationship between information privacy and organizational sustainability. The baseline theory for this study was the restricted access and limited control theory (RALC), while the method used was the secondary methods where literatures were reviewed. The study findings revealed that, the strategic use of information privacy is vital for organizational sustainability as it protect individual's personal information from malicious users and boosts the confidence and trust the customers have for the organization. The study also found that administrative control and technical control have huge impact on building information privacy protection to achieve organizations sustainability that was measured by corporate reputation and stakeholder's satisfaction. The study concluded that there is a significant relationship between information privacy and organizational sustainability as well as the dimensions to the measures of the study. Based on the findings and conclusion, the study suggested that organizations and business firms should adopt strong administrative control and technical control as their strategies of ensuring information privacy protection in organization as it positively influence organizational sustainability, which can enable them achieved corporate reputation and stakeholder satisfaction.

Full text

STRATEGIC USE OF INFORMATION PRIVACY FOR ORGANIZATIONAL SUSTAINABILITY
Bestman, A. E., Chinyere, J. O., & Adebayo, A. A

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Vol. 9, Iss. 3, pp 517 – 527. September 27, 2022. www.strategicjournals.com, ©Strategic Journals
STRATEGIC USE OF INFORMATION PRIVACY FOR ORGANIZATIONAL SUSTAINABILITY
1 Bestman, A. E., 2 Chinyere, J. O., & 3 Adebayo, A. A.
1, 2, 3 Department of Office and Information Management, Faculty of Management Sciences, Rivers State
University, Nkpolu-Oroworukwo, PMB, 5080, Port Harcourt, Nigeria.
Accepted: September 21, 2022
ABSTRACT
The purpose of this paper was to provide understanding about the strategic use of information privacy for
organizational sustainability and also examine the relationship between information privacy and
organizational sustainability. The baseline theory for this study was the restricted access and limited control
theory (RALC), while the method used was the secondary methods where literatures were reviewed. The
study findings revealed that, the strategic use of information privacy is vital for organizational sustainability
as it protect individual’s personal information from malicious users and boosts the confidence and trust the
customers have for the organization. The study also found that administrative control and technical control
have huge impact on building information privacy protection to achieve organizations sustainability that was
measured by corporate reputation and stakeholder’s satisfaction. The study concluded that there is a
significant relationship between information privacy and organizational sustainability as well as the
dimensions to the measures of the study. Based on the findings and conclusion, the study suggested that
organizations and business firms should adopt strong administrative control and technical control as their
strategies of ensuring information privacy protection in organization as it positively influence organizational
sustainability, which can enable them achieved corporate reputation and stakeholder satisfaction.
Keywords: Information privacy, organizational sustainability, administrative control, technical control, policy
implementation, training, use of contract, access control, authentication, authorization, encryption,
corporate reputation and stakeholder’s satisfaction.
CITATION: Bestman, A. E., Chinyere, J. O., & Adebayo, A. A. (2022). Strategic use of information privacy for
organizational sustainability. The Strategic Journal of Business & Change Management, 9 (3), 517 - 527.

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INTRODUCTION
Information is a vital asset to any organization as it
enables them to make effective decisions that are
needed to carry out their daily operations. Hence,
the sustainability of any organization depends on
how successfully the information in the
organizations is managed. Some information is
considered more susceptible than the other. Hence,
organizations should be able to independently
determine the mode of access to information in the
organizations and also to protect individual’s
personal information in the organizations from
unauthorized intrusion. The rapid growth of
technology has made it possible for information to
be collected and analyzed as quickly as possible
without the knowledge of the organizations.
Therefore, how organizations managed their
information can influence how the organizations
are perceived by stakeholder and the general
public.
The merriam webster dictionary (n.d.) defined
privacy “as freedom from unauthorized intrusion”.
Pelteret and Ophoff (2016), stated that “Privacy is
a multi-disciplinary issue and therefore has a variety
of definitions”. However, Westin (1967, as in
Pelteret & Ophoff, 2016) defines privacy as the
“claim of individuals, groups, or institutions to
determine for themselves when, how and to what
extent information about them is communicated to
others”. He also posits that personal autonomy,
emotional release, self-evaluation, and protected
communication are the purpose of privacy.
Furthermore, Travani and Moor (2001), defined
privacy “as the fundamental about protection from
intrusion and information gatherings by others.
However, information privacy according to Serohin
(2021), “as the ability of an individual to
independently determine the scope and mode of
access to information about the way of his private
life”. Therefore, information privacy can also be
defined as the capability or capacity of an
individual, organization and institution to be able to
protect their information from unauthorized
intrusion. Hence, information privacy involved the
capacity to decide how information should be used
and collected as well as how information about the
organization is communicated to the public. Many
organizations have over the years experienced
customer loss to their competitors as a result of
many factors, such as speed of service delivery, and
quality of service provided (Bestman & Chinyere,
2021). Hence, organizations are looking for ways to
keep the business going and achieve sustainability.
Privacy breaches in organizations are one of the
major challenges for organizations that want to
survive in business or have an edge over its
competitors. Hence, there is need for them to be
strategic in other for them to achieve this goal.
Therefore, the strategic use of information privacy
is a necessity for organizational sustainability as it
can affect the ultimate success of the organizations.
Studies have explored a conceptual approach of
information privacy, privacy in the digital age;
others have focused on importance of information
privacy to consumers, individual and organization.
But just few have looked at the strategic use of
information privacy for organizational sustainability
and this study stand as one those few.
Problem
Information privacy involves the ability or capacity
of an individual, organization and institution to
protect their information from unauthorized
intrusion. Information privacy is very essential as it
enable organizations to protect their customers or
client private information in the organizations.
Thus, customers or client have this peace of mind
knowing that their private information is safe with
the organizations. Technological advancement has
made it easy for large amount of data to be
gathered and analyzed quickly. Therefore,
organizations need to put measures in place to
protect individual personal information stored in
the organizations. Proliferation of problems may
arise due to disclosure of individual vital
information in the organization within the public
space. These problems include inter-alia, loss of
customers trust, reputational damage; reduce
patronage, financial loss and loss of competitive

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advantage. Thus, the onus is on managers and
business owners to provide strong information
privacy protection to enable them to protect their
information from unauthorized intrusion that can
enable them achieve sustainability.
Figure 1: Conceptual framework of information privacy and organizational sustainability
Source: Research Desk, (2022).
Review of Relevant Literature
This literature attempts to discuss the various
literature related to information privacy, its concept
as a strategic means to achieve organization
sustainability. Through this review, literature will be
analyzed as a way of bringing new insights into the
problem studied. The literature review will be done
under the following headings
o Theoretical foundation
o Concept of Information privacy
 Administrative control
 Technical control
o Concept of organizational sustainability
 Corporate reputation
 Stakeholder’s satisfaction
o Strategic use of information privacy for
organizational sustainability
Theoretical foundation
The theoretical foundation of this study is hinged on
restricted access limited control (RALC) theory
propounded by Tavani and Moor (2001). This
theory merged two important element of privacy
which is restricted access and limited control into a
single concept. Thus, the combination provides the
necessary framework for privacy. The (RALC) theory
defined privacy “in terms of protection from
intrusion and information gathering by others
(through situations or zones that are established to
restrict access), not in terms of control over
information”. The RALC theory is a framework that
recognized the importance of the restricted access
theory which emphasizes the importance of using
privacy policies and setting up zones that enable
individuals to restrict others from accessing their
information. The theory also recognized the
importance of control theory in management of
privacy which involves an individual not having
absolute control over information about oneself,
rather they need to have a level of control with
respect to 3 key elements which are choice, consent
and correction. Hence, individual need some
control in their choice of actions that provide others
the degree of access the person desired which can
be from total privacy to total publicity (Tavani
2007). Therefore, individual can manage privacy if
they can control the consent process, for example
an individual can waive right to restrict others from
accessing certain kinds of information about him or
her, and lastly individual can managed privacy if
they can be able to access their information and
amend it if necessary. The RALC theory is used as
Stakeholder satisfaction
Corporate reputation
ORGANIZATIONAL
SUSTAINABILITY
INFORMATION PRIVACY
Administrative control
Technical control

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the theoretical foundation of this study as it enables
organization to understand how to manage
information privacy in the organizations.
Concept of Information Privacy
Crossler (2011), posits that information privacy is a
subgroup of the general concept of privacy, which
has been studied and deliberated for centuries.
Moore (2007), defined information privacy as “the
right of a person to control their personal data”. On
similar note, Serohin (2021), defined information
privacy “as the ability of an individual to
independently determine the scope and mode of
access to information about the way of his private
life”. Hence, information privacy can be defined as
the capability or capacity of an individual,
organization and institution to be able to protect
their information from unauthorized intrusion.
Information privacy involves the ability to decide
how information should be used and collected as
well as how information about individual is
communicated to the public. However, Bélanger et
al. (2002), specified that out of many definitions of
information privacy there is only a little adjustment
in the elements of the definitions, which typically
include some form of control over the prospective
secondary uses of one’s personal information.
Serohin (2021), stated that Information privacy
comprises of such control that enable a person to
keep confidential information about those facts,
phenomena and events that make up the content of
all other aspects of the privacy.
Information privacy is considered as an element of
the constitutional right to privacy, differentiated by
the aspects of private life and the method of its
objectification (Serohin, 2021). Information privacy
is very essential to organization. Therefore,
organizations need to put measures in place to
protect customers and client personal information
in the organizations. Technological advancement
has forced organizations to adopt and increased
their information privacy protections to enable
them restrict access and also stop leakage of
customers or client personal information that can
lead to privacy breaches in organizations so as to
avoid possible trouble in the organizations. Culnan
and Williams ( 2009), stated that privacy issues can
jeopardize the fiduciary relationship with
shareholders if the bottom line is affected as a
result of stock price declines, the loss of customers,
fines, or other costs incurred in addressing the
issues. Therefore, organizations need to be strategic
with the use of information privacy in order to
achieve organizational sustainability.
Administrative Control
Merriam-webster.com/dictionary (n.d.) defined
control as an “exercise restraining or directing
influence over”. Furthermore, Drucker (1974, as
cited in (Hamilton &Jaja 2008), defined control as a
function of management with the purpose of
ensuring that the activities in organizations are
engaged in such a way that desired results are
achieved. Therefore, control can also be seen as the
ability to decide how activities or actions are carried
out. However, Simons (1999, as cited in (Hamilton
&Jaja 2008), posits that administrative control
involves some administrative practices which tend
to set boundaries and guidelines for activities at the
workplace. Merri ( 2013), suggested that
administrative controls include; policies, awareness
and training, on-screen wording that clearly
describes to end users how applications work,
suitable use agreements, and contracts. Hence,
administrative controls are those exercise or
practices carried out by managers of organizations
that incline restrictions, boundaries, limitations and
procedures for activities in the organizations.
Administrative control is a necessity for information
privacy in organizations; these controls include
policies implementation, training and use of
contract.
 Policies Implementation:
Merriam-webster.com/dictionary (n.d.) defined
policy as “a set of guidelines or rules that determine
a course of action”. Ansoff’s (1974, as cited in
(Hamilton &Jaja 2008) defined policy as situational
decision, because managers have specified a
particular response to a defined set of conditions

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whose nature is well understood although their
occurrence cannot be specified in advance.
Furthermore, Urieto (1999, as cited in (Hamilton
&Jaja 2008) stated that organization policies are
statements that guide the activities or actions of
members in specific situations. Therefore, policy
can also be defined as set of rules or plans that pilot
the activities of members in organizations.
Organizations need to create policies to ensure that
workers that have access to people personal
information in the organizations do not disclose the
information to third party or use the information
for secondary purpose. Therefore, policies for
information privacy should be created and also be
implemented in organizations to ensure the
effectiveness of the policy. Okoli and Onah (2003),
suggested that policy implementation is the process
of deciphering policy into actions and
presupposition into results through various task and
programs. Nwankwo and Apeh (2008), also asserts
that the implementation of a policy is the most
important phase in the policy process because this
stage can determined the success or failure of a
policy. Policy failures result from unsuccessful
implementation (Nweke 2006).
 Use of Contract
Solan (2007), posits that contract is an obligation
involved by the mere force of law to two or more
parties, usually words, which usually accompany or
represent a known intent. Furthermore, Genc
(2002, as in Gagula & Lokovic 2017), stated that a
contract is an agreed declaration, statement or
speech of two or more parties with corresponding
legal effects, which create or repeal the
corresponding legal obligations. A contract can also
be seen as an agreement between two or more
parties that is to be bound by law. However, it
should be noted that, for a contract to be valid, the
following must be available, which are; offer,
acceptance, consideration and an intention for the
agreement to have a legal consequence in the case
of a breach. This fact distinguishes a contract from a
mere agreement. Hence, organization needs to
adopt the use of contract and non-disclosure
agreement for employees in organizations to agree
not to disclose confidential information that they
have access to or shared within the organization to
anyone as an essential part of doing business, this
methods of privacy protection is necessary for
organizations that want ensure the protections of
individual personal information in the hands of
people that have access to the information not to
use it for secondary purpose in order to achieve
information privacy in the organizations.
Technical Control
These controls are executed into information
technology infrastructure that are used to process
personal data. Technical controls carry out several
acute functions, which include preventing
unauthorized persons from gaining access to the
system and also been able to detect when a
security violation has occurred on the system. The
technical controls include; access control and
encryption
 Access control
Access control is used on systems or
applications that are restricted to certain
people. The access control consist of some
attribute, information credentials,
properties or privileges that may identify an
entity in order to determine the access
privileges of the system or entity (Mbanaso
& Cooper, 2018). Access control include;
authentication, authorization.
Authentication:
Mbanaso and Cooper (2018) posit that
authentication addresses the concept of
proving and confirming an identity claim by
an entity. On a similar note, Singh and
Manimegalai (2015), also stated that
authentication “is the act of confirming the
reality of an aspect of an entity”.
Authentication can also be seen as a
process of endorsing the user‘s identity (Lal
et al., 2016). It involves confirmation or
verification of connection already
established in the system. The
authentication methods include; password,

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smart card and biometrics, all types of
authentication mechanisms allows user to
get access to the system however they all
work differently.
Authorization:
Mbanaso and Cooper (2018), suggested
that authorization is “the process of
assigning privileges or credentials and the
determination of whether the capabilities,
privileges or credentials of an authenticated
system are sufficient to perform certain
actions or functions on a system”.
Authorization can also be seen as the
process by which a system decides if the
user has permission to use the system or
access the system.
 Encryption
Olufohunsi (2019), defined encryption “as the
process of converting information or a message
which is referred to as plain text into a difficult
unreadable form called cipher text by using an
encryption algorithm (Bassel)”. Furthermore, Singh
and Manimegalai (2015), also defined encryption as
the process of renewing or modernizing plan text
into cipher text. Encryption was used up in
communication among business partners to avoid
third parties or spies from listening in the ancient
days. Presently, encryption is used in organizations
to help protect and secure their data from hackers.
Encryptions and decryption are used in achieving
privacy (Singh & Manimegalai, 2015).
The Concept of Organizational Sustainability
According to Colbert and Kurucz (2007),
sustainability is the ability to “keep the business
going”, on a similar note Boudreau and Ramstad
(2005), suggested that sustainability can be seen as
the act of “achieving success today without
compromising the needs of the future”. However,
Neubaum and Zahra (2006), defined organizational
sustainability as the ability of an organization to
encourage and support growth over time by
successfully meeting the expectations of various
stakeholders. Furthermore, Hart and Milstein
(2003), referred organizational sustainability as the
involvement of organizations in the process of
accomplishing human development in an equitable,
and secure manner by delivering simultaneously
economic, social, and environmental benefits. Thus,
organizational sustainability can also be seen as the
ability of organizations to be consistent in their
mode of operation in order to survive over a long
period of time. Sustainable organizations are the
ones whose attributes, activities and actions are
projected to bring a desirable future-state for its
stakeholders (Funk, 2003).
According to the Chartered Institute of Personnel
and Development (CIPD, 2012), the goal of
sustainability in an organizational context is “the
principle of enhancing the societal, environmental
and economic systems within which a business
operates”. Organizational sustainability is very
necessary for organizations that want to survive on
the long runs as it gives organizations a competitive
advantage over their competitors. Organizations are
looking for ways to remain in business. Hence they
are adopting sustainable approaches or practice to
their activities for them to last long in the business.
White (2009), stated that depending on the
condition, an organization might focus on the social
or environmental aspects of sustainability.
Furthermore, organizations must have a strategy
prepared to encourage them carryout their
activities responsibly. The strategy comprises of
several aspect which include the ethical aspect and
operational aspect (White, 2009).
Corporate Reputation
Pires and Trez (2018), defined corporate reputation
“as a resource that generates competitive
advantage”. Corporate reputation reduces the risk
of customers and investors leaving the
organizations, rather it boosts the confidence of
those partnering with the firm and encourages
them to do more. Organizations with good
corporate reputation are perceived to be the best in
their services and product delivery in the industry,
which increase the performance of the
organizations. Corporate reputation is a very crucial
factor for organizations aiming to build trust and

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win the heart of potential customers, client and the
general public. Verhoeven et al. (2012), stated that
corporate reputation can build the stakeholder
trust as well as win the heart of a potential
customers, or investor while introducing or a
encouraging stakeholders to partner with the
organizations or patronize the organization.
Brammer and Pavelin (2004), posits that
stakeholders make abnormal returns when
purchasing stocks of organizations whose
reputation has risen significantly. Hence, corporate
reputation is a necessity for organizations that want
to survive at the long run in business as it provides
lots of patronage from customers as well as trust on
their services and product delivery.
STAKEHOLDER’ SATISFACTION
Bourne (2005), posits that stakeholders are
individuals that are interested or have ownership in
the project. Stakeholder can also be seen as
individuals who have direct relationship with the
organizations or individuals who are affected
somehow by the organizations action. Huemann et
al. (2013), suggested that project personnel,
suppliers, partners, communities, as well as
economic, social and ecological perspectives are
considered stakeholders in the organization.
Stakeholders of an organization contribute to the
organization in the form financial support,
knowledge, ideas and feedback and they include;
employees, customers, suppliers, investors and
community.
Stakeholder satisfaction refer to the feeling of
excitement that stakeholder have about the
realization of organizations goals and objective.
Stakeholder satisfaction can also be seen as the
happiness that stakeholders derived when
organizations goals meet or exceed their
expectation. Susnienė and Vanagas (2017), stated
that stakeholder satisfaction is fundamental for
organizations as it enable them get license to
operate and produce output, to gain resources,
build trust and become competitive and successful
from the long-term perspective. Stakeholders’
satisfaction is essential to organization as satisfied
stakeholders expected to support the organizations
in creating value. Ramaswamy and Ozcan (2014),
stated that stakeholder’s satisfaction has been
identified as key to co-create value in the long term.
They also noted that in any organizations the
employees are very important as well as the
customers. Beaulieu (2002), suggested
organizations and business owners should see their
stakeholders as an essential part of their business
environment and should be given special attention
so as to ensure benefit. Hence, stakeholder
satisfaction is very necessary for organizations
sustainability as it provide organizations with the
ability to create new ideas as well as innovation for
the organizations to keep going.
Strategic use of Information Privacy for
Organizational Sustainability
Information policy is very vital to any organization
that wants to survive at the long run in business;
how a firm manages information can be determined
how the firm is perceived by the public. Therefore,
organization needs to ensure the use of information
privacy protection to guarantee the safety of the
information in their custody. Organizations need
information privacy to protect the personal
information of their employees, customers and
stakeholder from intrusions and malicious users to
avoid identity thief and been scammed. Pelteret
and Ophoff (2016), stated that plenty issues can
arise from the inappropriate use or poor protection
of consumers’ privacy and the concern about these
issues can also affect their decisions about the
organizations. Therefore, lack of information
privacy in organization can makes the customers
reduces patronage from the organization and also
causes reputational damage that can affect the
organization sustainability.
The rapid growth of information technology has
made it easy for information to retrieved,
assembled and scrutinized quickly without any
permission or awareness of the organizations which
can lead to breaches in privacy. Privacy breaches
can lead to lower customer trust in a firm (Nofer et
al., 2014).Thus, the strategic use of information

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privacy is very necessary in organization as it can
make them to escape heavy fine attached to privacy
breaches which can result to large amount of
financial loss and also reputational damage that can
affect the organizations survival. Hence,
information privacy in an organizations can help
organizations to build good reputation in the
industry that can enable them have the ability to
generate profit. Culnan and Williams (2009), also
stated that privacy issues can jeopardize the
fiduciary relationship with shareholders if bottom
line is affected as a result of stock price drop, the
loss of customers, fines, and other costs incurred in
addressing the issues. Hence, information privacy
can contribute to the key performance indicator
and is a necessity for organizations that want to
achieve sustainability.
Strategic use of information privacy in organization
can increase trust and also boost the confidence of
the individuals whose private information is stored
in the organization because they believe that their
information is safe with the organization. Thus, it
shows that the organizations are reliable and trust
worthy and it will increase patronage and loyalty in
the organizations that can help achieve
sustainability in the organizations. Furthermore,
Barney and Hansen (as in Pelteret & Ophoff, 2016),
stated that “Building trust can lead to competitive
advantage, particularly if competitors are not seen
as being as trustworthy and the attributes that lead
to trustworthiness are difficult to imitate”.
METHODS
The method used in this paper is the secondary
data collection method from the relevant sources of
research, scholarly works, articles and government
sources. This information was intensively reviewed
to gather the needed information that will help to
identify and provide solution to the problems of the
study in order to achieve sustainability in
organizations.
Discussion of findings
Based on the literature reviewed, the study findings
revealed;
1. The strategic use information privacy for
organizational sustainability is vital. This was
confirmed by Pelteret and Ophoff (2016),
stated that plenty issues can arise from the
inappropriate use or poor protection of
consumers’ privacy and the concern about
these issues can also affect their decisions
about the organizations. Culnan and Williams
(2009), also stated that privacy issues can
jeopardize the fiduciary relationship with
shareholders if bottom line is affected as a
result of stock price drop, the loss of
customers, fines, and other costs incurred in
addressing the issues.
2. There is a significant relationship between
administrative control and organizational
sustainability. This was confirmed by Simons
(1999, as in (Hamilton &Jaja 2008), posits that
administrative control involves some
administrative practices which tend to set
boundaries and guidelines for activities at the
workplace. Hence, administrative controls are
those exercise or practices carried out by
managers of organizations that incline
restrictions, boundaries, limitations and
procedures for activities in the organizations.
Strong administrative control is a necessity for
information privacy in organizations.
3. There is significant relationship between
technical control and organization
sustainability. This was confirmed by Mbanaso
and Cooper (2018) posit that authentication
addresses the concept of proving and
confirming an identity claim by an entity. This
control is a necessity for information privacy in
organizations.
CONCLUSION AND RECOMMENDATIONS
This paper successfully established that information
privacy is very essential in any organization as it
protect individual personal information that are
stored in the organizations. Information privacy
protections help organizations restrict access and
also stop leakage of customers or client personal

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information that can lead to privacy breaches in
organizations so as to avoid possible trouble in the
organizations. Hence, information privacy is a
crucial factor for organizations sustainability. The
study concluded that administrative control and
technical control are vital ways of ensuring
information privacy in organizations. Therefore they
should be given significant attention by
organizations. Based on the findings and conclusion,
the study suggested the following;
1. Organizations are encourage to have strong
administrative control in ensuring information
privacy in the organizations such as; policy
implementation, and use of contract such as
non-disclosure agreement will go to a great
length in ensuring that people that have access
to individual personal information in the
organizations do not use it for secondary
purpose other than it main purpose for which
it was collected.
2. Organizations are encouraged to have
technical control in the organization to ensure
privacy protection. Technical controls carry out
several acute functions, which include
preventing unauthorized persons from gaining
access to the system and also been able to
detect when a security violation has occurred
on the system, technical controls such as
access control and encryption.
Contribution to knowledge
The study based on reviews, authenticated the
purpose of the study, which is the strategic use of
information privacy for organization sustainability.
The study also validated the dimensions of this
study as confirmed drivers of information privacy as
well as the measures of organizational sustainability
which are corporate reputation and stakeholder’s
satisfaction.
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