Kathleen Edmond, Best Buy's Chief Ethics Officer

I’ve blogged several times about the hazards of sharing sensitive company information with people or organizations outside the company.  Back in January, I wrote about the “expert network” phenomena and how Best Buy has a very clear policy against allowing employees to participate in such networks. More recently, I told the unfortunate story of a valued employee who made the mistake of sharing confidential documents in a job interview outside the company. Sadly, I now have another example, this one involving an employee who had been with the company for decades.

 As a Fortune 100 company and industry leader, Best Buy attracts frequent interview requests from all types of investment industry analysts. These analysts are looking for insights into the company’s strategic plans so they can offer better-informed investment guidance to their clients. Best Buy, as the other party to the conversation, sets strict rules of engagement for these interviews and coaches leaders on the types of things that can and cannot be said.

 Regrettably, a long-time Best Buy employee recently talked to an industry analyst a few times and intended only to share high-level observations and general comments. In the flow of the conversation, however, the employee inadvertently provided details that were not meant to be disclosed outside the company. These details and even direct quotes (minus the employee’s name, thankfully) later appeared in the analyst’s report.

 The employee honestly did not intend to give away company secrets and was not compensated in return.  However, the lapse of judgment, the potential damage to a vendor partner, and the specific responsibilities of the employee, resulted in the employee’s termination from Best Buy. My questions for you:

 1)    Why are information leaks so damaging to a company? What are the many potential ramifications of a situation like this?

 2)    Where is the line between transparency and confidentiality? In the ebb and flow of conversation, how can you know when you’re about to cross that line?

 3)    Analysts are not adversaries; their job is to gather, interpret and publish information. Conversely, our employees’ are expected to protect the information assets of the company. What, then, could Best Buy do to ensure something like this doesn’t happen in the future?

 4)    Do analysts have any obligation to help companies like Best Buy ensure that only the appropriate types of information are shared with the general public? Why or why not?

 5)    Did the employee’s lack of intent mitigate his actions in this case? Why or why not?