The Ethical Optimist

A recent report on Reuters UK wire discusses an interesting problem plaguing Brunswick Group, an international financial communications firm.  Apparently, one of the firm’s partners discussed confidential information with her husband, who is a former Lehman Brothers salesman.  He, in turn, tipped off friends and relatives about 13 impending mergers.

The partner was suspended pending an investigation, but Brunswick must now deal with the aftermath and the issue of trust with its clients, who include Alcoa and Dow Chemical.

According to the article:

There will likely be a crackdown at PR firms with such sensitive news, not only on who has access to in formation but where and when they have access.

 

Most firms Reuters spoke with said they are taking a second look at their policies for handling information considering tighter restrictions on taking documents home and access to computer systems. Most had already sent out policy reminders to their staffers and are consulting with their lawyers.

The article notes that many IR firms mandate regular training on client confidentiality…or so they say.  I’m not buying it.  My experience is that new hires sign an agreement and never look at it again.  Ethics training at many firms remains a joke and doesn’t come into play until after a problem, when the lawyers get involved. 

In fact, many firms question the ROI of ethics training.  I doubt the folks at Brunswick would question it.  On Friday, Dow Chemical suspended using the firm’s services. 

In a business where reputation is your bread and butter, ignoring or half-assed training on ethics and policy is foolhardy.