Presentation on theme: "Indicator 3.02 Use communication skills to foster open, honest communications."— Presentation transcript:
Indicator 3.02 Use communication skills to foster open, honest communications.
Impact of providing false or misleading information Law Suits Employee termination Customer Disloyalty Low Employee Morale
Potential impact of providing half-truths Deception Customer disloyalty Employee termination Loss of Profits Loss of Customer Goodwill
Providing information out of context can impact honest communications Due diligence is crucial as employees should get the facts first. Ask questions Do not make any assumptions.
Withholding information can be harmful Loss of Profits Lack of customer loyalty Law suits Fines
Topics that should not be discussed with a competitor Prices Products and services Business practices Territories Distribution Channels Customers
Topics that should be avoided with coworkers Religion Politics Personal Life Problems with your spouse, children or parents Your career aspirations Your health problems
Importance of a business’s proprietary information “Proprietary information is sensitive information that is owned by a company and which gives the company certain competitive advantages. Proprietary information assets are critical to the success of many, perhaps most businesses. The importance of this property, while too often not yet “formally valued” by many companies, is highly valuable. In today’s highly competitive global marketplace, it is recognized by many managers that the intellectual assets of business are highly sought-after commodities. Proprietary information, also known as a trade secret, is information a company wishes to keep confidential. Proprietary information can include secret formulas, processes, and methods used in production. It can also include a company's business and marketing plans, salary structure, customer lists, contracts, and details of its computer systems. In some cases, the special knowledge and skills that an employee has learned on the job are considered to be a company's proprietary information.” http://definitions.uslegal.com/p/proprietary-information
Examples of a business’s proprietary information “Financial information such as: production and overhead costs, profit margins, sales and order volumes prior to quarterly release, budgets, quotas and targets, information on a particular product's sales, orders or projections. Marketing information such as: product-introduction plans and dates, market share and competitive position, short- and long-term market strategy or customers. Research and Development information such as: technical and performance specifications, technical reports, product plans, projects in progress, project problems or product code names. Manufacturing information such as: vendor names/relationships, production and inventory levels, future plans and sites, material cost, product failure rates, chemical formulas, or manufacturing processes.” http://www.lib.utexas.edu/engin/guides/proprietary.html Examples of proprietary information include: –■ Written or oral agreements between the Company and employees, agents, strategic partners and/or other third parties, –■ Intellectual property – such as trademarks, patents, copyrights and trade secrets owned by the Company, –■ Company financial information (e.g., invoice registers, payroll records, financial statements, accounts payable summaries, vendor listings, price and cost information, etc.), –■ Financial and other business information about potential acquisitions, –■ Engineering drawings for current or potential new products, and –■ Customer lists and agreements, market share data, supplier agreements, strategic plans, etc.
Why employees should avoid posting company information in chat rooms, forums, or blogs “Employees who create blogs set up a direct way to communicate about their company with the public, because customers and clients can stumble across a blog. Bloggers may spill trademark or copyright material on their sites, they may post pictures of yet-to-be-released products, and they may libel or slander another employee or a client.” As a result, employees may be fired or reprimanded. Many companies are accessing blogs prior to hiring employees to gauge their ethical standards prior to be hired. http://www.usatoday.com/money/workplace/2005-06-14-worker-blogs- usat_x.htm
Need to follow company policy regarding communications with the media Higher morale Reduced employee turnover Stronger public image
Employee practices that would hamper confidentiality Leaks of information
Methods businesses use to protect their proprietary information “Need to Know” policies Password Protected Servers Non-disclosure agreements Restrictive Covenants Mark Documents “Confidential” Patents, Copyrights, and Trademarks