2.1.2: Confidentiality Protocols

• Confidentiality


  A promise to protect personal or business information from being shared more widely
• Types of confidential information in a business context

  • Customer data
  • Financial data
  • Business processes
  • Trade secrets such as recipes
  • Plans and strategies for the future
• Why confidentiality needs to be maintained

  • It is a legal requirement
  • To retain the reputation of the business
  • To retain a competitive advantage
• Data protection regulations, such as GDPR, prevent the sharing of personal information without permission</b>
• Businesses that are unable to maintain confidentiality will quickly lose the trust of stakeholders, and gain a poor reputation
• Procedures for maintaining confidentiality

  • Using a need-to-know basis
  • Using IT systems to restrict access
  • Including disclosure of confidential information as gross misconduct in the contract of employment
  • Using non-disclosure agreements
• Implications of breaching confidentiality

  • Individuals who breach confidentiality are likely to face disciplinary action, including the possibility of being dismissed
  • The business itself is likely to face legal action leading to financial penalties, in addition to damage to their reputation and/or loss of a competitive advantage
• When it is OK to breach confidentiality

  • Illegal activity where staff are suspected of acting illegally
  • Emergencies where it may be necessary to share personal data, e.g. to contact family members
• Maintaining confidentiality does have one significant problem for a business - it costs money
• Why do businesses need to maintain confidentiality?

  • Reputation
  • Legal requirement
  • Competitive advantage