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Potential Consequences of Noncompliance

Occasional Contributor
Posts: 16

Potential Consequences of Noncompliance

[ Edited ]

As part of my MS in Analytics program, I had an opportunity to discuss the potential consequences of noncompliance with confidentiality, ethics, and corporate policy as a data analytics professional. I chose the example of consequences to noncompliance to a corporate policy for financial professionals.


Per Anonymous (n.d.) Digimarc document referenced, it is clear from section XIII. disciplinary procedures that “consequences for violation include counseling, warnings, oral or written reprimands, probation, reduction in compensation or suspension without pay, demotions, suspension, termination of employment, and restitution."


In addition to the violator, others who are involved in wrongdoing will be subject to the same disciplinary procedure as mentioned above. In the same document, the company provides an opportunity for employees to report potential violations.


Such disciplinary measures are implemented in most companies to enforce compliance to confidential information, ethics, and corporate policies. Similarly, when an employee starts working for an organization, during the initial period, nondisclosure / confidentiality agreements, ethics policies and such are reviewed by company officers with new employee and evidence of review is recorded and retained by the organization.


In some cases, in several organizations, legal consequences to violations are reviewed by company attorneys (customer data, employee data, financial data as it relates to organizations) in the presence of human resource professionals to enforce formality and the seriousness of the conduct of business. As data professionals, it is imperative for us to ethically, legally, and socially uphold the agreements that we have signed with the employer.



Anonymous (n.d.) Code of Ethics for financial personnel-A message to employees

Community Manager
Posts: 3,357

Re: Potential Consequences of Noncompliance

[ Edited ]

Great thoughts @Murali11!


Employers also have an obligation to regularly train their employees on their ethics policies.  And to ensure that this training is completed thoroughly and timely by all employees who may come into contact with sensitive data.


Not only does such training increase confidence among employees (by reducing ambiguity of what behavior is permitted and what is not), it also helps to demonstrate that the company is diligent in training/enforcing policies.  This may help to reduce claims of negligence if an employee turns out to be a "bad actor."

Occasional Contributor
Posts: 16

Re: Potential Consequences of Noncompliance

Posted in reply to ChrisHemedinger


Your points are apt and much needed in today's business environment. As the ethics policies get understood by employees clearly and unambiguously, compliance to those policies would be much easier to administer and manage. Also, employees would be willing to comply with ethical policies if they are clearly understood.


Thank you for your comments. I appreciate it.




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