The Impact of CPO Characteristics on Organizational Privacy Performance*

Abstract

As personal data breach reared up as a problem domestically and globally, organizations appointing chief privacy officers (CPOs) are increasing. Related Korean laws, 'Personal Data Protection Act’ and 'the Act on Promotion of Information and Communication Network Utili zation and Information Protection, etc.’ require personal data processing organizations to appoint CPOs. Research on the characteristics and role of CPO is called for because of the importance of CPO being emphasized. There are many researches on top management’s role and their impact on organizational performance using the Upper Echelon theory. This study investigates what influence the characteristics of CPO gives on the organizational privacy performance. CPO’s definition varies depending on industry, organization size, required responsibility and power. This study defines CPO as 'a person who takes responsibility for all the duties on handling the organization’s privacy,’ This research assumes that CPO characteristics such as role, personality and background knowledge have an influence on the organizational privacy performance. This study applies the part relevant to the upper echelon’s characteristics and performance of the executives (CE Os, CIOs etc.) for CPO. First, following Mintzberg and other managerial role classification, information, strategic, and diplomacy roles are defined as the role of CPO. Second, the Big Five taxonomy on individual’s personality was suggested in 1990. Among these five personalities, extraversion and conscientiousness are drawn as the personality characteristics of CPO. Third, advance study suggests complex knowledge of technology, law and business is necessary for CPO. Technical, legal, and business background knowledge are drawn as the background knowledge of CPO. To test this model empirically, 120 samples of data collected from CPOs of domestic organizations are used. Factor analysis is carried out and convergent validity and discriminant validity were verified using SPSS * This research was supported by the MSIP (Ministry of Science, ICT and Future Planning), Korea, and KISA