Q$1-9$ What ethical issues might managers face in dealing with confidential information?

COLLAPSE

Q$1-9$ What ethical issues might managers face in dealing with confidential information?

Managers could face various ethical issues regarding confidential information from transparency, questionable motives, and oversharing.

Managers look to use information they have on hand like financial reporting or information from more senior leadership to make decisions for their team. These decisions could be a merger, staffing or adding new processes. It can be difficult to know exactly when to let their team know about important company and team changes when these changes can affect the team. Managers face an ethical dilemma when discerning when and how to inform on important company and team changes. Letting the team know too early or oversharing can lead to negative outcomes before the news is set in stone. Causing fear, anxiety, and gossip to spread. Not letting the team know essential information could lead to the team not getting valuable information that is needed to complete their jobs successfully.

Another issue managers could face is questionable motives. Managers can use financial statements or other insider information to make decisions. This information could be used for manipulation or for their own personal gain. This may cause a loss of trust and negative outcomes for the team and organization. In the article The Unexpected Benefits of Sarbanes$-$Oxley Act, it talks about combating things like manipulating information, using it for personal gain, fraud and making sure that financial information was made reliable for investors. The article also goes on to talk about how the SOX act improved internal controls, process, documentation, and compliance.

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