Confidentiality and Transparency in an Organization...

Confidentiality and Transparency in an Organization It is necessary that management of an organization must conduct itself to be effective so as to meet the expectations of operational transparency as well as to maintain confidentiality of information in order to foster a culture for good decision making. Management sometimes conflates and confuses confidentiality and transparency as two important, but seemingly opposite values. Organizations are expected to function in a transparent manner, but conducting business requires maintaining confidential information for legal and effectiveness reasons. Confidentiality needs to be balanced against the principle of transparency. All the organizations have to draw a line between transparency and confidentiality. It is important to understand the difference between the two terms and how they relate to each other. Transparency is the disclosure of information to the employees, public and other stakeholders for operational reasons as well as to indicate that the organization is managed well, functions in an ethical manner and handles its finances with efficiency and responsibility. It is part of a duty of obedience for the management. Transparency engenders goodwill amongst the stakeholders such as customers, suppliers, the directors, government, the service sector and employees. Transparency is also the mark of a well managed and mature organization committed to adopting and maintaining best practices. Confidentiality is the obligation and right not to disclose information to unauthorized individuals, entities, or processes if it would harm the organization, its business relationships, or an individual. It’s part of a duty of loyalty for the management. Transparency means ‘helping people to see into systems and understand why decisions are taken’. In other words, transparency refers to a quality of openness and candor. The confidentiality is defined as ‘an action in equity to restrain a person who has received valuable or sensitive...