U.S., Canadian firms have different views of privacy.

• Author: Swartz, Nikki
• Position: Up front: news, trends & analysis

Canadian businesses view privacy practices as an opportunity to improve relations with customers while U.S. firms see privacy measures more as a way of complying with legislation and avoiding lawsuits, according to a recent study conducted by The Ponemon Institute, an Arizona-based privacy think tank.

The study, the first to compare the corporate privacy practices of comparable Canadian and U.S. businesses, revealed that the two have vastly different attitudes and motivations when it comes to protecting customer privacy. For example, 61 percent of Canadian companies surveyed linked "good privacy practices" to customer trust and brand loyalty, compared to only 17 percent of U.S. companies.

The study, based on interviews with 36 large companies in Canada and the United States that spanned many industries, also found that Canadian companies were more likely to have dedicated privacy officers, resources, and training programs. Only 50 percent of U.S. companies surveyed had privacy-training programs, and 43 percent had privacy awareness activities for new employees, compared to 82 percent and 71 percent, respectively, in Canada. About three-quarters of Canadian companies assigned a senior executive as their privacy officer, compared to half of U.S. companies. In Canada, those officers were about twice as likely to be assigned on a full time basis and to have enough company resources to do the job properly, the study found. Canadian privacy officers are also more likely to report directly to a company's chief executive officer or chairman.

The study found that Canadian companies are more concerned with insider misuse of data and making sure third-party partners and suppliers respect privacy policies, whereas U.S. companies appear more focused on protecting data from outsiders, such as hackers.

Canada has made many strides in protecting...