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?Secure and Trustworthy E-Business (2)Filed Under: General

As far as the introduction of a new e-payment system is concerned, one should not underestimate the power of the media and reputable institutions in approaching consumers and assuring them of the system’s security. Since the average consumer is unlikely to be able to assess the objective security of, say, an encryption algorithm, this issue remains, to a large extent, one of trust – namely trust in familiar information sources. Thus, a well-orchestrated marketing effort would help give consumers enough pre-interactional trust to understand, accept and use the new E-Business system. Thus, security and trust mechanisms inhibit the free flow of business information required to achieve
the full potential of business benefits promised by E-Business investments.

Lack of trust is a significant problem for any E-Business – the parties evolved in the EBusiness
processes must feel trust in the people and companies doing business on the Internet. In many traditional business relationships, trust is based on a combination of judgement or opinion based on face-to-face meetings, or recommendations of colleagues, friends and business partners. However, the E-Business environment generally does not involve human interaction and, therefore, this new context requires a new understanding of trust. Trust must be established and managed continuously in a wide range of E-Business activities.

The basis of trust is in ethics, and the topic is frequently discussed in the context of social and democratic processes (Conte & Castelfranchi, 1995). It is also a fundamental requirement of economic activity where the behavior of people and organizations takes place in conditions of uncertainty (Jones & Wilikens, 2000). When one party is dependent on the behavior of another party, the uncertainties give rise to risks. The notion of trust within an E-Business environment involves having confidence in the other parties, and hence having an expectation that the risks will not result in financial or any other loss.

Taken From : Digital Economy – Impacts, Influences and Challenges